How has the drone industry evolved over the past few years, and what role has ideaForge played in this evolution?
The drone industry has undergone significant evolution in recent years, witnessing widespread adoption across diverse sectors such as surveillance, agriculture, healthcare, and e-commerce. In this dynamic landscape, we have emerged as a key player, contributing to the industry's growth and innovation in India along with having the largest operational deployment of Unmanned Aerial Vehicles (UAVs) across the country.
As a vertically integrated company, ideaForge has built a reputation as a trusted partner for various government and private entities, including the Indian Army, Navy, Air Force, Railways, and more. Our UAVs are renowned for their industry-leading specifications and capabilities, placing us among the forefront of design and technology in the UAV market. Additionally, we have been selected as one of the pioneering companies for survey-grade mapping initiatives such as the Survey of Villages Abadi and Mapping with Improvised Technology Village Areas (SVAMITVA) by Survey of India (SOI).
What is the future of drones in India?
We envision a future where drones seamlessly integrate into daily life, solving critical challenges across industries. We're actively involved in shaping this future through our strategic partnerships, ongoing R&D efforts, and a continued dedication with safety, responsible drone use cases, and regulatory compliance. By continuously innovating, collaborating, and addressing industry challenges, ideaForge is committed to propelling India to the forefront of the global drone revolution.
What are some of the significant challenges faced by the drone tech industry in India, and how is ideaForge addressing these challenges with innovative solutions?
Regulatory hurdles and compliance issues are among the foremost concerns, with the government imposing strict rules and regulations for drone operations, including obtaining licenses, permits, and clearances, which can be time-consuming and costly. Cybersecurity and privacy risks pose additional challenges, as drones are vulnerable to hacking, jamming, spoofing, and other cyberattacks, compromising data and safety. Moreover, drones can also threaten the privacy and security of individuals and organisations if used for unauthorised or malicious purposes. Another challenge is the lack of infrastructure and skilled manpower, requiring adequate testing facilities, drone ports, and trained drone pilots, engineers, and technicians to support sector growth.
At ideaForge, we collaborate closely with industry bodies to streamline regulatory issues and prioritise building for security and reliability as fundamental aspects of our products, ensuring security and reliability assurance for our clients. We are also actively contributing to the development of a thriving drone ecosystem in the country by fostering the right talent and skill development and forging strategic partnerships with other entities. We are working with vendor partners in the Indian industry to develop various subsystem competencies of global level here.
Can you provide insights into ideaForge's performance observed in the recently announced Q3 results? How was the financial performance in the recent years?
In our last announced quarter (Q3) results of FY24, ideaForge achieved a net profit of Rs 14.8 crore, driven by a strong improvement in operating performance. Our earnings before interest, tax, depreciation, and amortisation (EBITDA) reached Rs 26.19 crore. Over the past three fiscal years, ideaForge has transitioned into profitability, reporting profits after tax of Rs 44.01 crore and Rs 31.99 crore in FY22 and FY23, respectively. ideaForge saw revenues from operations of Rs 159.44 crore in FY22, which increased to Rs186.01 crore in FY23. However, in terms of funding, the company has raised a total funding of approximately Rs 525 crore so far.
Could you please provide an overview of ideaForge's product portfolio, highlighting the diverse applications in which it is utilised?
With over 420,000 flights completed by our customers, our UAVs have consistently demonstrated reliability and efficiency across a spectrum of scenarios. Deployed in critical areas such as anti-terror operations, border security, coastal surveillance, and crime control, our drones serve defense forces and law enforcement agencies by conducting surveillance operations and bolstering national security. Additionally, they play crucial roles in disaster management, emergency response, wildlife conservation, and traffic monitoring, offering versatile solutions to various challenges. Beyond traditional applications, ideaForge's product range extends to land surveying, mining area planning, volumetric estimation, oil and gas operations, railway inspection, construction, real estate, and corridor mapping. Engineered for performance, reliability, and autonomy, our UAVs meet diverse industry needs.
Our lineup includes specialised UAVs like RYNO, NINJA, Q4i, Q6, NETRA V4 PRO and SWITCH, each designed for specific applications with advanced features and payloads. Complemented by our Ground Control Stations (GCS), equipped with features like Moving Target Indicator and Geo-Tagging. Beyond the UAVs and Ground Control Station (GCS) software, we have proprietary solutions such as BlueFire Live!, which enables encrypted live streaming of the UAV video feed and also allows payload control from a remote command location.
Can you elaborate on ideaForge's emphasis on patents and intellectual property, and how does this contribute to the company's position as an industry leader?
Our focus on patents and intellectual property has been instrumental in establishing confidence in our products and systems. We prioritise building world-class products, with innovation centered around performance, autonomy, and reliability. This emphasis ensures that we develop robust intellectual property, granting us autonomy and freedom in technology utilisation without external dependence.
Presently, we hold an impressive portfolio of 66 patents globally, 32 of which have already been granted. Our commitment to innovation is evident in our recent acquisition of seven new patents, showcasing our dedication to pushing the boundaries of technological advancement. These patents cover various aspects of UAV technology, highlighting advancements in drone control, rotor design, flight stability, and precision.
Could you provide insights into the R&D capabilities, and how these factors contribute to the brand's overall competitiveness and innovation?
Our research and development (R&D) capabilities serve as a cornerstone of our brand's competitiveness and innovation. Over the past three years, we have achieved significant milestones in R&D, reflecting our commitment to pushing the boundaries of drone technology. We are expanding both in breadth and depth of various domains critical to UAVs. Our motivation remains to achieve Global First or Global Best in core areas of UAV technologies. Notably, our efforts have been recognised through the acquisition of several patents for our indigenous drone development and production.
Based on the capability today, ideaForge has been delivering differentiated products with competitive performance parameters at the global level in broad areas of performance, reliability and autonomy. Some of our products are one of the longest flying, smartest and safest products in their segment.
What are the future plans of ideaForge going forward with respect to product portfolio and business expansion?
On the development front, we have advanced to the prototyping stage for many of our technology and product initiatives. To unlock the full potential of drone technology, we are conceptualising India’s first drone innovation platform. This platform aims to create a collaborative ecosystem within the country, with ideaForge drone platforms and control software at its core, ensuring performance, reliability, safety, and autonomy in the field. Additionally, industry players willlongest-flyinghave the opportunity to integrate innovative payloads and leverage our application marketplace to provide software solutions, ultimately delivering automated outcomes to end-users. This approach, coupled with the servitisation of drone technology, will increase the availability of drone solutions and provide flexibility to end customers, thereby accelerating industry growth.
We are also committed to expanding our business and software revenue through 'as-a-service' offerings like Drone-as-a-Service (DaaS), enhancing our value proposition for customers. Additionally, we are exploring strategic investment and acquisition opportunities to strengthen our market position and foster innovation.
