### **Overview** Craftsman Automation Ltd. is a leading Indian engineering conglomerate headquartered in Coimbatore, founded in 1986 by Srinivasan Ravi, who currently serves as Chairman and Managing Director. The company operates across four primary business segments — **Powertrain, Aluminium Products, Industrial & Engineering (I&E), and Others** — with a strong focus on precision manufacturing, vertically integrated capabilities, and strategic acquisitions. It serves automotive, industrial, and renewable energy sectors globally, offering end-to-end solutions from casting and machining to complete sub-assemblies and specialized systems. As of November 2025, Craftsman Automation has transformed into a **multi-segment, diversified industrial powerhouse**, reducing historical dependencies on cyclical automotive markets through targeted inorganic growth, geographic expansion, and vertical integration. --- ### **Key Developments & Strategic Progress (2023–2025)** #### **1. Acquisition-Driven Expansion & Diversification** Craftsman has pursued an aggressive acquisition strategy to enhance scale, capabilities, and geographic reach: - **Acquired DR Axion India (100% stake)** – A leader in **low-pressure and gravity die-casting**, this acquisition, completed by March 2025, enabled a strong pivot toward **passenger vehicle aluminum components**, including EV structural parts. DR Axion brought key customers such as a top-3 global automotive OEM with significant EV presence. - **Sunbeam Lightweighting Solutions Acquisition** – Expanded footprint into **North India** and broadened capabilities in **lightweighting**, with minimal customer overlap, enabling seamless integration and export growth. The acquisition facilitated access to Maruti, Bosch, and Vitesco. - **Fronberg Guss GmbH & Immobilien GmbH (Germany)** – Acquired for ~₹60 crores in mid-2024, this **European iron casting foundry** gave Craftsman rare **Tier-1 global capability** in large engine blocks (10–120L) for **stationary and industrial engines**. The move positions the company in an exclusive cluster of <10 non-OEM global suppliers. - **Craftsman Europe B.V. (Netherlands)** – A wholly owned trading subsidiary focused on **marine engine components**, supporting European and export markets. These transactions have diversified revenue streams, reduced reliance on 2-wheelers and commercial vehicles, and positioned Craftsman as a **global supplier in niche, high-barrier markets**. --- #### **2. Strategic Entry into Power Generation & Energy Markets** In September 2025, Craftsman Automation acquired **EEIPL (incorporated Sept 2023)**, which generated ₹61.76 crores in FY24–25. This marks the **company’s formal entry into power generation**, aligning with growing global demand for **backup power and data center infrastructure**. - **EGPPL** (incorporated Nov 2021 under the group) also reported rising traction: - FY22–23: ₹0.73 Cr - FY23–24: ₹2.02 Cr - FY24–25: ₹4.57 Cr The power generation vertical is expected to scale significantly from **FY27 onward**, with projected peak revenue of **$100 million (₹800 crores) by 2029–30**. --- #### **3. Greenfield Growth & Capacity Expansion** - **Kothavadi Greenfield Facility (Tamil Nadu)**: - Phase 1 launched in Q1 FY25. Includes **captive foundry (iron & aluminum)** and **machining unit** for large engine blocks and wind turbine components. - First commercial orders for **wind gearbox housings and planetary carriers** delivered by Q2 FY25. - Phase 2 will target **industrial engine castings** and support the **stationary engine market**. - Expected to contribute **$100 million in full-cycle revenue**, with ramp-up continuing through 2027. - **Bhiwadi Plant (Rajasthan)**: - Rapidly commissioned in August 2023, achieving **₹50 crores in revenue in Q1 FY25**. - Growing at **20% quarter-on-quarter**, with a target of **₹100 crores in first full-year revenue**. - Focus: **alloy wheels and structural aluminum components**, serving North Indian OEMs and export clients. - Despite high startup costs, plant is on track to achieve **maturity in 3–4 quarters**. - **Hosur Greenfield Plant (Tamil Nadu)**: - Commissioning underway in October 2025, leveraging **lessons from Bhiwadi** for smoother rollout. - Strategic location to serve **Chennai as a potential export hub for medium-duty trucks** under a major German OEM’s global program. - **Nagpur Plant**: Established to serve tractor OEMs and free up Pune capacity; supports domestic localization. --- #### **4. Revenue & Segment Performance (FY24–25)** - **Total Sales**: Projected to exceed **₹7,000 crores in FY25**, driven by acquisitions and new product ramps. - **Powertrain Segment**: - Revenue: **₹1,683 crores**, primarily from **M&HCV, tractors, passenger vehicles, and off-highway**. - Remains the **core revenue engine**, but now diversified beyond CVs. - **Aluminium Products Segment**: - Revenue: **₹2,154 crores** (FY24), with expectations to reach **₹4,000 crores in FY26**. - EBIT margins improved from 7.4% (FY22) to **14.95% (FY24)**. - Serves 2W, PV, CV, and industrial applications (e.g., GIS switchgear). - **Industrial & Engineering Segment**: - Revenue: ~₹740 crores (FY24). - Sub-segments: - **Storage Solutions**: ~50% of I&E revenue. - **High-End Sub-Assemblies & Contract Manufacturing**: gears, hoists, SPMs, precision parts. - Automated storage order book: **₹250 crores** (Oct 2024), with a **₹50 crore order underway for a major corporate in Tirunelveli**. - Achieved **138% CAGR in revenue between FY18–FY22** in storage. --- #### **5. Geographic and Technological Advancement** - **Total Built-Up Area**: Now exceeds **3.4 million sq. ft.** across 13+ plants in India. - **State-of-the-Art Infrastructure**: Equipped with precision machinery from Europe, automated lines, and integrated process controls. - **Vertically Integrated Capabilities**: - Full in-house control over **tooling, casting, machining, and assembly**. - One of the few Indian players with **all casting technologies**: HPDC, LPDC, GDC, green sand, no-bake, and emerging counter-pressure. - **Engineering Expertise**: In-house teams (100+ engineers) capable of designing SPMs, tooling, and complete systems. --- #### **6. Financials & Debt Outlook (Oct 2024 Projections)** - **Standalone Debt**: Expected to reach **~₹1,600 crores by end-FY26**, primarily due to acquisitions and greenfield projects. - **Debt Reduction Plan**: Sale of **16 acres of land in Gurgaon (Sunbeam)** expected to partially recover investment and reduce net debt. - **Debt/EBITDA Target**: Management aims to bring ratio to **1x–1.5x within the next 12 months**. - **EBITDA (Consolidated)**: - Powertrain: ₹298 Cr - Aluminium: ₹315 Cr - Industrial & Engineering: ₹36 Cr - **Capex Trend**: Ramped up significantly — from ₹2,229 Cr (FY22) to ₹6,330 Cr (FY24), supporting future revenue visibility. --- #### **7. Market Position & Competitive Edge** - **#1 in MHCV Powertrain Machining** in India. - Among **top 5 in tractor and off-highway components**. - **Top 3 in conventional storage**, **#1 in automated storage** in India. - **High barriers to entry** in core segments due to: - Precision machining of complex components (only 3–4 global standalone players). - In-house SPM and die-making capabilities. - Long development cycles (18–24 months) for large engines, creating customer stickiness. - Strong **OEM relationships** with Cummins, Daimler, Rolls-Royce (MTU), Caterpillar, MAN, Stellantis, John Deere, and others. --- #### **9. Innovation & Operational Flexibility** - **‘Company-within-Company’ Model**: Allows reallocation of resources across verticals, enhancing resilience. - **Rapid Plant Setup Capability**: Set up Bhiwadi plant from land acquisition (Jan 2023) to production (Aug 2023) in **7 months**. - **V-Store**: In-house developed **vertical lift module**, with 300+ units installed. A key product in automated storage. - **Sustainability in Design**: - Optimized racking systems to reduce steel usage. - Executing India’s **first sub-zero (-30°C) rack-clad ASRS** for cold storage.