Tier 1 supplier Advik Hi-Tech recorded 12 percent YoY growth in FY2016- 17 despite demonetisation. Its turnover for the last fiscal stood at Rs 375 crore, with exports contributing about 11 percent. In FY2018, the company is targeting a turnover of Rs 500 crore, a YoY growth of Rs 125 crore or 33.33 percent YoY, which will see the export business contributing up to 20 percent.
According to Aditya Bhartia, managing director, Advik Hi-Tech, the company earlier exported only oil pumps but began shipping tensioners in November- December 2016, thereby achieving growth, albeit marginally. However, it has gained a foothold in the Indonesian market. Expanding its production capacities aggressively, both in India and abroad, Advik Hi-Tech is currently building an all-new plant in Indonesia and plans to set up one in Vietnam too.
Talking to Autocar Professional recently, Bhartia said, “Exports have been very good for us. There are two reasons for this: we had set up a plant in Indonesia two years ago. That plant has done exceptionally well for us. As we speak, we are in the process of expanding that facility because we have run out of space. Once the new plant comes up, we will shift operations of the first facility into the new one.”
The company has now bought more space and is building an all-new facility, three times the size of the existing one. The built up facility, which is spread across 40,000 square feet, will begin operations in January 2018.
Advik, which supplies oil pumps to Honda, Yamaha, Suzuki and Kawasaki in Indonesia, claims to have a share of 50 percent in Indonesia's two-wheeler oil pump market. “We used to earlier export to Honda in Indonesia and had a 25 percent market share with them. This was when we were exporting to them from India. Then we set up our own facility. Our business grew and now we are close to having a share of 50 percent business within Honda in Indonesia. We added other customers there in a span of two years. That was good progress,” added Bhartia.
“Secondly, we began making water pumps in Indonesia. It was a new product vertical for us. Now we have orders for 1.5 million units of water pumps per year from there. This is between Yamaha and Honda.”
“Thirdly, we got orders for making tensioners from Honda. Now we have a share of about 30 percent in the supply of tensioners within Honda in Indonesia. This will make us the world’s largest tensioner maker now in FY2017-18,” he disclosed.
Combined Braking System (CBS), decompression unit and case gear meter.
BIG ON NUMBERS
Advik Hi-Tech is also the world’s largest oil pump maker for two-wheelers. It makes about 14 million oil pumps whereas, according to Bhartia, the world market size is 60 million units. The company now also claims it will become the largest maker of two-wheeler tensioners in this fiscal.
“We will make 14 million tensioners wherein the world market, I estimate, is only 40 million units. For the January to April period in CY2017, we are already the largest manufacturer in terms of run-at-rate,” Bhartia disclosed.
Besides that it is also setting up a new facility in Vietnam, which is expected to be ready by April 2018.
Advik will supply parts to Honda and Yamaha in Vietnam. The company has earmarked about Rs 55 crore for capacity expansion in FY2018 as against Rs 40 crore last year.
The company follows a hub-and-spoke model wherein it manufactures components at plants in Pune, Bangalore and Pantnagar and assembles final products in other facilities located in Gujarat, Manesar and Indonesia. “Vietnam will also be a spoke, where we will assemble our products,” he revealed.
Interestingly, Advik Hi-Tech is learnt to be planning to venture into the passenger car segment soon. New developments on this score are underway but the company's top boss remained tightlipped on the new projects.