Escorts Kubota expects joint venture to be in the black by March 2024
Escorts Kubota board approved the amalgamation of Escort Kubota India and Kubota Agri Machinery India into Escorts Kubota Ltd via an issue of EKL shares to Kubota. The amalgamation, the company said, will help increase efficiencies and operations.
Escorts Kubota board approved the amalgamation of Escort Kubota India and Kubota Agri Machinery India into Escorts Kubota Ltd via an issue of EKL shares to Kubota. The amalgamation, the company said, will help increase efficiencies and operations.
Bharat Madan, Group CFO at Escorts expects this joint venture to become profitable by March 2024.
“We expect the capacity utilisation to start moving up now. This year it is going up and next year with the exports increasing, we expect this JV will do well. So by FY24 we expect this JV should be able to be in black,” he said.
He expects the profit to start moving up in another year or two years’ time.
By mid-November, the company will be coming out with a mid-term business plan which will have one of the components as engine localisation.
“Localisation will take some time, maybe around two years,” he said.
The utilisation level for the manufacturing JV was below 30 percent last year. “We expect this year utilisation will go up to roughly 40-45 percent and by FY24 it should be somewhere around 80 percent plus,” he said.
For the full interview, watch the accompanying video
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