Powder metallurgy is one of the various processes used for the development of composite material. Powder metallurgy processed composite material has a high surface finish and strength to weight ratio. The surface characteristics and properties of powder metallurgy processed components not only depends on the powder material and process parameters but also on the material and manufacturing process of die and punch setup. This is a comparative study on surface roughness (Ra value), crack and hardness of powder metallurgy processed aluminium copper composite prepared by high carbon steel and hardened stainless steel grade diepunch set. 118% better surface characteristics and 5% better hardness were achieved in the Al-Cu composite of the same composition prepared in the hardened stainless steel die and punch set.