Moving Forward in Defense and Aerospace: IDBI Capital's Strategic Exits and India's Growing Potential
Defence-oriented investment fund managed by IDBI Capital divests from technology-focused companies Sagar Defence Engineering and Zeus Numerix.
India's march towards self-reliance in the defense and aerospace sectors is gathering momentum, with IDBI Capital's strategic moves providing an insight into the road ahead. The investment bank, through its subsidiary IDBI Capital Markets & Securities Limited (ICMS), manages the Maharashtra Defense and Aerospace Venture Fund (MDAVF) - a SEBI-registered Category II Alternative Investment Fund (AIF) focusing on defense and aerospace companies.
To date, MDAVF has invested around Rs 415 in 23 Micro, Small, and Medium Enterprises (MSMEs) within the defense and aerospace sector. Recently, ICMS made successful exits from two of its portfolio companies: Sagar Defence Engineering Pvt. Ltd. and Zeus Numerix. These exits, marked by impressive Internal Rate of Return (IRRs), indicate the strength of ICMS' collaborations and MDAVF's commitment to nurturing technological innovation and self-reliance in India.
Sagar Defence Engineering specializes in the production of unmanned underwater vehicles that can collect and communicate ocean data in real-time. Their technology connects subsea data and communicates it to satellites and land, creating an ocean network. On the other hand, Zeus Numerix supports various Indian institutions such as DRDO, ISRO, and BARC by resolving complex engineering challenges through simulation and modeling.
The IIT-Zeus group at the Department of Aerospace Engineering, IIT Bombay, birthed Zeus Numerix, making it one of the first startups incubated at SINE (Society for Innovation and Entrepreneurship) at IIT Bombay.
Amey Belorkar, Senior Vice President at IDBI Capital Markets & Securities, commented on the successful exits, stating that both companies played a pivotal role in advancing innovation and self-reliance in India's defense and aerospace sectors by pushing the boundaries of technology. MDAVF remains committed to supporting the Atmanirbhar Bharat vision by backing high-potential ventures that strengthen indigenous capabilities and drive long-term impact.
The Indian aerospace and defense market was valued at approximately $27.1 billion in 2024 and is projected to grow at a compound annual growth rate of nearly 7% to $54.4 billion by 2033. This growth is fueled by India's ambitious plans to become a significant global defense manufacturing hub. The country aims to achieve a defense production target of ₹3 trillion by 2029 and capture at least a 10% share of the global aerospace market by 2033, backed by developing a robust supply chain ecosystem.
MSMEs are fundamental to this growth, playing a vital role within the defense sector and contributing to fostering innovation and efficiency, especially through collaboration with larger players and Defense Public Sector Undertakings (DPSUs).
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- IDBI Capital's subsidiary, IDBI Capital Markets & Securities Limited (ICMS), manages a SEBI-registered defense and aerospace-focused investment fund called the Maharashtra Defense and Aerospace Venture Fund (MDAVF), which has invested over Rs 415 in various MSMEs.
- Amey Belorkar, Senior Vice President at IDBI Capital Markets & Securities, expressed that the successful exits from Sagar Defence Engineering and Zeus Numerix have advanced innovation and self-reliance in India's defense and aerospace sectors, emphasizing the importance of technology.
- Sagar Defence Engineering specializes in the production of unmanned underwater vehicles, while Zeus Numerix supports Indian institutions such as DRDO, ISRO, and BARC in solving complex engineering challenges. Zeus Numerix was incubated at SINE (Society for Innovation and Entrepreneurship) at IIT Bombay.
- In 2033, the Indian aerospace and defense market is projected to be valued at $54.4 billion, growing at a compound annual growth rate of nearly 7%, fueled by India's ambition to become a significant global defense manufacturing hub with a defense production target of ₹3 trillion by 2029 and capturing at least a 10% share of the global aerospace market.
- MSMEs are essential to this growth, as they contribute to fostering innovation and efficiency in the defense sector, especially through collaboration with larger players and Defense Public Sector Undertakings (DPSUs). Stay connected to receive updates about the latest news, views, and trends in the world of micro, small, and medium enterprises.
