Increasing production capacity of manufacturing industry with minimum increase in cost is the challenge faced by the modern production industry. In this regard an attempt was made to design a rod grooving multiple spindle drilling unit to replace existing single spindle unit. Proposed design enabled 6 grooves to be drilled simultaneously and results achieved was reduced cycle time and higher productivity. The parts of this multi spindle unit have to be designed using conventional methods. Finite Element Analysis of spindle housing and gear housing was performed to analyze structural integrity using ANSYS. Results of analysis indicate that these parts are structurally sound. After implementation of the design we found that the production rate increase from 150 components per shift to 425 components per shift. Added benefits include less chance for error, less accumulated tolerance error and less tools change