Craftsman Automation Limited Greenlights New Manufacturing Facility in Tamil Nadu
Craftsman Automation Limited has approved the establishment of a new manufacturing unit in Hosur, Tamil Nadu, marking a significant expansion in its operational footprint in South India. The facility is intended to cater to the growing incremental demand from automotive original equipment manufacturers (OEMs) in the region.The decision was made following a Board meeting and aims to strategically enhance operational efficiency and improve logistics for the company's aluminium products division. Craftsman Automation, which already serves leading two-wheeler and passenger vehicle OEMs in Southern India, is expanding its capacity in response to nearing optimal utilization levels of its current facilities.
The proposed facility will be located at SF. No. 11 & 28 in Komaranapalli Village, Denkanikottai Taluk, Krishnagiri District, Tamil Nadu. The company plans to dedicate the additional manufacturing capability specifically to meet the demand generated by automotive customers in Southern India.
Expansion Details and Investment Plan
The new capacity addition represents a substantial investment commitment across two phases. The project is slated for commissioning within 6 to 8 months, pending the completion of all necessary project execution activities and approvals.Key operational and financial details related to the planned expansion are as follows:
| Particulars | Details |
|---|---|
| Existing Capacity Division | Aluminium Products Division |
| Current Capacity Utilization | Approximately 85% |
| Proposed Expansion Goal | To cater to incremental demand from automotive OEM customers in Southern India. |
| Phase I Investment | Rs. 100 Crores (Estimated) |
| Phase II Investment | Rs. 150 Crores (Estimated) |
| Financing Model | Substantially through term loans, with the balance funded via internal accruals. |
The rationale provided by the Board underscores the necessity of this expansion, noting that the proposed location offers strategic proximity to key OEM customers, which is expected to boost both operational efficiency and future business growth.
CRAFTSMAN Stock Price Movement
Craftsman Automation Limited rallies sharply as of 2:38 PM, pushing its stock toward a significant market high with shares trading at ₹9721.5 after climbing 4.64% in live trading. This robust performance comes amid intense investor focus, with the equity seeing strong buying interest and trading on 282,384 shares as it nears record highs.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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