Aditya Bhartia, Managing Director of ADVIK Group completed his education in Pune. He is responsible for guiding the overall strategic and corporate efforts of the company, including product development, operations and exploring new market opportunities. Aditya identified business opportunity in two-wheeler market as there was a shift from 2 -stroke to 4 - stroke engines due to environmental norms, this led to ADVIK Hi-Tech Pvt. Ltd. being incorporated by him in 2000 right after completing his education. In a span of nine years, under his leadership ADVIK has grown from a small facility manufacturing tensioners for the domestic market to a Corporate manufacturing a range of auto components for major Global OEMs.
The ADVIK Group of companies is headquartered in Chakan, Pune. It is a leading manufacturer of auto components. With annual sales touching Rs530mn, the group offers an extensive range of products like Lifter Tensioner Assemblies, Oil Pumps, Fuel Pumps, Fuel Feed Pumps, Fuel Cocks, Decompression Units, Water Pumps, Drum Gear Shifter, Starter Gear Reduction, Kick Shaft Assembly, Combi - Brake System. The ADVIK group has acquired world wide presence by servicing clients like Honda Motorcycles & Scooters, PT Astra Honda Motor, Bajaj Auto, Suzuki Motorcycles, Yamaha, Kawasaki, LML, Lombardini, Mahindra 2 Wheelers (formally Kinetic Motor), Force Motors, Greaves Cotton, Ducati Motor Holding, Motori Minarelli and Piaggio.
Speaking with Yash Ved of India Infoline, Aditya Bhartia says "The company is planning to set up three plants at Chakan, Manesar and Pantnagar in the next three years with an investment of Rs500mn."
Tell us about your collaboration with Trochocentric GmbH?
We are entering into a long term technical collaboration with Trochocentric GmbH forDesign, Development and Manufacture of Oil Pumps. This tie-up will provide us access tothe cutting-edge and latest technologies of a global market leader with 30 years ofexperience and expertise in R&D.
Brief us about your expansion plans? What is the investment required?
The company is planning to set up three plants at Chakan, Manesar and Pantnagar in thenext three years with an investment of Rs500mn. The proposed plant at Chakan, to beoperational by the end of 2010, will be set up with an investment of Rs350mn. It will havean installed capacity to manufacture 0.5mn oil pumps in Phase I and will be enhanced toone million oil pumps in Phase II.
It will be a state of the art facility andfully equipped to manufacture Oil Pumps, Water Pumps and Hydraulic Tensioners for thefour-wheeler industry. With this expansion, the group expects to reach Rs1600mn by theyear 2013.
In 2009, the company has started massproduction for Kick Shaft Assy and Drum Gear Shifter for Motori Minarelli. Mass productionfor Drum Gear Shifter and Oil Pumps for Ducati Motor has also started.
Our target for 2009-10 is to supply 12 mn assemblies.
How are you planning to raise the funds?
We are planning to raise the funds through equity and debt.
What is the outlook for the industry?
The automotive industry is at the centre of India’s new global dynamics. Ourcompany’s vision, to design, develop, manufacture and supply technically superior automotive products to all vehicle manufactures globally, has led to the formation of ADVIK Precision Pvt. Ltd.
Tell us about your revenues?
The company is planning to achieve 30% of sales from the export business from the currentlevel of 20%. Our revenues for fiscal 2008-09 were close to Rs.530mn and for FY2009-10 we are targeting revenues of Rs.750mn.
Brief us about your product revenues in percentage terms?
Our products are Oil Pump, Decomp, Fuel Cock, Drum Gear Shifter, Kick Shaft etc. 28% of our revenues comes from Oil Pumps, 33% from Tensioners, 9% from Decomps, 10% from FuelCocks and remaining20% from Drum Gear Shifter, Kick Shaft etc.
What is your focus area going to be in future?
We are focusing on TPM activities and have adopted lean manufacturing practices continually. The company is planning to set up a new plant for four wheeler components by the end of 2010.
Brief us about your R&D activity?
The company is constantly innovating and upgrading technology and alternate superior material products by investing 4% of its turnover on R&D. We will strengthen R&D activities in capturing the product data and improving design.
Tell us about your clients?
Our key customers are Bajaj Auto Ltd., Honda Motorcycles & Scooters India Ltd., Suzuki Motorcycle India Ltd., Hero Honda Motors Ltd., India Yamaha Motors, Kawasaki Motors Corp., Lombardini India Pvt. Ltd., Mahindra 2 Wheelers, Piaggio Vehicles, Force Motors and LML Ltd. For domestic and Ducati Motor Holding, Italy, PT Astra Honda, Indonesia, Motori Miarelli, Italy & Piaggio, Italy.
Brief us about your employee strength?
We have a total of 430 employees and we are planning to increase the same to 700 employees by 2012.