Merger and Acquisition

Coromandel International Acquires Majority Stake in Agri Drone Startup Dhaksha Unmanned Systems

• ByStartupStory     |    June 30, 2023

Coromandel International, a subsidiary of the Murugappa Group and a leading agri solutions provider, has announced its acquisition of an additional 32.68% stake in Dhaksha Unmanned Systems, an agri drone startup. This transaction increases Coromandel’s total ownership in Dhaksha to 51%, solidifying its majority control in the company. The deal was executed through Coromandel’s wholly owned subsidiary, Coromandel Technology, for a cash consideration of Rs 204 crore, valuing Dhaksha at approximately Rs 600 crore.

Previously, Coromandel held an 18.34% stake in Dhaksha through its venture capital arm, Dare Ventures. With this latest investment, Coromandel expands its involvement in the startup, which offers a range of Unmanned Aerial Systems (UAS) solutions across various sectors including agriculture, defence, surveillance, and more.

In addition to its UAS offerings, Dhaksha provides remote pilot training services and has trained over 950 pilots to date. The startup is also distinguished as the sole player in India to offer type-certified petrol engine-based hybrid agri drones. Furthermore, Dhaksha has been shortlisted under the central government’s Production-Linked Incentive (PLI) scheme for the manufacturing of drones and drone components in the country. Notably, Dhaksha achieved a turnover of Rs 4.52 crore for the financial year ended March 2022.

Coromandel’s investment in the UAS segment aligns with its strategic approach to identify growth opportunities beyond its core agri inputs operations. This move follows the company’s recent entry into the specialty chemicals and contract manufacturing (CDMO) businesses.

“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. The recent decision by the Government of India towards liberalising the policy for export of drones meant for civilian use will help in further tapping the export potential for Dhaksha’s drones,” stated Arun Alagappan, Executive Vice-Chairman of Coromandel International.

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