Exploring Opportunities in Drone Sector needs sound mind and saint-like calmness.
By Maj Arun Sreedharan (Red), 02 Jul 2023
Has indigenization reached that level where products can be onboarded? (Drone Sector)
We are talking about Drones Technology and recent developments, not so recent also, because IDEA FORGE which filed for IPO is a sixteen-year-old company based out of Mumbai to have built fixed-wing surveillance drones, contracted and being onboarded to the Indian Armed Forces.
India is preparing itself to be the Drone Manufacturing Hub by 2030, does this mean that we will be open to foreign investments, and foreign companies who can either set up shop here or do a joint venture with Indian firms? The key takeaway should be for Indian Drone Ecosystem to have a real nudge at harnessing the indigenization wave, we would require basic components and sub-components to be manufactured in India.
a) Battery
b) Motors
c) Sensors.
Few startups and companies are doing Research and Development on this and can achieve the target only if they also like the maximum companies in the Drone Sector indulge in the same process of integration after buying outside. There is a requirement of National Support to execute this, Academia should be involved in continuous research to have a Transfer of Technology model to enable the Indian Drone Ecosystem to have the basic components mentioned above.
4. Now we can talk about the Subcomponents level Electronics. Yes, bringing in foreign players who are crude in Semi-Conductor Manufacturing will enable the Drone Ecosystem to a large extent, and it is the right step in the direction of indigenization. We are fighting against time since every Investor would want to exit from a startup in about 7 Years, and this much time is not enough for a drone startup to fully mature and build products that can solve issues of Logistics, Surveillance, and Warfare. We continue to make consortiums and committees and try and solve issues as and when it comes. We build in fail-safe measures in contracts and testing to avoid the product being a mediocre one or not serving the purpose.
5. Current ecosystem which produces drones are no way closer to indigenization at any level, and that hand-holding has to happen from the Government agencies to the startups and the companies which are intending to make indigenization a priority. They are going against the quick money and are looking at the larger gains of the ecosystem. It is tough for those set of guys to sustain, and they are the ones to be supported with PLI and other schemes that government rolls out.
6. Hence the title, exploring opportunities needs a sound mind and calm saint-like attitude because Indian Drone Ecosystem is at a very nascent stage. There are ample opportunities for us to excel in the following
a) Indigenisation of critical components and becoming a global supplier
b) Unmanned Traffic Management
c) Solving real problems using Drone technology
d) Continuous research to fuel new frontiers of technology
For the Drone Ecosystem to nurture it is time the ecosystem is willed into existence by collaboration between Government, Agencies, Academia, Manufacturing Hubs, Startups, etc.
You can reach out to me at arunsreedharan1986@gmail.com, I am a military veteran with 14 years of experience in Infantry and Drone Technology
Well said Major Arun Sreedharan (Veteran) There is a lot of ground to cover, the good thing is that on the demand side the Drone Ecosystem is seeing good traction, now the focus has to move towards the grassroots, there we have some serious problems and a need of humongous amount of risk capital.