The term ‘start-up’ is a catch-phrase today. Start-ups are increasingly achieving success in every sector – be it technology, healthcare, eCommerce, services, etc. However, this is one phrase that cannot be applied to any enterprise in the A&D sector, since the long gestation period ensures that by the time the industry sees any returns, it can no more be classified as a ‘start-up’.

1. Why it is difficult to start a new
venture in ‘Aerospace & Defence’
sector.
G Raj Narayan
www.grajnarayan.com
twitter.com/grajnarayan

2. It is not feasible for a budding entrepreneur to start a new
venture in the A&D sector, for several reasons, the most
important being the requirement of extensive domain
knowledge & considerable work experience.
The term ‘start-up’ is a catch-phrase today. Start-ups are
increasingly achieving success in every sector – be it
technology, healthcare, eCommerce, services, etc. However,
this is one phrase that cannot be applied to any enterprise in
the A&D sector, since the long gestation period ensures that
by the time the industry sees any returns, it can no more be
classified as a ‘start-up’. Lack of funding, lack of trained
technical manpower – right from engineers to shop floor
workers, unfavourable procurement policy of government
and restriction on the export of defence items etc, are some
of the key challenges that discourage a new entrepreneur to
step into the A&D space.
Here are four reasons highlighting the challenges faced while
starting a new venture in Aerospace and Defence:
1) Starting a new venture in A&D sector requires specialised
knowledge – be it in the electronics, mechanical, hydraulic or
pneumatic domain. This sector needs products with high
precision, ruggedness to withstand extreme conditions, and
reliability over a long period. Therefore, the enterprise
should have the capability to design and manufacture these
specialised products.

3. 2) The stringent testing procedures are expensive and time
consuming. The entire cycle, from understanding the RFQ
and bidding, to the final testing, acceptance and receipt of
payment from the defence organisation is a very long one.
The entrepreneur should be able to withstand the financial
burden for a long period of time. Since it is a ‘long-gestation’
industry, finance is not as easy to obtain as in other fast-
growing sectors.
3) The A&D sector is a highly demanding and specialised
engineering sector. The industry needs to possess a distinct
culture that lays emphasis on rigidly controlled processes,
quality of output, attention to details, documentation and
traceability, etc. Any industry that possesses these qualities
and enjoys accepting challenges can find this sector highly
rewarding and satisfying.
4) Since the A&D sector is dominantly controlled by the
Government agencies, one need to be extremely patient and
bear the slow decision making processes, even in cases
where there is an urgent requirement.
Thus, it is not feasible for a budding entrepreneur to start a
new venture in the A&D sector, as it requires extensive
domain knowledge, considerable work experience and the
ability to bear the financial burden for a length of time
before realising any returns.
Making youth self-sufficient to take up entrepreneurship in
A&D sector

4. In an attempt to empower fresh engineering graduates with
the basic skills in design and manufacture, Raj Narayan
initiated a training program named DRONA, a school of
engineering practice. The program exposes fresh graduates
to live projects and focuses on creating skilled engineers,
especially for the Electronics and Aerospace & Defence
sector. This gives them an insight into the complete design
and manufacturing process of specialized defence
equipment. Any engineering graduate, who opts for the
DRONA training program at Radel, will be mentored by
veterans of industry and well-known guest faculty.
DRONA attempts to address all the key issues associated in
imparting skills to the engineers. The trainee goes through a
complete transformation of the thought process, by which
the critical, analytical and innovative skills blossom. At the
same time, the graduate is trained in systematic quality
analysis and documentation processes.
A major weakness among the engineers lies in
communication skills. The Drona program provides training in
written and oral communication skills, business etiquette and
time management too. Drona offers courses ranging from 3-
day orientation to a complete 6-month program.
Over the years, the program has transformed more than 150
such engineers. Radel has launched Drona as an initiative
focusing on producing skilled engineers so that they cannot
only ‘Make in India’, but ‘Create in India’, ‘Design in India’ and
‘Innovate in India.