Top 8 Robotics Stocks to Watch Out in India's Deep Tech Revolution

India, a land where innovation meets tradition, has always had a knack for embracing technology's promise.

Now, the winds of change are ushering in industry 4.0, fuelled by the government's push for automation and its proactive robotics strategy.

This isn't just about cold calculations and investment returns - it's about human ingenuity amplified by machines.

Imagine bustling factories where robots collaborate with skilled workers, easing burdens and boosting precision.

Picture the growth of the Indian robotics market, projected to reach a staggering US$ 189.4 billion (bn) by 2027, fueled by initiatives like "Make in India" and a focus on affordability.

What is Robotics?

Robotics is where engineering ingenuity meets problem-solving. It's the field focused on designing, building, and using robots - machines that can sense their surroundings and take actions.

These actions can be pre-programmed for specific tasks or, increasingly, powered by artificial intelligence for adaptability that opens new possibilities.

Why India, and Why Now?

India's robotics potential is driven by several converging factors:

The Need for Automation: Industries of all kinds want to improve efficiency, product consistency, and safety. Robots offer a compelling solution.

Government Support: India recognizes robotics as a key to industrial growth. Programs like the "Draft National Strategy on Robotics" drive research, development, and adoption.

Technological Leaps: Advances in AI, sensors, and computing power are making robots smarter, more capable, and adaptable to diverse tasks.

Expanding Applications: Traditionally focused on automotive manufacturing, robotics is now revolutionising sectors like healthcare, agriculture, and logistics.

Types of Robotics in India

#1 Industrial Robotics:

• Automotive Manufacturing: The automotive industry is the cornerstone of robotics adoption in India, with robots performing welding, painting, assembly, and material handling.
• Expanding sectors: Robotics is finding increasing applications in electronics, pharmaceuticals, food processing, and other manufacturing sectors as they seek greater automation.

#2 Healthcare Robotics:

• Surgical Assistance: The precision and minimally invasive capabilities of surgical robots are driving their use in complex procedures, boosting patient outcomes.
• Rehabilitation and Assistive Devices: Robotics plays a growing role in post-operative rehabilitation, helping patients regain motor functions and independence. Assistive robots support elderly and disabled individuals in daily activities.
• Telemedicine and Remote Monitoring: Robotics is enabling remote patient monitoring and virtual consultations, particularly in geographically distant areas.

#3 Agriculture Robotics:

• Precision Farming: Robots and drones equipped with sensors and AI analyse crop data, optimise irrigation and fertiliser use, and assist with precision harvesting.
• Addressing labour shortages: Agricultural robots offer a solution to overcome labour shortages and increase overall agricultural efficiency.

#4 Service Robotics:

• Logistics and Warehousing: Automated guided vehicles (AGVs), robotic arms and mobile robots streamline warehouse operations, picking and packing, and inventory management.
• Hospitality: Hotels and restaurants experiment with robots for room service, food delivery, and cleaning tasks.
• Public Safety: Robots are being explored for surveillance, crowd management, and disaster response.

#5 Other Emerging Areas

• Defence and Security: Applications range from bomb disposal and surveillance robots to unmanned aerial and ground vehicles.
• Construction: Robots aid in hazardous tasks, improving safety and productivity at construction sites.

Why is Robotics Hot in India Right Now?

1. Burgeoning Automation Needs: Across industries, the demand for automation is surging. Manufacturers are increasingly seeking solutions to augment productivity, enhance product quality, and bolster safety standards. This presents a fertile ground for robots, capable of performing repetitive tasks with precision and tirelessly.
2. Government Tailwinds: The Indian government recognizes robotics as a pivotal force propelling industrial growth. Initiatives like the "Draft National Strategy on Robotics" actively promote research, development, and widespread adoption of robotics technologies. This translates to fiscal incentives, infrastructure development, and a supportive regulatory environment, all acting as catalysts for market expansion.
3. Technological Advancements: The robotics landscape is undergoing a metamorphosis fueled by advancements in artificial intelligence, sensor technology, and computing power. These breakthroughs are empowering robots with enhanced dexterity, adaptability, and superior decision-making capabilities, enabling them to tackle a wider spectrum of tasks with greater autonomy.
4. Evolving Market Landscape: Traditionally, the automotive industry has been the frontrunner in robot adoption. However, the future is beckoning with new applications. Healthcare is witnessing the rise of surgical robots and automation in medication delivery. Agriculture is embracing robots and drones for sowing, spraying, and harvesting, addressing labour shortages and optimising yields. This diversification signifies a maturing market poised for exponential growth.

Stocks to Watch Out in India's Robotics Boom

India's robotics market is poised for significant growth, and while pure-play robotics companies might be rare on stock exchanges currently, several key players are positioned to ride this wave.

Let's take a closer look:

#1 ABB India (ABB)

• Global Leader with Strong India Focus: ABB India is a titan in robotics, automation, and power technologies. Their recent expansion of their Bengaluru R&D centre signals serious intent to capitalise on India's growth potential.
• Diverse Applications: ABB's robotics expertise benefits industries ranging from automotive to food and beverage, making them a versatile player.

#2 Bharat Heavy Electricals Limited (BHEL)

• State-Backed Innovation: As a state-owned company, BHEL benefits from government support in its push for robotics and automation solutions.
• Focus on Skill Development: Their centres dedicated to robotics research and robotic welder training highlight BHEL's commitment to long-term growth in the sector.

#3 Tata Elxsi

• Design Meets Technology: Tata Elxsi's core strength lies in combining design thinking with robotics and AI expertise, making them well-suited to create user-friendly, innovative solutions.
• Sector-Savvy: Their work in automotive, healthcare, aerospace, and now agriculture showcases their ability to tailor robotic solutions to diverse needs.

#4 Siemens India

• Industrial Automation Powerhouse: Siemens is a dominant force in industrial automation, and robotics is a natural extension. Their local manufacturing push increases their potential for rapid growth in the Indian market.
• The Digital Edge: Siemens emphasises software and digitalization within robotics, offering a compelling, future-proof value proposition.

#5 Honeywell Automation India Ltd

• Warehouse Robotics Specialists: Honeywell is laser-focused on warehouse and distribution robotics, a segment with massive potential in India's growing logistics sector.
• Simulation and Customization: Their emphasis on data-driven simulations and customised solutions ensures a strong fit for clients' unique needs.

#6 Schaeffler India Ltd

• The Crucial Component: While not a robotics company itself, Schaeffler's bearings and motion control systems are vital for robot performance, positioning them to benefit heavily from the sector's growth.

#7 Cyient Ltd

• Engineering and Automation Expertise: Cyient's focus on engineering services translates to deep robotics know-how and a strong grasp of industrial applications.
• Partnerships and Collaboration: Their collaborations with Microsoft and IIT Gandhinagar demonstrate their commitment to innovation and skill-building.

#8 Larsen & Toubro Ltd

• The Diversified Giant: While L&T's core business isn't robotics, their increasing adoption of automation solutions hints at a significant potential for future investment and development in the field.
• Building Internal Capabilities: Their development of in-house analytical capabilities points to potentially reduced reliance on external vendors and greater autonomy in robotics innovation.

In Conclusion

India's rich history of scientific inquiry meets its technological ambitions in the burgeoning field of robotics.

Propelled by Industry 4.0, a proactive government strategy, and a focus on affordability, India isn't just adopting robotics - it's shaping its future.

India's robotics market, with its vast potential, reflects this transformation. It's a testament to the ingenuity of Indian engineers and the vision of its leaders.

While dedicated robotics companies may be nascent on Indian stock exchanges, the players we've discussed - from global giants like ABB to engineering stalwarts like BHEL, to innovators like Tata Elxsi - have positioned themselves strategically. They understand that success lies not just in building robots, but in solving India's unique challenges through robotics.

India's romance with robots is far from over; in fact, the most exciting chapters are yet to be written.

This is a technological wave with the potential to reshape industries and lives. The savvy investor would do well to stay ahead of the curve.

You can begin your journey to know more on robotics stocks in India and the country's potential Deep Tech stocks here.

Stay tuned to this space as we cover more articles on top deep tech stocks in the coming days.

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.