### **Overview** Escorts Kubota Limited (EKL) is a leading Indian engineering conglomerate with over **80 years of legacy**, formed through the strategic integration of Escorts and Japan’s Kubota Corporation. The company is now unified under the “**One EKL**” structure, positioning itself as a global leader in smart agriculture, advanced construction equipment, and technology-driven infrastructure solutions. Headquartered in India, EKL leverages **Indian engineering agility** and **Japanese precision** to deliver high-performance, sustainable machinery for domestic and international markets. --- ### **Core Business Segments** EKL operates through three primary business divisions, with a renewed focus on core businesses following the **divestment of its Railway Equipment Division (RED)** to Sona BLW Precision Forgings Limited in **June 2025**. 1. **Agri Machinery Division** - Flagship products: Tractors (under **Kubota, Farmtrac, Powertrac** brands), **combine harvesters**, **rice transplanters**, **rotavators**, **self-propelled sprayers (Farmpower)**. - EKL’s rice transplanter is **#1** in India; its harvesters rank **#2** in the domestic market. - **Non-tractor revenue** (agri solutions, spare parts, engines, services) now contributes **20%** of agri machinery revenue — up from 17% YoY. - **Exports**: 4,991 tractors in FY25, with **70% in the sub-30 HP** category, primarily to **France, Poland**, and via **Kubota’s global channels** into Europe. - **E-Kubota brand** has gained traction in Europe with compact tractors. 2. **Construction Equipment Division** - Product portfolio: Pick-and-carry cranes, **backho loaders (BLX 75)**, tandem rollers, **mini excavators**, **material handling**, **road-building**, and **earthmoving equipment**. - Recently launched **Hydra 12 Pick and Carry Crane** (Aug 2025) with advanced hydraulics, enhanced safety, and operator efficiency. - A top **three player in India’s CE market**, with **54% market share** in material handling, road-building, and earthmoving. - The manufacturing plant in **Ballabhgarh, Haryana**, has a **10,000-unit annual capacity**, operating at **~60% utilization (FY24–25)**. 3. **Non-Traditional & Emerging Businesses** - **Engines Division**: Supplies diesel engines (7.5–58.5 kVA) for gensets and construction equipment; co-branded with OEMs. Working towards **BS-V and CPCB4+ compliance**. - **Service & Spare Parts**: Manages warehousing, logistics, and after-sales support with a goal to become a **predictive service model** using IoT. --- ### **Key Strategic Pillars: "One EKL" Vision** Launched in **June 2025**, the **One EKL** strategy is a transformative framework integrating operations, brands, and R&D under a single unified entity for **enhanced agility, innovation, and scalability**. #### 1. **Multi-Brand Tractor Strategy** - **Kubota**: Premium segment — technology, comfort, compact solutions. - **Farmtrac**: High productivity & power — commercial and large-scale farming (30–110 HP). - **Powertrac**: Mass market — fuel efficiency, low total cost of ownership. This structure enables **pan-India coverage** across customer segments and drives market share growth. #### 2. **Farm-to-Harvest Solutions Provider** - Moving beyond tractors to become a **comprehensive agri-solutions company**: - Harvesters, rice transplanters, sprayers, **super seeders**, **balers**. - **Kubota’s half-feed combine harvester** technology launched in India for long-grain rice. - Collaborations with **Chandrashekhar Azad Agricultural University** and **model farms** to promote mechanization. #### 3. **Global R&D and Innovation Hub** - Building a **Global R&D Centre** to develop next-gen products in India. - Joint R&D with **Kubota Japan** on **4WD systems**, **wetland farming**, **commercial loaders**, and **AI-driven solutions**. - **Rajan Nanda Innovation Lab (RNIL)** incubates disruptive tech: autonomous systems, electric/hybrid drivetrains, precision farming tools. --- ### **Strategic Investments & Expansion** #### **Greenfield Manufacturing Facility (Uttar Pradesh)** - **Investment**: Over **₹4,500 crores** in phases. - **Capacity**: Over **300 acres** with fully integrated units for tractors, engines, and agri/industrial components. - **Future-Ready**: Designed to support **electric vehicles (EVs), EV components, and export hub**. - **Impact**: Expected to generate **₹10,000+ crores in annual revenue** and create **14,000+ jobs**. #### **Shared Services & Global Integration** - **Shared Service Centre (SSC)** established in India to support Kubota globally in: - Design, IT, engineering, and digital transformation projects. - Positioning India as a **strategic sourcing hub** in Kubota’s “**China Plus One**” strategy. - **Target**: Capture **$500 million** portion of Kubota’s **$8.7 billion** annual global procurement. --- ### **Product & Technology Innovation** - **Farmtrac Promaxx Series**: 31–50 HP next-gen tractors with **50+ upgrades**, **4WD**, and **12+3 speed transmission**. - **EV & Hybrid Roadmap**: - Developed **diesel-CNG hybrid crane**, **pilot electric tractors**. - Plans to commercialize **EV and alternative fuel** technologies in India in **2–5 years**. - Pioneered India’s first **certified electric tractor**; exports ongoing to **USA and Europe**. - **Digital Platforms**: - **HumDum App, Seva Chakra, HumDum Plus**: For real-time tracking, service tickets, reminders. - **Digital training ecosystem** for technicians with e-learning and instructor-led sessions. --- ### **Growth Strategy & Mid-Term Business Plan (2024–2028)** Aligned with Kubota Corporation's **"Made by Kubota"** shift from "Made in Japan," EKL aims to: - **2.5x revenue growth** by **FY2028** from Indian and global markets. - Become a **“World Factory”** by aligning manufacturing with **Kubota Production System (KPS)**. - **India as a global hub** for: - Tractor & engine production - R&D innovation - Component exports - Shared services - Expand **India-led exports** in tractors, parts, engines, and agri solutions. --- ### **Market Position & Financial Highlights** - **Domestic Tractor Market Share**: **11.8%** (up from 10.3% in FY24). - **Dealer Network**: **1,600+ dealers** and **10,500+ registered mechanics** in India. - **Global Reach**: Products exported to **80+ countries**, with focused growth in **Europe, Africa, Latin America, and Southeast Asia**. - **Manufacturing Capacity**: - Tractors: **170,000 units/year** across India (Faridabad, Rajkot) and **2,500 units/year** in Poland. - Construction Equipment: **10,000 units/year**. - Tractors contribute **~70% of total revenue**; rest from CE, engines, and services. --- ### **Sustainability & Smart Farming Focus** - Driving **farm mechanization** across India’s crop cycle. - Developing **precision farming technologies**: GPS-enabled tractors, **telematics**, **data analytics**. - Embracing **servitization models**: - **Pay-per-use** via **Escorts Crop Solutions (ECS)**. - **Tractor rentals (Traxi)** and **digital marketplace (Digitrac)**. - Committed to **carbon neutrality** through **EV adoption** and **cleaner fuels (CNG, hybrid)**. --- ### **Recent Key Developments (2025)** - **Completed merger** of Kubota Agricultural Machinery India (KAI) and Escorts Kubota India (EKI) into **One EKL**. - **Divested Railway Equipment Division** to focus on Agri & CE — a strategic move in line with Kubota’s global vision. - **Upgraded central warehouse** to enhance parts logistics and **after-sales efficiency**. - **Launched advanced digital platforms**, **IoT-based predictive servicing**, and **digital upskilling initiatives**.