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Kubota Invests in Escorts Limited

March 26, 2020/in News, Press Release/by Ellie Stansfield

Kubota Invests in Escorts Limited: Kubota Corporation (Headquarters: Naniwa-ku, Osaka, Japan; President and Representative Director: Yuichi Kitao; hereinafter, “Kubota”) announced today that it will invest in an Indian leading tractor manufacturer, Escorts Limited (Headquarters: India, Chairman and Managing Director: Nikhil Nanda; hereinafter, “EL”). Through this investment, Kubota intends to increase its presence in India – […]

A message from Rigby Taylor

March 26, 2020/in News, Press Release/by External Source

A message from Rigby Taylor: Committed to helping you, safely Rigby Taylor has always regarded the health and wellbeing of our employees and our customers as paramount and during this difficult time we are continuing to trade, in line with Government’s current advice on safe working practices. With this in mind, we have adapted our […]

Kubota Invests in Escorts Limited

March 26, 2020/in News, Press Release/by Ellie Stansfield

A message from Rigby Taylor

March 26, 2020/in News, Press Release/by External Source

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Kubota Invests in Escorts Limited

March 26, 2020/in News, Press Release/by Ellie Stansfield

Kubota Invests in Escorts Limited: Kubota Corporation (Headquarters: Naniwa-ku, Osaka, Japan; President and Representative Director: Yuichi Kitao; hereinafter, “Kubota”) announced today that it will invest in an Indian leading tractor manufacturer, Escorts Limited (Headquarters: India, Chairman and Managing Director: Nikhil Nanda; hereinafter, “EL”).

Through this investment, Kubota intends to increase its presence in India – the world’s largest tractor market – as well as its commitment to the competitive tractor market, which has massive growth potential, thus further expanding its business.

Kubota Invests in Escorts Limited

Tractor produced by EL started distributing through Kubota’s sales network in worldwide.

Background and aims

The tractor market in India is one of the world’s largest in terms of unit sales and expects to expand further. In 2008, Kubota established Kubota Agricultural Machinery India Pvt. Ltd. (hereinafter, “KAI”) as a foothold in the Indian market.
At present, local manufacturers are playing key roles there, and they are all enhancing partnerships with foreign-affiliated manufacturers. In February 2019, Kubota established a joint-venture tractor manufacturing company with EL and mass production is due to start this July.
Through this capital tie, the two companies intend to deepen their cooperative relationship further and, by leveraging each other’s strengths, create synergy across a broad range of their business, including development, production, sales, distribution, and parts procurement, in a bid to extend their reach in the Indian market.
Meanwhile, the competitive tractors which currently form the core of the Indian tractor market, are gaining popularity in other markets around the world. Kubota hopes to expand its global reach in those model market by tapping into EL’s parts procurement networks and capability to reduce cost.

Investment scheme

EL will issue new equity shares to Kubota on a preferential allotment basis (subject to shareholders’ and necessary regulatory approvals) pursuant to which Kubota will hold 9.1% of EL’s paid up share capital.
The total amount of investment will be approximately 16 billion yen.
Subsequent to the preferential allotment to Kubota, EL will undertake a reduction of its share capital from the shares held by the Escorts Benefit and Welfare Trust (subject to receipt of necessary approvals) of such number of equity shares as are being issued to Kubota under the preferential allotment. Post the capital reduction, Kubota’s stake in EL will increase to 10%.
About the investee

Company name	Escorts Limited
Representative	Nikhil Nanda, Chairman and Managing Director
Location	Faridabad City, Haryana State, India
Year of establishment	1944
Business	Manufacture and sales of agricultural equipment, construction equipment, and railways-related equipment
Sales	Approx. 100.0 billion yen (approx. 62.0 billion rupee; for the year ended March 2019)
Number of employees	11,000 (including non-regular employees, current as of December 2019)

Future developments

After going through the necessary procedures and subject to receipt of requisite approvals, the investment is likely to be completed by June 2020.
To further facilitate and strengthen the collaboration with EL, Kubota will sell 40% of stake in KAI to EL, in addition to this investment.
Going forward, Kubota aims to establish a joint research and development center with EL to develop products that are optimized for the local market and shorten the development period.

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A message from Rigby Taylor

March 26, 2020/in News, Press Release/by External Source

A message from Rigby Taylor: Committed to helping you, safely

Rigby Taylor has always regarded the health and wellbeing of our employees and our customers as paramount and during this difficult time we are continuing to trade, in line with Government’s current advice on safe working practices.

A message from Rigby Taylor

With this in mind, we have adapted our working practices with the aim of continuing our high levels of customer service and we continue to be committed to helping you and meeting your needs.

These changes include phone- and online-based advice and sales administration as well as updated product collection and delivery services to ensure we continue to operate in partnership with you during this challenging period.

All our technical sales managers are currently home-based but still able to help with any problems or requests you may have. Our website (www.rigbytaylor.com) is an invaluable source of information and an ideal way to place orders.

We will continue to despatch products for as long as it is reasonably practicable, including order collections from our branches where we have implemented safe systems for collections (and deliveries).

If you have any questions, please get in touch either via your local technical sales manager or via the website.

For the latest industry news visit turfmatters.co.uk/news

Get all of the big headlines, pictures, opinions and videos on stories that matter to you.

Follow us on Twitter and Instagram for fun, fresh and engaging content.

You can also find us on Facebook for more of your must-see news, features, videos and pictures from Turf Matters.

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Kubota Invests in Escorts Limited

A message from Rigby Taylor

Kubota Invests in Escorts Limited

A message from Rigby Taylor

Full Sized Blog Element (Big Preview Pic)

Kubota Invests in Escorts Limited

A message from Rigby Taylor

A message from Rigby Taylor: Committed to helping you, safely

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