Japan-based tractor-maker Kubota Corp. is in talks with the Nanda family—founders of India’s Escorts Ltd.—to increase its stake and eventually become a controlling shareholder.
This is part of Kubota’s strategy to double down on the growth potential of the tractor market in India.
The Escorts Group is exploring a complete sale of the holding, although this could happen in stages, said industry insiders. A source said Kubota aims to establish a joint research and development center with Escorts to develop products optimized for the local market.
In March 2020, Kubota acquired about 9.9 percent of Escorts through preferential allotment.
Source: Economic Times