Drones, often called ‘Agribots’, are now essential in agriculture. But who coined this key term? IoTech World Avigation. Speaking with EFY’s Nitisha, Co-founders Deepak Bhardwaj and Anoop Upadhyay discussed the industry’s shifting demands and their future plans.
Q. Please talk about IoTechWorld Avigation and its product offerings.
A. IoTechWorld Avigation was established in 2017 and specialises in agricultural drone-making. We are fundamentally an R&D-based manufacturing company. Designing everything from scratch, we develop components domestically, and then manufacture the drones. The components are of automotive grade, including high-end carbon X materials for the frames and advanced propulsion systems, all made in-house. Our top priority is quality, then cost, and delivery. Our team comprises professionals from various corporate backgrounds, particularly the Japanese automotive sector.
Q. What types of drones do you offer, and which is in the highest demand?
A. Our prime focus is on agricultural drones ‘Agribot’. We explored other areas in the past, such as ‘Surveybot’ equipped with LIDAR and RGB cameras, but the market demand for these is low. We also developed a drone ‘Heavybot’ for BVLOS logistics operations, but market readiness and regulatory frameworks are still under development. Although the drone is ready, regulations are not yet in place, so this project is on hold. As a result, 98% of our efforts are concentrated on Agribot only.
Q. What makes your Agribots unique compared to competitors in terms of features?
A. Our Agribots boast many unique features. As a drone manufacturer, we develop almost all components including motor propellers, AC power distribution boards, flight controllers, ground control stations, radar, and pumps. 95% of our components are indigenised in India, which are industrial and automotive grade, not hobby grade, contributing to a higher price point due to superior quality.. In contrast, many competitors are merely assemblers. Our software is entirely homegrown too, unlike others who rely on outsourcing. The drones have some advanced features such as smart range battery failsafe features that are patentable and unique. For ADAS(collision avoidance), we use radar that not only detects obstacles but also navigates around them.Others might just stop upon detecting obstruction. Additionally, our software supports multiple languages, including Telugu, Tamil, Punjabi, and Marathi, which competitors lack. We also ensure data security by sending data to the cloud, and have complete control over hardware, firmware, and software. This makes our intellectual property hard to copy since it requires access to both hardware and software. Competitors dependent on third-party computing system, are more vulnerable to replication. Furthermore, we have a full manufacturing unit setup, a pan-India service network, and a demand-aggregation app. These differences highlight our commitment to innovation and quality in drone manufacturing.
Q. How many patents and trademarks does your company currently hold?
A. We currently hold eight patents, including trademarks, and have applied for an additional ten. Patents can be granted for various aspects, including designs, architecture, component designs, software, feature designs, and complete drones. Additionally, trademarks can be secured for names and software.
Q. How do your drones compare to similar models imported from China?
A. While similar drones imported from China cover two acres, our drones cover three acres, boosting efficiency by 50%. Moreover, our products provide superior durability and experience fewer field issues. Our propulsion systems are engineered for longevity and low maintenance, assuring high reliability. Above this, our products come with one-year warranty and service on site kind of facilities that the Chinese will lack, providing complete handholding to our customers.
Q. How do your drones offer lower cost-per-acre and benefit farmers?
A. The Agribot MX is a compact drone capable of covering three acres on a single battery charge and is among the smallest in India, even fitting on the back of a motorcycle. The lower cost-per-acre can be explained by breaking down into three parameters: the drone itself, battery costs, and transportation. The size lowers transportation costs significantly, with travel expenses amounting to just 1.5 rupees per kilometre. Our competitors who use four-wheelers incur at least 10 rupees per year, which is almost eight times more.
The battery is highly durable, offering up to 500 cycles, and costs less than 40 rupees per acre to operate. Conversely, many of our fellow market players use lithium polymer batteries with a 500-cycle lifespan. It reduces the battery cost-per-acre to just 30 rupees from the 100 rupees others charge.
Overall, including drone operation, petrol, maintenance, and other expenses, the cost of spraying per acre is around 100 rupees. This is notably cost-effective compared to other drones, costing at least 250 rupees per acre. Given that spraying prices range from 350 to 800 rupees per acre, using our drones can result in a profit of approximately 250 rupees per acre for agri-entrepreneurs.
Q. How does IoTech offer affordable, high-quality agricultural drones?
A. Our goal is to develop high-end drones in India at very affordable prices. We aim to offer drones at half the price of Chinese models, equipped with all the global features of agricultural drones. We strive to create autonomous drones that deliver international-standard features to Indian customers. Furthermore, we plan to export these drones from India to various parts of the world.
Q. When do you plan to start exporting drones internationally?
A. We are set to start exporting this year. Currently, our focus is on expanding in the Indian market. We have a presence in every state and are targeting deep penetration in 12 key states this year. The states are Haryana, Punjab, Rajasthan, Uttar Pradesh, Gujarat, Madhya Pradesh, Chhattisgarh, Maharashtra, Karnataka, Andhra Pradesh, Telangana, and Tamil Nadu. Our main users are in Madhya Pradesh due to its large population, with notable usage in Maharashtra, Haryana, Punjab, and increasingly in Uttar Pradesh.
Q. How are you supporting agri-entrepreneurs to sustain and grow their drone service business?
A. Farmers will ultimately be our end users, but currently, we are not targeting them directly due to the high cost of drones, which can be around 600,000 rupees. Instead, we are focusing on developing agri-entrepreneurs across India and establishing drone-as-a-service (DaaS) partners. These partners can be agri-input dealers, agricultural graduates, consultants, or even service personnel. We create and aggregate demand for them, establishing DaaS operations in their local areas. They purchase one to fifty drones from us with the help of our partners. Our partners, who are IFFCO, Syngenta, Thanuka, Bayer, BASF, and FMC, provide significant spray demand. We support these entrepreneurs in their first year to help them sustain and grow, allowing them to build a strong business foundation and operate successfully for 10-15 years.
Q. What additional training do you provide after the DGCA-approved RPTO course?
A. The training school is called a remote pilot training organisation (RPTO), approved by the DGCA. These are independent entities with a standardised training course also approved by the DGCA. The first five days of training follow the DGCA curriculum: three days of online theory and two days of practical ground training. After this, we provide an additional two to three days of OEM-specific training, covering aspects like drone operation, maintenance, and chemical usage. The minimum qualification required is 10th grade. To enrol, interested customers simply need to find the nearest RPTO and register using their Aadhaar card and other necessary documents. Fees range from approximately 20,000 to 50,000 rupees.
Q. How do you manage RPTOs?
A. We have around 20 RPTOs around India, though we own only one in Gurgaon. For other places, we work with partners. They have obtained the DGCA approval to run our RPTO, and we send our candidates there. When someone buys our drone, we ensure they receive top-notch training. We have carefully selected our partners to guarantee the highest-quality training for our customers.
Q. How do you support and finance potential DAAS providers in establishing their business?
A. With the help of our partners and extensive marketing, we identify potential candidates who can become our DAAS providers. After shortlisting these candidates, we interview, guide, and assist them in securing financing from banks under the Agri-Infra Fund. This scheme by the Government of India allows our DAAS to obtain up to 20 million rupees of unsecured loans from any nationalised bank at a 6% interest rate, provided they have good credentials. For at least one year, we continue support our DAAS in securing finance, generating demand, and establishing their business. Once they are established, they operate independently.
Q. Did you encounter any design challenges while developing this product?
A. Designing the small white tank that carries the liquid took us nine months due to the extensive computer-aided design (CAD) and computer-aided engineering (CAE) work involved. We utilised CAE tools like ANSYS to achieve this. Typically, you might notice significant sloshing when taking a break, but our tank eliminates that issue. This is a testament to our engineering prowess. Every product, including making it aerodynamic and lightweight, and even the small arm joint, is a masterpiece of engineering. We employ precise glove detailing in our designs to achieve this level of excellence.
Q. What challenges did you face as a startup company?
A. We were a bootstrap company and faced many challenges. We operated on whatever we earned, covering employee salaries, R&D costs, and all operational expenses. It was not easy, which is why the failure rate for startups is 95%. Despite this, we were determined and rigorously improved our systems. Our focus and ability to learn from our slip-ups allowed us to define our boundaries and invest time, effort, and money in the right direction.
Q. How did you convince farmers about your product’s benefits initially?
A. When we started, it was very challenging to convince them. We had to conduct thousands of demonstrations before we succeeded. During these demonstrations, our partners, like Syngenta and Thanuka, supported us, who also explained the benefits to the farmers. After observing the trials on their own farms and evaluating the difference in yield, they were convinced. After we convinced 1000 of them, they, in turn, influenced other farmers. This is how things progressed.
Q. How does your approach help protect farmers, consumers, and the environment from chemicals?
A. We are working to safeguard people from chemical exposure, including the farmers and applicators, as well as reduce chemical residues on crops. The applicator stays at least 200 feet away from the application area. Although most chemicals are not severly harmful apparently, inhaling them can cause body rashes and, in the long term, lead to chronic diseases. Meanwhile, inconsistent spraying results in uneven chemical distribution, with more residue in some areas, that enters the food chain. Additionally, excessive water usage causes chemicals meant for the plant canopy to reach the soil, harming beneficial bacteria and degrading soil quality. Our efforts protect the environment, farmers, and consumers.
Q. How do environmental conditions affect the performance of drones?
A. When starting a new design, success is not guaranteed on the first try. Drones, being real robots, are influenced by various natural factors like temperature, wind speed, air pressure, and humidity. Thus, we need to test our features in five to six different environmental and geographical conditions, including near the sea, in the desert, and at high altitudes like Leh and Ladakh. Some features may work under certain conditions while others may not, as temperature and air pressure changes affect the drone’s aerodynamics. We have learned from our mistakes. For instance, the patentable smart battery failsafe feature was developed from field experience and customer feedback. Testing in a lab is different from real-world conditions, and it is challenging to cover all scenarios. We continuously learn from our customers and improve the system, making R&D an ongoing process.
Q. What is your production capacity for drones with your current setup?
A. We manufacture 95% of the components for our drones on our own. While producing some parts ourselves, others come from contract manufacturers. We have an automated assembly line that produces 15-20 drones per shift. Our monthly capacity is 300 drones, resulting in 4000 drones annually. If we switch to double shifts, with a single assembly line, our output will double. Our plan is to establish our manufacturing unit in North India. In the future, we may also set up another manufacturing facility in the southern part of the country, possibly in Hyderabad.
Q. What is the cost difference between the drones?
A. Our drone, priced at around 600,000 rupees, is accompanied by another model that is approximately 600,000 rupees. The primary distinction between the two models lies in the battery capacity. One model features a 55,000 mAh battery, while the other has a 21,000 mAh battery. Additionally, there are minor differences, such as the inclusion of a dongle that enables data to be pushed to the cloud and to your servers.
Q. How many drones have you sold to date, and how was growth in the last fiscal year?
A. We have sold approximately 2000 drones, with around 1003 of those sold just last year. Our sales are doubling every year. For instance, in 2021, our revenue was only 20 millions, but it has grown exponentially to 100 millions, then to 440 millions, and now to 900 millions in just four years. This demonstrates our significant growth in this short span.
Q. What is the size and composition of your team?
A. Our team consists of approximately 140 people. Of them, 30 are dedicated to R&D, around 30 are in customer support, and about 20 are in sales and marketing. The remaining team members are involved in development and manufacturing.
Q. How extensive is your service network?
A. Our customer support team includes over 30 engineers. We operate our service centres and also have dealers with their own service centres. This comprehensive network spans across India.
Q. When will your new drone models launch?
A. Our two new drone models are set to launch soon. The first model will be available by the end of this year or possibly by January or February of next year.
Q. Why is your company called ‘IoTechWorld’ if you manufacture drones?
A. All our drones currently fly using radio signals. We are developing drones that will utilise 4G and 5G networks. Using the 4G/5G network and the Internet, they become part of the Internet of Things (IoT), where the name ‘IoTech’ originates.
Q. Since your drones have 4G and 5G capabilities, how can farmers in village areas with weaker network coverage effectively use them?
A. Radio frequencies (RF) are used to communicate between the drone and the pilot, the ground control station (GCS), and the communication app. Both 4G and 5G connectivity can be integrated into the drone and the GCS. Presently, 4G is widespread, even in villages where people use mobile devices for activities like watching YouTube videos and posting on social media. While 5G is not yet ubiquitous, 4G supports up to 100 Mbps, and we only need 25 Mbps of bandwidth, so it meets our current needs. In the future, as 5G becomes more available, its higher bandwidth and lower latency will be essential for applications like precision agriculture and remote drone control. Now, we use a combination of RF and 4G, with data transmitted via RF and then processed through 4G at the GCS, which uploads it to the cloud. Direct control of the drone via 4G is possible, and with 5G, we will be able to run more AI and ML features due to the higher data rates. This will enable server-side analytics and generate advisories for the drone, which is again a future goal.
Q. Are you looking for any vendors or partners?
A. We collaborate with a substantial base of automobile vendors in Gurgaon, Faridabad, and Pune because the drone industry is closely related to the automobile industry. Many OEMs are located in these regions, and the vendors manufacture our components. There is no need to reinvent the wheel or reinvest in new infrastructure, as these existing subsidiaries, already producing automobile parts, can also manufacture drone parts.
Q. What actions do you take if someone misuses your brand?
A. If someone uses our brand name, it shows they are impressed with our branding, which we appreciate. See, ‘Agribot’ has become a common term for spraying drones in rural areas, thanks to our branding. However, if they harm our brand or do something negative, we will take legal action, as we have registered putty trademarks. Many school or college graduates may use our name without knowing it is a trademark We generally do not stop them and are even willing to support serious efforts unless they damage our brand’s reputation.
