Farm and construction equipment manufacturer Escorts Kubota plans to invest up to Rs 4,500 crore over the next three to four years to set up a new manufacturing plant.

The company is currently in talks with the Rajasthan government for Ghiloth, the site where it intends to set up the greenfield plant. The move will aid in doubling its domestic tractor production capacity to 3.4 lakh units annually, while it will set up a new engine and construction equipment lines in phases.

For this year, it expects to procure land which may cost Rs 400 crore to Rs 450 crore and then start construction by the end of this financial year. The company's main plant is located in Faridabad. 

At present, the company has a total annual tractor production capacity of 1.7 lakh units. Its engine production capacity is 1.5 lakh units annually with Kubota engines currently being imported. The normal capex for FY25 will be around Rs 300 crore. 

The company is looking to grow better than the industry and continue to gain market share as in FY24. On the sales outlook for FY25, the industry is expecting a mid-single digit growth, as demand is likley to gain momentum only in the second half.