Coromandel International Acquires Majority Stake in Drone Startup Dhaksha for Rs 204 Crore

Coromandel International, a leading Indian company in the agri-inputs sector, is set to bolster its presence in the cutting-edge drone technology market with its latest strategic move. Through its wholly-owned subsidiary, Coromandel Technology Limited (CTL), the company is acquiring an additional 32.68 per cent equity stake in Dhaksha Unmanned Systems (Dhaksha), a Chennai-based differentiated drone startup. The acquisition will be made at an outlay of Rs 204 crore, giving Coromandel a majority 51 per cent stake in the promising drone company.

Dhaksha, incorporated in 2019 and headquartered in Chennai, has quickly emerged as a leading player in the Indian drone space. The company provides a complete range of Unmanned Aerial Systems (UAS) technology solutions, catering to various sectors such as agriculture, defense, surveillance, and enterprise applications. It is also actively involved in providing remote pilot training services and has successfully trained over 950 pilots to date. Notably, Dhaksha holds a unique distinction as the only player in the country to have received a type certificate from the Directorate General of Civil Aviation (DGCA) for three drone models in medium and small categories, specifically designed for agriculture and surveillance applications.

"We are delighted to partner with Dhaksha, having been associated with them since their early start-up stage. Our investment in Dhaksha marks a significant foray into next-generation cutting-edge UAS technology applications. In addition to driving resource efficiency and sustainable practices in agriculture, Dhaksha drones have high potential in defence and enterprise applications," stated Arun Alagappan, Executive Vice Chairman of Coromandel International. 

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The acquisition comes at an opportune time, with the Government of India recently liberalizing the policy for the export of drones meant for civilian use. This decision is expected to open up new avenues for Dhaksha's drone technology in the international market. Emphasizing the "Atma Nirbhar Bharat" vision, Coromandel aims to improve domestic value-creation opportunities and foster frontier technologies in the drone manufacturing space.

Dhaksha has carved a niche for itself in the electric drone segment and is the sole player in India offering type-certified petrol engine-based Hybrid Agri Drones. The company's commitment to innovation and technology has been acknowledged through its selection under the Production-Linked Incentive (PLI) scheme, which promotes the manufacturing of drones and drone components in the country. With a robust order book and promising opportunities on its horizon, Dhaksha is well-positioned to continue its upward trajectory.

Coromandel's strategic investment in Dhaksha aligns with the company's vision to explore growth avenues beyond its core operations in agri-inputs. It marks the company's entry into the fast-growing UAS segment, where drones and their applications are projected to reach a global market size of $90 billion by 2030. This move follows Coromandel's recent announcement of entering the Specialty Chemicals and Contract Manufacturing (CDMO) businesses, further diversifying its portfolio.

Ramanathan Narayanan, Director, and CEO of Dhaksha, expressed excitement about the partnership with Coromandel and emphasized the significant value-creation opportunities for Dhaksha in the future. The company remains dedicated to contributing to nation-building endeavors and aims to adopt world-class drone technology solutions for the agriculture and defense sectors.

With the backing of Coromandel International and its expertise, Dhaksha Unmanned Systems is poised to accelerate its growth journey, becoming a major player in the dynamic world of drone technology and fostering innovation for a sustainable future.

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