Game Of Drones: How DroneAcharya Plans To Rule Indian Skies With AITMC

Game Of Drones: How DroneAcharya Plans To Rule Indian Skies With AITMC

SUMMARY

A day after DroneAcharya signed a term sheet with AVPL for a merger, the former’s founder Prateek Srivastava said it will act as a “force multiplier” for both the companies

The merger will see both the companies combine their support teams, like finance, legal and compliance, but continue to retain their brand identities

AITMC founder and MD Preet Sandhuu said the combined entity will have strengths of both the companies and would eye a mainboard listing on the exchanges

“By joining forces, we are creating something greater—it’s like turning 1 plus 1 into 11.”

DroneAcharya founder and MD Prateek Srivastava is supercharged about the company’s proposed merger with drone tech startup AVPL International. 

A day after the BSE SME-listed company said that it has signed a term sheet with AVPL, which operates AITMC Ventures, for a proposed “strategic” merger, the DroneAcharya MD told Inc42 that the merger will act as a “force multiplier” for both the companies and make the resultant entity a leader in India’s burgeoning drone tech space. 

With the merger, the two companies are looking to not only bolster their presence in the Indian drone market but also firm up their play to take Indian drones global. 

Founded in 2017, DroneAcharya manufactures drones, provides drone operations training, and services like drone deliveries and mapping across industries. The company got listed on the BSE SME platform in December 2022 at INR 102, a 90% premium to its IPO price of INR 54.

Meanwhile, AITMC Ventures (Aerial Innovative Technology for Mapping and Conservation) was founded in 2016 by Deep Sisai and Preet Sandhuu. It manufactures drones, offers training to operate drones, and Drone as a Service (DaaS). Besides, it also operates agri-input retail outlets across India. 

The company has a presence across 12 Indian states, managing 50 Global Incubation and Skill Hubs (GISH) and 20 World Incubation and Skill Hubs (WISH), focusing on drones and agriculture.

According to Srivastava, the two companies bring unique strengths to the table and will complement each other’s business. While AITMC has a well-established infrastructure, a strong presence in the agri-drone space, and a strong reputation in training, the BSE SME-listed company has a solid presence in technology and prototyping, including work orders from the Indian Army. 

The merger will see both the companies combine their support teams, like finance, legal and compliance, but continue to retain their brand identities. “Essentially, this merger will serve as a force multiplier, allowing both companies to support each other in areas where the other has a stronghold,” Srivastava added.

The fine prints of the deal, including the name of the resultant entity, shareholding pattern, among others, are likely to be finalised over the next three weeks. After getting approval from their respective shareholders, the proposed deal will also need regulatory approvals, including one from the National Company Law Tribunal (NCLT).

Mainboard Listing On The Agenda

AITMC founder and managing director Sandhuu expects the entire process to take about seven to eight months. She indicated that AVPL is likely to hold a bigger stake in the merged entity.

With the merger, the discussions for which began in December 2024, AITMC is looking to add DroneAcharya’s R&D capabilities to its strong on-ground presence.   

“The merged entity will leverage AVPL’s robust infrastructure to create a talent pool for drone maintenance, while DroneAcharya will drive advancements in drone technology. Additionally, the integration of drones with cutting-edge technologies like robotics and IoT will be a key focus with an aim to establish a deeptech infrastructure. It (new entity) will offer a wide range of drone solutions, including Drone-as-a-Service (DaaS), and will also provide GIS expertise,” she said.

It is pertinent to mention that AITMC filed its draft red herring prospectus (DRHP) for an initial public offering (IPO) on NSE Emerge in October 2023. However, there have been no further updates on the IPO since then.

Sandhuu said that the company has put its plans to list on the bourses on the back burner until the merger with DroneAcharya pans out. Post the merger, the new entity will eye a mainboard listing in the near future.

While Sandhuu’s timeline for the mainboard listing is about eight months, the DroneAcharya founder sees potential mainboard listing next year. 

“From a business perspective, there will be no disruptions for either of our businesses in the foreseeable future. The goal is to optimise operations without impeding each other’s existing business. For DroneAcharya, Q4 FY25 is expected to be particularly exciting, with several promising contracts won in the quarter and some in the pipeline,” Srivastava said. 

Notably, DroneAcharya’s profit slid 62.1% to INR 1.50 Cr during the six months ended September 2024 (H1 FY25) from INR 3.96 Cr in the same period last year. However, revenue from operations jumped 28.8% to INR 26.90 Cr during the year under review from INR 20.88 Cr in the first half of FY24.

Srivastava attributed the decline in profit in H1 FY25 to the Lok Sabha elections held during the period, and said that the financial numbers would be much better in the second half. He added that the growth in the company’s exports business would drive up the top line in H2 FY25.

(Edited by: Vinaykumar Rai)

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