Craftsman Automation Limited , a prominent player in the Indian manufacturing sector, has announced a significant expansion plan through its wholly-owned subsidiary, DR Axion India Private Limited. The company plans to establish a new manufacturing plant in the Chennai Metropolitan Area (CMA), Tamil Nadu, with an estimated investment of ₹280 crore.

Expansion Details

The board of directors of DR Axion India Private Limited approved the setting up of this new plant on October 29, 2025. Here are the key details of the expansion:

Strategic Rationale

The decision to establish a new plant stems from several strategic considerations:

1. Capacity Constraints: The company's current facility at Othappai, Thiruvallur (Tamil Nadu) is operating at full capacity, with an average utilization rate of 85%.

2. Anticipated Demand Growth: Craftsman Automation expects an increase in demand for both existing and new aluminium products in the coming years.

3. Expansion Potential: The new plant in the CMA will provide ample space for phased expansion, allowing the company to meet future growth needs.

4. Operational Advantages: The CMA location offers easy access to skilled manpower, robust industrial infrastructure, and efficient logistics support.

5. Synergistic Benefits: The proximity to the existing facility ensures operational synergy and efficient management of resources.

Industry Implications

This expansion move by Craftsman Automation's subsidiary signals confidence in the growth prospects of the aluminium products sector in India. The substantial investment and capacity addition could potentially strengthen the company's market position and its ability to meet increasing demand in the automotive and industrial sectors.

As the Indian manufacturing sector continues to evolve, such strategic expansions by key players could contribute to the overall growth and competitiveness of the industry. Investors and industry observers will likely keep a close watch on the progress of this project and its impact on Craftsman Automation's future performance.

Craftsman Automation Limited , a prominent player in the automotive and industrial engineering sectors, has marked a significant milestone in its expansion journey. The company officially commenced commercial operations at its new manufacturing facility located in Shoolagiri, Hosur, on October 16, 2025.

Key Details of the New Plant

This strategic move aligns with Craftsman Automation's growth plans, which were initially disclosed to stakeholders on January 29, 2025. The company's decision to establish this new manufacturing unit underscores its commitment to expanding its production capabilities.

Implications for Stakeholders

The launch of this new facility may have several implications for the company and its stakeholders:

1. Enhanced Production Capacity: The new plant could potentially boost Craftsman Automation's overall manufacturing output.

2. Technological Advancements: While specific details about the plant's capabilities are not provided, new facilities often incorporate the latest technologies.

3. Employment Generation: The establishment of a new manufacturing unit typically creates job opportunities, potentially contributing to local economic development.

4. Strategic Location: Hosur, known for its industrial ecosystem, particularly in the automotive sector, may provide Craftsman Automation with strategic advantages in terms of supply chain and logistics.

As Craftsman Automation continues to expand its operational footprint, investors and industry observers will likely monitor how this new facility impacts the company's performance and market position in the coming quarters.

The company's disclosure of this development, in line with SEBI regulations, demonstrates its commitment to transparency and timely communication with its stakeholders.