Escorts Limited and Japanese tractor manufacturer Kubota Corporation on Monday announced their global joint venture to manufacture high end tractors for domestic and export geographies.
With an initial investment of 300 crores, the 60:40 manufacturing joint venture between Kubota and Escorts respectively will enable both partners to optimize their current and future capabilities in the segment globally, the duo said in a statement. The JV will aim to take leading position in domestic and export markets in medium to long term.
Speaking on the occasion, Nikhil Nanda, Chairman and Managing Director, Escorts Ltd, said, “Escorts is evolving into a global organization through strategic technology & manufacturing collaborations. Our global Joint Venture with Kubota is aimed at a technology led collaborative growth in domestic and export markets. With our inherent strengths, distribution and engineering benchmarks, together, we will access global opportunity markets and take a journey to global leadership.”
Masatoshi Kimata, President and Representative Director, Kubota Corporation, Japan, said, “We are excited to announce our partnership with Escorts group. Escorts has a strong technology legacy and diversified portfolio in agriculture equipment solutions market and Kubota has a proven global technology and together we will cater to India and other growing economies which require high-end technology and new age tractors for growing demands of highly mechanized farming. Kubota and Escorts, together, with their leadership in respective geographies will consolidate strengths and technology & innovation excellence to emerge as a global leader.”
The agreement on the joint venture was signed by Nikhil Nanda, Chairman and Managing Director, Escorts Limited and Masatoshi Kimata, President and Representative Director, Kubota Corporation, Japan.