Kaynes Tech Incorporates Subsidiary To Develop Space Satellites

Kaynes Technology India Ltd. incorporated wholly owned subsidiary Kaynes Space Technology Pvt. on Thursday to enter the booming and lucrative space industry.

The company aims to design, develop and manufacture satellites of all classes and mission-specific payloads for diverse applications, such as communication, Earth observation, defence and scientific research, according to a stock exchange filing.

KSTPL will also create modular satellite platforms and indigenous launch vehicles for various orbits, focusing on cost-effective, reusable and sustainable technologies.

The company intends to establish complete infrastructure for launch operations, ground-control systems and satellite lifecycle management, including mission planning, integration and in-orbit servicing.

The Kaynes subsidiary will invest in research and development in areas like space propulsion, miniaturisation, AI-based autonomy and inter-satellite networks, while collaborating with academia, space agencies and industry.

"Additionally, it will develop space-based applications like border surveillance and disaster monitoring and continuously upgrade its technologies to stay at the forefront of space innovation," the filing said.

India has been encouraging the entry of private companies in the largely ISRO-dominated domestic space industry. Rules were relaxed for private sector involvement in 2020.

The government has pushed local companies to develop and manufacture communication satellites and rocket launch systems, which has drawn interest from large conglomerates like Larsen & Toubro and Tata. The Indian space economy is projected to grow by 48% annually over the next five years. 

Over 200 space startups are active in India, focusing on various aspects like satellite design, launch vehicles, and space-based services. 

The Indian Space Research Organisation has played a crucial role by providing access to its facilities, technology transfers, and support for private sector initiatives. 

During an earnings call this month, Chief Financial Officer Jairam P Sampath said Kaynes Tech aims to become a premier vendor as a supplier of parts in space missions and attempt to launch satellites into space.

"Space by itself offers huge opportunities in terms of satellites, which can be micro, mini or regular satellites and even launch vehicles and so on and components thereof. We've also set up a significant capacity," he said.

Sampath also noted the company's over-decade-old collaboration with ISRO. "We've been a strategic partner for ISRO for more than a decade and we have participated in most of their prestigious missions and all that. our ambition to really be part of the technology evolution that ISRO is bringing in."

Shares of Kaynes Tech settled 1.33% lower at Rs 5,770.55 apiece on the BSE ahead of the announcement, compared to 1.2% advance in the benchmark Sensex.