Escorts Ltd and Kubota Corporation announced a global joint venture to develop high-end technology tractors for both domestic and export markets. Where the Japanese tractor manufacturer will make advanced technologies accessible for Escorts, the latter will offer its engineering capabilities to develop efficient and value-oriented utility tractors, stated the company.
The 60:40 manufacturing joint venture between Kubota and Escorts respectively will see an initial investment of Rs 300 crores. As a part of the JV, a new common manufacturing facility will be established with initial capacity of 50,000 tractors that will be sold by both players respectively through their separate channel network in domestic market. Kubota will export Escorts tractors through its global distribution network in specific markets , the company noted.
Nikhil Nanda, Chairman and Managing Director, Escorts Ltd., said the global Joint Venture with Kubota is aimed at a technology led collaborative growth in domestic and export markets and will allow Escorts an access to global opportunity markets.
Masatoshi Kimata, President and Representative Director, Kubota Corporation, Japan, said the JV will cater to India and other growing economies which require high-end technology and new age tractors for growing demands of highly mechanised farming.
While Escorts and KBT continue to develop their distribution channel in India independently, both companies to share their technology platforms for mutual growth along with some greenfield opportunities in future.