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Military Aircraft Manufacturing Company Investment Opportunity in Hyderabad, India

Company designs and manufactures loitering munitions, surveillance UAVs for defense, agriculture, logistics and civilian drones.
This transaction has concluded.
This Business is on a Premium Plan
Established 1-5 year(s)
Employees 10 - 50
Legal Entity Private Limited Company
Reported Sales USD 158 thousand
Run Rate Sales USD 172 thousand
EBITDA Margin 40 %
Industries Military Aircraft Manufacturing + 1 more
Locations  Hyderabad
Local Time 11:21 AM Asia / Kolkata
Listed By Business Owner / Director
Status Active
Overall Rating
Partial Stake Sale
USD 700 thousand for 15.0% stake (Native Currency: INR 60,000,000)
Reason: We are at the forefront of developing advanced UAV solutions for defence and commercial applications... View More
Includes physical assets worth USD 460 thousand
Interested to connect with advisors
Documents
Business Overview
1. Clients: Successfully delivered Loitering Munition (LM) UAVs to the Defence Research & Development Organization (DRDO) which has been design, developed and manufactured at the company and currently developing surveillance UAVs for the Indian Army under a project sanction order.
2. Revenue model: Primarily B2G (Business-to-Government), with revenue generated through design, development, and manufacturing contracts for UAVs. Future plans include expanding into commercial markets with logistics and agricultural drones.
3. Promoter experience: The founder has over 19 years of experience in the aerospace industry, including 10 years at B/E Aerospace leading R&D teams, 5 years as co-founder of Phoenix Engineering Technologies (Aerospace), and 4 years leading this company.
4. Business relationships: Strategic collaboration with IIT Kanpur and IIT Madras, leveraging their facilities for R&D operations, flight testing, and prototyping. Strong partnerships with defense organizations like DRDO and the Indian Army.
5. Awards and recognition: Successfully delivered an 8.5 kg Loitering Munition UAV to DRDO, meeting their stringent technical and operational specifications. Cleared a rigorous technical evaluation by IIT Kanpur, securing access to their advanced facilities, and achieved successful flight trials for UAV development.
As we delivered LM UAV successfully to DRDO, through DRDO expecting 144 qty of 8.5 Kg LM UAV's order from Indian Navy, with each UAV cost of INR 40,00,000, offering us a 100-250% margin.
6. Assets: Tangible assets are valued at INR 4 crores, including infrastructure, R&D equipment, manufacturing tools, prototypes. Intangible assets, such as the design IPs for the 8.5 kg Loitering Munition UAV, Catapult Launcher, and Canister Launcher, as well as ongoing developments like object detection and tracking software, portable canisters, and surveillance UAV designs, along with completed DRDO contracts and potential future revenues, are valued at INR 36 crores.
- Primarily serving Indian Army and DRDO. Have ongoing contracts.
- Business has GSTIN, IEC, MSME, Company PAN.
These highlights showcase the business's expertise, credibility, and potential for growth in the defense and commercial UAV sectors.
Products & Services Overview
Top-selling products are Loitering Munition (Kamikaze) UAVs and Surveillance UAVs, designed for defense applications. These UAVs are primarily utilized by organizations like Defence Research & Development Organization (DRDO) and the Indian Army for precision strike missions, reconnaissance, and intelligence gathering.
Loitering Munition UAVs are deployed for high-precision, cost-effective combat operations, while Surveillance UAVs support real-time monitoring and situational awareness on the battlefield. Our products are tailored to meet the unique requirements of defense forces, ensuring operational reliability and effectiveness in critical missions.
Assets Overview
Tangible Assets:
1. Infrastructure:
- 1,600 sq. ft. facility at Technopark, IIT Kanpur (700 sq. ft. for R&D and 900 sq. ft. for manufacturing).
- Equipment and tools for UAV design, development, and prototyping.
- Test equipment and manufacturing setups.
2. Prototypes:
- Working prototypes of the 8.5 kg Loitering Munition UAV and related systems.
3. R&D Assets:
- Flight testing and data collection hardware.
Intangible Assets:
1. Design Intellectual Property (IP):
- 8.5 kg Loitering Munition UAV design IP.
- Catapult Launcher design IP.
- Canister Launcher design IP.
2. Ongoing R&D and Software Development:
- AI-based object detection, identification, and tracking software.
- Portable canister design.
- Surveillance UAV designs for defense applications.
3. Contractual and Market Assets:
- Completed DRDO contract for the 8.5 kg Loitering Munition UAV.
- Anticipated DRDO-backed order for 144 units for the Indian Navy.
4. Strategic Partnerships:
- Collaborations with IIT Kanpur and IIT Madras for R&D operations, leveraging their advanced facilities for prototyping, testing, and flight trials.
- Access to IIT Kanpur’s runway for UAV flight testing and their Technopark infrastructure.
5. Brand Value and Credibility:
- Established relationships with DRDO, the Indian Army, IIT Kanpur, and IIT Madras.
- Proven track record in delivering high-quality defense-grade UAV solutions.
These assets underline the company’s strong foundation in innovation, technical expertise, and market presence, enhancing its growth potential in the defense and civilian UAV markets.
Facilities Overview
Operates from a 1,600 sq. ft. facility at Technopark, IIT Kanpur, with 700 sq. ft. dedicated to R&D for design and 900 sq. ft. allocated for manufacturing activities. This state-of-the-art space enables seamless prototyping, testing, and development of our UAV solutions.
We are also planning to expand operations with a 7,000 sq. ft. facility in Hyderabad, as part of our strategy to broaden our product portfolio and enter the civilian drone market, including logistics and agricultural drones. The expansion reflects our commitment to scaling operations and catering to both defence and commercial sectors.
Capitalization Overview
Business is funded through a combination of loans and equity. We have an overdraft facility of INR 2.2 crore from ICICI Bank and a loan of INR 1.5 crore from our partner company.
The company is jointly owned by 2 promoters, who hold a 49.9% stake, and 50.1% stake. This structure ensures a balanced partnership while supporting the financial needs of the business as we continue to grow and expand our operations.
Recent Activity
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Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.
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