4 Indian Companies in the Exploding Drone Market

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

4 Indian Companies in the Exploding Drone Market

Sep 1, 2021

Drones are officially known as Unmanned Aircraft Systems (UAS) and are beneficial for different sectors depending on their needs.

These sectors include transportation, agriculture, law enforcement, surveillance, and most important of all - defence.

Take for example Zomato and Swiggy. Both these online food aggregators are discussing food delivery via drones.

Companies involved in the drone industry in India have sighed a huge relief after the government announced new drone rules last month on 26 August.

The liberalised policy depends on self-regulation and non-intrusive monitoring rather than enforced regulation.

The new rules replaced the Unmanned Aircraft System Rules 2021 the Ministry of Civil Aviation had notified five months ago.

So what are these new rules?

Well, the new drone rules aim to ease the process of using drones in India for various purposes, including non-commercial use.

Under the new rules, you will not need any security clearance to operate and fly tiny drones. In addition, the government is carving out drone corridors to facilitate delivery of cargo deliveries.

--- Advertisement ---
Watch this Before Investing Your Money in EV Stocks

On Monday, we revealed this massive 15x opportunity in electric vehicles.

And also shared the details of 3 EV stocks to ride this mega opportunity.

Now, these are not typical EV stocks. Instead, these are what we call the backdoor EV stocks.

As per our research, the best way to ride the 15x EV wave is through these 3 stocks only.

You can get full details by watching this video...

There would be no government intrusion for drone use in India. With this, the government is hoping to trigger growth of drone usage in multiple industries.

Earlier, the Indian government had mandated a series of approvals including unique authorisation number, a unique prototype identification number, etc.

Now with these new rules, none of the approvals are required.

The centre has also increased the payload of drones from 300 kilograms to 500 kilograms.

Apart from the above, there were many more rules notified by the government. You can read them here.

So, which companies will benefit from the new rules?

Here are few Indian companies which are chasing the exploding drone market.

#1 Info Edge (India)

Info Edge (India) has made investments in Bengaluru-based Skylark Drones.

In July 2021, Skylark Drones raised US$3 m (about Rs 220 m) in its pre-Series A funding round co-led by Info Edge Ventures and Indian Angel Network (IAN) fund.

Swiggy has partnered with Skylark to test out its drone delivery system.

Founded in 2014, Skylark Drones provides work-site intelligence to enable accurate business decision-making using drone data.

The company has offices in the US and India, and it claims to be helping 100 enterprise clients, who have processed over 1 m images and 20,000 autonomous flights via its platform.

#2 DCM Shriram Industries

Last month, DCM Shriram Industries announced an arrangement with Zyrone Dynamics, a Turkish UAV and drone manufacturer.

Under this arrangement, 30% of the firm's shares were bought by DCM Shriram Industries for US$1 m, giving it a total valuation of US$3.5 m.

DCM was looking to invest in Zyrone for a long time but due to the pandemic conditions, the negotiation period stretched to 18 months.

Under the partnership, Zyrone will be providing DCM Shriram Industries with technological support and both parties will support each other in marketing the products in India and around the globe.

Zyrone Dynamics specialises in manufacturing small rotary-wing drones. Zyrone Dynamics has been promoting small drones that it calls 'variable volume' UAVs.

--- Advertisement ---
[Alert] Sell These 3 Stocks Immediately

These 3 stocks are ticking time bombs in your portfolio.

It is very likely that you could be owning these 3 overvalued...

fundamentally weak... ready to crash stocks... in your portfolio today.

Because many stock brokers have painted rosy pictures of these stocks. But the reality is starkly different.

If the market crashes, then these stocks could wipe out your wealth.

You should get rid of these stocks as soon as possible.

Click her for full details of these 3 landmines

#3 Zen Technologies

Zen Technologies is a leading provider defence training solutions, headquartered in Hyderabad with offices in India and USA.

The company designs, develops and manufactures state-of-the-art combat training solutions for the training of defence and security forces worldwide.

The company manufactures land based military training simulators, driving simulators, live range equipment, and anti-drone systems.

Heavy lift logistics drones (HLLDs) from Zen Technologies offer advanced capabilities to fulfil the role of providing reliable logistics support in challenging environments and even in combat situations.

Its share price has spiked significantly after the government notified new rules.

Today, the stock is locked in 20% upper circuit after the company informed exchanges that its order book has witnessed a significant surge to Rs 4 bn as on 1 September 2021, as against an order book of Rs 1.9 bn on 30 June 2021.

The company is almost debt free.

In its latest annual report, the company said India is targeting to export military equipment worth US$5 bn in the next five years. With this, Zen Tech's exports will accelerate.

The company is also focusing on large export opportunities within the Middle East, CIS, and Africa. It's dedicating a core team to pursue business opportunities in the USA and other friendly countries.

#4 RattanIndia Enterprises

Just three weeks back, RattanIndia Enterprises made a strategic investment in US-based, Matternet, the world's most extensive urban drone logistics platform.

It also announced the formation of an Indian subsidiary to kickstart the drone business in India.

After the announcement of new rules, the company in an update said it welcomed the liberalised rules.

  • The new rules are set to transform core sectors of the economy including logistics, agriculture, mining, infrastructure, surveillance, emergency response, transportation, geo-spatial mapping, defence, and law enforcement and will make India a global hub for drones by 2030.

RattanIndia Enterprises is the flagship company of RattanIndia group for its new age growth businesses.

Apart from drones, the company has also forayed into electric mobility space through Revolt Motors to democratise clean commute using next-gen mobility solutions.

Instant Updates: Join Our Telegram Channel and Get Instant Updates

Startups involved in drone technology

India is focusing more on being self-reliant. Defence Minister Rajnath Singh, while addressing the audience at an industry event, revealed that the government is aiming to bring down defence imports by at least US$2 bn by next year.

India has more than 190 defence tech startups building innovative tech solutions to empower and support the country's defence efforts.

Here are a few of them involved in drone technology.

EyeROV - Founded in 2016 by Johns T Mathai, and Kannappa Palaniappan P, EyeROV is currently developing India's first commercial underwater drone for remote inspection of offshore assets.

Recently, Indian Oil Corp (IOC) announced that its deploying drones to monitor its vast network of pipelines across the country as it doubles down on the use of technology to thwart attempts to steal fuel.

Vinveli - Iowa and Chennai-based Vinveli is building indigenous drones for special forces under the Ministry of Home Affairs.

ideaForge - This drone startup claims to have over 90% of the market share in the security and surveillance segment.

The company is involved in manufacturing drones for defence, homeland security, and industrial applications.

A Multi-Billion Dollar Industry

The drone industry in India is expected to gain momentum. India is estimated to develop a multibillion-dollar drone industry in this decade.

According to global market intelligence and advisory firm, the global drone market, which is currently dominated by US, China, and Israel, will touch US$28.47 bn this year and India will comprise about 4.25% of that.

The foundation of growth has been led by the new Drone Rules 2021. With rising number of drone training institutes, India will not be far behind.

Along with the electric vehicle (EV) revolution, the drone revolution is happening side by side.

Co-head of Research at Equitymaster, Tanushree Banerjee keeps a close watch on stocks from this space.

Infact, as per Tanushree, India's drone revolution is a 4x profit opportunity. She has identified a little known drone company with immense potential.

Back in July 2021, she also recorded a video about India's best drone stocks.

Here are Links to Some Very Insightful Equitymaster Articles on Drones -

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...

Equitymaster requests your view! Post a comment on "4 Indian Companies in the Exploding Drone Market". Click here!

1 Responses to "4 Indian Companies in the Exploding Drone Market"

Shaishav Vora

Oct 2, 2021

Very interesting article. Well ahead of others. But can't some more specifc details be provided of the investments made. eg. WHat is the management of INfo Edge thinking about the prospects of Skylark Drones, what was the thought process behind inevsting in Skylark, what kind of growth they foresee etc. Basically information which will enlighten the common readers to understand the drone dynamics better, its potential, challenges & opportunities.

But deifinitely a good article & good beginning.

Such articles should help your subscribers in buying stocks much ahead of others so that they can makemoney & benifit from the subscription

Equitymaster requests your view! Post a comment on "4 Indian Companies in the Exploding Drone Market". Click here!

More Views on News

INFO EDGE 2020-21 Annual Report Analysis (Annual Result Update)

Oct 26, 2021 | Updated on Oct 26, 2021

Here's an analysis of the annual report of INFO EDGE for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of INFO EDGE. Also includes updates on the valuation of INFO EDGE.

5 Exciting 'Unlisted' Companies and How to Play Them (Views On News)

Oct 7, 2021

Here's how you can invest in some of the most exciting start-ups of the decade.

Info Edge: The Anatomy of an Indian Internet Behemoth (Views On News)

Oct 2, 2021

Info Edge is very popular in the Indian startup ecosystem due to its active participation in funding events.

India's Top 4 IT Companies are Struggling. Here's Why... (Views On News)

Oct 22, 2021

As attrition rates are unbelievably high, top Indian IT companies are going for big-ticket raises, and much more hiring this year.

Infosys had an Exceptional Quarter Buoyed by Huge Deal Wins. Revenue Guidance Boosts Stock (Views On News)

Oct 14, 2021

Infosys raised its forecast for annual revenue growth to 16.5-17.5% from the earlier 14-16%, predicted in July 2021.

More Views on News

Most Popular

Tata Group Stocks are on Fire: Which one Should You Buy? (Profit Hunter)

Oct 15, 2021

Tata group stocks are on fire. Find out which one deserves your attention.

India's Big PSU Selloff: Watch Out for these Top Stocks (Views On News)

Oct 15, 2021

The government's plan to divest its stakes in PSUs could spark off a rally in these four stocks.

Up 31,500% in a Year! This Packaging Company Sheds its Penny Stock Status (Views On News)

Oct 18, 2021

What's driving the relentless rally in this packaging company?

Insider Alert! Promoters are Increasing their Stakes in these 5 Companies (Views On News)

Oct 19, 2021

Promoters of many small and mid-cap companies are raising their stakes since the last few quarters.

The One Company Riding the Auto Revolution Beyond EVs (Profit Hunter)

Oct 22, 2021

It's not just about batteries taking over the internal combustion engine. Bigger disruptive forces are coming along with electrification.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Oct 27, 2021 (Close)


  • Track your investment in INFO EDGE with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks