Craftsman III

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 Craftsman Automation Private Limited (“Craftsman” or the “company” - www.craftsmanautomation.com), an existing IFC client, is a diversified engineering company, engaged in the design, development and manufacturing of precision engineered machined components and caters to the automotive, industrial and engineering segments in India. The company has two main business segments: automotive (about 70% of revenue) and industrial and engineering (30% of the revenue). The automotive segment consists of machining the engine cylinder head and block, gear and other power transmission components for the two-wheelers, utility vehicles, farm & construction equipment and commercial vehicles. The non-automotive segment consists of manufacturing of various industrial and engineering products like gear& gear boxes, material handling equipment consisting of hoists, cranes, crane kits, storage solutions, railway products, mould base, dies, special purpose machines (SPM) and aluminum casting for power transmission. Incorporated in 1986 with its headquarters in Coimbatore in southern India, the company currently has 10 operational facilities at 7 locations which include: Coimbatore (3 facilities), Pune (2 facilities) and one facility each in Sriperumbudur (near Chennai), Bangalore, Jamshedpur, Faridabad and Pithampur near Indore. Apart from two small-sized aluminum foundries, sand foundry, gravity /low pressure/high pressure die casting facilities in Coimbatore and high pressure die casting and SPM facilities in Bengaluru, all other facilities are mainly machine shops. At the time of IFC’s previous investment in Craftsman in 2010, the company had 7 facilities at 3 locations, and the proceeds from IFC investment were used to support the company’s expansion plans. The public disclosure documents for IFC’s previous investment can be accessed at: https://disclosures.ifc.org/#/projectDetail/ESRS/29515. Now, the company has expansion plans to create capacity to grow its domestic automotive, industrial and engineering business by setting up and expanding its satellite units close to major auto manufacturers and is in the process of developing additional facilities at Faridabad, Pune, Chennai and Perundurai within the next one year. IFC is considering a corporate loan of up to USD 30 million to support capacity augmentation and modernization of the existing facilities through purchase of new machinery, and for expansion of the company’s facilities (the “project”).