Kubota : Establishment of Joint Venture with Indian Tractor Manufacturer
December 10, 2018 at 07:10 pm EST
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December 11, 2018
Kubota Corporation (Headquarters: Naniwa-ku, Osaka, Japan; President and Representative Director: Masatoshi Kimata; hereinafter referred to as 'Kubota') has reached an agreement with the Indian tractor manufacturer Escorts Limited (Headquarters: India, Chairman and Managing Director: Nikhil Nanda; hereinafter referred to as 'EL') on joint establishment of a tractor manufacturing company. The particulars are presented below.
Background and aims of joint venture establishment
The Indian market for tractors is one of the largest in the world in terms of the number of tractors, and is projected to continue expanding into the future. At present, the market is supplied mainly by local (Indian) manufacturers, which are reinforcing their tie-ups with foreign-affiliated manufacturers.
Kubota established Kubota Agricultural Machinery India Pvt. Ltd. (KAI) and entered the Indian market in 2008. This business has been proceeding smoothly since the sales launch in 2015 of a multipurpose tractor adapted to towing and other uses.
EL has manufacturing know-how and excellent capabilities for components procurement. Through this collaboration, Kubota is determined to accelerate the growth of its tractor business through local production of multipurpose tractors.
Outline of the joint venture
Company name
Escorts Kubota India Private Limited
Capitalization
3.0 billion rupees (5.1 billion yen)*
Shareholding rates
Kubota 60%, EL 40%
Location
Faridabad City, Haryana State, India
Time of establishment
Late March 2019 (tentative)
Business
Manufacture of Kubota tractors and EL tractors
Production capacity
50,000 units(yearly)
* 1 rupee = 1.7 yen (the exchange rate as of November 2018)
Outline of EL
Company name
Escorts Limited
Representative
Nikhil Nanda, Chairman and Managing Director
Headquarters location
Faridabad City, Haryana State, India
Year of establishment
1944
Business
Manufacture and sales of agricultural equipment, construction equipment, and railways-related equipment
Sales
86 billion yen (about 50 billion rupees in the year ended March 31, 2018)
Number of employees
10,100 (3,700 full-time employees, as of November 2018)
[ Map of India ]
Future outlook
Plans envision that the plant will begin operations in January 2020 and start mass production in June of the same year.
＜Reference＞
【Outline of Kubota Agricultural Machinery India】
Company name
Kubota Agricultural Machinery India Private Limited
Representative
Akira Kato, President
Location
Chennai City, Tamil Nadu State, India
Date of establishment
December 5, 2008
Capitalization
500 million rupees
Business
Sales of agricultural machinery in India
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Disclaimer
Kubota Corporation published this content on 11 December 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 11 December 2018 00:09:03 UTC
Kubota Corporation specializes in the manufacturing and marketing of industrial and agricultural machines and water purifying and distribution equipments. Net sales break down by family of products as follows:
- industrial and agricultural machines (84.9%): tractors, harvesters, transplantors, mowers, etc.;
- water purifying and distribution systems (13.9%): ductile cast iron, steel and plastic pipes, valves, recycling pumps, incinerators, ceramic filters, used water purifiers, etc.;
- other (1.2%): industrial pieces, steel tubes, building machines, etc.
Net sales break down geographically as follows: Japan (27.4%), Asia (18.5%), North America (37.3%), Europe (13%) and other (3.8%).
KUBOTA CORPORATION 
