The Japanese agricultural and construction machinery group Kubota is expanding its strategic co-operation with the Escort Tractors, the Indian manufacturer of agricultural technology and construction machinery. Escort Tractors is a listed company that serves as a major tractor manufacturer in the Indian market, which is reportedly the world’s largest tractor market in terms of unit sales.
The goal of Kubota and the Escort Foundation in the hands of the owner family is to achieve a majority of the shares in Escort Limited. For this, both companies buy free escorts shares and take them off the capital market.
Kubota and Escorts want to work more closely together in the construction and sale of agricultural machinery in India and the emerging countries. Kubota currently holds a 9.9 percent stake in Escorts. Both companies already operate a joint tractor production facility as a joint venture in India.
Escort Tractors has been in the tractor business since 1944 and has increased its sales by almost 13% since 2019, predominantly in the Indian market, where tractors are used year-round for carrying loads, in addition to usual agricultural work, thereby mainstream
tractors are expected to be highly durable with limited functions and at reasonable prices.