Japanese agriculture and heavy equipment firm Kubota Corp is in talks with the Nanda family - promoters of India's Escorts to increase its stake and eventually become a controlling shareholder in the tractor maker and engineering construction company, said people aware of the matter. This is part of the Osaka-based conglomerate's strategy to double down on the growth potential of the tractor market in India.

The Faridabad-based Escorts Group is exploring a complete sale of the promoter holding, although this could happen in stages, said the people cited above.

The Nanda family led by chairman Nikhil Nanda held 36.59 per cent of the listed Escorts at the end of June. Of this, 24.99 per cent is owned via the Escorts Benefit & Welfare Trust.

As per plan, Kubota Corp intends to initially pick up around 15 per cent from the promoters, said the people mentioned above.