₹4500 Crore Investment on Hold: Escorts Kubota Scraps Ghiloth Project

Escorts Kubota, a leading farm and construction equipment manufacturer, will not build a new facility in Ghiloth, Rajasthan. Because their intended large-scale project did not meet all fundamental requirements, the corporation made this decision. Escorts Kubota made a statement of interest to RIICO early this year to buy land in Ghiloth.

The corporation expects to invest up to ₹4,500 crore in the new facility over the next three to four years, as part of its ambitious expansion plans. This plant was supposed to quadruple domestic tractor production to 3.4 lakh units per year and phase in new engine and construction equipment lines. Escorts Kubota's main facility in Faridabad, Haryana, produces 1.7 lakh tractors annually.

Escorts Kubota's mid-term business strategy includes building an integrated greenfield production facility, despite its withdrawal from Ghiloth. To expand, the company is considering opportunities in Rajasthan and other states. Escorts Kubota sold 8,612 tractors (including exports) in May, down slightly. This is a 6% drop from last year, with domestic sales falling 5.4% to 8,232 units.

News by Rahul Yelligetti