Many years back I started to write a weekly compilation of articles I found interesting. The main idea was to ensure I was disciplined enough to read enough across various domains to be able to compile the article every week. Over time I realised that I had benefitted immensely from it as it subconsciously helped me connect the dots in many areas.
After some thought last evening, I have decided to do something similar again. From now on, I intend to publish briefly my learnings on that topic every week. The idea is to keep exploring and learning new things. Topics will include business, industries, specific products or services, trends, macroeconomics, psychology, economic or financial history, etc.
I hope you enjoy this new series as much as I do.
What are drones?
Drones, also known as unmanned aerial vehicles (UAVs), are small or medium-sized objects that can be flown remotely and do not need a human pilot to be in it during flight. They are equipped with GPS, radar control, infrared, and high-resolution cameras, and can be powered by an electric, jet, or combustion motor.
What are the different types of drones?
India primarily manufactures the following types of drones:
Multi-rotors: These are the most common type, with 3, 4, 6, or 8 rotors providing lift and manoeuvrability. They are used for various applications like aerial photography, surveying, mapping, agriculture, and deliveries.
Fixed-wing: These drones have a more conventional aeroplane design with wings and a propeller. They are ideal for long-range missions and surveillance due to their fuel efficiency.
Hybrid: Combining elements of multi-rotors and fixed-wing designs, these offer advantages like vertical takeoff and landing with extended flight times.
Where are drones being used?
Drones are increasingly being used in many fields:
Infrastructure: Surveying, monitoring construction sites, and inspecting bridges and pipelines. For example, Madhya Pradesh Power Transmission Company Limited (MPPTCL) has deployed drones to monitor 10,000 high-voltage towers.
Retail: Inventory management, warehouse monitoring, and last-mile delivery. Some companies like Amazon have been experimenting with drone-based deliveries in the US. In India, some startups like Bengaluru-based Redwing Labs have launched an experimental trial using drones to deliver superior healthcare services to rural and tribal communities in Arunachal Pradesh.
Agriculture: Crop monitoring, precision agriculture, and pest control.
Security: Surveillance, disaster management and border patrol.
Film and Television: Aerial cinematography and capturing breathtaking shots.
Recreational: Drones for photography and exploration by hobbyists.
What is the market size and potential?
The market size of drones in India was Rs 29 billion in 2020 and is projected to expand further by 2030.
According to the EY-FICCI report, the drone industry has the potential to boost India’s manufacturing capabilities to approximately US$ 23 billion by 2030.
The government announced a PLI scheme for drones in 2021 for about 120crs.
By the end of March 2024, there were nearly 21,000 drones registered in India. During the same period, DGCA has about 10,000 certified drone pilots in the country.
The biggest demand for drones will come from the defence establishment. India is expected to spend $16.8 billion between 2023-33 for military UAVs as per GlobalData and the Indian Armed Forces are expected to spend another $17.7 billion in EW (Electronic Warfare) systems.
Who are some of the main players?
There are 57 registered drone manufacturers in India. The prominent companies, not all listed, in this ecosystem are:
Garuda Aerospace
Thanos Technologies
Paras Aerospace
Info-edge (Skylark Drones)
Axiscades
Astra Microwave
Rattanindia
Dynamatic
Summary
Drones, UAVs or RPAs (Remote Piloted Aircraft) are increasingly finding many applications. We have seen it used heavily in warfare and surveillance and in taking breathtaking camera shots. The use is going to increase manifold with more complex drones becoming available over time.
DISCLAIMER:
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
SEBI Registered Research Analyst - Cupressus Enterprises Pvt Ltd - INH000013828.
Registration granted by SEBI and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Info edge? Even they’re into drones? Didn’t know that sir.
What do u think about the competition intensity? Is it highly capital intensive space or any ‘Papu’ can barge in ?
I was wondering this space may get crowded in and who will have a strong moat. What if tomorrow BEL kick starts its own drones?
Do share yr thoughts.
Thank you for sharing this Sir. Any write-up on PLI schemes how well (or not) they're fared so far?