Synopsis: Macpower CNC Machines Limited has acquired leasehold rights over approximately 13 acres of land near Metoda GIDC, Rajkot, on a 30-year lease to support capacity expansion and backward integration. The company plans to invest around Rs. 50 crore in the project, which is expected to be completed within 12 months and will be eligible for incentives under the Viksit Gujarat Industrial Policy 2026.
Shares of Macpower CNC Machines Limited are likely to remain in focus after the company announced the acquisition of legally registered leasehold rights over approximately 13 acres of land (including 4 acres of green zone) near Metoda GIDC, Rajkot, Gujarat, on a 30-year lease basis. The strategic land acquisition is aimed at supporting the company’s next phase of manufacturing expansion and long-term capacity growth.
Macpower CNC Machines Limited has a total market capitalization of approximately Rs. 1326 crore. The company’s shares were trading at Rs. 1329.20 apiece on the stock exchange, down by 1.41 percent. The stock has gained 0.11 percent over the last five trading sessions and gained 12.58 percent over the last month. The stock touched a 52-week high of Rs. 1470 and a 52-week low of Rs. 761.
According to the company’s press release, the newly acquired land comprises around 13 acres, including 9 acres of usable land and 4 acres designated as a green zone. The company intends to invest approximately Rs. 50 crore towards construction of manufacturing infrastructure, installation of plant and machinery, utilities and other associated facilities. The expansion project will be funded through internal accruals and/or debt, with completion targeted within 12 months.
The additional land will primarily be utilised for debottlenecking existing manufacturing operations, expanding component production and undertaking backward integration, enabling the company to strengthen its manufacturing capabilities. Backward integration can reduce dependence on external suppliers, improve quality control, shorten production cycles and enhance operating margins over the long term. By removing production bottlenecks, the company can also increase manufacturing efficiency and improve delivery timelines for customers.
The expansion is expected to significantly enhance Macpower’s production capacity as demand for CNC machines continues to grow across sectors such as automotive, aerospace, defence, engineering and precision manufacturing. The company currently has an installed manufacturing capacity of 2,500 machines per annum, and the proposed investment is expected to support future capacity additions while allowing it to cater to higher order volumes.
An important aspect of the project is its eligibility for incentives under the Viksit Gujarat Industrial Policy 2026. The company is expected to receive benefits including up to 25 percent capital subsidy on investments in plant, machinery and buildings, along with a 7 percent interest subsidy. These incentives could substantially reduce the effective project cost, improve capital efficiency and enhance returns on investment over the long term.
Commenting on the development, Mr. Rupesh Mehta, Chairman and Managing Director, said the strategic land acquisition marks an important milestone in the company’s growth journey and will enable Macpower to establish advanced manufacturing capabilities while positioning it for its next phase of expansion. He added that the company aims to leverage government incentives while maintaining its focus on operational excellence, innovation and long-term value creation.
India’s machine tools industry continues to benefit from the government’s push towards domestic manufacturing through initiatives such as ‘Make in India’, rising investments in industrial automation and increasing demand for precision engineering equipment. Growth in sectors including automotive, electronics, defence, railways and general manufacturing is expected to drive sustained demand for CNC machines over the coming years, creating favourable opportunities for domestic manufacturers.
For investors, the proposed expansion represents a long-term capacity-building initiative rather than an immediate earnings catalyst. However, the combination of additional manufacturing infrastructure, backward integration and government incentives could improve production efficiency, reduce costs and support higher revenues as capacity utilisation increases. Successful execution of the expansion project could strengthen Macpower’s competitive positioning and support sustainable long-term growth.
Established in 2003, Macpower CNC Machines Limited is engaged in the manufacturing of Computerised Numerically Controlled (CNC) machines and lathe machines. The company offers one of the industry’s widest product portfolios, comprising 27 product series, more than 380 machine variants and over 13,389 installations across industries. Operating from its manufacturing facility in Metoda GIDC, Rajkot, Macpower serves customers in automotive, engineering, aerospace, defence and other precision manufacturing sectors with advanced machining solutions.
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