Escorts Kubota Limited — Important, 20-06-2025: Updates

Escorts Kubota Limited has finalized the amalgamation of Escorts Kubota India Pvt. Ltd. and Kubota Agricultural Machinery India Pvt. Ltd. into itself, effective April 1, 2023, restating prior fiscal numbers. The company approved the sale of its Railway Equipment Division on a slump sale basis, now classified as discontinued operations in financials but included in sustainability reporting. EKL's diversified portfolio covers 99.9% of turnover from agri-machinery (76.1%), construction equipment (15.59%), and railway components (8.22%). It operates 8 plants and 55 offices across India and has a presence in 80 countries, with 5% turnover from exports. EKL continues to invest heavily in ESG with targets for carbon neutrality by 2050, water positivity by 2030, zero landfill by 2027, and gender diversity improvement. Significant operational improvements include replacing diesel gensets with gas gensets, electric forklifts, and enhanced water reuse. The company maintains top certifications (ISO 14001, ISO 45001) and focuses on employee safety and welfare, with zero fatalities and low injury rates. Complaints from customers reduced compared to prior year, reflecting improved service. Multiple penalties related to indirect tax credits and customs duties have been levied, several of which are under appeal. EKL’s sustainable sourcing is at 37%, and it sources over 20% directly from MSMEs. It employs 4,490 personnel with 7.95% women, aiming to increase gender diversity further. Continuous stakeholder engagement, grievance redressal mechanisms, and digital ESG data tracking highlight EKL’s commitment to sustainability and operational excellence within agri and infra sectors.