Escorts Kubota Explores Railway Business Sale Amidst Growth

29 Aug 2023 , 02:52 PM

Escorts Kubota, a prominent tractor manufacturer, is reportedly considering selling its railway business, per sources familiar with the matter shared with CNBC-TV18. The company has been engaged in discussions with potential investors to explore the possibility of divesting its railway division, although no official confirmation has been provided yet.

The company has achieved a solid year-to-date return of 41%. In the fiscal year 2023, Escorts Kubota experienced an impressive 33% year-on-year growth in its railway business revenue, reaching Rs 842 crore. This growth showcases the company’s ability to seize market opportunities in the railway sector.

Over the last decade, Escorts Kubota’s railway business has expanded significantly, contributing 10% to the company’s overall revenue. This substantial growth highlights the increasing importance of the railway segment in the company’s operations.

While Escorts Kubota has not officially confirmed the reports of the potential sale of its railway business, the company did acknowledge that it continues to explore various strategic options across its business lines.

Observers in the industry will closely monitor the situation to understand how Escorts Kubota navigates these strategic considerations, especially in light of its substantial growth and the ever-changing market landscape.

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