Mr. Patil, how did business go until 2019?
Kishor Patil: For over 2 decades, KPIT has witnessed significant growth in the space of embedded software. Software within automobiles is a key differentiator for automakers, as it helps them acquire more customers and expand revenues over the lifetime of the vehicle. In 2019, KPIT sharpened its focus in the space of software for the mobility ecosystem.
This is a disruptive time for the automotive industry. While on one side, few automakers are seeing lower vehicle sales, they are also putting in immense resources into technology for upcoming product launches – technologies that will take them towards an electric, autonomous and connected future.
But, two key aspects need to be addressed: Firstly, how quickly and accurately can automakers implement software-led features so that their products reach markets in time while ensuring they don’t lose market share or position? Secondly, how can automakers ensure high quality, first-time-right delivery while keeping costs at check?
It is at this intersection, where KPIT plays an active role, and the reason for our strong partnership with OEMs, Tier-1s and other mobility clients.
Though the Covid-19 pandemic will bring some disruption in the industry for the next couple of quarters; in the medium term, industry and business fundamentals are strong. We will have to be nimble, adapt quickly and innovate to respond to client needs during this time and contribute to their success. Our business fundamentals are very strong, and we continue to deliver consistent results.
What is your turnover in Europe or worldwide?
Kishor Patil: We are a global technology company with competency centers in the USA, Europe, India, China, Japan, Korea and Thailand. Our global delivery model helps us harness expertise from across the world to deliver on our clients‘ programs. We work on programs that are delivered for Europe or any other geographies from all over the world. I would not go into turnover numbers but put this in a slightly different manner: More than 6,000 engineers work at KPIT in the CASE area, i.e. in the topics of connectivity, autonomy, shared mobility and electrification; and CASE accounts for 90% of our business. There are probably very few companies in the world who even come up with such numbers in the CASE area. We are therefore well-positioned in the cutting edge of mobility and we focus exclusively on software.
Which software areas does KPIT cover?
Kishor Patil: We develop software components and software functionalities in the CASE area. Application software, middleware device drivers, basic software platforms and various other aspects of software is what we specialize in. At the same time, we are a software integrator. From prototype, software development to validation and testing – we ensure that software works as conceptualized in production. We understand the challenges in engineering and various nuances that can determine production-ready software.
This is exactly our business: the development of software on one hand and making it ready for production on the other. The automotive industry is in urgent need of deep software competence – both from scale and expertise perspective – which is exactly KPIT’s value proposition. We promise and deliver performance and value. What comes to the fore, is our deep understanding of the automotive industry and a strong understanding of the CASE domain, better than many other software companies.
What facts do you use to justify this statement?
Kishor Patil: Software plays a critical role in a vehicle’s functionality. While in a few cases the role of software could be just performance optimization, but in other cases role of software could be safety-critical. Hence experience of building software that is production-ready for automotive is key.
We have successful partnerships with the top automotive companies for many years. KPIT has written billions of lines of code on 100’s of vehicle programs and delivered software that is already in a large number of vehicle models on road. Having delivered on several complex projects gives us the confidence to take on furthermore challenging engagements. Automotive industry understands that software skills are of critical importance, which is why they are developing core skills inhouse, but they need a partner who can help them reach goals faster, keep up with the standards and ensure software works in production exactly like it did in a prototype.
We are one of the largest “software focused” accelerator and integrator both in terms of size and knowhow of the latest technology areas. We also bring the widest domain expertise in mobility.
On the next page you will be able to read how KPIT is involved in centralized vehicle architectures and you will get to know the significance of Germany and Europe for the company.