Saturday, December 04, 2021

MONOPOLY CAPITALI$M
Japan's Kubota to buy Indian farm equipment maker Escorts

Deal aimed at raising Japanese company's share in world's largest tractor market

Kubota's purchase of Indian farm equipment maker Escorts aims to raise its share in the world's biggest tractor market. (Source photos by Atsushi Ooka and screenshot from Escorts' website)


Nikkei Staff writers
November 18, 2021 1

OSAKA -- Top Japanese farm equipment maker Kubota announced Thursday that it will purchase major Indian farm equipment maker Escorts for around 140 billion yen ($1.2 billion), turning the company into a subsidiary.

The move comes as Kubota is aiming to expand its business in India, the world's largest farm equipment market on a unit basis.

Kubota and Escorts established a joint venture to manufacture tractors in 2019. The following year, Kubota announced that it would buy a 10% stake in Escorts for 16 billion yen. The investment was meant to leverage Escorts' market knowledge and parts procurement network to reduce costs.

There is growing demand for low-priced tractors and other farm equipment developed jointly by the two companies, both in India and in other markets.

Escorts was founded in 1944. The company had revenue of around $870 million in the fiscal year ended March 2019. The company employed 11,000 people as of December 2019.

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