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Escorts Kubota Ltd (formerly Escorts Ltd), the ₹7,153 crore leading farm machinery and construction maker, is planning to launch new tractor series, ramp up the dealer network, and leverage the tractor brands with differentiated positioning even as the company is readying mid-term business plan FY2028 (MTBP) to provide strategic direction for growth in both domestic and export businesses.
Escorts has now become Escorts Kubota Ltd following Japan’s Kubota Corporation’s acquisition of a stake in the company. Kubota now owns 44.8 per cent in Escorts Kubota Ltd and is now a joint promoter of the company.
“We have initiated a MTBP for the future. This is jointly being created between Escorts Kubota and Kubota Japan and we expect this to be finalised by Q3 of this year,” Nikhil Nanda, Chairman and Managing Director, Escorts Kubota Ltd said in the company’s integrated annual report for 2021-22.
In its MTBP, the company will discuss strategic direction for growth aspiration in the domestic and export market, setting up of a global R&D centre, creation of a global procurement centre, the company’s approach towards carbon neutrality, investment in infrastructure to enable and execute for the future, digital readiness, products towards farm mechanisation and capital allocation principles, among others.
“Going forward, we will have three powerful brands in our tractor portfolio. Kubota would stand for premium quality and technology offering unmatched customer experience; Powertrac would compete in the mass market with fuel efficiency and total cost of ownership as its hallmarks; and Farmtrac would continue to attract productivity-oriented customers who need powerful and robust tractors. We shall harness the power of these three brands in a way that we can provide a perfect solution to all segments of farmers and commercial operators,” he added.
The product range will be expanded from 11 HP to up to 120 HP covering all application and crop requirements, not just for India but also for other focus markets globally.
“We are well-positioned to upgrade our engines and tractors with the new Bharat Stage 5 emission norms,” he said.
New tractors
It is gearing up to launch a New Escorts Tractor Series (NETs), which will consist of new design tractors that ensure their readiness for the 50+ HP emission norms, which are expected to be introduced soon.
According to the company, its current dealer count is close to 1,100 and it will be increased by 30-40 per cent over the next few years.
The company has three major businesses—Agri machinery, which contributes 77 per cent to the revenue, construction equipment (14 per cent) and railway equipment division (9 per cent).
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