Craftsman Automation Limited's Board of Directors has approved the initiation of an evaluation process for potential internal restructuring and consolidation of the company's aluminium products business. The decision was taken during a board meeting held on February 13th, 2026, as disclosed under Regulation 30 of the SEBI LODR Regulations.

Board Meeting Details

The board meeting was conducted on Friday, February 13th, 2026, commencing at 5:00 PM and concluding at 5:15 PM. The primary agenda focused on evaluating strategic options for the company's aluminium products business segment.

Restructuring Evaluation Scope

The evaluation process will cover comprehensive restructuring and consolidation of the aluminium products business. This includes the company's operations together with its wholly owned subsidiaries engaged in the aluminium product business. The restructuring aims to consolidate operations at a single wholly owned subsidiary level.

The board has indicated that various modes of restructuring will be considered, including:

• Scheme of arrangement under Sections 230 to 232 of the Companies Act, 2013
• Other applicable legal frameworks as deemed appropriate
• Consolidation of wholly owned subsidiaries through suitable mechanisms

Next Steps and Compliance

Upon completion of the evaluation process, the Board of Directors will consider and make a final decision in accordance with applicable laws. The company has committed to making appropriate disclosures and undertaking all requisite compliances as required under relevant regulations.

The company emphasized that this is currently an evaluation phase, and any concrete decisions will be subject to board approval following the completion of the assessment process. Craftsman Automation will ensure full compliance with regulatory requirements and provide necessary updates to stakeholders as the evaluation progresses.

Craftsman Automation has announced its board's approval for establishing a new manufacturing plant in Ludhiana, Punjab, marking a significant expansion in the company's production capabilities. The strategic investment demonstrates the company's commitment to strengthening its manufacturing footprint in northern India.

Investment Details

The board has sanctioned a total investment of ₹60 crore for the new facility, positioning it as a substantial addition to the company's manufacturing infrastructure. The financing structure reveals a strategic approach to funding, with the company planning to utilize external funding sources for the majority of the investment.

Funding Strategy

The company has adopted a loan-heavy financing approach, with 90% of the ₹60 crore investment to be funded through external borrowings. This financing structure allows the company to preserve internal cash flows while pursuing expansion opportunities. The remaining 10% of the investment will likely come from internal resources.

Operational Impact

The new Ludhiana facility is projected to contribute a 5% increase to the company's overall production capacity. This capacity enhancement is expected to materialize within 9-12 months of project initiation, indicating a relatively swift implementation timeline for the manufacturing setup.

Strategic Significance

The selection of Ludhiana as the location for the new plant positions Craftsman Automation strategically in Punjab's industrial landscape. The facility represents the company's continued focus on expanding its manufacturing capabilities to meet growing market demands and strengthen its competitive position in the automation sector.