- 23 May 2023
- ICICIdirect Research
HAL SUBSIDIARY, GARUDA AEROSPACE TIE UP TO MANUFACTURE AGRICULTURE DRONES
HAL - 4650 Change: 40.20 (0.87 %)News:Garuda Aerospace and Naini Aerospace Engineering (NAeL), a wholly-owned subsidiary of HAL, have signed a joint development partnership to manufacture advanced precision drones. As per media sources, these drones will have a payload of 25 kg and be used especially for farming with spray efficiency of 1500-2550 square metre/minute. Over 7,000 drones have already been pre-booked by Garuda at Rs 4.5 lakh each and as a part of the partnership, 5000 drones have been planned in the first year. Manufacturing facility of NAeL is situated in the Naini industrial area of Prayagraj, developed by the UP State Industrial Development Corporation
Views:We see this as a big opportunity for HAL considering the strong demand expected for agriculture-based drones. Spraying, seeding, crop monitoring and crop insurance are key use cases for drones in agriculture. As per industry reports, manpower shortfall will lead to a greater reliance on precision farming instruments like drones both globally and India. The global agriculture drone market is estimated to be $600 million in CY22 and projected to reach $ 2.5 billion by CY27, growing at a CAGR of 32%
Impact: Positive