The Bengaluru-based tool maker plans to use the capital to build new capacity, extend product lines, and sharpen its international footprint.
Kotak Alternate Asset Managers, the investment arm of Kotak Mahindra Group, has invested ₹1,200 Crore in Ace Designers Limited, a Bengaluru-headquartered company that makes CNC turning and machining centres. This is among the largest private capital commitments in India’s manufacturing equipment sector in recent months.
Ace Designers is one of the original companies behind the Ace Micromatic Group, a consortium of Indian firms that focus on precision engineering tools. Founded in 1979 by three engineers from the Central Manufacturing Technology Institute, the company initially started as a design consultancy. It now leads the domestic market for CNC machinery with annual production of more than 8,000 turning centres and 3,400 machining centres.
The firm’s projected revenue for FY24–25 stands above ₹2,400 Crore. Its products are used by mid-sized and large manufacturers across sectors, including automotive components, aerospace suppliers, and industrial fabrication units. Ace also exports its machines to clients across Europe, Asia, North America, and the Middle East.
Engineering Expansion and New Facilities
The capital infusion will fund a new manufacturing unit, modernisation of assembly lines, and hiring of trained personnel. In a statement, promoter SG Shirgurkar said the investment will help the company “accelerate its work in automation and technology development.” He noted that the company aims to strengthen its service and support network alongside growing its footprint.
“This is not just about building more machines. It’s about making sure the industry has access to better, faster, and more cost-efficient tools,” he said.
TK Ramesh, Managing Director of Ace Designers, added that the company is focused on addressing technology gaps that often hold back Indian equipment manufacturers. “With the right support, we want to build machines that meet global quality standards at scale. This investment helps us take a long-term view,” he said.
Why Kotak Alts Backed This Bet
Kotak Alternate Asset Managers, which manages investments across private equity, real estate, and infrastructure, has been steadily increasing its exposure to domestic manufacturing.
Eshwar Karra, Managing Partner at Kotak Alts, said, “We’re focused on backing companies that have a long operating history, an engineering-first culture, and real user trust. Ace fits that lens perfectly. It’s a business that scaled over time and hasn’t chased valuation games.”
Rahul Chhaparwal, Partner at Kotak Alts, said the fund sees Ace’s next few years as critical. “We see solid demand ahead, especially in export-linked tooling and component manufacturing. Our goal is to support Ace as it takes on larger projects and scales its customer base,” he said.
CNC Machines at the Core of India’s Industrial Growth
Computer Numerical Control (CNC) machines are used in high-precision cutting, shaping, and drilling of components. Industries such as electric vehicles, medical devices, energy, and heavy machinery depend on these systems to produce parts consistently.
India has been pushing to localise more of its manufacturing stack, and CNC machinery is one of the key enablers of this effort. Ace Designers has been part of government-linked skilling initiatives and has supplied equipment to vocational institutions and smaller machine shops across industrial clusters.
The company also runs R&D facilities in Bengaluru and collaborates with partner firms under the Ace Micromatic umbrella to improve cost-efficiency and reliability.
A Broader Industrial Shift
Industry observers say that large investments like this signal renewed interest in India’s domestic manufacturing supply chain. With many companies diversifying away from China, firms like Ace that can meet volume and precision needs stand to benefit.
Ace says it will also use the new capital to upgrade its training labs and digital integration tools that allow clients to monitor machine health and output remotely.
Final Word
This funding round reflects a shift in how long-term capital is moving within the Indian manufacturing landscape. It marks a rare instance of a pure-play machine tool company raising significant growth capital without tapping the public markets.
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