Which Companies Manufacture Drones in India?

The year 2024 is witnessing a continued surge in drone technology. The global market has rocketed to a staggering US$ 4.3 billion, demonstrating the immense potential of this innovative field.

Several factors are propelling this growth, with the recent war in Ukraine serving as a stark example. Both sides of the conflict are heavily reliant on drones, showcasing their evolving role in modern warfare.

But drones are far from just a military marvel. Their usefulness extends far beyond the battlefield, offering solutions in a multitude of sectors. From streamlining commercial operations to revolutionising data collection, drones are rapidly transforming the way we interact with the world around us.

This surge in drone technology has ignited a thrilling investment opportunity. Savvy investors in India are laser-focused on identifying the best drone stocks for 2024.

These companies represent the vanguard of innovation, capitalising on the burgeoning drone market and establishing themselves as crucial players in this rapidly evolving landscape. They're not just achieving new heights; they're redefining what's possible in the vast expanse above us.

This article will delve into some of India's hottest drone manufacturing companies.

I) Government-Owned Giants

This list highlights the expertise of government titans in the lucrative drone sector, showcasing their significant roles and contributions within this rapidly growing industry.

#1 HAL

At the top of the list stands Hindustan Aeronautics Limited (HAL).

Hindustan Aeronautics Ltd (HAL) is an aerospace and defence company owned by the government of India.

The company develops, designs, manufactures, and supplies aircraft, helicopters, avionics, and communications equipment for military and civil markets.

Due to its state-owned status and established reputation in national air security, the company is a pioneer in India's drone technology advancement.

HAL is a leading manufacturer of complete military drones for the Indian armed forces.

They possess expertise in designing and developing crucial drone components like airframes, propulsion systems, and other hardware essential for military applications.

It is actively engaged in developing various drones, primarily to fulfil defence needs, and is also transforming the Kiran aircraft series into unmanned aerial vehicles.

In April 2024, HAL initiated the assembly of the much-anticipated RUAV-200 drone, designed for high-altitude logistical operations, marking a significant step forward after a two-year delay.

Additionally, through its subsidiary, Naini Aerospace Limited, HAL aims to establish itself as a Centre of Excellence for Manufacturing and MRO activities in the aerospace and drone industry.

Moving forward, HAL is expected to benefit significantly from the Indian government's initiative to foster indigenous drone technology.

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

II) Military Drone Leaders

Not only government entities but also private companies are making significant strides in the drone sector. These companies are crucial to India's defence industry, manufacturing advanced drones to meet the needs of the military.

Here are some key players:

#1 L&T

At the top of the list stands defence giant L&T.

The company is actively engaged in the development and integration of drone technology for surveillance and reconnaissance. In 2024, Larsen & Toubro unveiled plans to develop a Solar-Powered High-Altitude Platform (HAP) drone capable of staying airborne for up to 12 months.

This announcement marks a significant step in aerospace, further bolstering L&T's position in the drone market.

Targeting defence, telecommunications, and environmental monitoring, this HAP drone promises persistent surveillance and communication capabilities, including providing low-cost mass internet access to remote areas with a 10Gbps base station.

With solar panels and a lightweight design, it offer cost savings and environmental sustainability, showcasing India's aerospace ambitions.

L&T has agreed with IdeaForge to offer drones and allied systems for defence use. This joint venture aims to provide high-tech, integrated drone solutions to enhance security and surveillance. Additionally, it plans to offer anti-drone solutions to counter the threat of malicious or unintended drone usage.

Apart from this, L&T, over the years, forayed into multiple business verticals, including infrastructure, power, hydrocarbon, metal and minerals, defence, aerospace, information technology (IT), products, systems and equipment, finance, and real estate.

Going forward, with its emphasis on solar power, the company might develop a lightweight and efficient drone platform.

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

#2 Zen Technologies

Second on the list is Zen Technologies.

Zen Technologies plays a key role in the Indian drone sector, focusing on military and defence applications.

Zen Technologies designs and manufactures state-of-the-art combat training simulators for the Indian armed forces. These simulators provide realistic training environments for drone pilots and other military personnel.

They also develop and manufacture counter-drone systems to safeguard borders and critical infrastructure from unauthorised drone activity. These systems can detect, track, and neutralise unwanted drones.

Zen Technologies enjoys a deep partnership with India's defence forces. Its anti-drone solutions (CUAS) offer critical, multi-layered protection that's gaining interest at home and abroad.

Its recent showcase at IDEX 2023 in Abu Dhabi signals a bold ambition to make its mark on the global stage.

Zen Technologies envisions significant opportunities for drones in agriculture, deliveries, and surveillance, strategically positioning itself to tap into civilian markets. With a substantial Rs 500 million investment in a new R&D and manufacturing facility in Goa, the company aims to catalyse growth.

This cutting-edge facility will enhance innovation capabilities, streamline production, and generate 800 jobs, fostering a positive economic impact in the region.

Moreover, Zen Technologies actively collaborates with engineering colleges, ITI institutes, and local MSMEs to nurture talent and fortify India's drone ecosystem.

In December 2023, Tata AIA Life Insurance made a substantial investment of Rs 1.5 billion in Zen Technologies, further validating its potential and growth trajectory.

With a strong alliance with India's defence forces, providing vital anti-drone solutions (CUAS) that capture both domestic and international interests, the company is primed for expansion.

Looking ahead, it aims to secure significant shares in government anti-drone orders, forecasting the drone market to reach a value of US$ 2 billion by 2030.

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

#3 DCM Shriram

Third on the list is DCM Shriram.

DCM Sriram Industries stands out as one of India's leading companies in the drone sector, actively engaged in advancing drone technology.

In August 2021, Indian firm DCM Shriram Industries revealed its acquisition of a 30% stake in a Turkish drone manufacturer. This investment, totalling US$ 1 million, underscores India's involvement in Zyrone Dynamics, a notable producer of unmanned aerial vehicles (UAVs).

Further, in 2023, the company partnered with Israel's Skylock Systems to form a joint venture. This venture focuses on manufacturing Israeli-designed counter-drone systems under the name, DCM portable counter-unmanned aircraft system (CUAS).

These CUAS are designed to detect, track, and neutralise unauthorised drones that could pose a threat to national security or critical infrastructure.

The system likely utilises various technologies like radio frequency (RF) detection and jamming to identify and disable unwanted drones. DCM Shriram is currently conducting field testing of their counter-drone systems with the Indian Border Security Force (BSF). This suggests they are in the development or initial deployment phase.

DCM Shriram's counter-drone systems contribute to safeguarding India's borders from potential drone threats like smuggling or espionage.

This has helped reduce dependence on foreign suppliers and promotes domestic production of defence technologies.

Going forward, the company further plans to deepen its foothold in the defence drone market.

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

III) Commercial Drone Service Providers

Having explored the companies revolutionising the defence sector, let's now turn to those transforming commercial services with cutting-edge drone systems. Here's the list:

#1 Info Edge

First on the list is Info Edge.

Info Edge India has a history of investing in emerging technologies, drones being one of them.

Therefore, the drone company share has invested in various firms like Zomato, Shopkirana, Policybazaar and others. Recently, it has acquired equity in Skylark Drones, a global company developing fundamental drone frameworks.

Info Edge is a premier online classifieds company primarily active in recruitment, education, matrimony, real estate, and more such services.

Drone-based delivery services are an area that makes immediate sense for Zomato - one of Info Edge's portfolio companies.

Zomato, a major online food delivery platform under Info Edge, possesses a vast delivery network. Integrating Skylark's drone frameworks could revolutionize Zomato's services.

Drone delivery regulations in India are still evolving. However, establishing robust drone delivery infrastructure, including dedicated landing zones and air traffic management systems, would be a crucial challenge.

It's important to note that this is a speculative scenario based on the available information. The actual plans and strategies of Info Edge and Zomato regarding drone deliveries remain to be seen.

Going forward, the company plans to increase its focus on drone services.

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

#2 Drone Destination

Second on the list is Drone Destination.

It is a cutting-edge drone stock in India that pioneers the development and deployment of innovative drone solutions.

Drone Destination isn't a drone manufacturer itself, but rather a comprehensive service provider within the Indian drone ecosystem.

Drone Destination offers certified training programs for aspiring drone pilots, allowing them to acquire the necessary licenses and skills for commercial drone operations.

They offer a diverse range of drone services spanning various sectors, encompassing aerial photography, videography, mapping, surveying, data collection, and more.

Additionally, it revolutionises industries through aerial capabilities.

In the commercial drone segment, the company, on 6 May 2024, signed an MoA with Iffco to collaborate for drone spray over an area of up to 30 lakh acres.

As part of the agreement, Drone Destination will undertake drone spray in 12 states across the country.

It achieved a key landmark by becoming the first flying organisation in the country to train 1,000 drone pilots.

The 'Rent a Drone' model and drone services lower the barrier to entry for individuals and businesses wanting to use drones without ownership costs.

Drone Destination currently operates eight "Drone Hubs" at Gurugram, Dharamshala, Chandigarh, Gwalior, Ahmedabad, Bangalore, Coimbatore and Madurai and plans to open 150 Drone Hubs, over the next three years.

Drone Destination has deployed over 25 drone teams conducting village and large-scale mapping across Uttar Pradesh, Gujarat and Andhra Pradesh. The company aims to map at least 1 lakh villages under the current Scheme over the next two years.

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

#3 Droneacharya

Third on the list is Droneacharya.

The company is an Indian drone company that specialises in providing drone-based solutions for industries such as agriculture, infrastructure, mining, and surveying. However, they offer tailored drone services and solutions to meet specific client requirements.

It provides a high-end ecosystem of drone solutions for multi-sensor drone surveys, data processing of drone data using robust high-configuration workstations, drone pilot training, and specialised GIS (Geospatial Information Systems) training.

The company's offerings are broadly divided into four categories, namely, training, services, surveillance, and others.

It has operations in India, the USA, the Netherlands, Dubai and Thailand.

in the commercial sector, the company, on 24 May 2024, signed a Memorandum of Understanding with Airbots Aerospace Technologies. This collaboration aims to bolster their joint efforts in the drone industry, with a strong focus on the agricultural sector.

It is expanding its footprint further to several other countries.

Apart from this, the company, on 7 February 2024, announced the acquisition of an export order for Defence FPV drones in collaboration with its associate company, Drone Entry (Thailand).

The company is currently working to set up a new manufacturing unit in Maharashtra for making agriculture and surveillance drones.

It has teamed up with Gridbot Technologies to combine drones, bots, and IoT solutions to serve the advanced needs of defence and industrial organisations.

It also joined forces with StudioTrika, drone-based immersive solutions to create drone light shows and experiential concepts for events, product launches, customer experience, and marketing.

Droneacharya is also setting up its manufacturing unit to manufacture agriculture drones and drones for surveying and surveillance in the next two years.

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

#4 Rattanindia Enterprises

Fourth on the list is Rattanindia Enterprises.

Rattanindia Enterprises Limited, the leading entity of the Rattanindia Group's modern growth ventures, stands as a prominent drone player.

In September 2021, the company unveiled its drone venture in collaboration with its wholly-owned subsidiary, NeoSky India Ltd.

NeoSky India is poised to pioneer an innovative drone system platform, concentrating on industry-specific applications within India, as articulated in an official statement.

The company introduced its inaugural anti-drone product, 'Defender,' in September of the preceding year, facilitated by its subsidiary Throttle Aerospace, where NeoSky acquired a controlling interest of 60%.

The company is building a strong presence across consumer, commercial, and defence drones along with drone services and Pilot training.

The company has a new opportunity to increase its revenue, thanks to its new licence to train drone pilots. This is very important because India will need about 100,000 drone pilots in the next few years.

Its subsidiary, Throttle Aerospace Systems (TAS) has India's first DGCA-approved drone and has a licence to make drones for the Ministry of Defence (MoD). TAS also qualified for GOI's PLI scheme.

The company is implementing a multi-faceted sales strategy, including direct sales, partnerships, and online platforms, to increase market reach and product visibility.

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

IV) Drone Technologies

After reviewing the companies in the commercial space, let's examine those providing IT support for drones. The following companies are making significant strides in the drone sector:

#1 Paras Defence & Space Technologies

First on the list is Paras Defence & Space Technologies.

It focuses on the design, development, and manufacturing of drones and other aerospace systems. They provide defence and homeland security solutions utilising drone technology in India.

It has a state-of-the-art R&D facility, where it creates innovative drone solutions with AI-based navigation and data analytics.

Paras Defence partners with leading academic institutions like IIT Bombay and reputed organisations like DRDO, to access the best research talent and accelerate innovation.

It also collaborates with global giants like Israel Aerospace Industries to gain access to advanced technologies and explore joint ventures, enhancing its global competitiveness.

Apart from that, Paras Aerospace, a subsidiary of aerospace and defence company Paras Defence and Space Technologies, has received approval from the Directorate General of Civil Aviation (DGCA) to sell agricultural drones.

The certification is for an order of 400 drones, and the demand is expected to be robust going ahead.

Paras Aerospace has the widest range of drone aircraft, and Paras Defence is among the few companies that has received certifications for agriculture and industrial drones.

For more details, see the Paras Defence & Space Tech company fact sheet and quarterly results.

#2 Bharat Forge

Second on the list is Bharat Forge.

Bharat Forge, a leading Indian manufacturer of automotive components and aerospace parts, is taking flight in the drone industry.

Bharat Forge leverages its existing expertise in forging and machining to manufacture key components for various drones.

It is developing swarm drone technology, where multiple drones operate as a coordinated unit for surveillance and attack purposes.

The company is also developing VTOL drones that offer versatile deployment capabilities.

In January 2024, Bharat Forge launched the Bharat 150 multi-payload drone, marking its entry into the drone market.

To support this venture, the company has formed a strategic partnership with General Atomics Aeronautical Systems, a leading manufacturer of military UAVs.

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

Other lesser-known Drone Companies

While we've explored the established giants and the crucial Defence sector, there's more to the list.

Companies such as Coromandel International, Magellanic Cloud, Solar Industries, Axiscades Technology and more might not be household names, but they're quietly contributing to the sector's growth.

Their expertise in drone technology positions them as key beneficiaries in the defence sector's expansion.

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Factors to Consider When Investing in the Top Drone Stocks in India

When investing in top drone stocks in India, consider the following factors:

• Examine the incredible growth potential of drones across various industries like agriculture, delivery services, infrastructure, and defence. Determine if there are enough opportunities for the company to thrive in these sectors before investing.
• Identify the major players in the drone manufacturing sector listed on the stock market. Assess what sets the company apart from others, including technological advancements and any unique advantages.
• Evaluate the company's financial performance. Look for consistent revenue growth, profitability, and strong cash flow, as a solid financial foundation is crucial.
• Understand the rules and regulations governing drones and how they impact the company's operations and expansion plans. Pay attention to compliance costs and its ability to navigate changing regulations.
• Innovation is key in the drone industry. Research the top drone companies in India, their development efforts, patents, and intellectual property. Determine if they are pushing the boundaries of drone technology in India. If so, consider investing in their shares.

Conclusion

The Indian drone industry is expanding rapidly, with the Central Government aiming to position India as a global leader in drone manufacturing and associated services. This sector presents tremendous investment opportunities.

Moreover, recent media reports indicate that the government plans to launch a scheme providing drones to rural women for agricultural use. This initiative aims to empower women in rural areas by enhancing their agricultural practices with advanced technology.

Over the next three years, women's self-help groups (SHGs) will receive 15,000 drones and the necessary training to operate them.

However, it is crucial to conduct thorough research before making any investment decisions. Ensure that your investments align with your financial objectives and risk tolerance levels.

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