The farm equipment company has submitted an Investment Intent to the Government of Uttar Pradesh (GUP), seeking approval for land acquisition.
The latest announcement follows after it had earlier informed withdrawal of its plan to set up a new manufacturing plant at Ghiloth in Rajasthan due to failure to meet all the key requirements for a large-scale project.
Escorts Kubota reiterated its plans of a phased investment estimated at Rs 4,500 crore or more.
The company’s shares closed 2.13 per cent higher at Rs 3737.60 apiece on the BSE Sensex.
In a move aimed to bolster its operations, the company plans to acquire approximately 250-300 acres of land which will facilitate additional tractor and engine manufacturing capabilities.At full capacity, it is expected to generate an annual production revenue exceeding Rs 10,000 crore. Additionally, the facility aims to create direct and indirect jobs for over 14,000 people.The expansion project is set to be implemented in phases starting from 2028 and plans financing for this venture via the proceeds from a previous preferential share issue to Kubota Corporation, Japan, along with its internal accruals, Escorts Kubota said.
This investment intent is subject to receiving necessary clearances, it said.
Escorts Kubota, with an existing capacity of 1.70 lakh units for tractors and engines, including 50,000 units from its joint venture with Escorts Kubota India Private Limited, reported a capacity utilization of 66 per cent for FY24.