Craftsman Automation Limited has approved the setting up of a new manufacturing plant in Ludhiana, Punjab, as part of its plans to enhance operational efficiency and service delivery in the region. The decision was taken by the company’s board of directors at a meeting held on 28 January 2026. The new unit will support the company’s powertrain operations and is intended to improve responsiveness to customers in and around Ludhiana.
The proposed facility will add incremental capacity to the company’s existing powertrain operations. The new plant is expected to contribute a capacity addition of around five percent of the existing powertrain capacity at peak levels. The company indicated that the additional capacity is planned to be commissioned within a period of 9 to 12 months.
Craftsman Automation stated in a stock exchange filing that the project does not involve any material capital expenditure relative to its overall operations. The estimated investment for setting up the Ludhiana plant is INR 600 million. Of this, around 90 percent will be funded through term loans, with the remaining amount to be met through internal accruals. The capital outlay is expected to be limited to operational requirements necessary to establish and run the facility efficiently.
The company currently operates its powertrain business at an average capacity utilisation of about 75 percent. The additional capacity from the Ludhiana unit is expected to support incremental demand while also improving logistical efficiency and delivery timelines for customers in northern India. The rationale outlined in the filing emphasises operational convenience and timely service delivery as the primary drivers for the investment, rather than a large-scale expansion of manufacturing footprint.
The Ludhiana plant is expected to function as a regional manufacturing and service base, enabling closer proximity to customers and suppliers in the region. Craftsman Automation noted that the establishment of the unit is aligned with its approach of incremental capacity additions and decentralised operations to support customer requirements more efficiently.
Craftsman Automation Limited is an Indian engineering and manufacturing company with operations spanning automotive components, industrial engineering, powertrain systems, aluminium products, and storage solutions. The company serves domestic and international original equipment manufacturers across multiple sectors and is headquartered in Coimbatore, Tamil Nadu. The Ludhiana facility will add to its existing manufacturing network across India.
