New Delhi: Farm and construction equipment maker Escorts Kubota Ltd plans to invest up to Rs 4,500 crore over the next three to four years to set up a manufacturing plant, according to its whole-time director and CFO Bharat Madan.
The company is currently in talks with the Government of Rajasthan for the Ghiloth site, where it intends to set up a greenfield plant to double its domestic tractor production capacity to 3.4 lakh units annually, along with manufacturing new engines and components in phases. Will also install equipment lines. ,
"The greenfield plant will include doubling the tractor production capacity, setting up a new engine line and a construction equipment line in phases. Overall, the greenfield project will cost Rs 4,000 crore to Rs 4,500 crore over the next three-four years," Madan said. It could be Rs." ,
He further said, 'This year we hope to buy land, which could cost Rs 40 crore to Rs 450 crore and then construction will start by the end of this financial year.At present the total annual tractor production capacity of the company is 1. lakh units. The main plant is located in Faridabad. Its engine production capacity is 1.5 lakh units annually and currently Kubota engines are imported.
Madan said general capital expenditure for FY25 would be around Rs 300 crore.
On tractor sales outlook for FY2025, he said the industry is expecting "mid-single digit growth" and demand growth is likely to pick up only in the second half of the fiscal."The first quarter is clearly soft. We don't expect any growth in the first quarter. April has been more or less flat and in May we have seen some decline, so overall the first quarter will still be a downtrend," he said.
He said that depending on the distribution of monsoon, some improvement may be seen in the industry from September.
As for Escorts Kubota, he said the company wants to grow better than the industry and continue to gain market share as it has done in FY24.
The company is currently in talks with the Government of Rajasthan for the Ghiloth site, where it intends to set up a greenfield plant to double its domestic tractor production capacity to 3.4 lakh units annually, along with manufacturing new engines and components in phases. Will also install equipment lines. ,
"The greenfield plant will include doubling the tractor production capacity, setting up a new engine line and a construction equipment line in phases. Overall, the greenfield project will cost Rs 4,000 crore to Rs 4,500 crore over the next three-four years," Madan said. It could be Rs." ,
He further said, 'This year we hope to buy land, which could cost Rs 40 crore to Rs 450 crore and then construction will start by the end of this financial year.At present the total annual tractor production capacity of the company is 1. lakh units. The main plant is located in Faridabad. Its engine production capacity is 1.5 lakh units annually and currently Kubota engines are imported.
Madan said general capital expenditure for FY25 would be around Rs 300 crore.
On tractor sales outlook for FY2025, he said the industry is expecting "mid-single digit growth" and demand growth is likely to pick up only in the second half of the fiscal."The first quarter is clearly soft. We don't expect any growth in the first quarter. April has been more or less flat and in May we have seen some decline, so overall the first quarter will still be a downtrend," he said.
He said that depending on the distribution of monsoon, some improvement may be seen in the industry from September.
As for Escorts Kubota, he said the company wants to grow better than the industry and continue to gain market share as it has done in FY24.
