Advik Hi-Tech's Plans to Double Turnover With EV and CNG Push

Auto component maker Advik Hi-Tech plans to expand by leveraging its core business of supplying components to internal combustion engine vehicles, while developing new product offerings for vehicles powered by cleaner fuels. The Pune-based company, which is known for manufacturing chain tensioners, braking systems and vehicle pumps for cooling and lubrication, wants to double its turnover over the next three years to Rs 3,000 crore.

The company’s current annual revenue is approximately Rs 1,500 crore, with pumps generating more than half, and brakes accounting for about a quarter. It has earmarked an investment of close to Rs 500 crore over the next three years for its product portfolio. “...the company is expecting a strong CAGR of 25% in the next two to three years,” Aditya Bhartia, Advik Hi-Tech's Managing Director told Autocar Professional.

Of the Rs 500 crore planned investment, a significant portion will go towards electric and mechanical pumps. Electric pumps are essential for thermal management and the proper functioning of various systems in electric vehicles, ensuring efficient operation, passenger comfort, and overall performance. With nearly all major global two-wheeler OEMs as customers, Advik Hi-Tech has established its core business in two-wheeler oil and water pumps, with a focus on ICE vehicles.

The company claims that it has achieved global leadership in two-wheeler pump components. However, recognising limited headroom for expansion in the core two-wheeler pump business, the company has also entered the four-wheeler oil and water pump market. The company is diversifying its offerings into alternate fuel vehicle space with CNG pump regulators. Bhartia noted that it will expand the supply of pumps to electric vehicles and hybrid vehicles as well.

“We have already got orders for those from electric vehicle and hybrid vehicle customers. We have already invested close to Rs 50 crore for the development and assembly of the electric pumps,” Bhartia said. At the same time, the company has also taken steps to move beyond pumps – focusing on products such as anti-skid braking system (ABS) for electric vehicles as well as battery packs.

The company is focused on two-wheelers for its braking systems rather than four-wheelers. Its offerings include a mechanical drum brake system and a hydraulic disc brake system. Earlier this year, Advik Hi-Tech bought German mechanical and hydraulic braking system manufacturer Powersports MTG to bolster its offerings for premium motorcycle safety. It has also developed a prototype of a 48-volt ABS for electric two-wheelers, which is expected to go into production this year.

“Typically, all available ABSs are 12 volts and the battery of an electric vehicle is 48 volts. Then we have to put a DC-DC converter to step down the voltage. So what we have tried to do is a 48-volt ABS, which would not need a converter, thereby saving nearly Rs 2,000 in cost,” Bhartia explained. In addition, Advik Hi-Tech will soon start manufacturing CNG regulators, initially for three-wheeler applications, with plans to expand into the two-wheeler and passenger vehicle markets.

It has a partnership with Japan-based Nikki for CNG regulator technology. CNG has started gaining popularity among Indian two-wheeler buyers. Bajaj Auto was the first two-wheeler maker to offer a motorcycle running on CNG, with TVS Jupiter CNG likely to follow soon. “It is an absolutely clear use case, where end users have benefits from a total cost of ownership view. So, the market should develop, it should grow. It has got a bright future,” Bharita said when asked about the potential of the two-wheeler CNG market.

Advik Hi-Tech is working with CV makers as well, to offer its CNG vehicle products. Currently, it supplies transmission pumps to two commercial vehicle makers, and it is a portfolio that the company plans to grow gradually. The company has also acquired assets of UK’s Aceleron Energy, which is known for its lithium-ion batteries.