Focus on autonomous vehicles, EU expansion drive KPIT’s growth – ET Auto


Focus on autonomous vehicles, EU expansion drive KPIT’s growth – ET Auto

“Some industries like this will take 15 years to get anywhere, not two or three or four or five years,” Patil said.

Amid the multiple disruptions facing the world, from supply chains to the advent of AI, KPIT Technologies has maintained its growth momentum benefiting from the strong bets it took in areas like electrification and autonomous vehicles and expansion in geographies like Europe at the right time, its MD and CEO Kishor Patil said.

The automotive and mobility-focused software player registered about 40% growth in fiscal 2023-24 even as top guns in India’s USD 250 billion software export industry recorded subdued growth facing a macroeconomic demand slump. KPIT stock generated 601.72% return as compared to Nifty IT which gave investors 27.71% return over a three year time period. (as of last trading session)

“While we are not living in a world outside the current world, we have been lucky to be where we are at the right time,” Patil told ET.

Even if original equipment manufacturers (OEM) are cutting down expenditures in some areas, they are investing in others, and the key is to play in these areas of investment, Patil said.

He added that there are also disruptions in areas like operating system architectures and improvement in consumer experiences – being a thought leader in such areas and building on them can bring opportunities and benefits too.

Asia is now the fastest growing geography for the Pune-headquartered company, with countries like Japan, Korea and India driving growth, he said.

The niche that KPIT has carved out in mobility and automotive segments will remain the focus, however, Patil said.

“We believe we can be three times our size by doing what we do,” he said.

He added that India can navigate global uncertainties as long as it can go up in the value chain and also manage the disruption that AI brings.

In terms of AI in autonomous vehicles, for example, China is ahead of the rest of the world given the data they can access to train AI, its headstart in core engineering, and so on, Patil said. Yet, there is an opportunity for India as the world wants to reduce dependence on the northern neighbour.

“Whatever is happening with China, it can be looked at as an opportunity as long as we respond to it,” he said.

Software is an area of play where India can use AI to improve functionality and catch up quicker and help the OEMs, Patil noted.

Cooperation will also play an important role going forward. For instance, in the semiconductor space, India could explore tie-ups between domestic design companies and fab companies in places like Taiwan.

“Some industries like this will take 15 years to get anywhere, not two or three or four or five years,” Patil said. “You start somewhere, and to get to the kind of computing we need for AI or green tech will take longer time.”

Similarly, startups in Taiwan can benefit from Indian talent while Indian companies can benefit from their smart hardware, Patil said.

He chairs the engineering research and development council of industry body Nasscom, which recently signed a memorandum of understanding with a Taiwanese counterpart to bolster cooperation.

  • Published On Jul 8, 2024 at 10:30 AM IST

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