Well Placed Zen Technologies !!!

Zen Technologies Limited is a pioneer and leader in providing world-class state-of-the-art Defence Training Solutions, Drones, and Anti- Drones solutions and has a proven and impeccable track record in building training systems for imparting defense training and measuring combat readiness of security forces. 

Zen is engaged in indigenous design, development, and manufacture of sensors and simulators technology-based defense training systems and has relentlessly been providing Defence Training Solutions and seamless services to Ministry of Defence (Armed Forces), Security Forces Police, and Para-military forces and is privileged to be have served the nation for over 2.5 decades. 

It manufactures land-based military training simulators, driving simulators, Live range equipment, and Anti-drone Systems. With dedicated R&D (recognized by the Ministry of Science and Technology, Government of India) and a production facility in Hyderabad, the company has applied for over 90 patents and shipped more than 1000 training systems around the world.

Zen is having its own training platform which provides a real‐world battle experience by integrating its entire range of product offerings with a focus on time & cost-saving and better training standards. With the recent announcement of the Agneepath scheme where 46,000 Agniveers will be recruited and trained in 6 months (earlier 1 year), Zen could be one of the beneficiaries of the same.

The company expects to grow at 25% CAGR for the next 2‐3 years excluding the potential revenue from anti-drone systems (ADS) and Agneepath.

The company has a robust order book of Rs. 4.3 billion (sale of equipment Rs. 3 billion) which is executable in FY23E and AMC business (Rs. 1.1 billion). For FY23E, the management of Zen expects an order inflow of Rs. 4 billion in the sale of the equipment business.

AMC revenues start kicking in after 2 years of equipment installation. Given an average simulator lifespan of about 10‐15 years, AMC business is a growing segment for the company and the management expects this segment to grow by Rs. 50‐100 million every year.

With years of research, Zen has now forayed into drones and anti‐drone systems and has developed products that are completely in‐house used for identifying and jamming drones in all bands which most of the peer solutions are restricted to.

A new framework issued in September 2021 by the Ministry of Defense mandates compulsory utilization of simulators by the 3‐armed forces thereby resulting in an increase in demand for simulators. With a ban on the import of defense items – simulators, the demand for the same is going to benefit Zen as the competition is less in the industry.

The company is setting up a demonstration center in Abu Dhabi which is just in the finalization stage in order to promote international business and is focusing on African, and Middle East countries for export business.