Magellanic Cloud's subsidiary Scandron Pvt Ltd receives first major logistics drone order

Magellanic Cloud (BSE: MCLOUD) has announced that it has secured its first major logistics drone order from an Indian robotics firm. The contract, valued at Rs 43 crore, signals the company's entry into the logistics sector, which is seeing high potential for growth both in India and internationally.

The order involves the delivery of 45 CargoMax series drone kits, complete with Ready-to-Fly (RTF) Quadrotor Airframe, Flight Controllers, RC Controllers, EO Payload, and Transport Cases. These kits will be manufactured at Magellanic Cloud's state-of-the-art facility in Bangalore.

"This is the first major order for Magellanic Cloud from a private company to supply drones for use in the logistics and delivery sector. It marks a significant boost to our revenue stream from our newly launched drone business, which we intend to expand aggressively," said Mr. Joseph Sudheer Reddy Thumma, Global CEO of Magellanic Cloud. "We are confident that more companies in this space will choose drones to scale up their businesses."

Scandron Pvt Ltd, a subsidiary of Magellanic Cloud, is the first company to receive approval from the Directorate General of Civil Aviation (DGCA) for providing logistics drones in India. The company aims to secure a 5% share of the USD 6 billion last-mile delivery market in India, targeting a sizeable market share of USD 300 million within the first three years.

Magellanic Cloud plans to use a combination of B2B and B2C models for its drone delivery services. The B2B model will focus on delivering supplies between commercial hubs, while the B2C model will cater to critical cases like armed forces operations, medical supply deliveries, and challenging terrains.

The Indian e-commerce sector is estimated to be worth USD 27 billion, with the last-mile connectivity segment valued at USD 6 billion and growing at an average annual rate of 15%. With the DGCA approval, Magellanic Cloud aims to leverage this growing market with its drone technology to automate last-mile delivery and capture a significant portion of this fast-expanding industry.

The Indian drone sector has been witnessing a surge in homegrown companies demonstrating advanced technology tailored to Indian conditions. The DGCA has been actively providing clearances under its Drone Policy to address various geographical and climatic challenges that complicate last-mile delivery and hazardous surveillance. With its new order, Magellanic Cloud is poised to make a significant impact in this evolving market.

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