Escorts' third-generation chief brought Kubota in as partner and shares hit records

Rajan Nanda, chairman and managing director of Escorts, died in August 2018, leaving his son Nikhil — on the board since 1997 — to lead the tractor and construction equipment maker through a competitive Indian market.

In March 2020 Nikhil signed a strategic alliance with Japan's Kubota: Kubota bought 9.1% of Escorts (10% after a capital reduction) for ₹1,041.90 crore at ₹850 a share, and Escorts took 40% of Kubota's India marketing arm. The stock jumped 17.73% the same day.

The partnership deepened fast: in November 2021 Kubota agreed to raise its stake to 44.8% and become a co-promoter, and shares hit a record ₹1,793.9. The company was renamed Escorts Kubota Limited, and by FY2024 its tractor market share had climbed to 10.3%.

Escorts shares jumped 17.73% on the 2020 Kubota deal; Kubota later agreed to raise its stake to 44.8% as co-promoter; FY24 tractor share rose to 10.3% from 10.1%.

Kubota brought global tractor technology and export access without a takeover.

Selling only ~10% first let the family test the alliance before deepening it.

The market read the tie-up as scale and credibility, not loss of control.

A family heir can win by sharing control: Escorts traded a stake to Kubota for scale and technology — the stock and market share rose because the partner was worth more than full ownership.

Escorts Kubota became one of India's fastest-growing major tractor makers by share in the early 2020s, with the Nanda family and Kubota sharing control; the renamed entity also expanded into construction equipment and services under the alliance.