Escorts Kubota to set up new UP plant with 60,000-tractor capacity

Escorts Kubota  | Photo Credit: Kesavan A N 1612

Escorts Kubota plans to begin construction of a tractor facility in Uttar Pradesh early next fiscal year, with an initial capacity of 60,000 units that can be scaled up to one lakh units, as it prepares to expand production and tap future growth opportunities, a top official said.

In an interview with PTI, Escorts Kubota Ltd Chief Financial Officer Bharat Madan said the proposed facility near Jewar airport is expected to take around two and a half years to complete.

"I think in the next year we are starting the commercial construction of the greenfield facility which will be for another 60,000 tractors in phase one and we hope to complete that in the next 2 to 2.5 years," Madan said.

The capacity addition comes as the company is currently operating its tractor business at around 80-85 per cent average utilisation, with production utilisation touching nearly 90 per cent during the high-season quarter.

Alongside the proposed manufacturing expansion, Escorts Kubota is seeing encouraging traction in businesses beyond tractors, particularly construction equipment and other farm mechanisation products.

Construction equipment volumes grew 53 per cent during the September quarter, while the harvesters and transplanters business registered growth of 20-30 per cent. The engine business also recorded double-digit growth during the year.

"Other than the tractor, all other business, including construction equipment, has done almost exceptionally well. It has almost grown 53 per cent in volume in this quarter. So I think these sectors will continue to do well," Madan said.

He also highlighted the performance of the company's harvesters and transplanters, alongside the engine and parts and services businesses.

While these segments have performed well, the tractor business has faced some near-term demand pressures due to uneven monsoon conditions, the El Niño effect and elevated input costs.

Madan said water scarcity in several paddy-growing states, including Telangana, Karnataka and Maharashtra, was affecting demand prospects, while states such as Jharkhand and Chhattisgarh were also expected to remain under pressure.

He expects tractor demand to begin recovering from the second quarter of the next fiscal year (July-September 2027), provided the monsoon is normal.

"I think tractor looks like this because of the bad monsoon and El Niño effect and this cost pressure. It has some temporary impact on the demand. So hopefully next year the recovery should start happening from the second quarter onwards, if the monsoon happens to be normal," he said.

He expects the company's financial performance to begin recovering from the fourth quarter, with margins likely to return to normal levels next year.

Published on November 15, 2026