Snippets from Recent Ken Article on Tonbo Imaging (where HBL has recently brought stake)
In the budget for 2022-23, the Indian government allocated US$17.6 billion to spend on weaponry. The market size for electro-optics—which constitutes 30% of the spending in any modernised equipment—is expected to be US$2-3 billion.
Lakshmikumar cites the example of the Arjun Mk-1A tank, which is significantly indigenised and has a price tag of ~Rs 50-60 crore (US$6-7.3 million) per tank. The “eyes and brain” of this tank, formed by the electro-optic component, are valued at ~Rs 15-18 crore (US$1.8-2.2 million).
The company expects to post Rs 110 crore (US$13.4 million) in revenue in the year ending March 2023 and aims to capitalize on the prospects presented by the Indian government’s indigenization initiative.
With the capital raised, Tonbo is now targeting new revenue streams. It plans to license its technology and sell electro-optic subsystems to competing OEMs, such as Elbit from Israel and Qioptic from the UK, as Tonbo’s products are cheaper than what they are currently building. It achieves this by using lighter materials. “Instead of selling thermal weapon sights, I want to take the guts of it and start offering it to different people,” said Lakshmikumar.
On the back of these opportunities and orders, he believes Tonbo will “comfortably” achieve revenues of Rs 250-300 crore (US$31-37 million) in the year ending March 2024.
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