India's first private rocket company looks to slash satellite costs

Canon Electronics

26/11/2022 06:39

By Nivedita Bhattacharjee
       BENGALURU, Nov 26 (Reuters) - The startup behind India's
first private space launch plans to put a satellite into orbit
in 2023 and expects to be able to do so at half of the cost of
established launch companies, the founders of Skyroot Aerospace
told Reuters in an interview.
    The Hyderabad-based company, backed by Singapore's sovereign
wealth fund, GIC, says the $68 million it has raised will fund
its next two launches. Skyroot has been in contact with more
than 400 potential customers, it says.
    Thousands of small satellite launches are planned in coming
years as companies build out networks to deliver broadband
services like SpaceX's Starlink and to power applications like
tracking supply chains or monitoring offshore oil rigs. 
        Skyroot faces both established and up-and-coming rocket
launch rivals that also promise to bring down costs. In China,
startup Galactic Energy put five satellites into orbit last week
in its fourth successful launch.
        In Japan, Space One, backed by Canon Electronics
 7739.T  and IHI Corp  7013.T , plans to launch 20 small rockets
per year by the middle of the decade.
        But Skyroot, which launched a test rocket last week,
expects to cut the cost of a launch by 50% compared with current
pricing for established competitors like Richard Branson's
Virgin Orbit and California-based Rocket Lab USA Inc  RKLB.O .
    Pawan Chandana, one of Skyroot's two co-founders, told
Reuters he expected a surge in demand for the company's launch
services if it proves itself with launches set for next year.
    "Most of these customers have been building constellations
and will be launching them in the next five years," he said.
        The Modi government's push to increase India's share of
the global space launch market from just 1% has given investors
confidence that Skyroot and other startups have government
backing for their efforts, Skyroot says.
    "Three or four months back when we were talking to
investors, one of the biggest questions they asked was if the
government was supporting us," Skyroot co-founder Bharath Daka
told Reuters.
    India opened the door to private space companies in 2020
with a regulatory overhaul and a new agency to boost
private-sector launches. 
    Before that, companies could only act as contractors to the
Indian Space Research Organisation (ISRO), a government space
agency with a reputation of its own for frugal engineering. The
country's Mars mission in 2014 cost only $74 million, less than
the budget of the Hollywood space movie "Gravity".
    Building on India's record for cost efficiency will be key,
said Chandana. Skyroot, founded in 2018 when Chandana and Daka
quit jobs at ISRO, has set a target to develop rockets for
one-fifth of the current industry costs.
    The Skyroot rocket that reached 89.5 kilometers altitude in
last week's test launch used carbon-fibre components and
3D-printed parts, including the thrusters. That boosted
efficiency by 30%, the company says, cutting weight and
procurement costs, although it meant Skryoot engineers had to
write the machine code for vendors who fabricated the rocket
because few had experience working with carbon fibre.
    With 3D printing, Skyroot believes it can build a new rocket
in just two days as it works towards reusable rockets, a
technology pioneered by SpaceX.
    Chandana and Daka believe the per-kilogram launch cost for a
satellite can be brought down to nearly $10, from thousands of
dollars currently, a stretch target that could upend the
economics of space commerce and one that draws inspiration from
their idol: Elon Musk.
    "SpaceX is a symbol of great innovation and great market
validation," said Chandana, who added they have not had the
chance to speak to Musk.
    "Right now, we think he's probably busy running Twitter." 
 (Reporting by Nivedita Bhattacharjee in Bengaluru; Additional
reporting by Ashish Chandra; Editing by Kevin Krolicki and
Edmund Klamann)
 ((Nivedita.Bhattacharjee@thomsonreuters.com; Mobile: +91
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