Since then, Malhoutra has grown wings – building components and systems for global aerospace makers such as Boeing and Airbus. Being in Bengaluru, the country’s technology hub, he could have looked at replicating the success of the IT services model – move majority of the work offshore while hiring people on projects on site for critical work.
Malhoutra says the only way a manufacturing company can thrive is by collaborating and creating a global delivery system based on comparative and complementary advantages of each location.
In the UK, where Dynamatic has factories and access to critical material for the Flap-track-Beam assemblies it makes for Airbus, it does complex machining; in India, it uses the artisanal craftsmanship and final assembly of the system. “Without the UK leg, we wouldn’t be competitive in India and vice-versa,” says Malhoutra, who knows every individual working in his factories. As a hands-on boss, he also ensures that no individual is idle and involves them in various activities in the organisation.
Today, Dynamatic is among the world’s largest suppliers of hydraulic pumps and also supplies automobile systems for companies
such as BMW and Audi, adopting the same model. Malhoutra, who bets on technology for growth, says: “IT services is so yesterday.”
It is no wonder, then, that British Prime Minister Theresa May is skipping IT services brands such as Infosys and Wipro to visit Dynamatic and learn about the future. It is in May's interest as Dynamatic is generating local jobs in her country, while expanding teams in India. “The future is competency-based, robotics, artisanal craftsmanship, digital engineering, and design married with technology,” says Malhoutra.