Craftsman Automation Ltd, a parts maker for the automotive and industrial sectors, is proposing a capex of about ₹500 crore in FY25. The bulk of the investments is likely to be spent on completing two of its greenfield factories in Rajasthan and Tamil Nadu.

The Coimbatore-headquartered company is in a significant capex phase to capitalize on long-term growth prospects. In the previous fiscal year, it invested about ₹580 crore in capex.

The Rs 4,452 crore (consolidated revenue) company is setting up a factory at Bhiwadi in Rajasthan for its aluminium casting business, targeting growth opportunities from OEMs in the Northern part of India. It is learnt that the Bhiwadi unit has already secured orders for half its capacity, with trial production expected to commence this fiscal year and ramp up in the next.

“Our new plant in Bhiwadi, which is under construction, will enable us to scale up and cater to customers in the northern region. With a growing focus on lightweighting in the automotive segment, Craftsman has the facilities and technology to capture the demand for structural and other vehicle parts in aluminium, Srinivasan Ravi, Chairman & Managing Director said in the company’s latest annual report.

“On the back of its strong engineering capabilities, Craftsman Automation has emerged as the largest independent machining player, one of the top three players in storage solutions, and a credible competitor in the aluminum die-casting business. The company now has a well-diversified portfolio, bolstered by the acquisition of DR Axion India,” says a report by Motilal Oswal Financial Services.