Advik Hi-Tech, a leading global automotive component manufacturer, today completed the acquisition of Hanon Bangalore Operations (Hanon Bangalore), from Hanon Systems, South Korea. This plant currently manufactures automotive water pumps and vacuum pumps for global vehicle manufacturers, with scope for expansion.
Advik says the acquisition is a strategic fit as it accelerates Advik Hi-Tech’s global manufacturing and R&D expertise in the powertrain systems market, enabling it to deliver a comprehensive portfolio for pumps which includes oil pumps, water pumps, and vacuum pumps for global vehicle manufacturers. The acquisition is expected to add substantial business volume along with wider customer base and product offering to Advik Hi-Tech over the next five years.
Aditya Bhartia, Managing Director, Advik Group of Companies, said, “We are delighted about the tremendous opportunities this acquisition brings including adding an advanced manufacturing set-up in pumps and an established in-production customer base that reiterates our commitment to investing in innovation and go to market capabilities. This acquisition is a strategic step in growing our customer base and product portfolio. We are committed to excelling in service to the existing customers of Hanon Bangalore, while enhancing the portfolio. We are committed to the growth of this business”, he added.
The acquisition of this business will add a new manufacturing facility along with, booked business; and the manufacturing, engineering, and administrative resources, to the company’s existing facilities spread across a total of 10 plants including India, Indonesia and Vietnam.
Advik Hi-Tech foresees steady growth in electrification in the two- and three-wheeler market, while it estimates hybrid powertrains will play a very crucial role in the Passenger Car segment.
Advik Hi-Tech is a world leader in supply of oil pump, chain tensioner, and CBS brake systems for two-wheeler OEMs and sees steady growth in these areas amidst a challenging business environment triggered by the Covid pandemic. With the entry of BS-VI norms, the company’s throttle body and solenoid valve business has also seen high growth. With annual sales of around $100 million, the group offers an expansion portfolio of products like oil pump, water pump, vacuum pump, cam chain tensioner, solenoid valves, EGR and brake systems.