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An economic overview

World economy: The world economy witnessed a significant recovery in 2022 from macroeconomic, environmental, and humanitarian crises and registered a healthy growth of 3.4%, as reported by IMF in its April 2023 version of the World Economic Outlook. Emerging Asian economies seemed to have performed better last year compared to developed economies of Europe, Latin America, and the US, which registered rather feeble growth. Reopening dynamics and lesser inflationary pressure were the key reasons for the Asian economies to perform better than other countries.

In 2022, housing, bank lending, and the industrial sector pulled down the growth matrices. However, it is offset by a robust recovery in other segments, notably in-service sector activities and strong labor markets. Further, amidst global geopolitical and economic tensions, global trade hit a record high of US$ 32 trillion, despite negative growth during the last quarter. Manufacturing declined overall, while trade in sustainable products increased during the years second half.

Global agencies suggested continuous trade stagnation in the first half of 2023, although the outlook is expected to turn positive during the second half. But new incoming data in the first half of 2023 surpassed expectations and are forcing agencies towards an upward revision for 2023 for many economies.

Interestingly, inflation seemed to peak in 2022, but in 2023 it seems to be waning very slowly, provoking/insinuating further monetary tightening. Therefore, the likelihood of slower growth is very high in the second half of 2023 and the first half of 2024. However, emerging Asian economies will continue to drive growth amidst the certainty of a persistent slowdown in most advanced economies.

Indian economy: Indias GDP print in the last quarter of FY2022-23 indicated significant economic growth as it reached 6.1%, lifting the total annual growth to 7.2%, according to the data released by NSO (National Statistical Office) on 31st May 2023. The uptick was driven by good performance in the agriculture, manufacturing, mining, and construction sectors which catapulted the economy to a whopping US$ 3.3 trillion.

Growth in the March quarter reflects a steady/consistent expansion and an overall economic strength. Case in point, GVA (Gross Value Added) has risen 7% in the 2022-23 fiscal and manufacturing jumped in the final quarter of FY23 to 4.5% after six months of contraction. However, overall consumption remained tepid for an entire year. The mining sector experienced an acceleration of 4.3% last financial year against 2.3% in 2021-22. The services sector grew by 9.5%. Trade, hotel, transport, communication, and broadcasting services have shown an annual growth of 14% in FY23.

India faced high inflation in 2022-23 due to global geopolitical turmoil triggered by the Russia-Ukraine war. CPI (Consumer Price Index), which measures retail inflation of goods & services in the economy covering 260 commodities, rose highest in April to 7.79% but came down to a much more comfortable level of 5.66% in March 2023. The average inflation for the whole year remains at 6.7% in FY23.

Commodity prices remained high throughout the financial year. But raw material prices dipped sequentially during the fourth quarter of FY23, resulting in better operating margins in almost all sectors. However, experts suggest that the commodity prices will likely remain stable but range bound in FY24.

The total gross GST collection for 2022-23 stood at C18.10 lakh crore, while the average gross monthly collection for the entire year was C1.51 lakh crore. The GST revenues clocked 13% growth on a y-o-y basis.

The fuel prices remain stable in the financial year ending March 2023.

The year saw the consumption of major fuels–diesel, petrol, and LPG – that broke/surpassed all previous records. Traditionally, petroleum product consumption is considered a measure of crude oil demand. It is also a proxy for tracking industrial activity and domestic consumption trends.

Outlook: The Indian economy seems better placed amid global recession fears and further interest hikes. July 2023 data suggests high-frequency indicators like manufacturing data, capex by state and central Government, and a recent uptick in tax receipts (direct & indirect). As a net importer of crude oil, diminished prices are likely to have a ripple effect on the Indian economy this financial year, potentially improving corporate margins.

However, escalation in global tension and domestic weather threats like El Nino can potentially thwart the growth momentum, negatively impacting food inflation and consumption demand. The recent rise in vegetable prices is also worth monitoring.

Indias Digital Economy

India is rapidly progressing to emerge as a global leader in the digital economy, which has grown by leaps and bounds in the last few years. Digital initiatives by the Government, Digital India programs, the rise of online payment systems, government initiatives and general peoples eagerness to adapt to the digital economy are some of the factors for this upsurge.

Digital transformation is the new norm in most of the industries. Further, with usage ranging from communication, learning, automation, transportation, and logistics to banking, R&D, social media connectivity, shopping, and entertainment, the goal of making India a US$ 1 trillion digital economy seems reasonably achievable in the near future.

Within nine years, the number of digital transactions in India has increased 100 times from a mere 127 crore in 2013-14 to 12,735 crore transactions in 2022-23 (as on Mar 23, 2022). Indias internet users are expected to grow from 75.9 crore to 90 crore by 2025. In the last decade, the digital economys contribution to Indias GDP went from 5% in 2014 to 9% in April 2023, aiming for an even greater contribution to the tune of ~20% by 2025-26.

Indias explosive growth of the digital economy is poised to serve as a significant enabler in economic growth. Compared to developed countries, Indias pace of digitalisation has been significantly fast in recent years. Further, with the advent of 5G and the setting up of semiconductor industries in India, the digital economy is expected to accelerate even further in the next few years.

Growth drivers

The digital economy significantly impacts the countrys economy and society, where private and public sectors are fueling its growth. It has created jobs, boosted productivity, and enabled common people to access services and opportunities easily and a_ordably. The growth of the digital economy further led to the emergence of several new business models, such as e-commerce, digital payments, online education and many more.

Growing population and Aadhar:

India is the worlds most populous (142.02 crore) country with rising income and a substantial young population. Most of this population is biometrically registered and connected through a single biometric digital identity platform called Aadhar, a key component in our digital infrastructure. Apart from being inherently unique, it also plays an essential role in digital governance in India. For example, it ensures that government benefits reach directly to the intended beneficiaries. Further, the Indian population is known for their adaptability and eagerness to learn. As a result, the nation is rapidly adopting this new digital technology, thus driving growth in the Indian economy.

An era of high technology and startups: India is experiencing a golden technological development age. And with a growing number of tech talents trained in world-class institutions, several tech startups and established players are investing in the sector. Further, with various cutting-edge technologies like 5G, AI, blockchain, augmented reality, virtual reality, machine learning, deep learning, robotics, natural language processing, etc., in play, India has become a global hub for tech startups. Case in point, India has over 27,000 active tech startups, with 1,300 starting just in 2022. Indias startup ecosystem is one of the fastest-growing in the world, with several unicorns emerging in recent years.

Policy reforms: The Digital India framework serves as a guiding principle in the digital economy, focusing on industry transformation to promote growth. Coupled with the Digital India program, the Make in India initiative, which promotes (indigenous/local) manufacturing within the country, is promoting the production of digital devices in India. One of the other significant initiatives is that the BharatNet project aims to connect villages in India with high-speed broadband by 2023. This rural connectivity will play a pivotal role in scaling the digital economy in the country in a penetrative manner Case in point, the Digital Saksharta Abhiyan (DISHA) program launched in 2016 aims to make at least one member of every household digitally literate. The recent budget 2023 also emphasised the importance of digital in the Indian economy while putting adequate importance on 5G labs, AI centers of excellence, and right skilling.

Changes in the nature of business: The Indian industry has been undergoing changes/shifts in recent years, with a growing number of organisations adopting digital technologies and an equally large number of business entities registering in the GST digital platform. In June 2022, more than 11.9 million entities registered on the portal. Further, the multiplying number of smartphones, affordable data plans by telecom companies, and increasing internet penetration have enabled more people to access digital services. This has created a large market for digital services, including e-commerce, digital payments, fintech, and online entertainment.

Our business


With reviving domestic demand, increasing capacity utilisation by the manufacturing sector, and easing input cost pressures, the corporate sector draws funds for productive purposes. Against this backdrop, multiple industry segments such as drones, electric vehicles, e-commerce and fintech businesses are soaring, which in turn are helping India to become a US$ 5 trillion economy. Besides being utterly eco-friendly, these sunrise sectors provide flexibility, scalability, decent profit margin, and significant enough room for growth for the Company in the future.

Overview: In recent years, India is witnessing an explosion in internet and smartphone usage, and this fast-growing number of internet subscriptions and high data consumption are bridging the digital divide. Driven by these factors, rising income, and the ‘Digital India initiative, the E-commerce sector is stirring the pot in the Indian business space. The mobility restriction during the pandemic also boosted this sectors enormous growth.

Indian E-commerce sector is characterised by several segments of businesses such as business-to-business (B2B), consumer-to-business (C2B), direct-to-consumer (D2C) and consumer-to-consumer (C2C). Among these, B2B and D2C have seen immense growth in the last few years. Another type of E-commerce is also in vogue today, for example, ‘Social E-commerce, which is E-commerce via social media.

Before 2022, the Indian E-commerce segment was dominated by two major players. But 2022 saw some significant changes, with several giant conglomerates, startups and state-backed ONDC all ready to throw their hat in the ring. Against this backdrop, E-commerce players are re-strategising to tap the next set of internet users from the hinterlands.

In the last three financial years, E-commerce sales jumped by a staggering 140% in India. But, despite a relatively slow momentum in the last fiscal, the e-tailing market is 2.5x today compared to the pre-Covid level, and it is performing much better than the overall retail market, still subdued because of inflation. The same three financial years also witnessed a significant increase in the E-commerce customer base, where most users belong to non-metro areas.

The FY23 growth pattern suggests that the monthly user base is larger than ever. The monthly shopper base (MTU) stood at 65 million in the same financial year, which is 31% of the annual e-tailing shopper base – it was 23% of the pre-pandemic era. It proves the fact that the consumer base for Indian E-commerce is growing, and they shop online more frequently across a wide range of categories.

Indias future in E-commerce appears considerably promising.

Technology-based invoice financing embedded ‘pay-later option has already gained traction in recent years. And with aggregator platforms available for payment, leveraging the power of data and technology to gain customer insights and create compelling, personalised experiences will be crucial for all E-commerce companies. Further, proactive government initiatives to build the enabling infrastructure and transform logistics coupled with embedded finance and credit will give the sector a well-deserved boost and faster growth in the coming years.

Growth drivers

• Government initiatives like Startup India, Digital India, Skill India and Innovation Fund are contributing to the growth of E-commerce in India. Also, the Government itself launched an E-commerce platform for the farming community so that people can sell agro products online.

• Rising internet penetration facilitated by rapid advancements in technology such as 4G & 5G and affordable data tariffs by companies are driving the growth of E-commerce in India. Further, the Government policy of pushing the internet in the remotest corners of the nation India will work as means to tap the huge rural market for E-commerce companies. Coupled with internet penetration, the increasing rate of smartphone adoption is also propelling the growth in E-commerce in India.

• The emergence of new-age delivery systems such as next-day delivery, on-day delivery, and return delivery are fueling the growth of E-commerce sectors in India. Additionally, high-quality of customer services, bulk handling capabilities of delivery companies have proved to be extremely beneficial for E-commerce companies, thereby driving growth.

• New-age payment solutions like UPI, ePOS and other digital payment platforms are unlocking considerable potential in the E-commerce market. With physical cash exchanging hands, the transactions were difficult and time-consuming earlier. But with these online payment systems facilitating the transfer, purchasing goods has become extremely convenient and easy for every party involved.

Opportunities: Being the third-largest retail market globally, India has the third-highest number of e-retail shoppers (behind China and the US). The number of online shoppers in India is anticipated to touch about 50 crore in 2030 from 19 crore in 2021. Indias internet user base is expected to swell from 759 million users to 900 million users by 2025. These factors are likely to drive exponential growth in the Indian E-commerce market.

Overview of our business

1) Cocoblu

Housed in 26,000 sq. ft. office space in Bangalore, Cocoblu Retail Limited is a company engaged in the E-commerce business since its incorporation in 2021. Today it is a direct beneficiary of Indias booming online retail business space.

It is a wholly-owned (100% holding) subsidiary of RattanIndia Enterprises Limited. The Company has partnered with several big and small brands in India to bring them on Cocoblus leading online retail platform. Cocoblu is committed to scaling up local MSMEs and helping their brand to tap the vast opportunity of the Indian E-commerce market.

By the end of the last financial year, Cocoblu has tied up with ~136 Amazon Ful_lment Centers, enabling it to deliver across ~100% of the PIN codes in the country. We delivered more than 19,000 PIN codes across India. Last fiscal more than 880 top brands signed up with

Cocoblu offering some of the best-in-class items for customers. The efforts have made the Company one of the most sought-after brands on Amazon, where we are awarded an overall 4.5-star review rating.

The Company is leveraging big data, analytics, and machine language to understand the customers purchasing behavior. It helps Cocoblu tailor their marketing directly to customer preferences and create new products that satisfy the customers needs. The Company also uses robust processes to build on the best-in-class technology in managing retail details for a better user experience.

In FY23, Cocoblu shipped 1.5 crore shoes and an equal number of wireless accessories across pin codes in India. The Company also delivered 2.1 crore books, 3.03 crore apparel, 89 lakhs of office stationery and 9.5 lakhs of musical instruments in the same financial year. As a result, Cocoblus revenue reached C4,079

crore, and PAT touched C47 crore while EBITDA stood at C93 crore in the same time period.

2) Neobrands

Through its wholly-owned subsidiary Neobrands, REL engages in the fast-growing B2B online fashion apparel business. Neobrands houses brands across multiple fashion categories, such as fashion, denim, athleisure and performance wear, and sells them online through E-commerce platforms. However, in the first phase, it will likely sell all the brands through a D2C route.

In FY23, Neobrands launched House of Brands (D2C) across multiple fashion categories, including casual wear, athleisure and denim, all launched in the Companys brand stores on Amazon. Neobrands has also initiated a pilot program for selling apparel, shoes and handbags on Amazon.com to serve the US, Canadian and Mexican markets.

Our competitive advantages

Excellent management: An experienced, talented and aptly qualified management team with experience running operations in several E-commerce and retail companies and who are supported by experts with rich experience in scaling up brands.

Technological edge: With embedded technology, fully integrated systems and the capability to analyze customer behavior and predict trends, Cocoblu is always a step ahead of its competitors. The Company also possesses a robust inventory management system, an excellent supply chain network and dedicated software applications for customer fulfillment.

Engagement in long-tail categories: Cocoblu specialises in selling long-tail product categories. Long-tail products typically contain a head containing a few dominant products and a long tail spanning many rarely sold products. But the amount from the sale of these rarely sold products usually exceeds the main products value.

Our business strategy going forward

Cocoblu has been built on a solid foundation with all the right ingredients for success. The Company is very well placed to capitalise the emerging themes and gamut of opportunities present in the Indian e-commerce space. While emphasising on unit economics, it plans to systematically deploy the right resources to elevate the momentum with an objective of widening the addressable opportunity size.

There are abundant opportunities available in e-commerce that can be harnessed at an appropriate time by REL. Some of them include:

• Partnering vendors in their growth journey

• Digital co-branding

• Other online marketplaces

• Licensing foreign brands

• Private Labels

RELs endeavour is to tap possibilities in the e-commerce space by leveraging its expertise in new age business and native knowledge of Cocoblu team. Deep expertise comes from Cocoblus passionate team of almost 230+ e-com natives, who are adept with big data technology and well-versed with product category dynamics In doing so, the philosophy of driving business will remain unaltered. We will focus relentlessly towards achieving rapid scalability with limited investments, with a customer experience backward approach to achieve market leadership position.

Market: India represents the fourth largest automobile market in the world and the second largest two wheeler market with ~20 mn units. India, a rapidly growing economy, is fast becoming a manufacturing hub for many industries, such as electric vehicles. In this sector, India aims to achieve 100% local production of EVs under its ‘Make in India initiative.

Overall, the penetration of EVs has increased to 5.12% of the total vehicle sales in FY23. This can be compared to the ambitious targets set by Government of India at 30% EV penetration by 2030. In FY23, EV sales witnessed massive growth on account of favorable governments policies for EVs supporting reduction in upfront cost and expansion of charging infrastructure, rising fuel prices, and shifting consumer preferences.

The E2W sales in India has increased over the years and has witnessed significant growth in FY23. E2W sales in FY23 grew by 188% compared to the previous year. The CAGR of E2W during the period FY19 to FY23 stood at 92%.

The E2W sales continued to soar in FY23 which can be attributed to the shift in customer preference from petrol two-wheelers to electric ones due to competitive prices (owing to government subsidies and technological developments), lower running costs, low maintenance charges, growing sensitivity towards the environment.


There is a growing thrust on the adoption of electric vehicles (EVs) across the globe amid increasing carbon emissions which have serious repercussions including global warming. The Indian government is aligned with taking steps to decarbonise the economy with a push towards electrification of mobility. As India is significantly dependent on crude oil imports and various cities in India are facing pollution menace, the Indian government has also acknowledged the need to promote EVs. The Governments initiatives along with growing concerns for environment & energy security, rapid advancements in technologies for powertrain electrification, and innovative newer business models are driving the sales of EVs.

Mentioned below are some of the key points that will lead to faster adoption of EVs and present significant growth opportunities:

• According to the Department of Energy (DOE), in an EV, about 59-62 percent of the electrical energy from the grid goes to turning the wheels, whereas gas combustion vehicles only convert about 17-21 percent of energy from burning fuel into moving the car. This means that an electric vehicle is roughly three times as efficient as an ICE vehicle. Needing less energy to power your car also helps bring down the cost.

• In almost every aspect, electric vehicles are technologically superior to ICE vehicles. Electric vehicles are simpler - a battery plus motor and controller is all thats replacing the entire engine and its related systems in ICE vehicles. ICE technology is extremely complex, if one considers the enormous number of parts operating in sync with each other.

• The proactive measures taken by the Government, as well as the State Government to accelerate EV transition, development of local manufacturing of batteries, and increasing a_ordability of the vehicles, augur well for the sector which is anticipated to see long-term growth in the future. The overall outlook for E2W in India is positive, and the country is well on its way towards achieving a sustainable and eco-friendly transportation ecosystem.

In the Union Budget 2023-24, the government has allocated INR 35,000 crore to achieve the energy transition, energy security and net zero objectives, which will help the EV industry to work alongside in addressing the issues related to Climate Crisis. The government of India has also planned to achieve 100% e-mobility by 2030 in smart cities and this opens a huge market for EVs.

Electric Bikes: In the dynamic landscape of Indias two-wheeler market, where the electric scooter revolution has been stealing the spotlight, the presence of motorcycles, which constitute over 65% of the annual two-wheeler market in India, has been overlooked. Electric bikes are perfect for micro-mobility solutions.

Additionally, the burgeoning interest in sustainable transportation alternatives among consumers, combined with the increasing availability of affordable Electric bikes, is expected to drive further growth in the coming years. Advances in battery technology and the increasing availability and use of battery swapping stations have also contributed to the demand. Strategic agreements between manufacturers, service providers, and charging companies are building alliances which will accelerate the penetration.

Overview of business

REL acquired a 100% stake in the Revolt brand in January 2023, and the entire supply chain has been overhauled. We have expanded the existing distribution network from a limited reach to an elaborated pan-India system. We have engaged our customers meaningfully with our new digital approach using AI-enabled data analytics.

Due to our efforts on the manufacturing front, we have achieved 100% localisation through our state-of-the-art technology and doubled the factory output. The brands customer-centricity is improved with prompt services and quality spares. AI-enabled data have also brought enormous upgrades to the technical features of the bike.

Our Competitive advantages

• First-mover advantage in the electric bike segment

• Indias most advanced next-generation AI-enabled electric bike that doesnt require any special charging infrastructure

• Cutting-edge manufacturing technology, with the majority of the components sourced locally

• Pan India presence with 65 stores spread across 59 cities and more new stores in the pipeline

• Excellent pre-purchase and after-sales service making full use of advanced digital tools

Our business strategies going forward Revolt is well capitalised to gain a stronger hold in the automobile industry as the EV space starts to gather steam in the coming years. While the EV two wheeler space is currently at a nascent stage globally, Revolt enjoys the first mover advantage as it continues to be the leading EV motorcycle in India for the last six years.

Considering the abundant opportunities in the EV sector, here are some of the most crucial aspects of our strategy:

• Expansion of product portfolio by adding new products across different price points – catering to a wider segment of population

• Expansion of network in India and start exports to various international markets to increase the reach.

• Continuous investment in R&D to improve quality, reduce cost and launch new products at a faster pace.

• Adoption of best-in-class practices to maintain optimal consumer satisfaction

• Ensure commercial sustainability and profitability of all stakeholders involved.

Overview: The COVID-19 lockdowns and mobility restrictions positively impacted the overall fintech market in India. Naturally, people depended more on online payment methods, e-commerce which grew exponentially during 2020 and 2021. However, this trend continued even after the pandemic because people realised the ease of online financial transactions over physical methods.

Today, with India becoming a hub for many Fintech startups, the Indian fintech industry has shown enormous growth and potential over the past few years. Some of the biggest companies in India today started as fintech startups. Many renowned foreign investors are actively investing in many such potential/promising startups. Also, several Government initiatives to promote the digitisation of financial systems and a cashless economy have helped consumers to shift towards digital alternatives for financial transactions and services.

‘Digital India has fueled fintech growth by providing digital infrastructure and services to all citizens. An estimated 80% of the banking activities at top banks in India operate on digital platforms. Numerous companies, in partnership with fintech firms, have launched innovation labs to develop contemporary solutions. The RBI assists finance startups with financial support to develop technology solutions. Also, the Government has approved new banking licenses and increased the FDI limit in the insurance sector.

All these factors led India to host more than 2,100 fintech entities making it the worlds third-largest provider of fintech services. Newly founded startups in the past five years comprise 67% of the total fintech companies in India.

Growth drivers

• The Government remains extremely supportive of the fintech industry with the introduction of policies like Uni_ed Payment Interface (UPI), Digital India and PMJDY (Pradhan Mantri Jan Dhan Yojana) initiatives promoting digital payments and financial inclusion.

• Fintech companies are partnering with traditional financial institutions thereby expanding their reach and capability while offering new products and services.

• Fintech organisations are taking into fold the previously neglected and poorest section of the populace. Furthermore, unlike traditional banks, they are very active in rural areas of the country where access to the banking system is limited.

• The growth of E-commerce in India has created opportunities for fintech companies offering payment solutions and financial services for online shoppers.

• With the growing middle class and increasing disposable income in the country fintech companies are interested to tap into the market by offering services such as wealth management, digital investment platforms, and robo-advisory services for the Indian market.

Opportunities: Fintech companies can bring unprecedented change in how people bank in India by providing quick, easy and affordable financial services not only to the marginal people but also to the resident of tier 2 and 3 cities and remote villages, which are still neglected by our traditional banking system.

Powered by rapid advancement in technology, deeper penetration of smartphones even in distant areas of the country and affordable internet connectivity, the fintech sector is playing a defining role in increasing financial inclusion and offering an equitable opportunity for the economic upliftment of the people of India.

In last few years, digital lending has witnessed significant growth in India. Open banking has emerged as a sunrise trend in the fintech industry, where banks and other financial institutions open their APIs (Application Programming Interfaces) to third-party developers. Also, AI, ML and Blockchain are expected to play a significant role in future growth and can transform the industry with secure, transparent, cost-e_ective, and efficient transactions.

BNPL of Buy Now Pay Later is another emerging trend in the Indian fintech industry. Because of the symbiotic link with E-commerce, BNPL is deemed the future of fintech. BNPL is very popular among GenZ consumers, young millennials and first-time borrowers because of the simplicity of access to credit and also, this particular demographic is ignored by our conventional banking system.

Overview of our business

Neotec Enterprises is a wholly-owned subsidiary of REL, and it operates in the fast-growing digital lending sector through its digital aggregator platform, ‘Win. Neotec works in partnership with leading banks & NBFCs in India. It offers a wide bouquet of services, including personal loans, 2W loans, credit cards and business loans, making it a one-stop shop for all lending products.

• The insurance sales business kickstarted in REL with subsidiary Neotec Insurance Brokers.

• Partnered with multiple insurance companies in the country.

• Disbursed 7,300+ loans in FY23 with a value of C300+ crore.

• The number of credit cards issued in FY23 is 3,700+.

1. With the ‘we_n app or website, Neotec facilitates paperless authentication and onboarding against a heavy paperwork scenario for traditional lending. It expedites the whole process, and with instant loan approval, customers can enjoy a seamless and user-friendly borrowing experience.

2. As a bank/NBFC agnostic digital platform, customers can choose from several loan products offered by several companies and compare them live. It makes choosing a particular product easy based on the customers preference and need.

3. Neotecs ability to offer personalised loan products gives the Company a strategic advantage over its market peers, which results in a high conversion ratio and satisfied customers.

4. With an integrated system and web aggregation at the core, it is easy to scale up the business quickly without any hassle.

Our business strategy going forward

In recent years, India has witnessed a remarkable and rapid transformation in its financial sector, largely driven Jan-Dhan- Aadhaar- Mobile (JAM) trinity. This has been further supplemented by the emergence of India stack comprising of Aadhaar, UPI, e-NACH, Account Aggregator and Aadhaar based eSign ecosystem. This digitization has significantly impacted various aspects of the countrys financial ecosystem, bringing about improved accessibility, efficiency, and inclusivity.

The fusion of technology and finance has not only reshaped the way financial services are delivered but has also paved the way for

financial empowerment, especially among underserved and unbanked populations. While Aadhaar based eKYC has solved the identity layer (eKYC), Account Aggregator is transforming way consent based authentic financial data is being shared by individuals which is enabling financial institutions to make machine led real time credit decisions.

Credit auto-repayments are driven by eNACH and UPI based e-mandates. Aadhaar based eSign has enabled paperless, legally tenable and transparent e-contracts between individuals and financial institution. This entire ecosystem is driving the digital sourcing, underwriting and delivery of credit digitally.

We_n is leveraging data analytics, machine learning, and artificial intelligence for sourcing and assessing creditworthiness of customers. We_n has partnered with Banks and other financial institutions to enable this digital distribution of credit and insurance products without partaking any credit risk.

Overview: Unmanned Aerial Vehicles (UHV) or commonly known as drones, are used in many application areas, including defense, construction, _lmmaking, surveillance, healthcare, E-commerce, delivery and many more. The Indian drone industry is soaring high in recent years and is expected to go even higher in the next few years. Indias drone sector achieved a growth of 60% in 2022. The Government wants to make it a US$ 1 billion industry by 2025 and has taken measures to achieve the goal.

Thus, several startups and companies are currently developing drones and identifying several applications for them. Large corporations are also heavily investing in the drone ecosystem. But cybersecurity issues are one of the significant constraints, and thus, the Government has imposed regulatory restrictions on drone possession and imports.

The Indian drone market is poised to grow from around C75,000 crore by CY25 to C1,94,000 crore by CY28.

Growth drivers

• The Directorate General of Civil Aviation (DGCA) released two sets of regulations for drones in 2018. These regulations aimed to create a framework for the safe and controlled operation of drones in India.

• The Drone Rules, 2021 were framed to simplify and ease the process of the adoption of drones.

• The Digital Sky platform was launched by the Indian government to facilitate the online registration and approval process for drone operators and pilots.

• Kisan Drones – The scheme was to promote the use of drones in agriculture and make drone technology affordable to the farmers and other stakeholders of this sector.

• The Government is encouraging the ecosystem of setting up more DGCA-approved remote pilot training orgnisations, to cater the future demand of certified drone pilots.

• The Governments Startup India initiative aimed to provide various benefits to startups, including those in the drone sector. Startups could avail tax benefits, fast-track patent applications, and access to funding through government schemes.

• The Indian government implemented liberal policies and initiatives for the drone industry, including Drone Shakti – a PLI scheme, increased air space, and others that have proven to be very encouraging and collectively support the markets growth. The Government has allocated C120 crore for the PLI scheme to incentivise drone manufacturing in India.

• The increasing array of drone applications in multiple industries is propelling the growth of the entire drone ecosystem, including drone repair and overhaul, drone maintenance, drone platform services, and training and education.


1. Several types of drones are used these days. These drones need both hardware, software and several components to operate. Naturally, unmatched manufacturing opportunities exist for all these materials.

2. The commercial UAV market is experiencing exponential growth, becoming widely utilised in many application areas. These applications include site inspections, surveillance, monitoring & capture, and real-time data transmission.

3. Further, there are anti-drone systems in the defense, specifically in the areas of sensors, phased array radar, Radio Frequency (RF) sensors, electro-optical and infra-red (EO/ IR) systems, navigational satellite jammer systems, RF jammer and laser-directed energy weapon (Laser-DEW) systems. In addition, there is scope for border security, counter-insurgency and crime control, and anti-terrorism applications.

4. Another big opportunity area in the drone industry is the novel idea of drone-as-a-service. Most companies may opt for this service because an enterprise-level drone might be exceedingly expensive. This is anticipated to boost the growth in the drone industry as well, as most of the time; drones are found to be reducing enterprise expenditures.

5. India needs around 100,000 drone pilots in the next few years. The Governments Pradhan Mantri Kaushal Vikas Yojana 4.0 aims to upskill Indian youth with industry-relevant knowledge to enhance their employability; this scheme also includes drones (Budget FY23-24).

Overview of our business

NeoSky India Limited, a leading name in the Indian drone industry, is a wholly-owned subsidiary of REL. It aims to provide 360-degree service to its clients via Drone-as-a-product and Drone-as-a-service portfolios.

NeoSky received a Drone pilot training license (RPTO – Remote Pilot Training Organisation) from DGCA (Directorate General of Civil Aviation) in the 2022-23 financial year. The first such center will be launched in Bangalore, with batches starting from June 2023.

NeoSky India Limited-owned subsidiary, Throttle Aerospace Systems Private Limited (TAS)), is one of selected few companies that has qualified for Government of India (Production Linked Incentive scheme) in July 2022 for the period of three year starting FY22.

Neoskys subsidiary, TAS has recently launched two new products, namely, L40 (Cargo drone with a capacity of 40kg), targeting defense, healthcare, paramilitary and E-commerce industries. The Company also launched TACT XL (Surveillance drone with a

90-minute endurance), which is an improvement over its TALV-TACT product category in terms of endurance. The targeted application areas for this product are paramilitary, police & security and defense.

Our competitive advantages

• Our innovative team and management possess the right mix of experience and technological know-how in product design, embedded systems, aeronautics, AI, ML, computer vision, marketing & SaaS.

• Due to its excellent team, R&D and competent manufacturing ability, the Company can offer comprehensive services - from design and manufacturing to marketing to its customers. It sets us apart from the rest of the pack and puts us on a stellar growth trajectory.

• A subsidiary of NeoSky, TAS is Indias first drone manufacturer approved by DGCA for civil drones and military authority for military drones.

Our business strategy going forward

India aims to be the global drone hub by the year 2030. Drone market in India is likely to grow from C2,900 crore in 2020 to C2,95,000 crore by 2030, 100x growth in this decade. Drones is a sunrise industry, with a massive push from the Government of India (GOI) to liberalise drone usage in India.

GOI has taken multiple steps in the last few years to ensure mass adoption of drones, this includes liberalised drone rules-2021, launching Digital Sky platform, banning drone imports into India, Drone shakti, introducing Production Linked Incentives (PLI) for drone manufacturers and many more. Drone exports are expected to grow from C4,300 crore in the year 2025 to C47,000 crore by 2030. Exports as a % of the industry are likely to see a massive jump from just 5% in 2025 to 16% in 2030.

Neosky is the drones business arm and wholly owned subsidiary of REL. The Company is leading the way as a strong full-line player in the industry, having its presence across Drones-as-a-Product and Drones-as-a-Service.

The Company aims to be a market leader in the Indian drone industry and has ambitions to explore markets beyond India. The Company is building a strong presence across Consumer, Commercial, Defence drones along with Drone services and Pilot training. A team of companys subject matter & technical experts are currently working on a miniature drone for the consumer drone market. The Company has also built upon the Rattan groups strong foundations in the infrastructure space and entered the drone services market which covers categories like land mapping, infrastructure inspection, surveillance, logistics and agriculture.

The Company acquired Throttle Aerospace Systems (TAS), a 7-year-old company and a leading commercial and defence drone manufacturer in India. TAS has Indias first DGCA approved drone and has license to make drones for Ministry of Defence (MoD). TAS also qualified for GOIs PLI scheme. We have the industry-best products in Surveillance. TACT is a military grade drone with 10x zoom and thermal capabilities and Nimble-i is the industrys most affordable surveillance drone. DOPO is a powerhouse which can map over 5 Sq. kms of land in a single day, it can also support industrial inspection, agriculture.

The Company have the best delivery drones in the market which can carry payloads of over 20kg and the Company has also performed BVLOS (Beyond Visual Line of Sight) for drone delivery. We launched an innovative, Made-in-India Anti-Drone – the defender. Defender can lock, track and hunt down the rogue drones which are entering unauthorised spaces.

The Company has also ventured into drone pilot training to upskill the Indian youth and provide employment. E_orts are underway to harness the best intellectual talent and technologies in order to deliver scalable products and platforms towards this end.

The strong linkages to parent will be an added advantage to the

Company to get the benefits of synergies within group companies and sharing of knowledge and expertise in various operational and financial aspects.

The identification of challenges and issues faced by Drone customers and providing the products catering to their needs are the key growth and sales drivers for the Company. The combination of retail and institutional customer base will be an advantage to diversify the revenue stream of the Company. The vast offerings of the Company products to different categories of customer base will be pivotal to the Companys growth aspects. The Company is working towards the right price discovery and optimal mix of drone models and features to address various customer segments and applications. The objective of the Company is to provide quality & reliable products and innovative drones that meet or exceed customer expectations. The Company is putting its efforts to get quality and other accreditation applicable to its products and services, which will boost the confidence of customers in the Companys product quality.

Government procurement, especially in the defence sector, has opened a new window for drone sector, which may play a substantial role in revenue earning capacity of the Company and can boost the revenue in manifolds. The Company has either already registered or started the process of getting itself registered at various online platforms including registration for government bidding.

The Company has also invested a decent amount in R&D activities to enhance the current technological capabilities of the Company products as well as to broaden the product portfolio. The Company encourages a culture of innovation within the Company, fostering creative thinking and idea generation. The Company conducts regular market assessments to identify new opportunities and adjust strategies accordingly.

The Company is working towards establishing more efficient manufacturing processes to ensure high-quality products are delivered on time. The Company is developing a multi-channel sales strategy which includes direct sales, partnerships, collaborations, government bidding and online platforms. The idea is to approach the prospective customers, expand the market reach and increase the visibility of the Company products by conducting seminars, demonstrating the products, registration on various online platforms, campaign through social media platforms and sales through distributorship business model. The Company regularly attends various drone seminars/exhibitions which highlight the unique features and benefits of company drones. It helps the Company in creating brand value and differentiation from other competitors.

The post-sales support is equally important to build strong customer relationships and repeated orders. The Company gathers feedback from past and existing customers system which gives important insights to refine company products and enhance the user experience.

Adherence to the regulatory compliances is amongst most important part for any organisation efficient operations. The Company directionally ensures strict adherence to all relevant regulations and safety standards applicable to the drone industry.

The Company has an effective system to monitor financial performance closely and make informed decisions to optimise resource allocation. The Company understands the significance of human capital and continuously works towards building a skilled and motivated team by hiring top talent and fostering professional growth. All the employees are encouraged to attend various training programs to keep team up to date with industry advancements.

The management periodically reviews the potential risks, both internal and external, and develops mitigation strategies.

Human resources

The Company takes immense pride in the commitment, competence and dedication of its employees in the respective areas of their expertise. The Company has a structured induction process at all locations for employees at all levels and a standardised and flexible system to further upgrade the necessary skills of the workforce. Moreover, objective appraisal systems based on key result areas are in place for all the staff, including our senior management. The Company is committed to nurture the skills of its people and retain its top talent through its comprehensive Learning and Development initiatives. This is part of our human resource function and is essential in supporting the organisations growth.

Internal control systems

Your Company has an internal control system suitable to the characteristic and scale of its operations and efficiently and efficiently addresses all aspects of the business and functional departments.

The framework encompasses a compliance management team with established policies, norms, and procedures, as well as applicable statutes, rules, and regulations, alongside an inbuilt system of checks and balances to ensure that appropriate and prompt corrective actions are taken in the event of any discrepancies from the defined standards and parameters.

Internal control systems are examined regularly for effectiveness and deliverability so that any necessary precautions to reinforce them can be undertaken in response to changing company requirements. Your Company reviews its systems, procedures, and controls, consistently comparing and aligning them with industry standards.

Details of significant changes in financial ratios

During the Year under review, there were the following changes in Key Financial Ratios on Consolidated basis:



31 March 2023

31 March 2022


Reason for Variance

Trade receivables turnover ratio

Revenue/ Average trade receivables




Increase in average trade receivables in current year.

Trade payable turnover ratio

Purchase of services and other expenses/ Average trade payables




Increase in average trade payables in current year.

Net capital turnover ratio

Revenue/ Working capital




Increase in revenue and decrease working capital in the current year.

Inventory turnover ratio

Cost of goods sold/ Average inventory




Subsidiary has full year of commercial operations during current year whereas in the previous year operations started in February 2022

Return on capital employed (ROCE)

Earnings before interest and tax/ Capital employed




Decrease in EBIT during the year.

Current ratio

Current assets/ Current liabilities




Increase due to Borrowing in current year.

Debt - equity ratio

Total debt*/ Shareholders equity




Increased due to ICD taken

Debt service coverage ratio

Earnings available for debt service/ Debt service




Decrease in EBIDTA during the year.

Return on equity (ROE)

Net profits/ (loss) after taxes/ Average shareholders equity




Current year loss from fair valuation of Investment-Unrealized in RPL.

Net Profit ratio

Net profit/ (loss)/ Revenue




Decrease in profits during the year although revenue has been increased

Interest Coverage ratio

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Operating profit ratio

Adjusted EBITDA**/ Net sales





* Total debts excluding lease liabilities

** Adjusted EBITDA = EBITDA excluding unrealised/realised gain/loss on investment and derecognition of investment in associates