At a time when artificial intelligence (AI) is gaining ground in discourse but not revenue, IT company Altair Engineering expects growth from its AI vertical to outpace its traditional simulation business in India.
The US-based, NASDAQ-listed global company is witnessing robust demand in the segment and expects a “huge” monetary impact in the next year or two, the managing director of India & ANZ, Vishwanath Rao, told FE.
“In the next one or two years, we will see a huge monetary impact,” he said, adding, “There is a tremendous amount of interest for AI and digital business right now. However, converting that interest into revenue is still ‘work-in-progress’.”
“AI in engineering, AI in product development are still evolving areas. (But) it’s very rapidly evolving,” added Rao, who began his career 25 years ago at Altair.
Currently, about 12% of Altair’s Indian business stems from data science and AI and 75% of its revenue comes from its simulation business.
The company on a global level achieved a 11% year-on-year growth in its total revenue to $225.6 million in the fourth quarter ended December. For the full year 2023, Altair reported a total revenue of $871.3 million, an increase of 10% compared to the previous year.
Rao added that the company is witnessing robust growth in India, with its operations expanding at a high double-digit rate. Additionally, India has emerged as Altair’s third-largest market, following the USA and Germany.
Amy Messano, Altair’s chief marketing officer, said: “India is a very important market for us, both for customers and for our team as well as our development centre. It’s the second biggest development centre outside of the US and on the marketing team we have quite a few people here.”
Altair’s Indian operations boast the second-largest development centre outside the US and the company is focusing on sectors such as automotive, aerospace, defense and BFSI, which are its top markets in the region.
Against the global trend where the IT companies are facing weakness in their BFSI verticals, Altair is seeing a good traction in its Indian segment, especially from fintech companies.
Besides, to support its expanding operations in India, Altair is actively recruiting, with plans to hire 200 employees in the next few months.
It has also opened a new office in Chennai on April 9 to accommodate its growing workforce.
“We’re 800 employees in India, and are looking at hiring 200 more in a span of four to five months. So we are definitely growing aggressively. The market is very positive,” Rao said.
Altair’s innovative licensing system, which allows for flexible usage of its software suite, continues to be a key factor in its growth. The company’s engagement with universities and its industry outreach program further strengthens its talent pool and industry connections.
In a move to further integrate into India’s technological landscape, Altair has collaborated with IIT Chennai to establish an e-mobility Centre of Excellence. This initiative, supported by a contribution of approximately $1 million from its CSR fund, aims to train engineers in emerging automotive trends. The center has already commenced training students and industry professionals.
Altair has also partnered with IIT Delhi to create an open-source car model for safety research, showcasing its commitment to contributing to the broader engineering community, which will soon be launched to the public.
