Coromandel To Buy Additional 7% Stake In Drone Maker Dhaksha For $18 Mln

Coromandel International Ltd.’s unit agreed to acquire an additional 7% stake in drone manufacturer Dhaksha Unmanned Systems Private Ltd. for 150 crore Indian rupees ($18 million) in cash.

Coromandel Technology Ltd., which in July 2023 acquired a majority stake in Chennai-based Dhaksha, has executed agreements to buy additional 2,180 shares in the company, the Indian agri-solutions provider said in a stock exchange announcement.

The deal is likely to conclude in May and post-completion, Coromandel’s stake in Dhaksha will increase to 58.01% from 51.02% currently.

INVESTMENT RATIONALE

Coromandel, a part of Murugappa Group, said the investment in Dhaksha is in continuation with the company’s strategy to identify promising avenues of growth outside its core operations, which would be value accretive for its shareholders.

Coromandel International Executive Chairman Arun Alagappan said the group has been associated with Dhaksha right from its early start-up stage and has been supporting the company on talent acquisition, research & development (R&D) and production scale-up.

“This investment in Dhaksha aligns with Coromandel’s vision of diversifying in technology spaces and promoting technology adoption across various spheres,” he added.

Coromandel said the latest investment will further strengthen the company’s presence in the fast-growing unmanned aerial systems (UAS) segment, as well as support Dhaksha’s R&D and new product development activities.

ABOUT DHAKSHA

Dhaksha, incorporated in 2019, is a leading player in drone space in India, providing complete range of UAS technology solutions across agriculture, defense, surveillance and enterprise applications. The company also offers remote pilot training services.

Dhaksha received several orders in the last one year from defense and agri input companies and its current order book stands at 265 crore rupees, Coromandel said. The company also recently expanded its production capacity with a manufacturing facility on the outskirts of Chennai, it added.

Coromandel said the proceeds from the latest fund-raise will help Dhaksha cater to servicing large orders and meet its working capital needs.

Dhaksha reported a turnover of 46.40 crore rupees in FY24, up from 8.99 crore rupees a year earlier, according to the statement.

Note: $1 = 83.5185 Indian rupees

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