Swaraj Engines Limited has approved an expansion of its engine manufacturing capacity from 195,000 units to 240,000 units per year. The investment for this project is estimated at INR 2.2 billion (approximately USD 26.4 million) and will be funded through internal cash generation and surplus funds.
The expansion will take place at the company’s existing facility in Mohali, Punjab, and is expected to be completed over a period of 24 to 27 months. The project involves setting up an advanced technology assembly line and expanding the machine shop to support the additional 45,000 units of annual capacity.
As per company data, the current capacity utilization is approximately 90%. The investment will also enable Swaraj Engines to manufacture a new engine model designed to meet the specifications of a key customer.
The decision was approved during a board meeting held on April 16, 2025.
In the third quarter of the fiscal year ending December 2024, Swaraj Engines reported a net profit of INR 454.2 million (approximately USD 5.5 million), marking a 20.57% increase compared to the same period in the previous year. Revenue for the quarter rose by 19.37% year-on-year to INR 4.64 billion (approximately USD 56.2 million).
In September 2022, Mahindra & Mahindra acquired an additional 17.41% stake in Swaraj Engines from Kirloskar Industries for INR 2.96 billion (approximately USD 35.8 million), increasing its total stake to 52.13% and making Swaraj Engines a subsidiary.
Swaraj Engines has also undertaken initiatives to enhance gender diversity on its shop floors. According to a study by the Udaiti Foundation, the company increased the representation of women in its workforce from 1.5% in 2013 to over 10% in 2024. Efforts included workplace redesigns, collaborations with technical institutes, tailored training programs, and safety measures to support and encourage women’s participation in manufacturing roles.