About Patil Automation Limited
Business Overview
Patil Automation, incorporated in 2015, is an automation solutions provider primarily catering to the automotive sector. The company specializes in the design, manufacturing, testing, and installation of customized automation systems such as welding lines (spot, MIG, TIG), assembly lines, material handling machinery, and special-purpose machinery tailored to client-specific production needs.
The client base mainly includes Automotive OEMs, Tier I suppliers, and automotive component manufacturers, focusing on production setup expansion, upgrades, or repairs. Automation solutions are aimed at optimizing manufacturing processes and reducing manual intervention. The product portfolio includes assembly fixtures, welding fixtures, robotic cells, testing and inspection systems (e.g., leak testing machines, inspection jigs and gauges), and auxiliary items, offering integrated automation solutions. The company also offers support services such as repair, maintenance, modification, and manpower support.
According to the D&B Report, industrial automation is transforming industries globally, significantly benefiting the automotive sector through enhanced production efficiency, precision, and cost-effectiveness via robotic welding and automated assembly lines.
Design operations are conducted at the Admin and Design office in Baner, Pune, including mechanical/electrical design and process simulation. As of March 31, 2025, the Design and Development team consists of 45 employees. The Sales and Marketing team, comprising 17 employees, manages operations across 10 Indian states, including Maharashtra, Haryana, Karnataka, Gujarat, Madhya Pradesh, Rajasthan, and Tamil Nadu.
As of March 31, 2025, company had 244 permanent full-time employees. Additionally, company employed approximately 256 contract laborers at our units. The Banker to the Company is ICICI Bank Limited.
Industry Analysis
Automation Solutions
The global manufacturing sector is rapidly evolving with the integration of advanced technologies and automation tools. Over the past few decades, traditional labor-intensive production has transitioned to machine-driven processes, especially in developed economies where industrial robots now handle a majority of manufacturing tasks, with human roles limited to supervision and monitoring.
Technologies such as enterprise resource planning (ERP) systems, integrated manufacturing systems, and automation software have become standard in advanced manufacturing environments. While developing nations like India are still in the adoption phase, the technology gap between developed and developing economies is gradually narrowing.
This transformation is fueled not only by technological progress but also by globalization and liberalized trade regimes, which have enabled manufacturers to expand beyond borders and operate in a highly competitive global market. As a result, companies must now focus more than ever on efficiency, cost reduction, and continuous modernization to remain competitive.
Industrial automation systems are now closely linked with round-the-clock monitoring and real-time process control—practices common in developed markets but still gaining traction in India. However, with increasing awareness and competitive pressure, even Indian manufacturers are beginning to adopt such systems, especially within the organized, large-scale manufacturing segment.
A wide array of automation tools—such as PLCs (Programmable Logic Controllers), SCADA, Human Machine Interfaces (HMI), Distributed Control Systems (DCS), ANNs (Artificial Neural Networks), welding automation, and robotics—are being deployed to enhance productivity and reduce operational costs.
Transforming Landscape of the Electric Vehicle (EV) Industry
Rising fuel prices and environmental concerns have accelerated consumer interest in electric vehicles (EVs). Though EVs still cost more than internal combustion engine (ICE) vehicles, the price gap has significantly reduced in recent years, thanks to technological innovations and scale.
The electric two- and three-wheeler segments have seen robust adoption, and now the passenger vehicle (PV) segment is also shifting towards electrification, driven by fuel cost pressures and improving EV ecosystem components such as charging infrastructure, battery technology, and swapping systems.
EV sales in India recorded a major jump in FY24, with consolidated sales (e-2W and e-4W) reaching 1.035 million units, marking a 33.4% year-on-year growth. Though growth was higher in FY23 (185.9%) due to a low base, the FY24 performance reflects sustainable momentum.
India's EV revolution is largely driven by government policy interventions, notably the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME I & II), PLI schemes, and the Automobile Mission Plan 2016–26. The central government aims to electrify 30% of the vehicle fleet by 2030, making it one of the world’s most aggressive EV strategies.
EV penetration has grown from just 0.7% in 2020 to 6.3% in 2023 of total registered vehicles. FY25 (YTD) continued this momentum with a 15% year-on-year increase in overall EV sales. Two-wheelers led this growth, followed by three-wheelers, while the e-4W segment saw a temporary slowdown.
In 2023, Tata Motors dominated India’s EV market with a 72% market share, followed by MG Motors (10.8%) and Mahindra (9%), with popular models such as Tata’s Tiago, Nexon, and Tigor, MG ZS, and Mahindra XUV400. Tata’s strategic partnership with Uber further supported its leadership.
Business Strengths
1. Design and Development Capabilities
The automation system design and development process focuses on delivering client-specific, efficient, and high-precision solutions. The team utilizes advanced software tools like E-PLAN, Delmia, CATIA V5, AutoCAD, Process Simulate, and Solid Edge to create customized systems. As of March 31, 2025, the design and development team includes 45 skilled employees, ensuring tailored solutions aligned with client requirements.
2. In-house Manufacturing with Integrated Testing
The company operates two in-house manufacturing units with a combined built-up area of approximately 109,000 sq. ft. These facilities are equipped with CNC bending machines, plasma/oxyfuel/laser cutting machines, milling, jig boring, and surface grinding machines, along with comprehensive testing equipment. Testing capabilities include dimensional measurement, weld penetration analysis, and material strength evaluation, supported by CMM systems, enabling consistent quality control and efficient inventory and production management.
3. Customer Recognition and Repeat Business
In Fiscal 2025, products were supplied to over 52 customers, including Automotive OEMs, Tier I suppliers, EV manufacturers, and component producers, across 10 Indian states. Multiple clients have placed repeat orders, and recognitions include Best Supplier Award, Exceptional Performance Award, Best Tech-Savvy Partner Award, and other Appreciation Awards.
4. Experienced Leadership and Strong Management
The company is led by experienced promoters, including Manoj Pandurang Patil (Managing Director with 25+ years of industry experience) and Prafulla Pandurang Patil (Executive Director and CFO with 28+ years of experience, including 9 years in financial management). The leadership is supported by a competent technical, commercial, and senior management team, enabling strategic growth and execution aligned with evolving market opportunities.
Business Strategies
1. Expansion of Production Capabilities
Plans are in place to establish a new manufacturing facility to support growing demand. As per the D&B Report, the Indian industrial automation solutions industry is projected to grow from USD 15.12 billion in 2024 to USD 29.43 billion by 2029, at a CAGR of 14.2%. Increased adoption of robotic welding systems across sectors such as automotive, heavy engineering, and large-scale fabrication is driving demand for automation solutions.
2. Diversification into Non-Automotive Sectors
Industrial robots are increasingly being adopted in electronics, pharmaceuticals, and consumer goods, beyond the automotive sector. These industries utilize automation for assembly, welding, packaging, and quality inspection, enabling high precision, improved productivity, and quality consistency.
3. Growth in Electric Vehicle (EV) Automation
With the rapid rise of electric vehicle (EV) manufacturing, the demand for specialized automation systems is growing. EV production requires high-precision systems capable of handling batteries, electronic control units, and smart material handling, making it a key growth area for industrial automation.
4. Emphasis on Quality Standards
Maintaining high-quality automation systems remains a core focus. This includes continuous process reviews, rigorous quality checks, and timely corrective actions to ensure that solutions consistently meet client expectations and industry standards.
Business Risk Factors and Concerns
1. High Dependency on Automotive Sector
A significant portion of revenue is derived from clients in the automotive industry, including OEMs, Tier I suppliers, and component manufacturers. Any adverse developments in the automotive sector may directly impact sales and profitability.
2. Revenue Concentration in Welding Lines
The key product—Welding Lines—contributed 65.59%, 74.23%, and 77.45% of operating revenue in Fiscal 2025, 2024, and 2023, respectively. A decline in sales of this core product due to competition, pricing pressure, or shifting demand could significantly affect business performance. Inability to adapt to technological changes or evolving client needs poses further risk.
3. Geographic Concentration of Operations
Manufacturing operations are confined to Unit I and II in Pune district, making them vulnerable to regional risks such as natural disasters, civil unrest, economic shifts, and logistical disruptions. Such events could hinder production, transport, and overall operations.
4. Customization-Driven Operational Risks
Each automation solution is custom-designed per client specifications, making it non-reusable across other models or clients. This results in long project cycles, high working capital requirements, and significant human resource allocation. Any inefficiency in managing such complex projects may negatively affect revenue, profitability, and reputation.
Patil Automation faces business risks from sector dependency, product concentration, geographic vulnerabilities, and a highly customized, non-repetitive project model. These factors could impact operational continuity, financial health, and growth prospects if not managed effectively.
