Ajit Patil

A founder who has spent 32 Years building IP-Owned Tech in India's Defense Sector. Ashok Atluri, Founder of Zen Technologies Limited shares a growth story bootstrapped from Hyderabad: -Revenue: ₹60 Cr (FY21) → ₹930 Cr(FY24) -Market cap: 40 Cr (2012-13) → 13000 Cr today -Growth: 400X in 12 years Takeaways from our conversation: 1. India historically imported 65–70% of its defense equipment. Today, defense exports have grown more than 30× over the past decade, with the private sector contributing around 60% of exports. Domestic defense production has increased to ₹1.27 lakh crore, a 174% rise since FY 2014–15. 2. For over two decades, Zen built advanced simulators but struggled to sell them in India because single-vendor bids weren’t accepted. The IDDM policy in 2015 gave preference to IP-owning Indian companies and allocated 75% of the capital acquisition budget to local sourcing. And decades of R&D became a real market worth ₹200 billion. 3. Defense tech startups in India have raised $184 million in VC funding since 2020. Zen’s journey shows that IP-owned Tech built with self-funded R&D can build the most defensible advantage, similar to how Apple captures value through IP rather than manufacturing. 4. Zen’s anti-drone systems were proven in field operations, leading to export inquiries from over 20 countries. This mirrors the broader trend of India’s defense exports growing from ₹1,940 crore (FY14) to ₹21,083 crore (FY24). Field-tested solutions build trust far faster than lab demos or pilot projects. 5. Government fundings are rewarding innovation over manufacturing. Programs like iDEX provide up to ₹10 crore for proven concepts, while DRDO offers ₹50 crore per system under the Technology Development Fund. This shift allows companies to reinvest profits into next-generation R&D. 6. Ashok believes that not all technologies should be patented. Highly secretive or complex innovations can be reverse-engineered if patented. Instead, patent what is obvious to outsiders to protect your competitive edge. 7. Build with a focused approach on Pareto technologies with maximum impact. Instead of chasing every opportunity, Zen concentrated on the 20% of technologies delivering 80% of results, anti-drone systems and simulators. Prioritizing high-leverage areas compounds impact effectively. 8. Time market entry around overlooked gaps: In 2018, drones were a hot topic, but there was little attention on anti-drone systems. Zen entered this gap and was ready when the need became urgent, from regional conflicts to domestic security. Opportunities often lie where others are silent. 9. Create policies around your innovation: Self-funded R&D firms face unique risks that conventional procurement rules often overlook. Zen advocated for new categories rather than adapting breakthrough technologies to unsuitable frameworks, ensuring their innovations could be evaluated on merit. Full Episode https://lnkd.in/gnAFEj3f

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