How to Balance Business Growth and Operational Efficiency

In an exclusive interaction with Industry Outlook, Sanjeev Kulkarni, Vice President - Automotive India at HARMAN, discusses how Indian enterprises expanding globally can scale operations efficiently by adopting strategies such as workforce upskilling, digital transformation, lean manufacturing, regulatory alignment, and AI-driven forecasting, while ensuring agility, quality, and compliance in a rapidly evolving market landscape. A seasoned automotive leader with over two decades of experience, Sanjeev specializes in P&L management, program execution, lean manufacturing, quality systems, and team leadership.

As Indian enterprises expand beyond traditional markets, how can they scale operations efficiently while managing rising compliance costs and supply chain complexities?

As Indian enterprises grow globally, they must balance scalable operations with increasing regulatory and supply chain challenges. To manage these complexities, companies are adopting the following key strategies:

Skill Enhancement

Upskilling the shopfloor workforce is essential - this includes training on product knowledge, processes, and primary product functions and applications. Clear skill-level evaluations and refresher training programs are crucial for sustainable success. Collaborating with developed countries can help align local skill levels with global demands.

Emphasis on Safety

Safety across the shopfloor and value chain is fundamental. Ensuring the use of appropriate personal protective equipment (PPE), adhering to safety standards, and delivering safe products to end users contributes to a positive work environment and enhances employee morale.

Digital Transformation

A core element of modern manufacturing is the "Connect, Collect, and analyze" approach, which leverages Industry 4.0 technologies. The adoption of digital twins to use for process design as well as overall factory control, AI/ML-enabled predictive maintenance, and MES (Manufacturing Execution System) platforms are central to building smart factories.

Localization & Diversified Supply Chains

Under the Government of India’s Make in India initiative, PLI (Production-Linked Incentive) schemes support the localization of parts previously imported for decades. To achieve this, economies of scale are vital, and OEMs and Tier-1 suppliers are actively supporting these efforts. This approach reduces geopolitical risks, currency exposure, and logistics challenges. In the absence of sufficient scale, strategies like nearshoring and multi-regional or FTA-driven manufacturing serve as effective alternatives.

India as a Center for Innovation, Research & Development

India is rapidly emerging as a hub for Global Development Centers (GDCs), addressing both local and global needs, thanks to its rich pool of software talent. Evolving technologies such as Software-Defined Vehicles (SDVs), advancements in E/E architecture, ADAS features, cyber security, and vehicle electrification are key to enhancing productivity, safety, and cost efficiency. Strategic partnerships with global players, OEMs, and Tier-1 suppliers are helping to drive cost-effective R&D and local manufacturing.

Quality Focus & Lean Operations

Product quality is a non-negotiable and fundamental aspect of success. Ensuring quality throughout product development and manufacturing involves adherence to global standards and implementing both preventive and detection-based controls such as Failure Mode and Effects Analysis (FMEA). 

Eliminating waste within the value chain is essential for improving productivity. Lean manufacturing tools—such as Value Stream Mapping (VSM), Just-In-Time (JIT), KANBAN systems, and SMED—help reduce costs, increase flexibility, and drive efficiency.

Regulatory Alignment and Compliance

India’s evolving automotive regulations are positioning the country as a global automotive hub. Meeting safety standards like Bharat NCAP and adhering to emissions and sustainability regulations (e.g., BS-VI, CAFE norms, and EU guidelines) is essential. Many companies are now using automated systems to track and ensure compliance.

Government Support and Trade Alliances

Enterprises are leveraging Free Trade Agreements (FTAs) and Production-Linked Incentive (PLI) programs to drive operational and cost efficiencies through localization.

With workforce expansion impacting agility, how can companies implement structured upskilling programs to maintain efficiency without increasing operational bottlenecks?

As companies like HARMAN - and Tier-1 suppliers more broadly - expand their workforce to support emerging automotive technologies, preserving agility is essential. To achieve this, organizations must implement structured upskilling and reskilling programs aligned with evolving needs in areas such as zonal architecture, digital cockpit, electric vehicle technologies, and smart manufacturing.

At the same, industrialization of technologies in Advance Manufacturing Engineering is essential before putting into product as a key success factor.

A well-defined talent development strategy enables employees to adapt to new processes and technologies without creating operational slowdowns. At HARMAN, a variety of training programs are offered through HARMAN University to support both business and technical staff in acquiring relevant skills.

Modular training approaches - combining digital learning, certification pathways, and on-the-job experience - help maintain productivity during workforce growth. AI-powered training tools and automation also allow for customized learning journeys, enabling employees to upskill efficiently without disrupting daily operations.  Implementation of low-cost automation solutions can improve quality and cost.

In manufacturing, employee skill levels are evaluated on a scale from S1 (beginner) to S4 (trainer). A structured training system that includes dedicated facilities (such as a Dojo room), experienced trainers, and leadership engagement is critical for achieving targeted outcomes and productivity levels.

A just-in-time talent strategy - training team members in specific skills as they are needed prevents overburdening teams while promoting continuous innovation.

Fostering a culture of Kaizen, or continuous improvement, along with recognition by appropriate incentives and awards for successful initiatives, further motivates employees and enhances learning across the organization.

Despite automation investments, inefficiencies persist. How can businesses streamline data integration to maximize automation benefits and avoid digital silos?

To fully realize the benefits of automation and avoid digital silos, businesses must focus on streamlined data integration through the following key practices:

Unified Data Architecture: Establish a single, interconnected system to ensure consistent and seamless data flow across all departments. Implementing a Manufacturing Execution System (MES) is particularly effective - it connects each machine or workstation across the value chain, enabling real-time data collection and visibility. This live data allows teams to make informed decisions and drive process improvements.

API-Driven Integrations: Use APIs and cloud-based platforms to synchronize data in real time, ensuring that all systems remain aligned and up to date.

Cross-Functional Collaboration: Foster collaboration by providing teams with shared access to accurate, reliable data. Embedding an Operational Excellence model on the shop floor helps align efforts and reduce inefficiencies.

Regular System Audits: Conduct routine audits to identify integration gaps and enhance automation processes. Key tools include Layered Process Audits (LPAs) and the “I DO & I CHECK” methodology, which reinforce accountability and continuous improvement.

Eliminate Redundant Platforms: Standardize tools and software across departments to reduce fragmentation and streamline the digital ecosystem.

Balancing growth and efficiency require execution discipline. How can mid-sized Indian firms implement agile governance models to align leadership vision with operations?

For mid-sized Indian businesses, implementing governance models that effectively link day-to-day operations with strategic leadership vision is essential. This can be achieved through the following practices:

Decentralized Decision-Making and Empowerment: Equip mid-level managers with clear guidelines and boundaries so they can make timely decisions aligned with overall strategic goals. Empowering local leaders accelerates execution while maintaining alignment.

Cross-Functional Task Forces: Form small, agile teams focused on resolving operational challenges quickly, without unnecessary bureaucracy. These teams enable rapid response and promote ownership at all levels.

Data-Driven Reviews: Conduct regular reviews of key KPIs, driven by accurate data and analysis. It’s important to distinguish between business-level KPIs and shopfloor-level KPIs to properly identify and address inefficiencies across the system.

Adaptive Workflows: Implement flexible processes that allow teams to pivot quickly in response to changing market conditions or business needs.

Technology Integration: Use real-time digital dashboards to provide visibility into operations, ensuring that execution teams and leadership remain aligned.

OPC UA connections for every production equipment to improve line balancing, yield, and downtime.

By embedding speed, accountability, and adaptability into their governance models, mid-sized companies can scale effectively supporting growth while maintaining operational discipline.

To future-proof operations, how can companies integrate AI-driven demand forecasting and lean workflows to navigate economic shifts and sustain profitability?

A robust SIOP (Sales, Inventory, Operations, and Planning) process is the backbone of any successful automotive company. From end to end across the supply chain, tools like production scheduling based on customer demand and MRP (Material Requirements Planning) systems - digitally integrated are critical to avoiding both supply shortages and excess inventory.

In the past, production planning relied on limited forecasting data. However, the disruptions caused by COVID-19 highlighted the urgent need for accurate and long-term demand forecasting to ensure business continuity.

AI-driven demand planning and forecasting - when reviewed at regular intervals - allow companies to better anticipate market fluctuations and dynamically adjust inventory levels and production schedules. This results in a more resilient and responsive supply chain.

At the same time, lean business processes ensure faster reaction times with minimal waste. By combining real-time data with lean methodologies, companies can minimize overproduction, reduce unnecessary costs, and boost overall operational efficiency.

This integrated approach empowers businesses to stay ahead of economic volatility, maintaining profitability through proactive planning rather than reactive measures.