Synopsis: India’s manufacturing sector is entering a new phase of growth. Companies are no longer focused only on adding capacity – they’re investing in smarter factories, automated production lines, and digital technologies to improve efficiency. That shift could create long-term opportunities for several listed industrial automation companies.
India’s Next Manufacturing Story Is About Smarter Factories. For years, India’s manufacturing ambitions were measured by the number of factories being built and the amount of production they could add. That equation is now changing. Today, manufacturers are asking a different question: how can they produce more with fewer errors, lower costs, and better quality? The answer increasingly lies in automation.
Whether it’s an automobile plant assembling vehicles, an electronics company producing smartphones, or a pharmaceutical manufacturer packaging medicines, businesses are investing in technologies that make factories faster, safer, and more efficient.
The timing couldn’t be better. Government initiatives such as Make in India and the Production-Linked Incentive (PLI) scheme have encouraged companies to expand manufacturing across sectors including electronics, electric vehicles, renewable energy, defence, pharmaceuticals, and semiconductors. As new factories come up, many are being designed with automation at their core rather than adding it later.
This isn’t just good news for manufacturing companies. It also opens up a significant opportunity for businesses supplying automation equipment, industrial software, robotics, motors, drives, and electrical systems. Here are seven listed companies that are well positioned to benefit from this structural trend.
Siemens
Siemens has been one of the biggest names in industrial technology for decades, and automation remains one of its strongest businesses. Its products are used in factories across industries to control machines, monitor production, and improve efficiency. The company also offers digital factory solutions that help manufacturers analyse data, optimise operations, and reduce downtime.
As more Indian manufacturers embrace smart manufacturing, Siemens is likely to remain one of the key beneficiaries. With a market cap of Rs.1,23,751 Crores, the shares of Siemens India closed at Rs.3,476.4 in Thursday’s trading session.
ABB India
ABB India is another major player in industrial automation. Its portfolio ranges from robotics and industrial motors to drives, motion control systems, and factory automation software.
Manufacturers are increasingly looking to automate repetitive tasks while reducing energy consumption, and that’s exactly where ABB’s solutions fit in. The company has a strong presence across sectors such as metals, cement, chemicals, mining, food processing, and automotive. With a market cap of Rs.1,44,627 Crores, the shares of ABB India closed at Rs.6,820 in Thursday’s trading session.
Honeywell Automation India
Honeywell Automation focuses on helping industries run their operations more efficiently and safely. Its automation systems allow factories to monitor equipment in real time, improve production quality, and reduce operational risks. The company also serves industries such as pharmaceuticals, oil & gas, chemicals, and infrastructure, where automation is becoming increasingly important.
As companies continue to digitise their operations, Honeywell stands to benefit from higher demand for intelligent control systems. With a market cap of Rs.33,686 Crores, the shares of Honeywell Automation India closed at Rs.38,015 in Thursday’s trading session.
Schneider Electric Infrastructure
Modern factories need more than automated machines – they also require reliable and efficient power systems. That’s where Schneider Electric Infrastructure plays an important role. The company provides electrical distribution equipment and grid automation solutions that support industrial facilities, commercial buildings, renewable energy projects, and data centres.
As industrial investment picks up, demand for advanced electrical infrastructure is expected to grow alongside automation spending. With a market cap of Rs.35,411 Crores, the shares of Schneider Electric Infrastructure closed at Rs.1,485 in Thursday’s trading session.
CG Power & Industrial Solutions
CG Power has staged a remarkable turnaround over the past few years and has strengthened its position in India’s electrical equipment market.
Its motors, drives, transformers, and switchgear are widely used in manufacturing facilities. As industries expand production and modernise plants, the company is likely to benefit from higher demand for industrial electrical equipment. With a market cap of Rs.1,43,535 Crores, the shares of CG Power & Industrial Solutions closed at Rs.910.9 in Thursday’s trading session.
Larsen & Toubro
While Larsen & Toubro is best known for its engineering and construction projects, it also has a meaningful presence in industrial automation and digital engineering.
The company works with manufacturers to improve factory operations through automation, digital technologies, and smart engineering solutions. With industrial capital expenditure expected to remain healthy, L&T has exposure to multiple parts of the manufacturing value chain. With a market cap of Rs.5,48,503 Crores, the shares of Larsen & Toubro closed at Rs.3,991 in Thursday’s trading session.
Bosch India
Bosch India has steadily expanded beyond its automotive roots and is becoming an important player in industrial technology. Its automation solutions help manufacturers improve precision, reduce production losses, and enhance operational efficiency. As factories become more connected and digitally managed, Bosch’s industrial business could see steady growth. With a market cap of Rs.1,24,374 Crores, the shares of Bosch India closed at Rs.42,225 in Thursday’s trading session.
Why Automation Is Becoming a Necessity
Indian manufacturers are facing higher labour costs, tighter quality standards, and increasing global competition. To stay competitive, they need factories that can produce consistently while reducing waste and improving productivity.
Modern automation systems make that possible. Robots can handle repetitive tasks with greater accuracy, digital sensors can monitor equipment around the clock, and predictive maintenance software can identify problems before they disrupt production.
The benefits go beyond efficiency. Automated factories often consume less energy, improve worker safety, and reduce operating costs over time. That’s why industries ranging from automobiles and electronics to pharmaceuticals and food processing are steadily increasing their automation investments.
A Theme That Could Play Out Over Several Years
India’s manufacturing story is still unfolding, and automation is becoming an integral part of that journey. As companies build new facilities and upgrade existing ones, spending on automation equipment, industrial electronics, electrical infrastructure, and digital factory solutions is likely to rise.
For investors, this creates an opportunity to look beyond traditional manufacturing companies and focus on the businesses that enable this transformation. Companies such as Siemens India, ABB India, Honeywell Automation, Schneider Electric Infrastructure, CG Power, Larsen & Toubro, and Bosch India are all positioned to benefit from the growing shift towards smarter, more efficient factories.
The move towards automation isn’t a short-term trend. It reflects a broader change in how Indian manufacturing is evolving – and companies that help factories become more productive could remain at the centre of that transformation for years to come.
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