Indian engineering and farm equipment maker Escorts formed a joint venture (JV) with Japan′s Kubota Corporation to produce high-end tractors for domestic as well as export geographies. The joint-venture company - Escorts Kubota Private Limited (60 Kubota: 40 Escorts) - will leverage Kubota′s technology and Escorts' frugal engineering expertise to manufacture efficient, value-oriented utility tractors. Escorts and Kubota will invest Rs 300 crore ($41.5 million) to create an initial capacity of manufacturing 50,000 tractors in India. Between them, Escorts and Kubota are targeting cornering a 22 per cent share in the Indian tractor market over the next couple of years. Nikhil Nanda, Chairman and MD, Escorts Limited, said: “We will jointly utilise the fresh capacity. In India, we will use our individual distribution network to market our products. Globally, we can utilise Kubota's channel to sell our products.” Kubota has already commenced discussions with distributors to sell Escorts products in South Africa. The duo also plans to co-develop new products, which may be marketed under a new brand, in the Indian market as well as overseas. Eventually, the company would also look at leveraging the manufacturing base in India to export products overseas. Escorts Kubota has chalked out a three-phase strategy to expand reach globally. In the first phase, the plan is to expand presence in South Africa, Southeast Asia. Thereafter, the duo aims to extend reach in China, Europe and the US.