Slovenia has a plethora of companies that are world leaders in niche industries. Perhaps the best known among them is Akrapovič, a maker of exhaust systems that has grown in three decades from an motorcycle racer's obsession into a huge business with a worldwide presence that dictates global trends in exhaust systems.

Igor Akrapovič, the company's founder and CEO, recently received the national award for lifetime achievement in innovation named after Slovenian automotive pioneer Janez Puh. As the jury put it, he has achieved breakthroughs in exhaust systems for motorbikes and cars "with innovation, vision and determination".

Speaking to the Slovenian Press Agency, Akrapovič says he started the company not as a hobby but as an "obsession with perfection." As a racer he started to build his own exhausts, and others soon saw how good these were. "This gradually evolved into my work. Over the years we have developed products that set benchmarks on the market."

While he regularly features among Slovenia's most important executives and often speaks up publicly about economic policy, Akrapovič says that success is the result of hard work put in by the whole team.

"This award was a bit of a surprise for us; especially because it actually came from a completely different sphere, from the academic sphere, which recognised the small part we have contributed to the development of technology in Slovenia. We are exceptionally proud of that," he said.

Racing in the company's DNA

Among the company's early landmarks, he highlights the year 2000, when a rider with their exhaust system won the world championship for the first time. "That was a really big leap," he said. The number of World Championship titles to date has risen to 190.

One of the reasons for this is the way the company operates: it still pays as much attention to feedback from race teams and other partners as it used to, he says. "After all, all the latest technical developments start on racing bikes."

He is particularly proud of the fact that companies entrust them with their motorcycles. "That's why we may be the only ones in the world who know what they can do. It's a very good feeling," he says.

A special milestone came this year, when Akrapovič entered into partnerships with storied Italian supercar makers Ferrari and Lamborghini.

While they have been working with Lamborghini for several years - buyers some of their models can opt for Akrapovič's titanium exhaust system - they have started working together in racing this season, equipping Lamborghini's Squadra Corse sports division with their systems in endurance racing.

From minnow to industry giant

Three decades after its founding, Akrapovič employs more than 1,500 people and is one of the biggest employers in south Slovenia.

Its headquarters is in Ivančna Gorica, where it also has a development department, while production takes place in nearby Črnomelj. Because they need staff with specific skills, they train their own employees, including at their welding training centre in Črnomelj.

The core company generated just shy of €200 million in sales revenue last year, up 6% over 2022. Net profit rose by 14% to €28 million.

Due to the current turmoil on the European automotive market, the company expects this year's figures to be slightly worse as consumers remain reserved. But it says that long-term prospects are nevertheless stable as there is still plenty of scope for growth.

Electrification not a threat

Sceptics might be tempted to think that the company's prospects are bleak given the strong push towards electric mobility, but Akrapovič is cool both about the prospects for electification and its impact on the company's business. He says it is based on "unrealistic expectations".

In the long term, he expects no more than a quarter of the cars to be electric, with the rest powered by synthetic or other alternative fuels.

As long as internal combustion engines remain dominant, then the company appears to have a bright future.