Delhivery receives MCA approval for incorporating its drone subsidiary

Gurugram-based logistics company Delhivery has received approval from the Ministry of Corporate Affairs (MCA) to establish its drone subsidiary.

The development follows the company’s announcement in May 2024 about its plans to enter the drones and freight air transport services sector. The new entity is named “Delhivery Robotics India Private Limited.”

Objective of a new subsidiary 

Delhivery's new subsidiary is set to concentrate on several critical initiatives. Firstly, it will conduct advanced Research and Development (R&D) in Unmanned Aerial Vehicle (UAV) technology with the aim of achieving type certification and moving towards commercialization.

Secondly, the subsidiary will offer Drone as a Service (DaaS) to facilitate shipment movement and remote sensing operations. 

Thirdly, it plans to provide UAV Pilot Training, which includes certifying internal pilots and securing licenses from the Directorate General of Civil Aviation (DGCA) for deployment in ground operations.

Lastly, the subsidiary will engage in Drone Manufacturing. This will encompass the production and global sales of UAVs and involve third-party manufacturing of composite airframe components, along with procurement, integration, quality testing, and flight trials.

Challenges in drone delivery in India

Despite the advancements and capabilities in drone technology, Delhivery's CEO, Sahil Barua, has expressed skepticism about the commercial viability of drone delivery in India. During a shareholders meeting, Barua noted that while drones could support various use cases, including surveillance and delivery up to certain payloads, the commercial application for items like T-shirts and pizzas does not seem practical due to their relatively low value.

The new subsidiary, Delhivery Robotics India Private Limited, will have an authorized share capital of Rs 5 crore.

The subsidiary will also outsource manufacturing and procurement of composite airframe components, along with quality testing and flight trials.

Delhivery’s move into the drone segment is being spearheaded by its portfolio company, Transition Robotics, which has developed a fixed-wing drone capable of carrying about a 4 kg payload over a distance of 40 km, according to CEO Sahil Barua.