Escorts Kubota is lining up Rs 400 crore in capex for the new financial year 2025-26. 

This will be over and above the Rs 4,500 crore that the company intends to spend on its new greenfield facility in Uttar Pradesh, said top company officials.

“The normal capex for the year will be Rs 400 crore and it will primarily be product-led, with 75% allocated to product development and the remaining 25% for the upgradation of manufacturing facilities,” said Bharat Madan, CFO, Escorts Kubota. The greenfield investment will be in addition to this normal capex.

For the greenfield the initial investment will primarily be for land acquisition.

“The estimated capex for the project is around Rs 4,500 crore, including land costs,” said Madan. “The investment will be made in phases over six to seven years.”

Construction and setting up the factory will take time, likely around two years, after land is acquired. “We have shortlisted a location in Uttar Pradesh, near Jewar airport. The land acquisition process is currently under way, facilitated by the govt,” he said.