Craftsman Automation (CRAF.BO): Engine block specialist benefiting from global data center build-out; initiate at Buy

研报英文原文证据摘录

Craftsman Automation (CRAF.BO): Engine block specialist benefiting from global data center build-out; initiate at Buy

Goldman Sachs Craftsman Automation (CRAF.BO)

3) ‘Local for global’ engine parts opportunity an additional growth driver

We expect more opportunities for Craftsman to supply engine blocks given the

emerging trend of ICE engine manufacturing in India by global automakers (including

Ford and Stellantis). The company’s recent fund raise should support investments in

this direction to allocate capacity for this higher-margin business opportunity over the

next 3 years.

Ford’s latest India plan is centered on expanding engine manufacturing rather than

restarting a broad domestic passenger-vehicle business. Ford already has an India

powertrain base in Gujarat, where Tata Motors acquired Ford’s Sanand vehicle plant for

US$75mn while Ford retained access to the powertrain facility through a lease-back

arrangement. That facility has continued to support engine exports, preserving India’s

role in Ford’s global manufacturing network even after the company exited local

mass-market vehicle production. Moreover, Ford has signed an MoU with the state

government in Tamil Nadu to revive its idle Maraimalai Nagar plant near Chennai for

next-generation engine manufacturing. Ford has announced an investment of about

US$350mn for the Chennai project, with planned annual capacity of 235,000 engines

and production expected to begin in 2029. The plant’s location near Chennai’s port

ecosystem and supplier base should support an export-led operating model, while the

project is also expected to create more than 600 direct jobs. Overall, Ford’s India

strategy should be read as a selective, asset-disciplined powertrain localisation plan,