International Finance Corporation (IFC), the private investment arm of the World Bank, is planning to invest an undisclosed sum in Craftsman Automation Pvt Ltd, a company engaged in original equipment manufacturing (OEMs) for automotive sector in Coimbatore, VCCircle has learnt. IFC will take final decision on the transaction in its meeting scheduled to be held on June 18.
Craftsman is raising the fund to expand its facilities in India at an estimated cost of $37 million (around Rs 168.7 crore) over the next two years. IFC is investing in the form of straight or quasi equity. The funds will be used to part-finance the project expansion and to support the growth of the company, VCCircle has learnt.
Craftsman plans to set up new units at strategic locations close to OEMs and its subsidiaries in the commercial vehicles and tractors segment. The project also involves the expansion of the company’s existing facilities in India.
According to a recent report in Economic Times, the company is planning to widen its current automotive business, and to add new locations in Pune, Haryana and Uttaranchal.
Craftsman is an engineering company with a diversified business portfolio that include original equipment manufacturing, contract manufacturing of assemblies and sub assemblies for various sectors such as automotive, textiles, printing machines, and locomotives for both domestic and export markets, and manufacturing of industrial gears, hoists and marine products.
The company was launched in 1984 and currently has three manufacturing units in Coimbatore, besides four other units located at Chennai, Sriperumbudur, Pithampur and Jamshedpur that provide machining services.
Craftsman also has a subsidiary in the Netherlands that sells marine products, and two joint ventures, one with Carl Stahl International Gmbh, Germany and the other with Mitsubishi. While Carl Stahl JV develops and markets material handling equipment, Mitsubishi JV sells Craftsman's laser cutting machines.
In 2008-09, the revenue of the company was Rs 251 crore.