Escorts Kubota Breaks Ground on ₹2,000 Crore Manufacturing Plant in Uttar Pradesh

Escorts Kubota Limited broke ground on a new manufacturing plant at Sector 10, Gautam Buddha Nagar, in the Yamuna Expressway Industrial Development Authority (YEIDA) industrial zone in Uttar Pradesh on 19 August 2026. The facility will be developed across 154 acres with a total indicated investment of over ₹2,000 crore, making it one of the company's largest capital commitments to date.

The plant will be built in multiple phases. In Phase 1, the company plans to establish capacity for up to 60,000 tractors and 15,000 construction equipment units per year, along with supporting infrastructure and allied facilities. Subsequent phases are expected to bring the facility to a scale that, upon full completion, the company says will rank it among the largest manufacturing sites in the Kubota Group globally. The investment will be funded through proceeds from a prior preferential share issue to Kubota Corporation and from internal accruals.

The new facility will manufacture tractors, farm implements, construction equipment and engines under one roof. According to the company, the plant is designed as an integrated manufacturing campus, with machining, assembly, testing, engine production and a central spare parts warehouse all on a single site. The Kubota Production System — the group's standardised approach to manufacturing efficiency — along with automation and digital quality control, will be embedded from the outset. The company also says energy-efficient utilities and safety systems will be part of the plant's infrastructure from day one.

The site is located near the Yamuna Expressway, close to the Noida International Airport at Jewar, which is under development and expected to serve as a major cargo hub for the region. The location gives the plant access to road and air connectivity for national distribution and exports, as well as proximity to the engineering and supplier ecosystem of the National Capital Region. YEIDA allotted the land to the company following a Letter of Intent with the Government of Uttar Pradesh.

Escorts Kubota's existing manufacturing capacity stands at approximately 1,70,000 tractors and 10,000 construction equipment units per year. The new plant is intended to expand that base considerably, with the company stating the facility will cater to both domestic customers and global export markets. The project is also expected to generate employment in the Gautam Buddha Nagar district, though the company has not specified projected headcount figures.

The investment is part of a broader push by Kubota Corporation to scale up its India operations. The project aligns with the Japanese group's Mid-Term Business Plan 2030, which identifies India as one of its priority growth markets and includes plans to develop India as a hub for affordable manufacturing within the Kubota Group. India is among the world's largest tractor markets by annual volume, with domestic sales driven by agricultural mechanisation and government support for farm equipment adoption.

Escorts Kubota Limited was established in 1944 and has grown into one of India's prominent farm and construction equipment manufacturers. Its tractor portfolio includes the Farmtrac, Powertrac and Kubota brands, sold through a dealer network across India and in overseas markets. Kubota Corporation, headquartered in Osaka, Japan, was founded in 1890 and operates across more than 120 countries, with businesses spanning agricultural machinery, construction equipment, engines, and water and environmental systems. It holds a majority stake in Escorts Kubota Limited following an equity transaction in recent years that deepened the two companies' manufacturing and technology ties.