Which Companies Manufacture Spacetech Equipment in India?

In a triumphant moment for Indian space exploration in 2023, ISRO's Chandrayaan-3 mission successfully delivered the Vikram lander and Pragyan rover to the Moon's south pole.

This accomplishment not only brings immense pride to India but also marks a significant milestone in the nation's spacefaring ambitions.

This triumph elevates India to the elite club of nations - only four - to have achieved a lunar landing. But the significance goes beyond national pride.

Chandrayaan-3 marks a turning point. Space exploration, once the exclusive domain of governments, is undergoing a seismic shift.

Private enterprise is now a powerful engine, driving innovation and propelling the Indian space industry to new heights.

For the investor with a keen eye on the future, 2024 presents a golden opportunity.

Here are seven promising space tech stocks to add to your watchlist.

#1 Avantel

Leading the list is Avantel.

The company is engaged in developing customised solutions for Indian National Satellite (INSAT) based communication services for military applications.

It also develops wireless defence electronics, radar systems, and software applications for the defence and aerospace sectors.

In the space tech sector, Avantel specialises in creating various radio frequency components critical for space missions.

These components enable communication, navigation, and data transmission between spacecraft, launch vehicles, and ground stations.

Their product range caters to various space applications, including satellite communications, high-frequency communications for long-range transmissions and electronic warfare systems for defence purposes in space.

The company's management has said that the Indian National Space Promotion and Authorization Center and Indian Space Association (IN-SPACe) has received great interest from non-government entities to participate in the Indian space technology domain.

With the opening up of the Indian space sector for private players, Avantel is well-positioned to expand its involvement in supplying RF components for upcoming ISRO missions.

For more details, see the Avantel company fact sheet and quarterly results.

#2 Data Patterns

Next on the list is Data Patterns.

The company is engaged in the business of providing defence and aerospace electronics solutions to the indigenously developed defence products industry.

It has proven in-house design and development capabilities with an experience more than three decades in defence and aerospace electronics.

Data Patterns cater to the entire spectrum of defence and aerospace platforms like space, air, land, and sea.

The company manufactures radars, underwater electronics, an electronic warfare suite, avionics, ATE for defence and aerospace systems, and small satellites.

Data Patterns last year entered into a licensing and transfer of technology agreement with the independent nodal agency Indian National Space Promotion and Authorisation Centre (IN-SPACe).

The partnership will provide Data Patterns with the capability to develop miniature Synthetic Aperture Radar (SAR) technology.

SAR technology is capable of gathering data throughout the day and even at night and generating high-resolution images from space.

Going forward, Data Patterns could potentially increase its involvement with ISRO by supplying specific electronic components for upcoming space missions, leveraging their technology transfer agreement for miniature SAR.

For more details, see the Data Patterns company fact sheet and quarterly results.

#3 Larsen & Toubro (L&T)

Next on the list is L&T.

L&T has played a role in the launch of the LVM3 M4 Chandrayaan mission. The critical booster segments were manufactured and proof pressure tested at L&T's Facility in Powai.

The company has also played a role in the system integration of launch vehicles for the Indian space programme.

L&T was also involved in the production of some components for Chandrayaan-1 and 2, Gaganyaan and Mangalyaan missions of ISRO.

Before this, in 2022, a consortium led by Hindustan Aeronautics (HAL) along with L&T bagged a Rs 8.6 bn deal from New Space India to build five Polar Satellite Launch Vehicle rockets.

The company confirmed in July last year that it has supplied various components for India's moon mission Chandrayaan-3.

It manufactures various critical subsystems used in ISRO's launch vehicles. These subsystems ensure the rockets function smoothly and precisely during launch.

L&T is behind the impressive Precision Monopulse Tracking Radar (PMTR) deployed at Satish Dhawan Space Centre. This radar system plays a vital role in the fast and accurate acquisition and tracking of launched vehicles.

Additionally, L&T has commissioned the Deep Space Network (DSN) Antenna, critical equipment for communicating with spacecraft venturing on deep space missions.

Going forward, L&T is likely to focus on further strengthening its core competency in manufacturing launch vehicle subsystems.

For more details, see the L&T company fact sheet and quarterly results.

#4 MTAR Technologies

Next on the list is MTAR Technologies.

MTAR Technologies is in the business of manufacturing various machine equipment, assemblies, sub-assemblies, and spare parts for energy, nuclear, space, aerospace, defence, and other engineering industries.

The company offers high-tech products for PSLV and GSLV like liquid propulsion rocket engines, cryogenic engine sub-systems, and electro-pneumatic modules, among other things.

According to the company, these products would be used for the upcoming Aditya L1 mission.

Apart from these, MTAR is also manufacturing critical structures like grid fin for the Gaganyaan mission.

MTAR doesn't just provide the muscle, it ensures smooth operation through electro-pneumatic modules.

These modules play a vital role in controlling the pressurisation and attitude of launch vehicles during flight, keeping them on course.

Among others, the company's core capabilities include building the core of nuclear reactors in addition to manufacturing cryogenic and liquid propulsion engines for ISRO, which have been used in numerous launch vehicles.

With India's ambitions to reach for the stars, MTAR might broaden their expertise beyond current engines.

This could involve developing next-generation, high-efficiency engines or even venturing into reusable rocket technology.

For more details, see the MTAR Technologies company fact sheet and quarterly results.

#5 Mishra Dhatu Nigam

Next on the list is Mishra Dhatu Nigam.

Mishra Dhatu Nigam (Midhani) isn't just a name in the Indian aerospace sector, it's the metallic backbone of the nation's spacefaring dreams.

Established in 1973, this public sector enterprise plays a critical role by providing the muscle and structure for India's space vehicles.

Its core strength lies in developing and producing high-performance speciality alloys. These alloys are specifically designed to withstand the extreme conditions of spaceflight, such as intense heat, cryogenic temperatures, and harsh vacuum.

With over 70 different grades and shapes in their repertoire, they cater to the diverse needs of various space missions and vehicles.

The company is ready for the Gaganyaan Mission after playing a successful role in the Chandrayaan Mission by supplying vital materials for making the launch vehicle, engine, motors, lander and rover on the Moon.

The company also builds outer shells of rockets that can handle the immense pressure during launch. It houses the vital electronics and instruments on a satellite.

Going forward, the company is focusing on developing material with higher temperature tolerance to withstand the scorching heat during atmospheric re-entry or the intense radiation near the Sun.

For more details, see the Mishra Dhatu Nigam company fact sheet and quarterly results.

#6 BHEL

Next on the list is Bharat Heavy Electricals Limited (BHEL).

BHEL is primarily known for its contributions to India's energy and infrastructure sectors, it also plays a vital role in the nation's space program.

BHEL has established itself as a key supplier of space-grade solar panels for ISRO's satellites.

BHEL's solar panels have been successfully deployed on numerous ISRO satellites, including the prestigious GSAT-10 and GSAT-8, contributing to their long-lasting missions.

In addition to solar panels, BHEL also supplies space-quality batteries to ISRO. These batteries provide backup power and ensure the smooth operation of satellites during periods when the solar panels are not facing the Sun.

BHEL has entered into a technology transfer agreement with ISRO for the manufacture of space-grade Lithium-ion cells. This move signifies a potential shift towards in-house production of these critical components, reducing dependence on foreign vendors.

BHEL's success in solar panels and batteries positions them well to potentially expand their product portfolio for the space sector.

For more details, see the BHEL company fact sheet and quarterly results.

#7 HAL

Last on the list is Hindustan Aeronautics.

Hindustan Aeronautics is an Indian public-sector aerospace and defence company.

Hindustan Aeronautics Limited (HAL) plays a pivotal role in the Indian space sector, collaborating closely with the Indian Space Research Organisation (ISRO) to advance space exploration efforts.

Leveraging its core strengths, HAL brings significant expertise to various aspects of space technology.

The company designs heat shield assemblies that would safeguard spacecraft from the intense heat encountered during atmospheric re-entry.

It also makes nose cone assemblies, these aerodynamic structures at the forefront of rockets are optimized to reduce air resistance during launch.

It manufactures tanks capable of securely containing the fuel and oxidizer essential for rocket propulsion.

HAL contributes substantially to ISRO's launch vehicle propulsion systems by producing key components and cryogenic engines.

These highly potent engines are indispensable for powering heavy-lift launch vehicles like the GSLV Mk III.

Going forward, company plan's to expand its reach in aerospace.

For more details, see the Hindustan Aero. company fact sheet and quarterly results.

Conclusion

Moving forward, the Indian government's decision to allow 100% investment under the automatic route for manufacturing components, systems, and sub-systems for satellites, along with the facilitation of FDI in various aspects of the space sector, signifies a significant step towards fostering growth and innovation in the industry.

This move is poised to attract more investment and participation from both domestic and international players, potentially accelerating advancements in satellite technology and space exploration.

You need to look out for a fundamentally strong space tech company to make the most of the current opportunity.

Get started by using Equitymaster's stock screener to filter the best space stocks in India.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...