Escorts Kubota to launch 7–10 products yearly, targets South and East India growth

Nikhil Nanda, Chairman and Managing Director of Escorts Group, told CNBC-TV18 that the company will launch between seven and ten new products every year across its three brands for the next four to five years, covering both domestic and international markets.

He said, “The government is also giving very positive signals on the minimum support price.” The company is working to fill gaps in its retail presence and product range to strengthen its position in South and East India.

“Once these two are fulfilled successfully, which we are predicting to complete in the next one and a half to two years, we’ll have a uniform growth all across the Indian market, and thus achieve the challenger position and the market share growth aspiration that we have set for our company.”

For the current year, Nanda said the margin outlook remains at 12–12.5%. “We believe over the next three to four years, there’s going to be very good improvement on the margin front.” He added that the company has initiated projects to optimise costs and improve profitability over the next four to five years.
Escorts Kubota holds the second position in harvesters in India and is the top player in mini excavators.

On capacity expansion, Nanda said the company is in the final stage of talks with the Uttar Pradesh government for a greenfield project. Land acquisition is nearly complete, and construction will start immediately after due diligence

He clarified that any delay in the project “is not going to affect in the growth that we envision because those capacity adjustments we have already done in our present premises at Faridabad.” Current facilities are being optimised to meet short- and mid-term demand for domestic and export markets.

Akira Kato, Deputy Managing Director of Escorts Kubota, said about 70% of Escorts Kubota’s exports are routed through the Kubota network. The company plans to increase export volumes by 25–30% each year to raise its share of total revenue.

He noted that tariffs have limited impact because export volumes are still low: “Trade war is a threat, definitely, but I believe we don’t need to consider short-term tariff fluctuations… our vision and our direction to expanding export sales by utilising Kubota global channel, including the US and Canada… we don’t need to change, I believe, in the long-term management.”

Watch More: In Final Stages Of Negotiations With UP Government For Greenfield Project: Escorts Kubota