Adani-backed firm among three finalists in India's small satellite launch rocket privatisation

Zawya

14-02-2025

Indian conglomerate Adani Group is a finalist, alongside two government-linked groups, to take over private production of India's Small Satellite Launch Vehicle, three sources familiar with the matter told Reuters.
The SSLV, developed by the Indian Space Research Organisation, is a low-cost vehicle capable of deploying satellites of up to 500 kg (1,100 pounds) into low-Earth orbit, or LEO - the most sought after segment of the satellite launch market.
After its first successful launch in 2023, the government moved to transfer the vehicle's production and technology to private industry as part of a broader push to expand India's commercial space sector.
That move has been the highest-profile piece of India's privatisation efforts, which the government hopes will help the country claim a greater share of the booming global satellite launch market, dominated by private players such as SpaceX.
'LEO is the name of the game right now, so the potential winner has the opportunity to really tap into a rapidly growing market,' said Damodaran Raman, a director at Deloitte who soecialises in space tech.
About 20 companies initially expressed interest in bidding for the SSLV, the first privatisation of its kind under Prime Minister Narendra Modi's policy drive to open up India's space industry.
The three finalist consortiums include Alpha Design Technologies, in which Adani Defence Systems and Technologies owns a stake; state-backed Bharat Dynamics Limited; and Hindustan Aeronautics Limited. Reuters could not verify the exact structure of each bidding group.
The companies did not respond to Reuters requests for comment. The sources did not want to be named because details of the bids are not public.
The winning company is expected to pay India's space agency about 3 billion rupees ($30 million) for the SSLV, covering design know-how, manufacturing processes, quality-assurance training, and up to 24 months of technical support or two successful launches, according to one of the sources.
Beyond financial capability, bidders must demonstrate the ability to manufacture, sustain, and sell the SSLV.
A second source familiar with the matter said the limited availability of launch slots with major industry players such as SpaceX presents a significant opportunity for new entrants, with the possibility of positioning themselves as a go-to launch partner for South Asia.
The global satellite launch vehicle market is projected to grow from $5.6 billion in 2025 to $113 billion by 2030, with low-Earth orbit launches dominating, according to research firm Mordor Intelligence.
India accounts for only 2% of the global space economy. The Modi government aims to expand that share fivefold to $44 billion by the end of the decade.
Companies vying for the SSLV contract were required to be profitable, with the lead bidder having at least five years of manufacturing experience and an annual revenue of at least 4 billion rupees ($50 million), according to India's space regulator. ($1 = 86.9500 Indian rupees) ($1 = 86.7540 Indian rupees)
(Reporting by Nivedita Bhattacharjee in Bengaluru. Editing by Gerry Doyle)