Introduction
A drone also known as Unmanned Aerial Vehicle (UAV) is an aircraft operated autonomously or via remote control without a pilot onboard. Drones are small or medium-sized flying robots that can perform military missions, deliver packages and capture aerial imagery.
The drone market in India is expected to reach $13 billion by 2030 rising from expectations of $2.71 billion recorded in 2022 with India becoming a prominent player in the APAC region.
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India currently hosts over 200 drone technology startups, with more than 13,000 drones registered in the country. Investments in the drone sector have surpassed $83 million from January 2016 to November 2023.
Let's take a look at the sectors drones can bring about a change in:
1. Photography and Videography: It is one of the biggest segments that use drones as they provide a unique aerial shot and assist in visual storytelling.
2. Delivery Services: Delivery drones help in the transport of goods directly to consumers and offer retailers and grocery chains an alternative to traditional delivery methods.
3. Search and Rescue: Drones have special sensors that help in rescue operations in hazardous terrains like at sea or during avalanches. They can also be used for monitoring events, traffic violations, and secret operations.
4. Agriculture: Farmers use drones for field surveys, precision seeding, and crop monitoring, improving efficiency and minimising labour.
5. Wildlife Monitoring: Drones help in aerial surveillance of wildlife populations and ecosystems and help in conservation efforts through habitat monitoring and animal tracking.
6. 3D Modelling: LiDAR-equipped drones capture detailed landscape data, facilitating the creation of accurate 3D models for urban planning and environmental monitoring.
7. Military Operations: Advanced military drones assist in thermal imaging and precision-guided munitions.
Now that we have an idea of the drone industry and its impressive use cases, let’s look at the top companies that are listed on the stock exchange in this space so that you can also get your hands on this growing industry.
ideaForge
ideaForge is a leading Indian company in the UAV industry. In December 2023, ideaForge also ranked 5th globally among dual-category drone manufacturers. They were among the first to develop VTOL UAVs (drones that can take off and land like helicopters) in India in 2009, and they also have a diverse product portfolio for civil and defence applications.
The company registered on the stock market in July 2023, and the IPO was listed at a premium of 94%. Since then, there has been a decline in the stock price of the company. However, in a recent discussion with management, the company has confirmed an increase in orders from the Ministry of Defence in India as well as a few orders from Oman. The company is also optimistic about the civil use of drones in 2 to 3 years.
Paras Defence and Space Technologies Ltd
The primary focus of this company is in the defence & space sector, where they operate through five distinct verticals: Defence & Space Optics, Defence Electronics, Heavy Engineering, Electromagnetic Pulse Protection Solutions, and Niche Technologies.
One of Paras Defence and Space Technologies Ltd’s subsidiaries, Paras Aerospace, is dedicated to drone services and associated technologies and has positioned itself as a promising entity within the drone segment through strategic partnerships and exclusive collaborations.
Paras Anti-Drone Solutions is another subsidiary that is dedicated to the development of sub-systems, primarily focused on creating counter UAV solutions and beyond.
RattanIndia Enterprises
RattanIndia Enterprises Limited operates its drone segment through its wholly-owned subsidiary NeoSky India Ltd. They offer drone-as-a-product and drone-as-a-service solutions covering all aspects of drone technology.
Throttle Aerospace Systems is another prominent drone company in India that operates as a subsidiary of NeoSky India Ltd.
Conclusion
The Indian government's ambition is to position the country as a global drone hub by 2030. The recent allotment of Rs 57 crore for drone technology and components under the PLI scheme in the interim budget 2024 shows the government's commitment towards this segment.
This is a 72 percent increase from the previous year's budget which also promotes the Atma Nirbhar Bharat initiative.
Drones have the potential to bring massive change to various sectors of the economy like logistics, agriculture, mining, infrastructure, surveillance, emergency response, transportation, geo-spatial mapping, defence, and law enforcement.
These drone systems are expected to bring about significant transformations by offering cost-effective solutions, particularly in India.
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