Technocraft Industries , a leading Indian engineering company, has announced plans to invest £10 million in the United Kingdom over the next three years as part of its expansion strategy. This significant investment is expected to generate 18 new highly skilled engineering and technical jobs across the country, contributing to the UK's industrial capabilities.

Investment Details

The company's expansion plan includes:

• A total investment of £10 million over three years
• Creation of 18 new jobs in engineering and technical roles
• Focus on strengthening Technocraft's presence in the UK market

Strategic Importance

Navneet Kumar Saraf, CEO of Technocraft Industries, emphasized the strategic importance of this move, stating, "The UK represents a key growth market for us, and this investment highlights our confidence in its talent base and innovation ecosystem. By creating highly skilled engineering and technical roles, we aim to contribute to the UK's industrial capabilities while supporting our global growth ambitions."

Expansion Focus

The investment is expected to support:

• Digital engineering services
• Delivery of innovative solutions to UK and European customers
• Long-term vision of building sustainable growth
• Strengthening partnerships with UK industry stakeholders

Company Background

Technocraft Industries is an Indian multinational company with interests across various sectors:

• Closures
• Scaffolding Systems
• Formworks
• Textiles
• Engineering Services

The company is known for:

• Being one of the largest manufacturers of high-precision drum closure products
• A predominant player in producing and distributing scaffolding systems and formworks
• Manufacturing and exporting cotton yarn, fabric, and garments

Technocraft has manufacturing facilities in Maharashtra, India, and China, with overseas offices in the United Kingdom, Poland, Germany, New Zealand, USA, Canada, and UAE.

This investment announcement comes as part of a larger initiative, where about 64 Indian companies are proposing to invest over £1 billion in the UK, potentially creating 6,900 jobs across various regions.

Technocraft Industries is listed on the National Stock Exchange and Bombay Stock Exchange with the ISIN: INE545H01011.

Technocraft Industries reported stable quarterly results for Q1, despite challenging market conditions driven by US tariff increases. The company's scaffolding business, which accounts for a significant portion of its revenue, faced headwinds with US sales declining approximately 35% quarter-on-quarter due to tariff-related demand disruptions.

Tariff Impact on Key Segments

The scaffolding segment, which contributes about 56% of the company's total segment revenue, is currently subject to a 23% tariff in the US. This could potentially rise to 34% if additional Russian-linked tariffs are implemented. The drum closure division faces even steeper tariffs, with current rates at 27.60% that could escalate to 52.60%.

Navneet Saraf, Director and CEO of Technocraft Industries, stated, "We are able to pass on the tariffs in the scaffolding segment. However, for drum closures, we have decided not to pass on any additional tariffs beyond the current 27.60% to maintain our competitive position against EU imports."

Formwork Business Shows Robust Growth

Despite challenges in the scaffolding segment, the company's formwork business (Mach One) showed robust performance. The new Aurangabad plant is operating at 75% capacity and is expected to reach 90-95% utilization in the coming months.

"We are confident of achieving INR 900.00 crores revenue from the Mach One business this fiscal year, up from INR 520.00 crores in the previous year," Saraf added. The company reported a strong order book of INR 350.00 crores for the formwork business, representing approximately 4 months of sales.

Diversification Strategy

To mitigate risks associated with the US market, Technocraft Industries is focusing on geographical diversification. The company is exploring opportunities in Saudi Arabia and South America for its scaffolding and formwork products. Additionally, it has recently started operations in Japan for its engineering services division.

Outlook

While the company maintains a positive outlook for its domestic formwork business, uncertainties remain regarding the scaffolding exports due to the evolving tariff situation in the US. The management indicated that the impact of these tariffs would be more evident in the coming quarters.

"It's difficult to provide guidance for the scaffolding part of the business at this point," Saraf noted. "The severity of the tariff impact will only be visible in the subsequent quarters."

The company's textile division is also facing significant challenges, with potential 50% tariffs on US exports threatening to halt sales to that market. Technocraft Industries is exploring manufacturing options outside India to mitigate this impact.

Despite these challenges, Technocraft Industries remains focused on leveraging its diversified product portfolio and geographical presence to navigate the current market turbulence.