Magellanic Cloud Gets its First Major Logistics Drone Order

Magellanic Cloud announced that it has bagged its first major logistic drone order from an Indian Robotics firm for an aggregate value of Rs 43 crore.

This order marks the company’s entry into the logistics sector that had a high potential with multiple players in India and abroad.

The order entails delivery of 45 CargoMax series drone kits – along with RTF Quadrotor Airframe, Flight Controllers, RC Controllers, EO Payload and Transport Case – that will be manufactured in its state-of the-art facility in Bangalore.

“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” said Mr. Joseph Sudheer Reddy Thumma, Global CEO, Magellanic Cloud.

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

The company is aiming to capitalize on first mover advantage and corner a sizeable share of USD 300 million in market share in the first three years in this Last Mile delivery segment and would be upscaling its backend to meet these demands.

Magellanic Cloud will follow a combination of B2B and B2C model for its drone delivery services. The focus would be to work with aggregators in commercial use under a B2B model delivering supplies between hubs; and provide last mile delivery under critical cases – like armed forces, difficult terrains, medical supplies etc – under B2C model.

The Indian e-commerce sector is estimated at USD 27 billion with last mile connectivity sector alone estimated at USO 6 billion and growing at an average annual rate of approx. 15 per cent.

Magellanic Cloud recently got DGCA approval for India’s first logistics drone is looking to automate this market with its drones and capture a sizable chunk of this market that is growing at a hectic pace.

The Indian drone sector has been witnessing emergence of homegrown players that have demonstrated high technology prowess and tailored their offerings to suit Indian conditions. The DGCA has been awarding clearance under the Drone Policy in a bid to tackle various geographical and climatic challenges that prove a handicap in last mile delivery and hazardous surveillance.

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