Escorts Kubota Ltd. has submitted an investment intent to the Uttar Pradesh government to acquire land in the state for setting up a green field facility. The company intends to invest Rs 4,500 crore through direct and indirect investment in multiple phases.
The company, subject to requisite approval, will acquire 250–200 acres of land, the company said on Friday through an exchange filing. The company intends to utilise a part of this land for setting up additional tractor and engine manufacturing capacity. The balance of the of the land will be used to meet its future growth requirements, it added.
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The project details are under finalisation and will be intimated in due course, the company added. The tractor manufacturer will begin the implementation of the project in 2028.
Including the land acquisition, the company will invest Rs 4,500 crore in the state. Escorts Kubota also expects to generate employment for over 14,000 people once the project reaches full capacity. The company also expects the annual production revenue generation at full capacity to reach Rs 10,000 crore.
In order to finance the project and the investment, the company will use the proceeds from the earlier preferential issue of shares of Kubota Corporation, Japan. The investment in the state will help enhance the manufacturing capacity to meet the growth plans of the company for domestic and global markets, the company said.
Shares of the company closed 1.98% lower at Rs 3,732 per share, compared to a 1.65% advance in the NSE Nifty 50. The stock has risen 25.81% year-to-date and 38.07% over the past 12 months.
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