While we are busy getting impressed with overhyped unicorns,
crazy valuations and doltish delivery models masquerading as valuable business models,
we’ve perhaps skipped giving a more than adequate attention to a real revolution
happening in our backyard. Hassan, Aluva, Thiruvananthapuram & Sriharikota
rarely find mention in business pages and economic dailies but are locations
that constitute the stellar nursery where a star has taken birth and is already
shining bright in the USD 250 B global satellite industry. Let us all say hello
to ISRO the Indian Space Research Organization
As humanity keeps pushing the limits of the final frontier,
the importance and the potential of this industry can least be underestimated.
If the Sputnik launch in 1957 be taken as an index, then the satellite industry
has been around for a mere sixty years. Perhaps a nano fraction in terms of
timeline considering the endless exploration potential it offers
ISRO’s achievements have been nothing short of spectacular. The
recent reusable launch vehicle, the Mars orbiter, the very successful PSLV and
GSLV launch systems, an error rate that is the smallest in the world, a world
record in delivering the most number of payloads in a single launch… the list
is endless …and these are projects that have been executed. The drawing board
plans are even more spectacular.... talk about POC & scalability!
But ISRO’s crowning glory has been the way it has shifted the
cost paradigm and set new benchmarks in the way the game in this industry will
be played in future. Just imagine. A reusable launch vehicle program under USD
15 Million and a Mars Orbiter Mission for under USD 70 Million! (Compare that
with a mission cost of USD 500 Million for every space shuttle launch)
Of course in this ISRO has an unknowing comrade in arm in
Elon Musk’s Spacex in pushing a similar paradigm shift. And the Falcon-9 and
dragon capsule admittedly have a head start over ISRO considering the latter
has already docked to the ISS (which sadly had become like desolate bus stop in
the outback receiving fewer and fewer buses ever since the Shuttle program was
abandoned and the cramped Soyuz was the only bus plying!)
Although ISRO never started as a commercial program but the
domain has suddenly turned commercial and an attractive industry to boot. Civil
& commercial satellite demand both from Government and Non Government
agencies have dwarfed the military satellite demand. Approximately 1500
payloads are planned over the next 5 years.
Add to that the dreams of mankind for interstellar travel &
exploration, space colonization, tapping energy resources in space etc. makes
even guessing the size of the industry unimaginable. Just imagine. If the
global healthcare industry is USD 9 Trillion what could be the size of the
space and satellite industry in the next 50 years…… ZILLIONS !!
But what is perhaps most significant from an India and ISRO
point of view is that never before has there been an Indian enterprise on the
start up grid of such a high potential sector and that too a grid comprising of
a mere handful. Even today ISRO operates only in a small 20% satellite
manufacturing and space transportation sector segment of the overall sector.
The bigger profitable play is in the space services sector.
And thankfully ISRO through the Department of Space reports
directly to the PMO. Which in the present times could mean no scarcity of
vision, direction, funds, independence and risk taking ability
ENDNOTE: If ISRO lists at a face value of Rs.100 today even with
a whopping premium of Rs 900 I'll invest in as much stock as I can afford and I am
certain even Rakesh Jhunjhunwala will…. his investment of course will fund a
few missions I am sure :-)
