Chinese drone companies rule the markets- in some segments, almost 70% of all commercially available drones come from China. Many people may not realise it, but drones have highly practical applications in agriculture, infrastructure, photography and most importantly, defence and security. Though such Unmanned Aerial Vehicles (UAVs) have been around for quite some time, their use has been highlighted in recent years, particularly the ‘drone wars’ during the recent skirmish with Pakistan during Operation Sindoor.
China has taken the lead in developing high-quality drones that offer a variety of solutions, from a better vantage point for photographers to helping patrol border areas. With extensive state support, highly scalable manufacturing capabilities and investments in R&D, Chinese drone makers have captured the market worldwide, including Europe and the US.
Though drones from manufacturers like DJI are widely used, governments in the West are increasingly concerned about privacy and national security, as these companies have close ties with the Chinese regime. India has completely banned the sale of Chinese drones, due to these concerns, and Europe is increasingly wary of Chinese drones, especially as their use was reported in the Russia-Ukraine war.
The US has imposed tariffs of up to 170% on Chinese drones, partly due to these concerns, and their misuse has been highlighted quite well in the West. This presents an opportunity to drone makers like ideaForge in India, who aim to fill the void while addressing these security concerns in the market.
What ideaForge has achieved to date
Mumbai-headquartered ideaForge has come a long way since its inception in 2007 by IIT Bombay alumni Ankit Mehta, Rahul Singh, and Ashish Bhat. As a startup, ideaForge has been at the forefront of developing new technologies, filing more than 70 patents and achieving about 70% indigenisation of hardware components and 100% in-house software development.
Though its revenue and profit haven’t been stable, it had a blockbuster IPO, where allotted shares nearly doubled on listing in June 2023. Currently, IdeaForge remains the only listed drone manufacturer in India. The company has seen volatility in its revenue and profitability over the years, with revenue halving to Rs. 165 crore from last year and a loss of Rs. 51 crore during the same period.This hasn’t stopped marquee investors like Infosys, Qualcomm, Florintree, EXIM bank and others from trusting the company, though, even as investors see the company with greater interest after the Indo-Pak skirmish.
IdeaForge’s first major contract came from the Indian Air Force in 2015. Since then, it has moved towards developing and perfecting its flagship drones- Switch, Netra V4+ and the Q Series. Most of its drones are used for mapping and surveillance, critical areas for maintaining security and law and order.
The company offers a vertically integrated solution- from training to software to deployment for various uses. Currently, most of its clients are institutional- government or otherwise.
How IdeaForge is gearing up for this opportunity
The demand for non-Chinese drones is increasing in the US due to security concerns. Currently, more than 70% of all drones used for commercial purposes are manufactured in China. They are seen as an affordable, easy-to-deploy alternative for film agriculture use, railroad safety inspections and many more.
The US hasn’t been able to compete with Chinese drones, as the Chinese drone makers enjoy strong state a support and highly advanced supply chain that can deliver results quickly. Even though US-based manufacturers like Skydio are trying to fill the void, IdeaForge offers solutions that meet customer requirements, primarily as it offers flexible data management solutions.
Regardless of the way the US-China trade war goes, the West is unlikely to trust Chinese-made technologies that can become a security concern, as the Chinese government can always misuse their influence with these companies. Indian companies are known to adhere to data security requirements, and this presents IdeaForge with an opportunity it cannot miss.
