He expects the company's financial performance to begin recovering from the fourth quarter, with margins likely to return to normal levels next year
Escorts Kubota plans to begin construction of a tractor facility in Uttar Pradesh early next fiscal year, with an initial capacity of 60,000 units that can be scaled up to one lakh units, as it prepares to expand production and tap future growth opportunities, a top official said.
In an interview with PTI, Escorts Kubota Ltd Chief Financial Officer Bharat Madan said the proposed facility near Jewar airport is expected to take around two and a half years to complete.
"I think in the next year we are starting the commercial construction of the greenfield facility which will be for another 60,000 tractors in phase one and we hope to complete that in the next 2 to 2.5 years," Madan said.
The capacity addition comes as the company is currently operating its tractor business at around 80-85 per cent average utilisation, with production utilisation touching nearly 90 per cent during the high-season quarter.