CHENNAI: India's leading agriculture and construction equipment manufacturer Escorts Kubota began the construction of its greenfield manufacturing plant in Uttar Pradesh's Gautam Buddha Nagar district.
The plant, located in the industrial area of the Yamuna Expressway Industrial Development Authority (YEIDA) near Jewar airport, will span across 154 acres, with an investment of 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. It will manufacture tractors, farm implements, construction equipment and engines, and will cater to both domestic and global markets. It is also expected to generate significant employment opportunities in the region.
Phase 1 will 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 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 investments 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,” said Nikhil Nanda, Chairman and Managing Director, Escorts Kubota Limited.
Escorts Kubota has an existing manufacturing capacity of approximately 1,70,000 tractors and 10,000 construction equipment units per annum.