‘Dil Maange More’: Escorts Kubota Targets Profitable Growth Through Global Expansion

India’s farm machinery market is at a defining point, and Escorts Kubota Ltd. says that it is gearing up for a future defined by scale, technology, and global reach. In a candid conversation with NDTV Profit, Escorts Kubota's Chairman and Managing Director Nikhil Nanda and Kubota India MD Akira Kato outlined a roadmap that goes far beyond tractors — encompassing aggressive product launches, capacity expansion, and exports to over 100 countries.

With GST reforms fuelling demand and mechanisation still at just 47% compared to 90% in developed markets, the duo sees massive headroom for growth. Escorts Kubota is betting big on India as a global production hub — from setting up advanced plants to introducing 8–10 new products in the next three years.

"We have created our ammunition for the India we see today and for the India we see tomorrow," says Nanda, signalling his expectations for the company's profitable growth.

The recent reduction in GST on agricultural machinery has been a game-changer, says Kato. Escorts Kubota has witnessed a 20–30% increase in sales and production, even with back orders piling up.

Nanda added the revised GST structure has enabled affordability, especially for larger farmers to purchase mechanised tractors and equipment.

With demand outpacing supply, Escorts Kubota is exploring new manufacturing facilities. Kato confirmed that internal discussions on a new plant are underway.

Nanda elaborated on the global vision saying, "Our plans are not just for India, but also for the world. We are in advanced negotiations to create one of the most state-of-the-art plants, built to Kubota’s global standards. This will allow us to serve India and export to over 100 countries."

Exports currently contribute 6% of the company's revenue, but the company aims to push this to over 15% in the next 4–5 years, focusing on Europe, the ASEAN, Africa, and North America.

Escorts Kubota’s expansion plans are backed by a strong balance sheet, with zero-debt and nearly a billion dollars in cash reserves, says Nanda. The company's annual capex is pegged at Rs 300–400 crore, and profitability remains a priority. “Dil always maange more. We want to grow in market share, but also in profit share,” he quipped.

While demand is booming, Nanda believes the real opportunity lies in India’s low mechanisation levels. He claims that mechanisation in India is only at 47%, compared to 90% in China and the US.

"With nearly 45–50% of our population dependent on agriculture, the headroom for growth is massive,” he added. Escorts Kubota plans to leverage this gap by introducing 8–10 new products in the next 3–5 years, spanning tractors, harvesters, rice transplanters, and other agri solutions.

The company is also prioritising construction equipment, buoyed by government infrastructure spending. They are also preparing for stricter emission norms and AI-driven innovation.