History of Escorts Kubota Limited

_x000D_ Formerly known as Escorts Limited, the company was founded in 1944 as Escorts Agents by brothers Har Prasad Nanda and Yudi Nanda. The company began as a distributor of agricultural machinery and other products in India. In 1960, Escorts established its own manufacturing base in Faridabad and began manufacturing agricultural machinery, x-ray machines, and heating elements._x000D_ _x000D_ In 1961, Escorts launched its own tractor brand based on a license from the Polish company Ursus. In 1969, Escorts entered into a joint venture with Ford Motor Company to manufacture Ford tractors in India. Escorts also began manufacturing motorcycles and scooters in collaboration with Polish companies._x000D_ _x000D_ In the 1970s, Escorts expanded its manufacturing operations to include material handling and construction equipment. The company also began exporting its products to other countries. In 1977, Escorts established its first independent R&D centre._x000D_ _x000D_ Escorts continued to grow and diversify its businesses in the 1980s and 1990s. The company acquired several other companies, including the Indian motorcycle manufacturer Rajdoot. As a part of its international operations strategy, In 2000, Escorts acquired a manufacturing plant in Poland from Pol-Mot. In 2008, Escorts' North American subsidiary went into bankruptcy._x000D_ _x000D_ After Kubota successfully acquired a controlling stake in Escorts in November 2021, the Indian farm machinery manufacturer unveiled its new identity as Escorts Kubota Limited for the merged entity._x000D_ _x000D_ Today, Escorts Kubota Limited is a leading manufacturer of agricultural machinery, material handling, construction, and railway equipment. The company also manufactures motorcycles and scooters, and it has a growing presence in the renewable energy sector. Escorts has a global presence, with operations in over 50 countries._x000D_ _x000D_ Escorts Kubota Limited has played a significant role in developing the Indian economy. The company's products have helped to improve agricultural productivity, transportation, and infrastructure. Escorts is a major employer in India and a contributor to the country's export earnings._x000D_

Business Segments 

_x000D_ Escorts Kubota Limited is a diversified engineering conglomerate with four business segments:_x000D_

_x000D_
• Agri Machinery: Escorts Kubota is India's leading tractor manufacturer, with a market share of over 30%. The company also manufactures a wide range of other agricultural machinery, including combine harvesters, rice transplanters, and farm implements.
_x000D_
• Construction & Material Handling Equipment: Escorts Kubota manufactures a wide range of construction and material handling equipment, including backhoe loaders, cranes, vibratory compactors, and forklifts. The company is also a leading manufacturer of railway equipment, including brakes, couplers, and shock absorbers.
_x000D_
• Auto Components: Escorts Kubota is a leading manufacturer of auto suspension products, including shock absorbers and telescopic front forks. The company also manufactures a range of other auto components, such as axles and engine mounts.
_x000D_
• Railway Equipment: Escorts Kubota is a leading manufacturer of railway equipment in India. The company manufactures brakes, couplers, shock absorbers, and other components for railway rolling stock.
_x000D_
• Financial Services: Escorts Kubota Financial Services provides a range of financial products and services to its customers, including tractor loans, farm equipment loans, and construction equipment loans. The company also offers a variety of insurance products to its customers, including tractor insurance, construction equipment insurance, and crop insurance.
_x000D_

_x000D_ Subsidiaries: _x000D_

_x000D_
1. Escorts Construction Equipment Limited: This subsidiary is involved in the manufacturing of construction and material handling equipment. Their product portfolio includes slew, crawler, articulated boom, and tower cranes, forklift trucks, front end loaders, telescopic handlers, work platforms, motor graders, wheel loaders, and rollers. Escorts Construction Equipment mainly focuses on the Indian market.
_x000D_
2. Escorts Tractors Limited: Escorts Tractors Ltd specialises in the production and servicing of agricultural tractors and associated farm equipment. They also manufacture various agricultural implements and engines designed for agricultural tractors.
_x000D_
3. Escorts Crop Solutions Limited: This subsidiary is dedicated to providing innovative mechanised farming solutions, precision agriculture, and digital technology solutions to Indian farmers. They offer comprehensive crop solutions, including farm mechanisation, precision agriculture equipment, pay-and-use options, sprayers, harvesters, tractors, and other related equipment.
_x000D_
4. Adico Escorts Agri Equipments Pvt. Ltd.: Adico Escorts Agri Equipments Private Limited is a joint venture between the Adico Group and Escorts Kubota Limited. Their primary focus is on designing and manufacturing specialised tractors tailored for agricultural applications.
_x000D_
5. Escorts Skill Development: Escorts Skill Development is a subsidiary of Escorts Kubota Limited that specialises in offering skill development training to the youth in various sectors, including agriculture, construction, and material handling.
_x000D_

_x000D_

Key Personnel 

_x000D_ Nikhil Nanda, Chairman and Managing Director_x000D_ _x000D_ Nikhil Nanda is the Chairman and Managing Director of Escorts Kubota Limited. He started as the Chief Operating Officer in October 2005, then became the Managing Director in September 2013. He assumed the role of Chairman in August 2018. Mr Nanda is a respected figure in the business world and was recognised as a Global Leader of Tomorrow by the World Economic Forum in 2001. In his current role, he leads Escorts Kubota Limited in the agricultural and construction equipment industry._x000D_

Financial Performance

_x000D_

_x000D_
• Total income for FY 2023 was ₹8,709.62 crore, up from ₹7,456.45 crore in FY 2022.
_x000D_
• Tractor sales for the FY 2023 were 1,03,290, showing growth compared to 94,228 tractors sold in the previous financial year.
_x000D_
• EBITDA for the FY 2023 was ₹780.4 crore, down from ₹995.5 crore in the previous year.
_x000D_
• Profit After Tax for the FY 2023 stood at ₹607.0 crore, a decrease from ₹765.6 crore in the previous year.
_x000D_

_x000D_ Additionally, during the year, the company faced challenges due to commodity price inflation, resulting in an exceptional item of ₹97.2 crore related to the impairment of investments in the joint venture Tadano Escorts India and wholly-owned subsidiary Escorts Crop Solutions.