KPIT has no worries about competition from other IT players offering automotive engineering solutions as Pandit said 90% of the business they do is mechanical while 90% of the business KPIT does was in electronics.
With a sharp focus on technology solutions for automotive engineering and mobility solutions, the new version of KPIT Technologies commenced trading at NSE and BSE. KPIT is now being positioned as a niche software solutions provider with specialisation in embedded software, AI and digital solutions.
This follows KPIT’s merger and demerger with Birlasoft, announced in January 2018 and effective from January 2019. The transaction resulted in two publicly-traded specialised technology companies – KPIT Technologies, focused on automotive engineering and mobility solutions, and Birlasoft focused on IT services.
KPIT got listed with the opening bell ringing ceremony at NSE, presided over by Ravi Pandit, chairman, KPIT and Kishor Patil, chief executive & MD. KPIT Tech started trading at Rs 99 and closed at Rs 103.95 on Monday. The new KPIT business is worth $300 million with its largest facility in Pune and global centres in Detroit, Munich, Tokyo and operations in China.
Pandit said KPIT would grow at 15% to 16% this year and 18% the year after, and at 20% in the next few years. He said the company had invested significantly in new technologies, talent and it will be building platforms and deliver across the globe.
“We are working for the who’s who of the passenger car business and will be bring sharper focus on the commercial vehicle business as well as the new world of mobility,” Pandit said. “We want to work with the Top 25 companies and the relationships have to be strategic to both,” he added.
KPIT has no worries about competition from other IT players offering automotive engineering solutions as Pandit said 90% of the business they do is mechanical while 90% of the business KPIT does was in electronics. Most of the changes in the automotive industry were being driven by software and 90% of that was what KPIT does. So, it gave them a focus and differentiated from other “me too businesses”, Pandit said.
Automotive companies are already focused on becoming better and new car makers like Volkswagen, BMW and GM are working on electric vehicles and they are making huge investments in R&D. KPIT had the tools, accelerators and platforms to help their customers reach their destination faster, Pandit added.