Craftsman Automation to get $37 mn IFC funding

Coimbatore-based Craftsman Automation Pvt Ltd is to get $37 million (Rs 162 crore) from International Finance Corporation (IFC), the private investment arm of the World Bank group. The investment, in the form of straight or quasi equity in the company, will be used to part finance Craftman's expansion and growth.

The company plans to set up new units over the next two years at locations close to OEMs and their subsidiaries. It has also lined up purchase of new equipment for its existing facilities. The proposed investment is expected to create around 600 direct and 300 indirect jobs over the next three years.

Craftsman Automation is an engineering company with a diversified business mix encompassing machining of critical parts for domestic OEMs in the commercial vehicles and tractors segment. It is also into contract manufacturing of assemblies and sub-assemblies for various sectors like automotive, textiles, printing machines, locomotives for both domestic and export markets, and manufacture of products such as industrial gears and marine products.

The company currently has three manufacturing units in Coimbatore and four units that provide machining services at Chennai, Sriperumbudur, Pithampur (Madhya Pradesh) and Jamshedpur.

It also has a subsidiary in the Netherlands that sells marine products apart from having two joint ventures with Carl Stahl International GmBH, Germany, to develop and market material handling equipment and with Mitsubishi for selling their laser cutting machines.