Business

Unforgotten Brands: Escorts

Born in Lahore, in undivided British India, Har Prasad Nanda began his entrepreneurial journey with the flourishing passenger transport business – Nanda Bus Service – alongside his brother, Yudi. But in 1947, the Partition forced him to abandon it all. With just Rs 5,000 and two cars, he arrived in Delhi, determined to start over.

Instead of staying with family, he checked into Delhi’s most luxurious hotel, The Imperial, believing that a bold presence would help him revive connections. And it did.

From Agency to Agricultural Reformer

Before the Partition, Nanda had already founded Escorts Agents Ltd in Lahore in 1944, working as a franchisee for Westinghouse. The name “Escorts” came from their role of escorting goods from manufacturers to consumers.

By 1948, Nanda had launched Escorts Agricultural Machines Ltd, marketing imported tractors to a newly independent, agrarian India. Collaborations followed—Massey Ferguson, Minneapolis-Moline, and URSUS of Poland.

In 1954, he also formed a joint venture with Germany’s Goetze to manufacture piston rings. By 1959, Escorts was producing tractors with Polish support—ushering India into the era of farm mechanisation.

Diversification and Dominance

Escorts Limited was officially established in 1960. Tractors remained the backbone, but Nanda pushed the envelope with:

Rajdoot motorcycles, in collaboration with Yamaha
Marine engines and excavators
EPABX systems
Deep-well drilling equipment

He even established India’s first private institute for farm mechanisation on 800 acres in Delhi’s Azadpur, leased from the army.

By the late 1970s, Escorts had grown into a Rs 1,000 crore conglomerate, among India’s top business houses.

A Corporate Battle That Changed India

In 1983, Nanda faced his most defining challenge: fending off a hostile takeover attempt by NRI businessman Swaraj Paul. Backed by public opinion, media, and titans like JRD Tata and Keshub Mahindra, he fought back.

The standoff redefined the relationship between public financial institutions and Indian promoters, setting a precedent in Indian corporate governance.

1990s: Personal Loss and Leadership Transition

After his wife’s death, Nanda gradually retreated from active business. By 1994, he had stepped down, handing the reins to his son Rajan Nanda. Escorts expanded into:

Telecom with Escotel (later sold to Idea Cellular)
Healthcare with the launch of Escorts Heart Institute

But liberalisation brought new headwinds. Many multinationals chose to go solo. They eventually dissolved joint ventures with Yamaha, JCB, and even Ford Tractors.

Exit, Consolidation, and a New Direction

Escorts began exiting non-core businesses—such as telecom, motorcycles, and construction equipment—and focused on consolidating its operations. Despite setbacks, the company retained its presence in agriculture and engineering.

The Comeback

In 2007, Nikhil Nanda, Har Prasad’s grandson, became Joint MD. By 2013, he had taken complete control of the company. Strategic calls were made:

Debt halved through asset sales
New, efficient products launched: Farmtrac and Powertrac
Focus returned to agriculture, core manufacturing, and frugal innovation

Nikhil recalls, “The resurrection came after 2011… we had to think frugally in a linear fashion. We became clear about what we wanted to do.”

A Global Pivot with Kubota

In a landmark move to bolster global capabilities, Escorts tied up with Japan’s Kubota Corporation. Initially, the relationship began with a collaboration, and by 2021, Kubota had become a strategic partner and co-promoter.

This partnership brought in:

Advanced Japanese engineering
Stronger export potential
A push for innovative, globally relevant farm equipment

The tie-up was not just financial—it represented a new phase for Escorts: combining Indian legacy with global innovation.

The Legacy Lives On

Although Har Prasad Nanda passed away in 1999, his influence remains felt. Beyond tractors and industrial equipment, he built:

The Escorts Heart Institute
Escorts Employees Ancillaries Ltd
India’s first private farm mechanisation training institute

His vision was never about just profit—it was about building institutions that supported a self-reliant India.

Final Reflection

From the ashes of Partition to the boardrooms of global business, Har Prasad Nanda’s story is one of grit, reinvention, and vision.

The journey of Escorts, from Rs 5,000 to a Kubota partnership, is not just about machines—it’s about a family that stayed rooted in Indian soil while aiming globally.

Escorts is no longer just a company; it’s a brand. It’s a story of Indian ambition, industrial resilience, and generational stewardship.

Reference

https://en.wikipedia.org/wiki/Har_Prasad_Nanda

https://www.indiatoday.in/magazine/news-makers/story/20170925-har-prasad-nanda-delhi-lahore-escorts-limited-auto-telecom-1044694-2017-09-16

https://www.cnbctv18.com/business/companies/backstory-when-nanda-brothers-parted-ways-leading-to-decline-of-escorts-group-11137522.htm

https://www.forbesindia.com/article/work-in-progress/escorts-lord-of-the-field/51009/1

https://www.timesnownews.com/business-economy/companies/article/throwback-how-hp-nanda-took-on-indira-gandhi-rbi-to-thwart-swaraj-paul-bid-to-acquire-escorts/825790