Automotive component maker Advik Hi-Tech on Monday proclaimed the completion of the acquisition of the Hanon Bangalore Operations Pvt Ltd from Hanon Systems of South Korea. 

Hano's Bengaluru facility currently manufactures automotive water and vacuum pumps for global vehicle manufacturers, with scope for expansion, the company said in a release. 

This acquisition is a strategic fit as it accelerates ADVIK Hi-Tech's global manufacturing and R&D expertise in the powertrain systems market, facilitating it to deliver a comprehensive portfolio for pumps which includes oil, water and vacuum pumps for global vehicle manufacturers, ADVIK Hi-Tech said. 

A part of the Pune-based around USD 100 million revenue ADVIK Group, the company's product portfolio includes oil water and vacuum pumps, cam chains, tensionets and combined brake system, among others, catering to the automotive customers globally.

The acquisition is expected to adjoin substantial business volume along with wider customer base and product offering to the company over the next five years, it said. 

"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 " said Aditya Bhatia, Managing Director, ADVIK group. 

This achievement is a strategic step in growing the customer base and product portfolio, he said, adding "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".

It 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 & Vietnam.

ADVIK Hi-Tech foresees steady growth in electrification in the two and three wheeler space, while it estimates hybrid powertrains will play a very crucial role in the passenger car segment, said the release. 

The company is a world chief 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, said the release.

With the introduction of BS-VI norms last year, the company's throttle body and solenoid valve business has also seen high growth, it added.