Escorts Kubota Launches New Greenfield Plant in Uttar Pradesh
Escorts Kubota Limited has commenced work on a new greenfield manufacturing unit in Sector 10, Gautam Buddha Nagar, in the vicinity of the Yamuna Motorway Industrial Development Authority (YEIDA), Uttar Pradesh. The facility will be constructed on 154 acres over several phases.
Escorts Kubota will invest Rs 2,000 cr more in UP
Escorts Kubota would invest Rs 2,000 crore in the new production unit. The project is part of the company’s strategy to improve its manufacturing capacity and support its long-term growth. Upon completion of all the phases, the factory is planned to be one of the largest manufacturing sites in the Kubota Group worldwide.
The plant will produce tractors, farm tools, construction equipment and engines. These products will be available in Indian and global markets. The expansion of the plant is also expected to produce a lot of jobs in the area.
Phase 1 to Increase Tractor Capacity by 60,000
The plant will add up to 60,000 tractors and 15,000 construction equipment units to the production capacity annually in the first phase. Other facilities and supporting infrastructure will also be created in this phase.
The project will be financed by the proceeds from the previous preferential share offering to Kubota Corporation and the company’s internal funds. Escorts Kubota already has a manufacturing capacity of about 1,70,000 tractors and 10,000 construction equipment units a year.
Location of the plant Near Noida International Airport
The property was given by YEIDA and Escorts Kubota acquired a Letter of Intent from the Government of Uttar Pradesh. The new facility is located near Yamuna Motorway and close to Noida International Airport at Jewar. The site would be connected by road and air for distribution of products inside India and exports to other nations.
The plant will also get the National Capital Region (NCR) engineering and supply network.
Plant to Back Kubota’s Global Plans
As part of Kubota Corporation’s Mid-Term Business Plan 2030, India has been identified as one of the main growth areas for the business in the new facility.
“India is one of the largest and fastest growing tractor markets in the world,” said Shingo Hanada, President, Representative Director and CEO, Kubota Corporation. The new plant underscores the growing importance of India in Kubota’s goals and its desire to make India a manufacturing and engineering base for the firm, he said.
"This new facility is among the largest investments we have made in manufacturing capacity," stated Nikhil Nanda, Chairman and Managing Director, Escorts Kubota Limited. The plant will cater to farmers and building contractors in India and outside markets, he added.
Integrated plant for the production of tractors and equipment
“The new facility will be an integrated manufacturing campus,” said Akira Kato, Deputy Managing Director, Escorts Kubota Limited. It will be a mother warehouse, a one-stop shop for machining, assembly, testing, engine production and spare parts.” The company will deploy the Kubota Production System, automation and digital quality control from the outset. The plant will also feature energy-efficient utilities and safety features.
The new factory is projected to boost Escorts Kubota’s manufacturing capacity in the coming years and support the company’s goals for the Indian and worldwide markets.
