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A Leader in Measurement Systems
Size is not an indicator of importance. According to its CEO and founder Janez Novak, RLS Measurement Technology “makes little things that end up as part of big things.” RLS is a Slovenian business with 290 employees. Its sensors can be found in many different industries, including robotics, medicine, and even space technology. The sensors deliver precise measurements of positions and movements, playing a key role in monitoring speed, angularity, and other parameters in various high-tech devices. The company generates 95 percent of its revenue abroad, primarily in the EU, the US, Japan, China, and South Korea.
The Komenda-based business has been synonymous with innovation in measurement technology and advanced sensors for more than three decades. It makes motion and rotary sensors, which are found primarily in manufacturing robots and cobots, but are also used in e-mobility and space technology, where they are built into satellites. The company ended the most recent fiscal year with nine-percent growth and a per-employee added value of 101,210 euros. The company embodies family values, international cooperation, and a corporate culture that blends responsibility, creativity, and a deep sense of belonging to the local community.
Matija Novak, the founder’s son, is now taking over the reins of the company, named after its motion sensors (Rotary and Linear motion Sensors. Janez remains involved in the company as a consultant and supervisor.
Growth comes organically. I also grew up with this company, in Slovenia.
“Initially, RLS manufactured devices for the industry, but soon shifted to the development of measuring instruments for detecting movements and magnetic sensors.
An entrepreneurial breakthrough in challenging times
In 1989, amid high inflation and economic uncertainty in Yugoslavia, Janez made the bold decision to quit his job at Iskra, despite being newly married and expecting a child. Just a few months later, he set up his own company. During a time when Yugoslav dinars were being exchanged for German marks, he began to pave his own entrepreneurial journey. Although he co-founded the company together with a former colleague from Iskra, both agreed that Janez would continue the business by himself. At first, RLS manufactured devices for industry, but soon moved into the development of motion-measuring instruments and magnetic sensors. “I thought about improving some things. I set up a connection with the Faculty of Electrical Engineering and we entered the arena with advanced sensors and integrated circuits for processing those signals,” explains the founder.
One of the first breakthroughs came when RLS developed a system for detecting magnet movement, an innovation now found in many industrial applications.
“One of the first breakthroughs came when RLS developed a system for detecting magnet movement, an innovation now found in many industrial applications.
To gazelle-like leaps with trusted partners
At the turn of the millennium, Janez met David McMurtry at a trade fair. One idea led to another, and soon RLS formed a partnership with Renishaw, a British company that now co-owns RLS alongside Janez. This is a mutually beneficial relationship that offers advantages to both parties, explains Janez. “We have synergy in the market. Our customers are very much alike, and we share a sales network.” Both Janez and Matija feel that the companies are similar, with Renishaw serving as a role model and reference point for the Komenda-based company. However, RLS continues to optimise its process in its own way. Despite its international connections, RLS is firmly rooted in Slovenia. It has extended its cooperation network with other entities, forging links with universities, which accelerates its development even further. And that development has been intense, even gazelle-like. After all, the company was awarded the 2015 Golden Gazelle for the fastest-growing company in Slovenia, one of many prizes and accolades the company has received.
By investing in development and innovation, the company is building a solid foundation for the future, which, according to statistics, looks promising. Last year, it generated 44 million euros in revenue, while its profit was 7.95 million euros.
“They encourage a sense of ownership among their employees. In this way, everyone understands their responsibilities and feels accountable for completing the job well.
We need to worry when we run out of challenges
Janez always ensured that his children — he has three daughters in addition to Matija — did not feel any moral obligation to work in the company. They were always free to choose their careers. But the children always remained in touch with the company. “We were always involved. We designed logos, shovelled sand in front of the headquarters, and helped pave the courtyard — but that was just for fun,” Matija remembers. As a student, he worked in the company’s manufacturing division, but was more interested in management. Both technology and business intrigued him. Because the family company combines both, Matija decided to join RLS after completing his studies of economics, as he was beginning his studies at the Faculty of Electrical Engineering. Today, he heads RLS’s operations.
The leadership succession took place in stages, with strong support from his father. Janez, who describes starting his entrepreneurial journey modestly by doing “the dirtiest jobs,” always knew he would eventually have to step away from the company. That said, he never considered selling it. Matija saw the company as a blend of advanced technology and business potential, and saw succeeding his father as both an honour and a responsibility for the company’s future. “A business is a living organism. It changes all the time. There are always challenges. Thirty years ago, they looked different from what they look like today. Back then, the company was smaller, with around 20 employees. Today we have almost 300,” says Matija and adds that we need to be worried when we run out of challenges. Overcoming challenges is something Janez could always manage, Matija explains. After all, he “always knew what the company needed for successful development and sustained growth.”.
“They collaborate with universities, such as the Faculty of Electrical Engineering, where they equipped a laboratory that challenges students professionally. This partnership helps the company grow even faster.
Committed to progress, growth, and colleagues
RLS views itself as an inclusive company committed to progress. “Our guiding principle is a constant desire to do more,” says Matija. A sense of responsibility is encouraged among the employees. The company boasts a well-developed management team that is professional, experienced, and committed to prioritising employees.
As a result, the team is working to create an environment where everyone feels valued and motivated to contribute to the company’s success. Janez explains that they built their company “on the principle that everyone with a skill could join us and contribute.” He emphasises that they always encouraged creativity among their employees and shared profits with them.
RLS generates 95 percent of its revenue abroad, primarily in the EU, US, Japan, China, and South Korea. They entered these markets with the help of their long-term partner, UK-based Remishaw.
“A glimpse from the production plant.
Local pride with a commitment to quality, innovation, and excellence
RLS plans to sustain its growth and expand into both existing and new markets. Matija, Janez, and their team recognise that we live in a rapidly changing world and understand the need to stay innovative in order to maintain financial stability. The company is now being passed down to the younger generations, but Janez is staying on board as a mentor and consultant. This ensures the company stays true to its values and the family business tradition. “The company is financially stable, we have a sound foundation, advanced technology, and good customers,” explains Matija.
One of their numerous exciting projects is the development of technology for use in satellites, demonstrating that their sensors are not limited solely to “earthly” applications. They are also focusing on expanding their sales into new markets experiencing growth in robotics.
Despite their global success, they remain firmly grounded. “Slovenia gave a lot to us, so we would like to pay some of that back. We have ‘local pride’ and are proud to employ people from this area,” says Matija, who believes they can continue to grow as a Slovenian company and contribute to the development of the local community.
RLS Measurement Technology therefore remains a business committed to innovation, family values, the local community, and sustainable development. They are true to their vision of creating innovative, high-tech solutions in the sensor technology arena and remaining a global player in measurement technology, while continuing to develop innovations that will contribute to the growth of automation and digitalisation in industrial processes.
Theirs is a story of a company that became a leading international innovator in measurement systems through organic growth.
Company name: RLS d.o.o.
Number of employees (2023): 290
Net sales revenue (2023): €44 million
Interviewees:
Janez Novak, Founder and CEO
Matija Novak, Director
Summary
RLS in a nutshell: innovation, development, partnerships, trust, local pride