Craftsman Automation Limited, a leading engineering and manufacturing solutions provider, has unveiled plans for a major capacity expansion through its wholly owned subsidiary DR Axion India Private Limited. The company will set up a new manufacturing facility in the Chennai Metropolitan Area (CMA), Tamil Nadu, with an estimated investment of ₹280 crore.
The move comes as part of Craftsman Automation’s long-term strategy to strengthen its manufacturing capabilities and cater to rising demand for aluminium products in India’s automotive and industrial sectors.
Expansion details
The board of DR Axion India approved the new project on October 29, 2025, outlining a 15% capacity addition to the company’s current operations.
| Aspect | Details |
|---|---|
| Investment | ₹280 crore (estimated) |
| Capacity Addition | 15% increase to existing capacity |
| Timeline | 12–24 months |
| Financing Mix | 90% term loan, 10% internal accruals |
| Location | Chennai Metropolitan Area, Tamil Nadu |
Strategic rationale
The decision to set up a new facility is driven by capacity constraints at the company’s existing plant in Othappai, Thiruvallur, which currently operates at around 85% utilization. With demand for aluminium products expected to grow steadily, the new plant aims to accommodate future expansion, diversify product offerings, and enhance operational efficiency.
The CMA location provides key advantages — including access to skilled manpower, advanced logistics networks, and established industrial infrastructure. Additionally, its proximity to the existing facility will ensure seamless integration and resource optimization.
Industry implications
This expansion marks a strong vote of confidence in India’s manufacturing ecosystem. As aluminium components gain increasing traction in automotive lightweighting, industrial machinery, and energy applications, Craftsman Automation’s new facility will enable the company to capture emerging opportunities and strengthen its leadership in precision engineering.
The project also reinforces Tamil Nadu’s position as a manufacturing hub, with continued investments from large and mid-sized engineering firms.
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