Bhartia completes strategic acquisition
Pune headquartered ADVIK Hi-Tech, a leading global automotive component manufacturer, has completed the acquisition of Hanon Bangalore Operations Pvt Ltd from Hanon Systems of South Korea (KS: 018880), saying it is a strategic fit as it accelerates global manufacturing and R&D expertise in the powertrain systems market.
The acquisition, enabling it to deliver a comprehensive portfolio for pumps which includes oil pumps, water pumps, and vacuum pumps for global vehicle manufacturers, is expected to add substantial business volume along with wider customer base and product offering to ADVIK Hi-Tech over the next 5 years.
“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,” Aditya Bhartia, Managing Director, ADVIK Group of Companies, said on 27 Feb 2021.
“We’re 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,” he said.
The acquisition of this business will add a new manufacturing facility along with, booked business as well as the manufacturing, engineering, and administrative resources, to the company’s existing facilities spread across a total of 10 plants including India, Indonesia and Vietnam.
The Bangalore plant currently manufactures automotive water pumps and vacuum pumps for global vehicle manufacturers, with scope for expansion.
ADVIK Hi-Tech foresees steady growth in electrification in the 2W and 3W space, while it estimates hybrid powertrains will play a very crucial role in the Passenger Car segment.
The company is a world leader in supply of Oil Pump, Chain Tensioner, and CBS Brake Systems for the 2W 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 touching US$100 million, the group offers an extensive portfolio of products like Oil Pump, Water Pump, Vacuum Pump, Cam Chain Tensioner, Solenoid Valves, EGR and Brake System. The Group is already the world leader in the manufacture of oil pumps in the 2-wheeler segment along with Cam Chain Tensioners and CBS – Combined Braking System. It services Automotive customers globally. #investment #manufacturing #exports #acquisition /fiinews.com
