Automotive components manufacturer Craftsman Automation Ltd has approved plans to establish a new manufacturing facility in Hosur, Tamil Nadu, as the company moves to expand capacity to meet rising demand from automobile manufacturers in southern India.
The decision was approved by the company’s board of directors at its meeting held on July 29.
The proposed facility, which will be located at Komaranapalli village in the Krishnagiri district of Tamil Nadu, will cater primarily to the aluminium products segment and is expected to support growing requirements from two-wheeler and passenger vehicle manufacturers.
According to the company, the expansion project will be undertaken in two phases, with an estimated investment of ₹100 crore in the first phase and an additional ₹150 crore in the second phase, taking the total planned investment to around ₹250 crore.
The project will be financed mainly through term loans, while the remaining funding requirement will be met through internal accruals.
Craftsman Automation said the new facility is expected to become operational within six to eight months, subject to the receipt of statutory approvals and the completion of construction and installation work.
The company noted that its existing aluminium products manufacturing units are operating at utilisation levels of around 85%, prompting the need for additional capacity to support future growth. The expansion is also expected to improve operational efficiency and strengthen the company’s supply chain network by positioning production facilities closer to major automobile manufacturers in the region.
Hosur has emerged as one of India’s leading automotive manufacturing hubs and hosts production facilities belonging to several vehicle manufacturers and component suppliers. The location is expected to provide Craftsman Automation with logistical advantages while helping the company respond more quickly to customer demand.
Headquartered in Coimbatore, Craftsman Automation manufactures precision-engineered components and systems for the automotive, industrial and power sectors. The company supplies products to a broad range of domestic and international original equipment manufacturers (OEMs) and has steadily expanded its manufacturing footprint in recent years.