In a significant expansion move, Craftsman Automation Limited has announced plans to set up a new manufacturing unit at SIPCOT Industrial Park, Shoolagiri, Hosur. The proposal was approved by the company’s Board of Directors in a meeting held on January 29, 2025. The new facility will enhance Craftsman’s production capacity for aluminium products, catering to the growing demand in the automotive sector.
Key Investment Details
- Proposed Capacity Addition: 15% increase in aluminium products manufacturing
- Timeline: 9-12 months for completion
- Estimated Investment: ₹150 crore
- Financing Mode: 90% via term loans, 10% through internal accruals
Strategic Expansion to Strengthen South India Presence
Craftsman Automation already has a strong footprint in South India, where several leading two-wheeler and passenger car Original Equipment Manufacturers (OEMs) operate. With its existing facilities running at 75% capacity utilization, the new plant aims to tap into the growing business potential of these OEMs by enhancing production capabilities.
The new unit in Hosur is strategically located within 100-150 km of major OEM hubs, ensuring efficient supply chain management and optimal capacity utilization.
Meeting the Rising Demand for Automotive Components
The automotive industry in India has been experiencing steady growth, with increased demand for lightweight aluminium components that improve fuel efficiency and performance. Craftsman Automation’s investment is expected to bolster its market position and strengthen its supply chain efficiency.
With this expansion, the company is well-positioned to cater to the increasing demand from major auto manufacturers while reinforcing its leadership in the aluminium products segment.