Coimbatore-based Craftsman Automation has won new orders from the PSA Group (Citroen), which the company claims is expected to peak at Rs 200 crore by FY2024. The development marks Indian supplier’s first significant foray into the passenger vehicle segment.
Srinivasan Ravi, CMD, Craftsman Automation, in a recent interaction with investors, revealed that the order is currently at a sampling stage and is likely to get production-ready by FY2023. Ravi did not respond to an email sent by Autocar Professional seeking details about the deal.
Craftsman Automation is considered amongst the largest component suppliers in the machining of cylinder blocks and cylinder heads in the intermediate, medium and heavy commercial vehicle segment as well as the construction equipment, two-wheeler and tractor industry.
The company’s clientele includes Daimler India, Tata Motors, Tata Cummins, Mahindra & Mahindra, Simpson & Co., TAFE Motors and Tractors, Escorts, Ashok Leyland, Perkins, Mitsubishi Heavy Industries, John Deere and JCB India. It has a dozen strategically located manufacturing facilities across seven cities in India.
Move towards monthly commodity price correction
With steel and aluminium prices spiking almost by 15-16 percent and 11 percent (Q-o-Q) respectively, the Craftsman Automation management has apparently been forced to move towards monthly price correction beginning July. Until last month, the policies with various customers were based on average per quarter/ trailing quarter/ current quarter. “We could not effectively transfer these price increases to our end customers. We had to bear the brunt of these prices that has affected to certain extent our performances,” added Ravi during the investor call.