Why we invested in Nabhdrishti Aerospace

In the upcoming two decades, the small and micro engine gas turbine market in India is projected to surge to USD 30 billion. Despite its pivotal role in defense and national security, among other sectors, India has yet to indigenise this crucial technology. This is where Nabhdrishti Aerospace Private Limited comes in, poised with a bold vision to pioneer indigenous production of this intricate technology, marking a significant stride forward for the nation.

The Team

In 2023, Rohit Chouhan and Arjun Srivatsa launched Nabhdrishti Aerospace, driven by their collective 35+ years of experience in the gas turbine industry. Rohit, an IIT Delhi MTech graduate, and Arjun, an IISc Aerospace alumnus have had significant tenures at GE and Rolls Royce. Rohit's career includes over a decade at GE Power and leadership roles at Rolls Royce, where he filed 50 US patents in gas turbine technology. Arjun, with expertise in combustion, spent 14 years collectively at GE Aviation and Rolls Royce, collaborating with Rohit at the latter.

The founders' professional synergy and shared vision laid the foundation for a venture aimed at transforming India's gas turbine landscape.

The Fundamentals

A gas turbine engine, a type of an internal combustion engine, converts fuel into mechanical energy through a continuous combustion process. In all modern gas turbine engines, the engine produces its own pressurized gas, and it does this by burning something like propane, natural gas, kerosene or jet fuel. The heat that comes from burning the fuel expands air, and the high-speed rush of this hot air spins the turbine. Micro gas turbine (MGT) engines are scaled-down versions of the larger engines often found in aircrafts or power plants. They are designed to produce power in the range of a few kilowatts to a few megawatts. Large industries including aviation, oil and gas, utilities and manufacturing are powered by gas turbines. MGTs, in particular, have current and future use cases in aviation (UAVs, urban air mobility, VTOLs etc) as well as decentralised power generation.

The Challenge

The challenge at hand: India currently relies entirely on imports for gas turbine engines from Russia, USA, UK, and France. This dependence not only poses economic challenges but also raises national security concerns. Without a domestic manufacturer, India risks vulnerability due to dependence on foreign supplies, given the diverse applications and the strategic importance of these engines. The issue is compounded with foreign governments' export restrictions on their homegrown engines, also leading to price opacity.

The Need

An industry report projected a requirement of 9000+ MGTs over the next 20 years in India for UAVs, UCAVs, cruise missiles, small trainer aircraft and helicopters, based on findings from an industrial simulation. Moreover, UAVs usage is likely to increase civil applications like goods delivery, land surveying, surveillance. With increased focus on urban air mobility, the demand for VTOLs is also projected to shoot up. Government initiatives like the UDAN Scheme (regional airport development program) will result in an increased usage of smaller airplanes, sea airplanes and helicopters which run on small and micro gas turbines. Notably, indigenising gas turbine engines is projected to save the Ministry of Defence INR 300,000 crore in the next 20 years. Overall, indigenising gas turbines aligns with the Indian government’s vision of ‘Aatmanirbhar Bharat’.

The Market*

(*Internal market calculation estimates and projections over 20 years for the Indian market)

The Proposition

Nabhdrishti Aerospace aims to address the challenges at hand. The company is spearheading the development of small and micro gas turbine engines, with a particular focus on indigenised manufacturing and fuel flexibility. The fuel flex feature enables compatibility with clean fuels without compromising efficiency. The maiden product, a 350 SHP turbo prop engine, caters to the prevalent demand in India for engines in the 300 to 600 SHP range for use cases in aviation and power generation and will be 1/5th the cost of existing alternatives.

Why Now

- Currently, India is witnessing a notable rise in demand for homegrown solutions, driven by major government initiatives such as the upcoming deep tech policy and ‘Make in India’. For instance, the defence exports sector has seen a 23-fold increase from INR 686 crore in FY 2013-14 to nearly INR 16,000 crore in FY 2022-23.

- A positive sentiment surrounds the deep tech sector owing to increased investment and a supportive ecosystem for startups, with funds showing confidence in deep tech ventures. The Indian deep tech startup ecosystem has grown at a 40% CAGR over four years, raising USD 2.7 billion in 2021 and USD 3.8 billion in 2023.

- Further, established companies are increasingly collaborating with startups to tackle business challenges, providing early pilot and business development opportunities.

- Moreover, India’s renowned pool of top-tier tech talent is evolving, as experienced engineers from pioneering institutions pursue their entrepreneurial aspirations amidst this encouraging startup landscape in India today.

Why we Invested

Our decision to invest in Nabhdrishti is rooted in our confidence in the founders and the market opportunity. Rohit and Arjun bring extensive and complementary experience in their respective technological domains. Their past collaboration at Rolls Royce not only underscores their professional rapport but also attests to their ability to navigate the intricacies of the gas turbine industry. The team's expertise is strengthened by a combination of robust academic backgrounds and a well-established network within the industry. This convergence of skill and network positions them well to tackle the complex technology.

From a market perspective, the growing demand for MGTs and the potential for diverse use cases suggested the timing might be right for Nabhdrishti to introduce indigenised MGTs to the Indian market.

Nabhdrishti Aerospace's vision to develop one of India's first homegrown MGTs aligns with our commitment to fostering innovation and entrepreneurship. The combination of a seasoned team, favourable market conditions and a visionary mission makes Nabhdrishti an exciting investment prospect for us. We are thrilled to be partnering with the Nabhdrishti team and look forward to witnessing their journey.