Adani Group's Drone Division To Explore Two Revenue Models The exploration is in line with the prime minister's vision of using drone technology for the development of the agricultural sector

By Teena Jose

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The Adani Group's drone division is exploring two revenue models, dealer-based and service-based, keeping its primary focus on the agriculture sector. In dealer-based model, the equipment is sold directly to the consumer and in service-based model, the equipment is provided for various services for a fee, in partnership with local entrepreneurs or institutions.

"We are exploring both dealer-based model and service-based model. Depending on the market response, we will take our decisions. This is in line with the prime minister's vision of using drone technology for the improvement of farmer's livelihood," said Rangarajan Vijayaraghavan, vice president, Adani Group, in a statement.

Under the service-based model, a drone company or local entrepreneurs can offer many services to a farmer that includes spraying pesticides, reduction in water and labour requirements, maintenance of the drone and so on, claimed by the company in the statement.

"We expect the outright dealer-based model in the commercial drone sector to evolve with time. The service-based model helps a company to build a connection with farmers as it has the ability to engage with them at an issue-level," said Vijayaraghavan.

Adani Enterprises, on Friday, announced that it has signed an agreement to acquire a 50 per cent stake in General Aeronautics Private Limited, which provides drones and drone-based solutions for crop protection. Prime Minister also emphasized the importance of drones in agricultural sector that it will play a major role in empowering farmers and said that drones will emerge as a gamechanger in the agricultural sector, while addressing the inaugural ceremony of Bharat Drone Mahotsav 2022.

"With our stake acquisition in General Aeronautics, we expect to augment our manufacturing capabilities. We also had a good track record of working with MSMEs to help them scale up in the military drone sector. We are now looking to take the same skill set and apply it into the commercial drone sector," Vijayaraghavan further added in the statement.

According to reports, in India, revenue in the drone segment is estimated at $20.13 million in 2022. The market is expected to grow annually at a CAGR of 10.96 per cent by 2026.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.

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