Escorts Kubota plans new greenfield plant in UP

CHENNAI: Tractor and implements major Escorts Kubota is looking to add 100,000 units of fresh tractor capacity over the next three to four years. The company is in talks with the Uttar Pradesh govt for a green field site, said senior officials. Bharat Madan, CFO, Escorts Kubota, said: “We are looking at UP as a greenfield investment option and we are in advanced talks about this. If that proposal goes through, we will be spending Rs 450 crore to Rs 500 crore in FY26 on land acquisition.”The new factory, when functional, will add an additional 100,000 units of capacity for the company. “Currently our installed capacity is 170,00 tractors of which we are selling about 120,000 units now,” said Madan. “By the time the new capacity comes on stream, we will use up the installed capacity.” Apart from the greenfield plant, the company has also lined up capex worth Rs 400 crore in FY26.Escorts saw a 16% increase in standalone net profit for FY25 at Rs 1251 crore up from Rs 1081.6 crore the year before. Revenue from operations at Rs 10,187 crore was up nearly 5% from Rs 9,731 crore the year before. For Q4 net profit was Rs 251 crore up from Rs 248.5 crore in the year ago period. Revenue was up 6% at Rs 2430 crore up from nearly Rs 2,290 crore last Q4.The company is also ramping up its exports targeting a 25% jump in volumes in FY26. To that end, it is targeting new markets in Africa like Kenya, Tanzania and Madagascar as well as Asian markets like Turkey. Currently the company exports to European markets like Belgium, UK, the Netherlands and several east European markets apart from Asian markets like Sri Lanka, Bangladesh, Nepal, Myanmar, Cambodia and Thailand.“We don’t have exposure to US markets right now, but we have plans in future,” said Madan.The tractor industry, he added, is looking at a positive outlook for FY26 when it should cross a million units. “If the monsoon is average with raw material prices soft and interest rates down (enabling improved financing opportunities) it will be good for the market,” he added.