 

Craft Automation Limited |
Source: CRISIL Research

   

Craftsman amongst the leading cylinder head and cylinder block machining players

When compared with the market size of the vehicle segments considered for this assessment, in terms of
production volume, Craftsman Automation Limited is the largest component manufacturer engaged in machining
of cylinder heads and cylinder blocks in the construction equipment industry as well as in the IMHCV segment
of the commercial vehicle Industry

While in case of the tractor Industry Craftsman is among the top 3-4 component manufacturers with respect to
cylinder block machining.

Commercial vehicle industry
Moderate growth for CVs industry in the long term

CRISIL Research has categorized the CV industry into medium and heavy commercial vehicles (MHCVs), light
commercial vehicles (LCVs), and buses to better analyses the dynamics within each of these key segments.

CRISIL Research expects sales of MHCVs, LCVs and buses, the three major CV segments to grow a combined
5-7% CAGR between fiscals 2020 and 2025, compared to 3.2% between fiscals 2015 to 2020.

Healthy industrial growth from fiscal 2022 to upshift revival

The Indian industry's gross value add (GVA) had been growing tepidly, averaging 5% between fiscals 2015 and
2020. After a weak fiscal 2021 owing to the Covid-19 pandemic, CRISIL Research expect industrial GVA to rise
rapidly between fiscals 2022 and 2025, driven by the government's focus on 'Make in India’. Moreover,
improvement in infrastructure and higher expected corporate expenditure is likely to revitalise the capital
expenditure cycle, post fiscal 2021.

Focus on infrastructure and increased mining activity to bolster tipper demand
Highway execution by the National Highways Authority of India is expected to stabilise at 10-11 km per day by
fiscal 2024, as against 9 km per day in fiscal 2019, aided by the Bharatmala project. Projects such as Sagarmala

and investments in various irrigation projects will further drive MHCV demand.

CRISIL Research expect coal production to expand at 4-5% CAGR between fiscals 2020 and 2024, while iron
ore mining will likely grow at a healthy pace during this period, aiding tipper demand.

Market share of powertrain and transmission segment-wise — fiscal 2020: Rs 524 billion

 

= Total commercial vehicles = Tractors =SUV = Construction equipment

Source: CRISIL Research

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