KPIT
While other ER&D Companies are posting flattish Growth, KPIT stands tall in this League. I want to Emphasize here that, the Capabilities which are developed by KPIT and its recent acquisitions provide a very qualitative view of what are the intentions of the company. The management is able to sense the need of providing V&V Platform (key focus area) and also other sw solutions for the current transition from ICE to EV or Hybrid.
Being from an Automotive Industry, the way KPIT is currently positioned, it seems the company is aiming at a One Stop Solution of Sw Development using Autosar, Unit Testing, Unit Level Integration, System Testing & System level integration of all Auto components which require a Sw Driven Control.
Point here is, use of Sw in EV’s is increasing not to just provide a excellent PowerTrain like was the case with ICE, but to provide differentiated User Experience that comes from integrated software.
Major parts of EV are Software (functions, OS, Middleware), Integration, V&V, ECU’s, Sensors, Power Electronics, other electronic Components.
Having said that, Major Expenditure is towards the top braket i.e. Sw, Integration, V&V.
This decides the time to market for a Project.
Now lets take an Example of Maruti. If a Maruti car (Swift), if the company needs to build an EV Swift Car, the most important part will be to develop a Sw Model suitable for all Different ECU’s (like Motor, Drive, EDU’s, BMS etc). Even though somehow the company manages to create a Sw the major challenge lies in the integration of this Sw will all Auto Componets (ECU’s). This is were KPIT is currently focussing on, which is building a Platform for Autocompanies to have a Integration and V&V Service available to reduce the Time to market.
Next comes the SDV (Autonomous Driving). Like where Tesla is currently operating, its very difficult for other OEM’s to catch Feature quality of Tesla cars. Millions of computations per sec in a Control System. This cannot happen without excellent Intergration of Products. (One example is the
Lately they are also colaborating with Chip Manufactures which will also be a key differentiator going ahead.
Management talks about, onboarding a Cutomer and then adding value to such a extent that they become a Deep Pocket client and then using Platforms to further expand in their other Projects.
They have also started to onboard clients from OffHighway segments, CV’s which talks about being a differentiator not only in Passenger vehicles but using PV Expertise to expand into other product segments. Moreover with the compliance standards like ISO-26262 and ASPICE, Sw Development is becoming more complex and process driven. One small Failure of Hw Sw Integration can delay a project by 6-9 months. As its easy to do changes in the Sw (within a short time) but very difficult to do changes in PCB’s i.e. HW where the V&V and Integration platform will be a key differentiator.
Holding since 2 years. Biased
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