Adani-backed firm among three finalists in India's small satellite launch rocket privatisation

Acer Incorporated

14/02/2025 11:00

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      Other bidders involve state-backed companies
    

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      Indian government has been pushing to privatise space
industry
    

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      SSLV up for bid is home-grown small space booster
    

  
    By Nivedita Bhattacharjee
       BENGALURU, Feb 14  (Reuters) - Indian conglomerate Adani
Group is a finalist, alongside two government-linked groups, to
take over private production of India’s Small Satellite Launch
Vehicle, three sources familiar with the matter told Reuters.
    The SSLV, developed by the Indian Space Research
Organisation, is a low-cost vehicle capable of deploying
satellites of up to 500 kg (1,100 pounds) into low-Earth orbit,
or LEO - the most sought after segment of the satellite launch
market.
    After its first successful launch in 2023, the government
moved to transfer the vehicle’s production and technology to
private industry as part of a broader push to expand India’s
commercial space sector.
    That move has been the highest-profile piece of India's
privatisation efforts, which the government hopes will help the
country claim a greater share of the booming global satellite
launch market, dominated by private players such as SpaceX.
    “LEO is the name of the game right now, so the potential
winner has the opportunity to really tap into a rapidly growing
market,” said Damodaran Raman, a director at Deloitte who
soecialises in space tech.
    About 20 companies initially expressed interest in bidding
for the SSLV, the first privatisation of its kind under Prime
Minister Narendra Modi’s policy drive to open up India’s space
industry. 
    The three finalist consortiums include Alpha Design
Technologies, in which Adani Defence Systems and Technologies
owns a stake; state-backed Bharat Dynamics Limited  BARA.NS ;
and Hindustan Aeronautics Limited  HIAE.NS . Reuters could not
verify the exact structure of each bidding group.
    The companies did not respond to Reuters requests for
comment. The sources did not want to be named because details of
the bids are not public.
    The winning company is expected to pay India's space agency
about 3 billion rupees ($30 million) for the SSLV, covering
design know-how, manufacturing processes, quality-assurance
training, and up to 24 months of technical support or two
successful launches, according to one of the sources.
    Beyond financial capability, bidders must demonstrate the
ability to manufacture, sustain, and sell the SSLV. 
    A second source familiar with the matter said the limited
availability of launch slots with major industry players such as
SpaceX presents a significant opportunity for new entrants, with
the possibility of positioning themselves as a go-to launch
partner for South Asia.
    The global satellite launch vehicle market is projected to
grow from $5.6 billion in 2025 to $113 billion by 2030, with
low-Earth orbit launches dominating, according to research firm
Mordor Intelligence.
    India accounts for only 2% of the global space economy. The
Modi government aims to expand that share fivefold to $44
billion by the end of the decade. 
    Companies vying for the SSLV contract were required to be
profitable, with the lead bidder having at least five years of
manufacturing experience and an annual revenue of at least 4
billion rupees ($50 million), according to India’s space
regulator. 
($1 = 86.9500 Indian rupees)


($1 = 86.7540 Indian rupees)

 (Reporting by Nivedita Bhattacharjee in Bengaluru. Editing by
Gerry Doyle)
 ((Nivedita.Bhattacharjee@thomsonreuters.com; Mobile: +91
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