Journey of Escorts Kubota Limited

Formerly commonly referred to as Escorts Limited, the company originated as 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. In 1961, Escorts launched its own tractor brand based on a license from the Polish company Ursus. In 1969, Escorts made a strategic entry into 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. 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. Escorts continued to grow and diversify its businesses in the 1980s and 1990s. The company gained complete control of several other companies, including the Indian motorcycle manufacturer Rajdoot. As a part of its international operations strategy, In 2000, Escorts gained complete control of a manufacturing plant in Poland from Pol-Mot. In 2008, Escorts' North American subsidiary went into bankruptcy. After Kubota successfully gained complete control of 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. 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. 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.

Business Segments

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

• Agri Machinery:Escorts Kubota is India's leading tractor manufacturer, with a market share of over 30%. The organization also manufactures a wide range of other agricultural machinery, including combine harvesters, rice transplanters, and farm implements.
• 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 organization is also a leading manufacturer of railway equipment, including brakes, couplers, and shock absorbers.
• Auto Components:Escorts Kubota is one of the foremost 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.
• Railway Equipment:Escorts Kubota is one of the foremost manufacturer of railway equipment in India. The company manufactures brakes, couplers, shock absorbers, and other components for railway rolling stock.
• Financial Services:Escorts Kubota Financial Services offers 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.

Subsidiaries: 

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 core priorityes on the Indian market.
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.
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.
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 core priority is on designing and manufacturing specialised tractors tailored for agricultural applications.
5. Escorts Skill Development:Escorts Skill Development is a subsidiary of Escorts Kubota Limited that specialises in bringing forth skill development training to the youth in various sectors, including agriculture, construction, and material handling.

Key Personnel

Nikhil Nanda, Chairman and Managing Director 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.

Financial Performance

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

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.