Agri-solutions provider Coromandel International is set to increase its stake in drone manufacturer Dhaksha Unmanned Systems by 32.68% in an all-cash deal worth INR 204 crore. This move comes after Coromandel International’s venture capital arm, Dare Ventures, acquired an 18.34% stake in the deeptech startup nine months ago. Following the completion of the transaction, Coromandel International will hold a majority stake of 51.02% in the Chennai-based startup.
Under the agreement, Dare Ventures will transfer its stake to its parent company, Coromandel International, at cost. The proposed deal values Dhaksha Unmanned Systems at INR 625 crore.
Coromandel International expects the acquisition to be finalized during the second quarter of the financial year 2023-24 (FY24), as stated in a regulatory filing. This strategic move is part of Coromandel’s plan to diversify its operations and explore new avenues for growth outside its core business. The acquisition will also enhance the company’s presence in the unmanned aerial services (UAS) sector, complementing its agro-chemical and agri-solutions business.
The capital infusion from Coromandel International will enable Dhaksha Unmanned Systems to scale its research and development (R&D) efforts and accelerate its growth aspirations. The startup, founded in 2019, specializes in deeptech solutions using drones for agriculture, defense, and enterprise applications. It also offers remote pilot training and has trained 950 pilots to date.
Ramanathan Narayanan, Director and CEO of Dhaksha Unmanned Systems, expressed excitement about the partnership with Coromandel, emphasizing the value creation opportunities and commitment to adopting world-class drone technology for agriculture and defense sectors.
Arun Alagappan, Executive Vice Chairman of Coromandel International, stated that the investment in Dhaksha marks their entry into next-generation UAS technology applications, contributing to the vision of an Atmanirbhar Bharat (self-reliant India) in drone manufacturing. Coromandel aims to enhance domestic value creation opportunities and pioneer frontier technologies in the drone industry.
With three DGCA-type certificates to its name, Dhaksha Unmanned Systems was shortlisted for the Indian government’s production-linked incentive (PLI) scheme for drone manufacturers last year. The startup’s annual turnover was INR 4.52 crore in FY22, slightly lower than INR 6.06 crore in FY21.
This announcement follows the recent relaxation of norms for the export of drones for civilian use by the Indian government. The government has implemented various reforms, including banning drone imports, introducing the PLI scheme, and amending the Drones Rules, 2021 to streamline drone certification. These initiatives have attracted significant investor interest, with Indian drone startups securing around $54 million in funding since the beginning of 2022. The domestic drone industry is projected to reach a market size of $1.9 billion by 2026, indicating substantial growth potential.
