Escorts Kubota to Invest Rs 400 Cr in a greenfield manufacturing facility in Ghiloth, Rajasthan

8 Nov 2023 , 01:58 AM

Escorts Kubota Limited reported on Wednesday through an exchange filing that, in accordance with their Mid-Term Business Plan (MTBP), the business intends to buy property in Ghiloth, Rajasthan, for the construction of an integrated greenfield manufacturing facility.

Presently, Escorts Kubota Limited, with its joint venture firm, Escorts Kubota India Private Limited, has a capacity of 1.70 lakh units for tractors and engines.

When output at the joint venture Escorts Kubota India Private Limited is taken into account, the company’s current capacity was utilized at a rate of 71% in the fiscal year 2022–2023.

In Ghiloth, Rajasthan, Escorts Kubota Limited intends to purchase about 258 acres of land. A piece of this area will be used to create more tractor and engine production capacity, while the remaining portion will be set aside for future growth needs.

The proposed capacity augmentation is expected to be completed by the corporation by the end of the 2027–2028 fiscal year.

Escorts Kubota Limited anticipates spending about Rs 400 crores for the purchase of the land.

Internal accruals and the money from a previous preferential share offering to Kubota Corporation, Japan, will be used by the company to finance this project.

At 1:56 p.m. Indian Standard Time on Wednesday, Escorts Kubota Limited’s shares were trading at Rs 3,154.9, up 0.94%.

For feedback and suggestions, write to us at [e-mail]