JANUARY 20258ADVIK ACQUIRES POWERSPORTS MTG VIA SUBSIDIARYINDIAN HOSPITALITY SECTOR PRIMARILY DRIVEN BY REVENUE FROM MICE SECTORGlobal automotive components maker Advik has announced the acquisition of Powersports MTG, a German manufacturer specializing in mechanical and hydraulic braking systems, for an undisclosed amount. This strategic acquisition enhances Advik's expertise in premium motorcycle safety components, bolstering its capabilities in both internal combustion engine (ICE) and electric-powered commuter motorcycles and scooters, the company stated.The Indian hospitality industry is poised for steady growth, with revenues expected to increase by 7-9 percent year-on-year (YoY) in FY25 and 6-8 percent YoY in FY26, according to investment and credit rating agency ICRA. This growth builds on a robust base established in FY24. The average room rates (ARRs) for TOP STORIESpremium hotels in India are forecasted to climb to 7,800-8,000 in FY25, marking an 8 percent YoY increase. This trend is expected to continue in FY26, with ARRs projected to rise further to 8,000-8,400. Sustained domestic leisure travel, along with demand from meetings, incentives, conferences, and exhibitions (MICE), including weddings and business travel, has driven the sector's performance in FY25. While the upcoming general elections might cause a temporary slowdown, the overall demand is expected to remain robust over the next 9-12 months. Spiritual tourism and the increasing prominence of tier-II cities are anticipated to play an influential role in FY26, adding diversity to the industry's growth avenues. Vinutaa S, Vice President and Sector Head for Corporate Ratings at ICRA, emphasized the resilience of demand across markets, projecting strong performance in Q4 FY25 and throughout FY26. Underlying drivers such as domestic tourism, strategic regional diversification, and the rise of tier-II cities are expected to sustain momentum. In conclusion, the Indian hospitality industry is on track for consistent growth, supported by a mix of domestic and regional factors. Continued recovery and expansion will depend on maintaining this momentum and adapting to global economic shifts. The acquisition, executed through ADVIK Singapore Pte Ltd, Advik's Singapore subsidiary, is expected to drive the development of next-generation braking solutions. Powersports MTG concluded 2024 with strong revenue approaching 30 million euros, adding significant value to Advik's business portfolio.The acquisition positions Advik as a supplier of advanced brake systems, aligning with its ambitious growth plans. It also marks a significant step in establishing a European footprint, enabling Advik to expand and serve customers directly within the region. Advik highlighted that this acquisition brings access to hydraulic braking and clutch technologies, supported by 60+ patents. Powersports MTG caters to leading two-wheeler OEMs in Europe and the USA, providing braking and clutch systems. Commenting on the development, Advik's management noted that the deal furthers the company's vision of becoming a global leader in braking systems for two-wheelers, including motorcycles and scooters.Bhartia, a representative from Advik, stated, "This acquisition is very strategic to Advik, granting us access to advanced hydraulic braking and clutch technology. It also strengthens our European presence, allowing us to expand and service customers more effectively. This is a critical step toward our goal of being a leading global supplier of braking systems for two-wheelers".
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