Craftsman Automation to set up new unit at Nagpur

The Board of Directors of Craftsman Automation has approved the proposal for setting up a new plant/unit at Nagpur, Maharashtra. The automotive powertrain segment has an existing capacity of 74 lakh based on current product mix.

The existing capacity utilisation is 70 percent. The proposed capacity addition is in the range of eight to 10 percent based on current product mix. 

Phase-1 of the Automotive Powertrain project is expected to be completed by 24 to 30 months and Phase-2 which involves strategic expansion across auto segments of business, automotive powertrain, automotive aluminium, would be completed in 24 to 48 months.

Phase-I of the project will entail an estimated investment of  ₹115 crore, while it will see an investment of ₹110 crore. Ninety percent funding of the project will be done through term loan and balance through internal accruals.

The unit will be strategically located near the company's existing key customer in the auto sector. The project will ease the capacity in Pune plant (part of the existing capacity) and take new business in Pune region.