Speaking at the company's headquarters, Nikhil Kamath is direct about the starting point. "Fifteen years ago we were a domestic supplier with a good reputation and no global brand," the chief executive says. "We sold on price, we got squeezed, and we realised that if we did not move up the value chain we would not exist in a decade."

On capital allocation, Nikhil Kamath describes a rule of thumb used by the board: no project is approved unless it can be funded from internal accruals in a downside case. "It means we sometimes say no to exciting things," Nikhil Kamath admits, "but it also means we have never had to dilute our own people to survive a bad year."

From domestic supplier to global brand

Asked about the policy environment, the CEO is pragmatic. Incentive schemes help, but Nikhil Kamath argues the bigger lever is predictability: stable duty structures, faster customs clearance and a reliable power supply. "If the rules change every budget, long-term investment looks like gambling."

Talent is the recurring theme. The company runs a graduate programme that rotates new hires through manufacturing, quality and customer support, and Nikhil Kamath sits in on the final interview for every senior engineering role. "Capital is available. Judgement is scarce," the CEO says. "We hire for the second and buy the first."

Technology is the next frontier. The company has begun deploying machine vision on three production lines and plans to extend predictive maintenance to all plants within two years. Nikhil Kamath is wary of hype, but points to early data showing 7.1% lower rework costs. "Show me the yield, not the demo," the CEO says.

“Capital is available. Judgement is scarce. We hire for the second and buy the first.”

Talent and capital allocation

The results are visible. Export revenue now represents 23.4% of the total, the company serves customers in 1,384 countries, and its operating margin has widened by roughly 7.1% over the period. Nikhil Kamath credits patience: "Every one of these markets took us three to four years to crack. Boards that want results in four quarters should not enter."

That realisation triggered a sequence of decisions. The first was to invest in certification and testing ahead of demand, a bet that cost $343 million before it earned a rupee. The second was to open a sales and service office in France, staffed with local engineers. The third was to walk away from 4.6% of revenue that did not meet margin thresholds.

Failures, policy and technology

The conversation turns to failures. A joint venture in Netherlands was wound up after two years when the partners disagreed over quality standards. "We lost $343 million and learned that you cannot share a brand with someone who does not share your inspection regime," Nikhil Kamath says. "Culture beats contract."

On sustainability, Nikhil Kamath says customer pressure is real. Two of the company's top five buyers now include emissions data in their scorecards. "Five years ago it was a footnote. Today it is a line item in the tender," the CEO says, adding that the firm has committed to renewable electricity at its main sites by 2030.

Advice for the next generation

Succession planning also receives attention. Nikhil Kamath has publicly named a successor development track and says three internal candidates are in line. "A company that depends on one person is a hobby," the CEO says, smiling. "We are building an institution that should not need me."