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Escorts Kubota Plans to Invest up to Rs 4,500 Crore for New Plant Expansion Over Next 3-4 Years

Escorts Kubota Ltd will invest up to Rs 4,500 crore to double its tractor production capacity and establish a new manufacturing plant in Ghiloth, Rajasthan, signaling a significant expansion in its operations and commitment to growth and innovation in the farm and construction equipment sector.

Escorts Kubota Ltd, a prominent player in the farm and construction equipment manufacturing sector, has unveiled ambitious plans for expansion. According to the company's Director and CFO, Bharat Madan, Escorts Kubota is gearing up to invest a substantial sum of up to Rs 4,500 crore over the next three to four years. This investment aims to establish a state-of-the-art manufacturing plant, marking a significant milestone in the company's growth trajectory.

Escorts Kubota is currently engaged in discussions with the Rajasthan government regarding the selection of an appropriate site for the new plant in order to carry out this goal. Ghiloth has emerged as a potential location for the greenfield project, which has the potential to completely transform the company's production capacities.

The company's domestic tractor production capacity is expected to double as a result of the new plant, reaching an astounding 3.4 lakh units a year. Additionally, as part of the growth plan, new engine and construction equipment lines will be established and systematically rolled out in phases to guarantee maximum efficiency and operational synergy.

Escorts Kubota boasts a total annual tractor production capacity of 1.7 lakh units, with its primary manufacturing hub situated in Faridabad. The company's engine production capacity stands at 1.5 lakh units per annum, with Kubota engines currently being sourced through imports.

However, the forthcoming investment drive signals a transformative shift in the company's manufacturing sector, as it strives to localize production processes and boost self-reliance in key areas.

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