Kubota Corporation (TSE:6326) is in talks with the Nanda family "promoters of Escorts Limited (NSEI:ESCORTS)" to increase its stake and eventually become a controlling shareholder in the tractor maker and engineering construction company, said people aware of the matter. This is part of the Osaka-based conglomerate's strategy to double down on the growth potential of the tractor market in India. Escorts is exploring a complete sale of the promoter holding, although this could happen in stages, said the people cited above.

As per plan, Kubota Corp. intends to initially pick up around 15% from the promoters, said the people mentioned above. “Eventually, the Nanda family will sell the firm out completely to Kubota.

However, as of now, the Japanese are also slightly cautious and are not in a hurry,” said one of the people cited above. “Most probably, these shares would be brought from the Escorts Benefit & Welfare Trust” . Escorts told ET, “This was market speculation.

As a matter of company policy we do not comment on speculations or rumours”. Kubota didn't respond to queries sent on September 21, 2021.