Magellanic Cloud Enters Logistics Sector with ₹43 Crore Drone Order

On April 30, 2024, Magellanic Cloud informed the stock exchanges that the company had secured its first major logistic drone order from an Indian Robotics firm, with an aggregate value of ₹43 crore.

The company stated that this order marks its entry into the logistics sector, which has a high potential with multiple players in India and abroad. The order is to deliver 45 CargoMax series drone kits – along with RTF Quadrotor Airframe, Flight Controllers, RC Controllers, EO Payload and Transport Case. These products will be manufactured in the company’s state-of-the-art facility in Bangalore.

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

Magellanic Cloud’s subsidiary, Scandron, is the first company to get approval from the Directorate General of Civil Aviation (DGCA), a government body, to provide logistics drones in the country. The company aims to target a 5% share in the USD 6 billion last-mile delivery segment in India.

The company aims to capitalise on the first-mover advantage and capture a sizeable USD 300 million market share in the first three years in this last-mile delivery segment. It will upscale its backend to meet these demands.

The company also stated that it will use a combination of B2C and B2B models for its drone delivery services. Under the B2B model, the focus would be working with commercial use aggregators, delivering supplies between hubs, and providing last-mile delivery in critical cases, like armed forces, difficult terrains, medical supplies, etc., under the B2C model.

Magellanic Cloud recently got DGCA’s nod for the first logistics drone in India and is looking to automate this market with its drones and gain a sizable share of this market that is growing quickly.

About Magellanic Cloud Limited

Magellanic Cloud Limited is a pioneering technology enterprise that offers software development, drone-based, AI/IoT and digital transformation solutions for real-world applications.

On April 30, 2024, the share price of Magellanic Cloud Limited opened at ₹589.95, touching the day’s high at ₹608.15, as of 12:03 PM on the BSE.

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