Altair Leverages AI for Rapid Growth: Aims to Surpass Largest Vertical within 2 Years

Altair Leverages AI for Rapid Growth: In India, Altair Engineering expects its AI vertical to grow faster than its traditional simulation business at a time when artificial intelligence is gaining ground in discourse, but not in revenue.

Vishwanath Rao, managing director of India & ANZ, told FE that the US-based, NASDAQ-listed global company is experiencing robust demand in the segment.

“There will be a tremendous monetary impact in the next one or two years,” he said, adding that there is a great deal of interest in AI and digital business right now, but converting that interest into revenue is still a work in progress.

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“AI in engineering and AI in product development are still developing areas, but they’re evolving very rapidly,” said Rao, who began his career at Altair 25 years ago.

Altair’s Indian business consists of 12% data science and AI, and 75% simulation.

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As of December 2023, Altair reported a total revenue of $871.3 million, an increase of 10% over the previous year, a 11% increase over the previous quarter.

India has become Altair’s third largest market, after the United States and Germany, with its operations expanding at a high double-digit rate.

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.”

In contrast to the global trend where IT companies are struggling in their BFSI verticals, Altair is experiencing good growth in its Indian segment, especially with fintech companies.

To support its expanding operations in India, Altair is also actively recruiting, with plans to hire 200 new employees by the end of the year.

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As Altair’s second-largest development center outside the US, the company concentrates on sectors such as automotive, aerospace, defense, and BFSI, which are its top markets in India.

On April 9, the company opened a new office in Chennai to accommodate its growing workforce.

A move to further integrate into India’s technological landscape has seen Altair collaborate with IIT Chennai to create an e-mobility center of excellence. With a contribution of about $1 million from its CSR fund, the company has already started training students and industry professionals about emerging automotive trends.

Additionally, the company has partnered with IIT Delhi to develop an open-source car model for safety research.

There are 800 employees in India, and 200 more are expected to be hired in the next four to five months, so we’re definitely growing aggressively. The market is very positive,” Rao said.

Additionally, Altair’s engagement with universities and industry outreach program strengthens its talent pool and industry connections.

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