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UP Gears Up for ₹4,500 Cr Tractor Plant
18 Nov
Summary
- Land acquisition for new plant in UP is nearly complete.
- New Escorts Kubota plant to cost up to ₹4,500 crore.
- Production will include agricultural and construction equipment.
Escorts Kubota Ltd. anticipates commencing construction on its new greenfield project in Uttar Pradesh by the next fiscal year. The company's Whole-Time Director & CFO, Bharat Madan, indicated that the 190-acre land acquisition is expected to be finalized by March, with only 15 acres remaining. This substantial project, initially considered for Rajasthan, was relocated to Uttar Pradesh due to water requirements and will involve an investment between ₹2,500 crore and ₹4,500 crore across multiple phases.
The new facility is projected to generate employment for approximately 4,000 individuals, with commercial production slated to begin in the 2028-29 period. The plant will be equipped to manufacture both agricultural and construction equipment, with a significant portion designated for export markets. This expansion comes as Escorts Kubota aims to increase its tractor market share from the current 12-13% to cater to growing demand.
In parallel, Escorts Kubota recently launched advanced ride-on-rice transplanters, KA6 and KA8, in Chennai, targeting paddy-growing states. These Japanese-engineered models promise enhanced productivity and faster returns on investment. The company is optimistic about selling over 1 lakh tractors this fiscal, driven by favorable market conditions and government initiatives promoting agricultural mechanization, which is targeted to reach 75% by 2047.
