Demerger boosts Rossell Techsys' defence, space ambitions: MD Rishab Gupta

Rossell Techsys MD Rishab Gupta discusses the firm's demerger from Rossell India and its entry into the space sector, highlighting a Rs 2,800 crore order book and a focus on defence and civil aviation

Founded in 2011, Rossell Techsys Ltd specialises in aerospace and defence solutions, focusing on high-performance assemblies and sub-assemblies. Partnering with global defence majors, it delivers mission-critical products from India. Spun off from Rossell India Ltd in August 2024, it was listed on the National Stock Exchange and BSE on December 9, 2024. Against this backdrop, Rossell Techsys Managing Director Rishab Gupta discusses the demerger, space sector entry, revenue growth, defence focus, and expansion plans in an interview with Bhaswar Kumar. Edited excerpts:

 

What can you tell us about the recent developments at Rossell Techsys?

 

On December 9, Rossell Techsys Ltd began trading as an independent, publicly listed company following its demerger from parent company Rossell India Ltd, marking a milestone for the organisation. This transition will accelerate our growth in several ways. It provides enhanced access to capital, increases our visibility in the market, and positions us favourably amid rising demand for aerospace and defence (A&D) products. This achievement marks our first step in this new phase and lays a strong foundation for the next five to 15 months.

 

What prompted the timing of this decision?

 

The demerger process, though more complex and time-consuming than initially anticipated, was undertaken with the primary goal of fuelling growth. The timing of the listing is closely tied to this process, reflecting its strategic importance to our future trajectory. Today, we proudly serve 26 diverse customers, including several Fortune 500 companies, and have recently entered the space domain. This marks a significant milestone, as we have recently partnered with leading US space companies to supply critical equipment for satellite applications.

 

While the US was our primary market two to three years ago, we have since expanded our geographical footprint. Over the past two years, we have established a strong presence in Israel and entered Europe, partnering with leading French and German companies.

 

From an order book standpoint, Rossell Techsys holds over Rs 2,800 crore in strategic agreements and Rs 900 crore in confirmed business orders, with bids worth an additional Rs 4,000 crore submitted. Long-term contracts in the A&D industry, typically spanning three to five years, offer clear visibility into our revenue trajectory and growth outlook. Backed by this strong pipeline, market expansion, and solid fundamentals, we are confident in meeting our commitments and achieving significant growth in the years to come.

 

Could you explain the rationale behind the demerger?

 

Originally, Rossell India began as a tea company, with Rossell Techsys operating as a division within it. Over time, the tea business supported the growth of the A&D division through strategic investments. Having reached a significant revenue milestone, Rossell Techsys is now capable of operating independently.

 

The demerger was a strategic step to enable both entities to grow independently in their core domains and to address the undervaluation of Rossell Techsys by allowing the market to fully recognise and reward its true potential. This separation has given Rossell Techsys direct access to new opportunities, including joint ventures, long-term partnerships, and greater visibility among customers.

 

The demerger positions both companies for stronger growth, with Rossell Techsys well-equipped to achieve its ambitious short- and medium-term revenue goals.

 

Over the next three to five years, we are targeting high double-digit growth—around 30 per cent—supported by a robust order book.

 

What does your entry into the space sector involve?

 

Space represents a new and promising frontier for us. Our foundation lies in A&D, with a past focus primarily on defence, where we have supplied assemblies, sub-assemblies, and equipment for military platforms such as Boeing’s F-15, F-18, Apache AH-64, and KC-46; Lockheed Martin’s F-16; and Saab’s T-7. The company's core competencies include electrical wiring and interconnect systems, electrical panel assemblies, electronic systems and system integration, automatic test equipment, and aftermarket services for electrical and electronic products and systems. Over the past two years, we have expanded our portfolio to include inputs for ground-based defence technologies, including communication systems and radars, largely through partnerships with Israeli firms.

 

This strategic expansion has naturally steered us towards the space sector. We are currently in an exploratory phase, supplying capability demonstrator products, and are excited by the immense potential this industry holds.

 

What is the revenue potential of your space sector entry, and what are you supplying? 

 

Our initial focus in the space sector is on manufacturing wire harnesses for satellites and rockets, with plans to expand into panel production. Customers often start with smaller engagements to evaluate our quality and collaboration before strengthening partnerships, as we have seen with Boeing since 2013. We anticipate a similar trajectory with our space sector partners, gradually broadening our portfolio and driving sustainable, long-term revenue growth.

 

Last year, we closed with a revenue of Rs 217 crore, with minimal contributions from the space sector. However, within three years, we expect space to become a significant revenue driver, underscoring its growing importance in our strategy.

 

My understanding is that Rossell Techsys is highly export-oriented…

 

Historically, 99 per cent of our revenue has come from exports. While global original equipment manufacturers remain our primary focus, we are expanding our presence in India by supplying major players such as the Tata Group, Larsen & Toubro, Hindustan Aeronautics Limited, Bharat Electronics Limited, the Defence Research and Development Organisation, and the Indian Air Force. Although revenue from the Indian market is still modest, we are committed to growing this segment as the market continues to mature.

 

What percentage of your revenue comes from defence, and what are your key plans?

 

Currently, 95 per cent of our revenue is defence-related. Over the next five years, we aim to achieve double-digit growth by leveraging our Rs 2,800 crore order book. We are also exploring opportunities in Maintenance, Repair, and Overhaul (MRO) and electromechanical systems.

 

Do you have plans to enter the commercial aviation sector?

 

Yes, we are in discussions with Boeing and Airbus, with breakthroughs expected soon. Commercial aviation offers substantial scale—while Boeing produces 50 Apaches annually, it manufactures 50 A320s each month. Success in this sector would significantly accelerate our growth.

 

What are your next steps in the defence industry?

 

We are focused on executing existing orders while enhancing our capabilities. With planned investments in MRO and system integration, we aim to sustain growth and strengthen our partnerships with major players like Boeing and Lockheed.