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

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Escorts Kubota breaks ground on a ₹2,000 crore, 154-acre Uttar Pradesh plant to manufacture tractors, farm equipment, construction machinery and engines for domestic markets and global exports.

Robin Kumar Attri

By Robin Kumar Attri

Aug 19, 2026 12:46 pm IST
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Escorts Kubota Breaks Ground on ₹2,000 Crore Manufacturing Plant in Uttar Pradesh

Key Highlights

  • ₹2,000 crore investment in Uttar Pradesh

  • New plant spread across 154 acres

  • Phase 1 capacity: 60,000 tractors annually

  • 15,000 construction equipment units planned yearly

  • Facility targets domestic and global markets

Escorts Kubota Limited has broken ground on a major new manufacturing facility in Uttar Pradesh with an investment of over ₹2,000 crore. The new plant, located at Sector 10 in Gautam Buddha Nagar within the Yamuna Expressway Industrial Development Authority (YEIDA) industrial zone, will strengthen the company's production capabilities for both Indian and global markets.

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The groundbreaking ceremony took place on August 19, 2026. Spread across 154 acres, the facility represents one of Escorts Kubota's biggest capital investments to date.

Phase 1 to Produce 60,000 Tractors Annually

The manufacturing plant will be developed in multiple phases. During Phase 1, Escorts Kubota plans to create annual production capacity for up to 60,000 tractors and 15,000 construction equipment units, along with the required supporting infrastructure and allied facilities.

Further expansion phases will significantly increase the plant's production scale. Once fully completed, the company expects the site to rank among the largest manufacturing facilities in the Kubota Group globally.

The ₹2,000 crore-plus investment will be funded through proceeds from a previous preferential share issue to Kubota Corporation and the company's internal accruals.

Integrated Campus for Tractors, Engines and Equipment

The upcoming facility will manufacture tractors, farm implements, construction equipment and engines under one roof. It is being developed as an integrated manufacturing campus featuring machining, assembly, testing, engine production and a central spare parts warehouse at a single location.

The plant will adopt the Kubota Production System, the group's standardised manufacturing approach focused on efficiency. Automation and digital quality control systems will also be incorporated from the beginning. Energy-efficient utilities and advanced safety infrastructure are planned as part of the facility's core setup.

Strategic Location Near Yamuna Expressway and Jewar Airport

The plant's location near the Yamuna Expressway provides strong connectivity for domestic distribution and exports. It is also close to the upcoming Noida International Airport at Jewar, which is expected to emerge as a major cargo hub for the region.

The location offers access to road and air transport networks and places the company close to the engineering and supplier ecosystem of the National Capital Region. YEIDA allotted the land following a Letter of Intent between Escorts Kubota and the Government of Uttar Pradesh.

Expansion to Support Domestic and Export Markets

Escorts Kubota currently has manufacturing capacity of around 1,70,000 tractors and 10,000 construction equipment units annually. The new facility will substantially expand this production base and serve customers in India as well as international markets.

The project is also expected to generate employment opportunities in Gautam Buddha Nagar, although the company has not yet announced the expected number of jobs.

Part of Kubota's India Growth Strategy

The investment supports Kubota Corporation's wider plan to expand its presence in India. Under its Mid-Term Business Plan 2030, the Japanese company has identified India as a priority growth market and aims to develop the country into an affordable manufacturing hub for the Kubota Group.

India remains one of the world's largest tractor markets, supported by growing agricultural mechanisation and government initiatives encouraging the adoption of modern farm equipment.

Established in 1944, Escorts Kubota Limited is a major Indian manufacturer of farm and construction equipment. Its tractor portfolio includes Farmtrac, Powertrac and Kubota brands, which are sold through dealer networks in India and overseas markets.

Kubota Corporation, headquartered in Osaka, Japan, was founded in 1890 and operates in more than 120 countries. Its businesses include agricultural machinery, construction equipment, engines, water and environmental systems. Kubota holds a majority stake in Escorts Kubota Limited following recent equity transactions that strengthened manufacturing and technology cooperation between the two companies.

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CMV360 Says

The new ₹2,000 crore Escorts Kubota manufacturing plant marks a major expansion of its India operations. Spread across 154 acres, the facility will boost production of tractors, farm implements, construction equipment and engines for domestic and global markets. Its strategic location near the Yamuna Expressway and Jewar airport will strengthen logistics and exports. The project also supports Kubota's long-term plan to make India a key global manufacturing hub.

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