• Garuda Aerospace is India’s number 1 Atma Nirbhar Drone startup where 100 drones were simultaneously Launched by PM Modi ji in 100 locations • Our mission is JAI JAWAN JAI KISAN JAI HIND Over the recent past, we have expanded our capabilities beyond agriculture, surveillance, mapping & entered defence • We are the market leaders in agri drone & industry 4 0 services segment, because of the big 4 achievements first ever company to receive dual DGCA certification, drone loans & subsidy • Garuda has focused on building advanced drone solutions for the armed forces in collaboration with global giants in the defence & aerospace sectors • MS Dhoni is an investor & Brand ambassador Our partners include Lockheed Martin, HAL, BEML, Intel, AMAZON, Cognizant, Wipro, IIT - M, IISC, & MIT Boston About Us FIRST EVER DRONE COMPANY TO RECEIVE DUAL DGCA APPROVAL FOR BOTH DRONE MANUFACTURING AND DRONE TRAINING PROGRAMS Drone Manufacturing Drone Services Tech, Software, Data Analytics G Link – 5G Enabled Drones to connect 1 Billion in Rural India Partnership, JV’s & Joint development of technologies Futuristic - Garuda VERSE with Carbon Credit, Impact & ESG footprint Garuda Is India’s Largest End To End Eco System Integrator GARUDA’S PARTNERS Garuda’s Diverse Types Of Drones BVS SURAJ DRONE D r o n e Te c h n o l og y, S o f t w a r e & P l a t f or m NEW MARKET SIZE Ventures Indian UAV and drones market report – 2023-2030 Key market segments and use cases Defence Commercial Combat Non- combat 2 Loitering Munition 1 Combat UAV 3 Surveillance 4 Emergency Communication 5 Search & rescue 6 Enterpris e Consumer Logistics Passenger Logistics 7 Agriculture 8 GIS Construction and Real Estate 12 Recreational 9 Mining, Oil&Gas, Utilities 10 Inspection & maintenance 11 Public Safety 13 Photo/ Videography 14 E-Commerce 15 Medical 16 Transportation Drivers for adoption Key Drivers Benefits Use case • Versatile and easily deployable • Drones are unlocking potential in multiple use cases • They are easily deployed on demand reducing cost and time • In India, Kisan drones are being utilised for crop assessment and land record as low cost alternative to satellite or aerial imagery • Compared to traditional techniques, drone bring high cost and time • In India, Agri-spraying drones have completed three man-days of effort to 3-4 hours for a 3 Source: &Ventures Research &Ventures Document Classification: And Ventures Confidential Indian UAV and drones market report – 2023-2030 Agriculture, utilities and public safety are the most significant segments for enterprise drones. 4 • Indian enterprise drone market has a potential of USD 464 million. • Law enforcement agencies have been the earliest adopters of drone technology in the commercial space. Given the large population, demand for drones is only capped by budgetary constraints • Agriculture is having the largest market potential given that India has second largest area under cultivation • India will have 454,200 circuit kilometers of transmission line by 2025 and India also has the fifth largest installed solar capacity (66.8 GW) and 42GW of wind energy. Monitoring, inspection and cleaning and spraying of these utilities has immense potential of drone usage. • India is also fast building a largest network of road and railways especially in the border areas and has a planned massive investments in infrastructure. Monitroing progress of these initiatives as well as condition of these infrastructure is a highly labour and time intensive task that can be undertaken by drones Enterprise Drones Applications Agriculture Utilities Public Safety & Disaster Management GIS Construction and Real Estate Mining Oil and Gas Adoption Level Low High • Apart from regulatory roadblocks, high upfront cost and low availability of trained drone operators has been a major road-block for adoption in the enterprise segment • The Survey of Villages and Mapping with Improvised Technology in Village Areas (SVAMITVA) scheme to enable village household owners with the "Record of Rights has increased adoption in GIS segment • Even after several pilots for spraying and monitoring in Agriculture sector and Government subsidy for acquisition of drones, adoption in agriculture had been low but with growing number of Drone Service Providers providing spraying services as low as INR 300-400 per acre, adoption is picking up rapidly. India ’ s enterprise segment is at a very nascent stage but with the easing of regulations, it will be the growth engine of the drone market in India 5 Source: Drone Industry Report, 1Lattice, February 2023; &Ventures Research 61% 48% 33% 25% 16% 33% 41% 31% 23% 18% 11% 7% <1% 15% 36% <1% 0% 20% 40% 60% 80% 100% 2018 2022E 2027F 2030F Market Split by End Use Defence Enterprise Consumer Logistics Passenger 14.2 17.2 47.1 79.9 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 2018 2022E 2027F 2030F Global Drone Application Market Est For • Fueled by opening of regulatory environment globally, enterprise and logistics sector are expected to be contributor to the growth KEY MARKET SEGMENTS AND USE CASES Indian &Ventures Indian UAV and drones market report – 2023-2030 Global drone application market grew at CAGR of 4.9% from 2018 to 2022; Defence application contributed ~61% share Global market landscape 14.2 17.2 47.1 79.9 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 2018 2022E 2027F 2030F Global Drone Application Market Estimated Forecasted • Industry forecasters are continuing to offer widely different views of the scale and predicted growth rate of the drone application sector. • Our forecast of forecast (based on best fit regression) predicts the market to grow at 21.1% CAGR till 2030. • Fueled by opening of regulatory environment globally, enterprise and logistics sector are expected to be biggest contributor to the growth &Ventures Indian UAV and drones market report – 2023-2030 March 2014 Government issued blanket ban on private use of drones August 2018 Drone Policy 2018. DGCA released the Civial Aviation Regulations for drones 2000 Government uses drones to conduct sanitation drives India becomes first country to use drones to control locust swarms March 2021 Drone Rules 2021 liberalized drone operation regulations September 2021 PLI scheme to promote indigenous manufacturing of drones Vision to make India global drone hub by 2030 2021 Government issues SoP for Agri Drones 2021 Launch of SVAMITVA scheme to digitize land records 2022 Amended Drone Rules 2022 Introduction to Drone Shakti in Budget 2022-23 to encourage Drone-as-a-service From complete ban to Drone Shakti, The policy environment in the Indian drone space is becoming more liberal Indian drone regulation INDIAN DRONE REGULATIONS & INVESTMENTS THE AGRI DRONE MODEL I m p a c t , Tra c t i o n & M a r k e t S h a r e A g r i W o r k O r d e r E x e c u t e d T i l l N o w TOTAL KVK ORDERS = 300 AVG RATE PER ACRE - $ 5.3 TOTAL ACRES = 2.88 Million TOTAL ORDER VALUE = $ 1,123,531,200 * 3 SPRAYS = $ 3,520,000,000 PER YEAR GARUDA HAS CAPTURED 55% MARKET SHARE (AS TOTAL AVAILABLE ACRES IS 400 MILLION) ALL THE ABOVE ARE WITH 3 YEARS EXCLUSIVITY Document Classification: And Ventures Confidential 596.0 739.2 1518.1 2305.4 0.0 500.0 1000.0 1500.0 2000.0 2500.0 2018E 2022E 2027F 2030F India drone serviceable market size (USD million) 12 Forecaster Years Growth Rate Mordor Intelligence 2018-2024 20.8% Observer Research Foundation 2020-2026 13.5% Market Research Future 2021-2028 17.7% &Ventures Best Fit Prediction 2022-2030 15.3% Forecast of Forecast Estimated Forecasted • In addition, budgetary constraints in key sector driven by government spending such as defence and law enforcement further constraints serviceable market • The current serviceable market is estimated at ~ USD 740 million and as new applications and use cases mature, the serviceable market is expected to grow at a CAGR of 15.3% to reach ~USD 2.3 billion by 2030 Source: Drone Industry Report, 1Lattice, February 2023 ASIA-PACIFIC UNMANNED AIRCRAFT SYSTEMS MARKET RESEARCH REPORT, MRFR, 2020 Drone market report 2020-2025, Mordor Intelligence, 2020 &Ventures Research &Ventures Indian UAV and drones market report – 2023-2030 596.0 739.2 1518.1 2305.4 0.0 500.0 1000.0 1500.0 2000.0 2500.0 2018E 2022E 2027F 2030F India drone serviceable market size (USD million) India ’ s serviceable drone market is ~USD 740 million in 2022, however is expected t rapidly grow as more use cases under pilot and research gets viable Indian Serviceable Drone market Estimated Forecasted • Given that many potential application of drones across market segments are still under development and pilot study of drones the serviceable market is only a fraction of the total available market size. • In addition, budgetary constraints in key sector driven by government spending such as defence and law enforcement further constraints serviceable market • The current serviceable market is estimated at ~ USD 740 million and as new applications and use cases mature, the serviceable market is expected to grow at a CAGR of 15.3% to reach ~USD 2.3 billion by 2030 &Ventures Indian UAV and drones market report – 2023-2030 India ’ s serviceable drone market is ~USD 740 million in 2022, however is expected to rapidly grow as more use cases under pilot and research gets viable Indian Serviceable Drone market • Given that many potential application of drones across market segments are still under development and pilot study of drones the serviceable market is only a fraction of the total available market size. • In addition, budgetary constraints in key sector driven by government spending such as defence and law enforcement further constraints serviceable market • The current serviceable market is estimated at ~ USD 740 million and as new applications and use cases mature, the serviceable market is expected to grow at a CAGR of 15.3% to reach ~USD 2.3 billion by 2030 D a a s M o d e l A n d D o m e s t i c Tra c t i o n ntures Indian UAV and drones market report – 2023-2030 Service providers with in-house certified Remote Pilot Training Organisations (RPTOs) will have a competitive advantage • As the number of drone service providers increase, there will be an increasing demand for drone pilots as well. • As per DGCA guidelines, operating a drone (except nano drones which is less than 250 gm in weight) requires a drone pilot license. • Govt. of India estimates requirement of more than 1,00,000 drone pilots in the next 2-3 years • Currently, there are only ~4300 certified drone pilots and 52 RPTOs. • At the current rate, it will take more than 5 years to reach cumulative 100,000+ drone pilots • Drone service providers will have to institute in- house certified training facilities to be competitive 2162 9553 33661 0 5000 10000 15000 20000 25000 30000 35000 40000 FY2022 FY2023 (E) FY2028(F) Drone Pilot Certification – Forecast 5 + Years to reach 100,000+ drone pilots 3 Indian Drone supply market is still at a ve less than 6% market penetration 43.2 812 0 100 200 300 400 500 600 700 800 900 2022 2027 Domestic market- Captured by Indian OEMs & Forecast (USD million) 1 5 .8 % Market Penetration 5 3 .5 % Market Penetration Actual Forecasted Propulsion High Navigation High Batteries High Camera Payload High Sensors High Power Electronics Medium Communication Medium Cables & Connectors LOW Airframe LOW &Ventures Indian UAV and drones market report – 2023-2030 8 Service providers with in-house certified Remote Pilot Training Organisations (RPTOs) will have a competitive advantage • As the number of drone service providers increase, there will be an increasing demand for drone pilots as well. • As per DGCA guidelines, operating a drone (except nano drones which is less than 250 gm in weight) requires a drone pilot license. • Govt. of India estimates requirement of more than 1,00,000 drone pilots in the next 2-3 years • Currently, there are only ~4300 certified drone pilots and 52 RPTOs. • At the current rate, it will take more than 5 years to reach cumulative 100,000+ drone pilots • Drone service providers will have to institute in- house certified training facilities to be competitive 9 Leading drone companies are increasingly pursuing hybrid business strategies to build competitive advantages and capture maximum value • 25.4% of the 110 companies are present across the value chain and contribute more than 70% of the revenue. • A caveat to the above statement is that majority of the revenue for drone companies have come from sale of drones and supplying for defence applications even though they are adopting hybrid strategy • The majority of the company adopting hybrid strategies are OEMs who are also providing DraaS followed by software companies providing services for niche applications 2162 9553 33661 0 5000 10000 15000 20000 25000 30000 35000 40000 FY2022 FY2023 (E) FY2028(F) Drone Pilot Certification – Forecast 5 + Years to reach 100,000+ drone pilots Hybrid 25.4% Manufacturers 30.9% Software 13.6% Services 30% 7 5 .9 % 2022 revenue 5 .8 % 2022 revenue 8 .5 % 2022 revenue 9 .7 % 2022 revenue Accelerating the adoption of Kisan Drones through attractive financial incentives, loans, 100% subsidies and liberalized regulations Source: https://pib.gov.in/PressReleasePage.aspx?PRID=1791783 https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1755157 Production Linked Incentives (PLI), Liberalized Drone Rules, loans & 100% subsisies • PLI scheme – incentive for domestic drone manufacturers as high as 20% of the value addition • Loans & 100 % subsidies • Liberalized Drone Rules 2021 - no restriction on foreign ownership of Drone companies, and other attractive mechanisms to promote domestic industry R e v e n u e S t r e a m s Agri Drones - Sales & Service Industrial Services Tenders - Sales & Service Drone Pilot Training Defence - Sales* Data Monetisation* 1 2 3 4 5 6 F i n a n c i a l p r o j e c t i o n s f o r F Y 2 4 a n d F Y 2 5 • Garuda follows an asset - light model to operate and route to market includes direct sales, through dealers and distributors, leads generated through Drone Yatra and potential drone pilots trained by Garuda. • Garuda operates a model wherein, the sale of drones will be made against receipt of advance and hence, carries negligible credit risk. • Data monetization is our investment for future, with the target market being companies whose ultimate customers will be the farmers. Projected income statements ₹'m Particulars FY22A FY23A FY24E FY25E FY26E FY27E FY28E Revenue 153.5 468.5 4,128.2 5,160.2 6,450.3 7,740.3 9,288.4 Cost of materials consumed (14) (100) (2,335.1) (2,918.8) (3,648.5) (4,378.2) (5,253.9) Employee costs (32) (75) (420.0) (525.0) (656.3) (787.5) (945.0) Other expenses (56) (232) (300.0) (375.0) (468.8) (585.9) (732.4) EBITDA 52.3 61.3 1,073.1 1,341.4 1,676.7 1,988.6 2,357.1 Other income 0.0 0.4 1.0 1.0 1.0 1.0 1.0 Finance cost (0.1) (7.8) (10.0) (10.0) (10.0) (10.0) (10.0) Depreciation & amortisation (3.5) (12.8) (50.0) (60.0) (60.0) (60.0) (60.0) Profit before tax 48.7 41.1 1,014.1 1,272.4 1,607.7 1,919.6 2,288.1 EBITDA % 31.7% 8.8% 24.6% 24.7% 24.9% 24.8% 24.6% • We are asset light, Recession proof, Market agnostic. • We are cash positive with a 24% net profit margin & are currently sitting on a stellar order book of over 10,000 drones & $1.2 billion in service contracts with 3 years exclusivity. • Since our Unit Economics is strong enough, investor capital will never be used for burning cash. Capital will be used to build stronger AI, ML & Deep tech layers to leverage & monetize the Data that is being collected. • Garuda's Grand vision of Connecting 1 billion people in rural India using 5G enabled drones is underway & we have created significant traction in other developing countries • UNDP India recognized the potential of Garuda's Drone tech for replacing Labour intensive & Fossil fuel reliant applications across the country. • The Drone tech revolution lead by Garuda in India has created an immense impact on Sustainability, Environment & Carbon Credit. Garuda's ESG footprint has caught the attention of several large impact investment firms. WHY GARUDA?