Craftsman Automation to invest Rs. 150 crores in new Hosur plant

Craftsman Automation Limited announced today that its board of directors has approved the establishment of a new manufacturing facility at SIPCOT Industrial Park in Shoolagiri, Hosur. The expansion represents a significant move to strengthen the company's presence in Southern India's automotive manufacturing corridor.

The new facility, estimated to cost Rs. 150 crores, will focus on aluminum products manufacturing for the automotive sector. The company plans to finance the project primarily through term loans, which will cover 90% of the cost, with the remainder funded through internal accruals.

The expansion is expected to increase Craftsman Automation's production capacity by 15%. The company aims to complete the project within 9-12 months, according to the regulatory filing submitted to stock exchanges.

"The strategic location of the new plant, within 100-150 kilometers of major OEMs, will enable us to better serve our customers in the region," the company stated in its filing. The expansion comes at a time when Craftsman's existing facilities in Southern India are operating at an average capacity utilization of 75%.

The move appears timely as the company seeks to capitalise on the growing demand from two-wheeler and passenger car OEMs in the region. The new facility is expected to help Craftsman Automation maintain its competitive position in the automotive components sector.