Tractor and implements maker Escorts Kubota is establishing a greenfield plant at Ghiloth in Rajasthan.

It is said that this will be the largest Kubota facility anywhere in the world.

The company, which is investing Rs 400 crore in acquiring the necessary land for the project, will announce the comprehensive capex spend once the project kicks off.

Bharat Madan, CFO, Escorts Kubota, said,"This plant will double our capacity and will not only make tractors but also engines as well as implements."
Currently Escorts has a capacity of 150,000 units per annum at its Faridabad factory while its JV with Kubota has another 50,000 per annum capacity.

"Once the plant comes on stream, we will consolidate the JV assembly lines into Escorts," said Madan.

While the JV's Chennai plant will continue to assemble farm implements, the Pune facility which makes tractors will be consolidated into Escorts' Faridabad plant, he added.

The new plant will be funded through internal accruals. The company has Rs 5,700 crore surplus cash on its books and is generating more from the business as well. It is a zero debt company.