Farm and construction equipment maker Escorts Kubota announced on Wednesday a ₹2,000 crore investment to set up a new manufacturing plant in the YEIDA industrial area, Uttar Pradesh, according to a company regulatory filing reported by PTI. The plant, to be developed across 154 acres at Sector 10, Gautam Buddha Nagar, in the industrial area of the Yamuna Expressway Industrial Development Authority (YEIDA), will be one of the largest manufacturing facilities for its promoter Kubota Group across the globe, the company said.
Greenfield facility at YEIDA
According to the regulatory filing cited by PTI, the new plant will be developed in phases with a total indicative investment outlay of over ₹2,000 crore. It will manufacture tractors, farm implements, construction equipment and engines, and will cater to both domestic and global markets.
| Parameter | Detail |
|---|---|
| Total investment | Over ₹2,000 crore |
| Location | Sector 10, Gautam Buddha Nagar, YEIDA, Uttar Pradesh |
| Land area | 154 acres |
| First-phase tractor capacity | Up to 60,000 units per annum |
| First-phase construction equipment capacity | Up to 15,000 units per annum |
| Product range | Tractors, farm implements, construction equipment, engines |
Capacity expansion in phases
As part of the phased expansion, there will be a capacity expansion of up to 60,000 tractors and 15,000 construction equipment units per annum in the first phase, along with supporting infrastructure and allied facilities, the company said. PTI reported that the project will be funded from the proceeds of the earlier preferential issue of shares to Kubota Corporation and from internal accruals.
The new capacity will complement Escorts Kubota's existing manufacturing capacity of approximately 1,70,000 tractors and 10,000 construction equipment units per annum, according to the company's filing.
| Capacity (units per annum) | Existing | New first-phase |
|---|---|---|
| Tractors | ~1,70,000 | Up to 60,000 |
| Construction equipment | ~10,000 | Up to 15,000 |
Why India matters for Kubota
Shingo Hanada, President and Representative Director, CEO of Kubota Corporation, said in the announcement: "India is one of the world's largest and fastest growing tractor markets, and it plays a significant role in Kubota's growth strategy for the year 2030."
"This greenfield facility and its scale reflect the role we expect India to play. India is no longer only a market for Kubota. It is becoming a manufacturing and engineering hub for Kubota globally," said Shingo Hanada.
PTI noted the project is aligned with Kubota Corporation's mid-term business plan 2030, which identifies India as one of the group's growth drivers. The plan also sets out the intent to build a global hub for affordable manufacturing in India, the company said.
Management comments
Escorts Kubota CMD Nikhil Nanda said the company began in 1944 "with a simple conviction, that Indian farmers and builders deserve machinery built with the same rigour as anywhere in the world." He added: "This is one of the largest investments we have made in our own manufacturing capacity, and a defining moment in that journey. The plant will serve farmers and construction contractors across India and global markets, while strengthening the country's position as a manufacturing hub for the world."
Automation and integrated manufacturing
Escorts Kubota Ltd Deputy Managing Director Akira Kato said the new facility will be an integrated manufacturing campus with machining, assembly, testing, engines and a mother warehouse for spare parts on a single site. "We are embedding the Kubota production system, automation and digital quality control from day one, along with energy-efficient utilities and rigorous safety standards," he added.
PTI reported the announcement on August 19, 2026. The plant will be developed in phases, with the first phase expanding both tractor and construction equipment capacity for domestic and export markets.
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