Adani Group’s drone division exploring two revenue models similar to tractor industry
The Hindu
New Delhi
The Adani Group’s commercial drones division is exploring two revenue models – dealer-based and service-based – while keeping its primary focus on the agriculture sector, a top official of the conglomerate said on Saturday.
In a dealer-based model, the equipment is sold directly to the customer. In a service-based model, the equipment is provided for various services for a fee in partnership with a local entrepreneur or an institution. The tractor industry uses both these sales models.
“We are exploring both models – dealer-based model and service-based model. Depending on the market response, we will take our decisions,” Rangarajan Vijayaraghavan, vice president, Strategy and Chairman’s Office, Adani Group, told PTI in an interview, a day after the conglomerate announced acquiring 50% equity stake in drone start-up General Aeronautics.
He said the Adani Group was considering multiple areas in the commercial drone sector and “one of the primary areas of focus” was agriculture.
“This is in line with the Prime Minister’s vision of use of drone technology to improve farmers’ livelihood. With our commitment to nation building, we have been deeply inspired by the Prime Minister’s vision and we believe there is a significant opportunity in the market,” he mentioned.
In the service-based model, the Adani Group will provide drones for services such as pesticide spray for a fee in partnership with a local entrepreneur or an institution, which in this case would be pesticide companies, he said.
Mr. Vijayaraghavan said the agriculture sector gets a unique benefit when a drone is used – the combination of the pesticide deployment as well as the reduction in water and labour requirements provides cost as well as convenience advantage to the farmer.