Craftsman Automation Expands with Acquisition of DR Axion India Pvt. Ltd

On June 29, 2024, Craftsman Automation Ltd finalised the purchase of the remaining 24% equity stake, amounting to 2,70,83,884 equity shares with a face value of ₹10 each of DR Axion India Pvt. Ltd. After acquiring 100% equity shares of DRAIPL, effective from July 1, 2024, it will become a wholly owned subsidiary of our company.

This acquisition entails Craftsman Automation Ltd’s interest in the entity being acquired. Both our Craftsman Automation Ltd and DRAIPL operate within the auto components industry, focusing on manufacturing strengths in complementary areas.

No governmental or regulatory approvals are required for this acquisition, which is expected to be completed by June 30, 2024.

Objective of Acquisition

This acquisition aims to enhance Craftsman Automation Ltd’s presence in the passenger vehicle segment, capitalise on process synergies, leverage DRAIPL’s customer base, and explore opportunities in the e-mobility solutions market.

Nature of Consideration

The acquisition of DR Axion India Private Limited (DRAIPL) by Craftsman Automation Ltd was executed through cash consideration amounting to ₹250 crore.

About DR Axion India Private Limited

DR Axion India Private Limited (DRAIPL), incorporated in December 2006, operates as a specialised manufacturer based in Chennai. The company produces aluminium cylinder heads and blocks using gravity and low-pressure die castings, primarily for passenger vehicles. DRAIPL holds several certifications, including ISO 14001, IATF 16949, and ISO 45001, underscoring its commitment to quality and safety standards. Catering exclusively to automobile original equipment manufacturers in India, DRAIPL reported a turnover of ₹1,24,615 lakh during the FY 2023-24, highlighting its significant presence in the automotive components sector.

About Craftsman Automation Ltd

Craftsman Automation began its operations in 1986 as a small-scale industry in Coimbatore, South India, and has since evolved into a prominent player in precision manufacturing across various sectors. The company specialises in producing components and sub-assemblies tailored to client specifications, serving automotive, industrial, and engineering segments through supply and job-work arrangements. Headquartered in Coimbatore, Craftsman Automation operates 12 plants, including 10 satellite units strategically located throughout India.

On July 01, 2024, the share price of Craftsman Automation Ltd opened at ₹5,604.95, touching the day’s high of ₹5,627.95 as of 12:24 PM on NSE.

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