Craftsman Automation Approves ₹250 Crore Hosur Manufacturing Facility to Expand Aluminium Products Capacity

Expansion to Meet Growing Automotive OEM Demand

Craftsman Automation Limited has announced that its Board of Directors approved a strategic proposal to set up a new manufacturing facility at Hosur, Tamil Nadu. The move comes as the company’s Aluminum Products Division operates at approximately 85% capacity utilization, necessitating capacity expansion to cater to incremental demand from leading automotive original equipment manufacturers (OEMs) in Southern India.

Key Project Highlights and Investment Breakdown

The proposed facility, designated as Hour Unit – 3, will be situated at Komaranapalli Village in Krishnamurti District, Tamil Nadu. The development will proceed in a phased manner to effectively support two-wheeler and passenger vehicle OEM clients.

• Total Project Investment: Estimated at ₹250 Crore across two phases.
• Phase I Outlay: ₹100 Crore (Estimated).
• Phase II Outlay: ₹150 Crore (Estimated).
• Commissioning Timeline: Target completion within 6 to 8 months, subject to regulatory approvals and execution milestones.
• Mode of Financing: Funded substantially via term loans, with the balance sourced through internal accruals.

Strategic Rationale and Operational Benefits

Craftsman Automation Limited currently operates aluminum products manufacturing facilities across Southern India. Setting up the Hour Unit – 3 provides strategic proximity to major OEM customer bases, which is expected to significantly enhance operational efficiency, streamline supply chain logistics, and support long-term business growth as domestic automotive demand continues to expand.