The new plant will be developed in phases with total indicative investment outlay of over Rs 2,000 crore. Upon completion of all phases, it will be one of the largest manufacturing facilities for the Kubota Group across the globe, the company said in a statement.
Escorts said the new plant is part of its strategic capacity expansion.
The project is aligned with Kubota Corporation’s Mid-Term Business Plan 2030, which identifies India as one of the Group’s growth drivers. The plan also sets out the intent to build a global hub for affordable manufacturing in India.
Escorts Kubota has an existing manufacturing capacity of approximately 1,70,000 tractors and 10,000 construction equipment units per annum.
The new plant will manufacture tractors, farm implements, construction equipment and engines, and will cater to both domestic and global markets.
The company said the plant is expected to generate significant employment opportunities in the region as it is built out.
Phase 1 shall witness capacity expansion of up to 60,000 tractors and 15,000 construction equipment units per annum, along with supporting infrastructure and allied facilities. The project will be funded from the proceeds of the earlier preferential issue of shares to Kubota Corporation and from internal accruals.
YEIDA allotted the land to the company, following a Letter of Intent with the Government of Uttar Pradesh. The site lies near the Yamuna Expressway, close to the Noida International Airport at Jewar.
The location combines road and air connectivity for pan-India distribution and exports with access to the engineering and supplier base of the National Capital Region.
“India is one of the world’s largest and fastest growing tractor market, and it plays a significant role in Kubota’s growth strategy for the year 2030. This greenfield facility and its scale reflect the role we expect India to play. India is no longer only a market for Kubota. It is becoming a manufacturing and engineering hub for Kubota globally,” said Shingo Hanada, President and Representative Director, CEO, Kubota Corporation.
“This is one of the largest investment we have made in our own manufacturing capacity, and a defining moment in that journey. The plant will serve farmers and construction contractors across India and global markets, while strengthening the country’s position as a manufacturing hub for the world,” Nikhil Nanda, Chairman and Managing Director, Escorts Kubota Ltd, said.
“This is an integrated manufacturing campus. Across its multiple phases, it will considerably increase our capacity from today’s levels. Machining, assembly, testing, engines and a mother warehouse for spare parts will sit on a single site. We are embedding the Kubota Production System, automation and digital quality control from day one, along with energy-efficient utilities and rigorous safety standards,” said Akira Kato, Deputy Managing Director, Escorts Kubota.
