Nilesh Shah Eyes Precision Engineering Companies As Next Big Theme

Ace fund manager Nilesh Shah is eyeing precision engineering companies that make components for robots as the next sunrise sector in India to tap value.

"The world is moving towards automation and robots. We don't have the technology to make robots, but we have the capability to make precision parts for such robots," Shah, managing director of Kotak Mahindra AMC, told NDTV Profit in a televised interview.

"Any company that manufactures precision engineering parts for robots will be at a similar level to where IT companies were in the late 1990s and early 2000s, or generic pharma companies were two decades back," he said.

He said India missed the industrial revolution of the 19th century due to colonial suppression, but the country is among the frontrunners in artificial intelligence, behind the US and China but ahead of other competitors.

Precision engineering is a specialised field of engineering dedicated to the design, development, and production of products with exceptional accuracy and repeatability. It utilises advanced technologies and methods to ensure tight tolerances and precise dimensional control throughout the manufacturing process.

Shah, however, did not disclose specific stocks from the sector. However,, to be sure, Listed companies in the space include Azad Engineering Ltd., which makes precision-engineered components and assemblies, specialising in aerospace, automotive, and industrial sectors.

Another player is Macpower CNC Machines Ltd., which manufactures and supplies CNC (computer numerical control) machines and supplies industries like automotive, aerospace, and manufacturing, providing precision engineering solutions across domestic and international markets.

Affordable Robotic & Automation Ltd is a robotic company that provides automation solutions for welding lines using robotics and related designing services.