HOW TONBO IS IMAGING THE DAVID AMONG DEFENCE GOLIATHS

Start-up wins multi-million dollar indigenisation deal for anti-tank missiles

Tonbo Imaging, a night-vision start-up, is clinching defence deals. It has won a large deal from Bharat Dynamics (BDL) to indigenise new missile seekers for the multimillion dollar anti-tank guided missiles BDL is building for the Army.

Unless you are one of the biggest contractors, defence is a tough business to crack. But Tonbo Imaging, a night-vision start-up backed by investors such as Artiman and Qualcomm Ventures, is clinching defence deals despite all odds.

The Bengaluru-based firm has won a large deal from Bharat Dynamics (BDL) to indigenise new missile seekers for the multi-million dollar anti-tank guided missiles that BDL is building for the Indian Army.

For Tonbo, it is an opportunity to tap the over $500-million market in the next few years.

“We signed up with BDL to supply the EO-IR (electro-optical-infrared) seeker and command launcher unit (CLU) that control and launch the missile and engage with the target before launch,” said Ankit Kumar, co-founder at Tonbo Imaging. “We, along with BDL, are integrating the CLU and seeker with the missile. BDL will supply the end system to the Army.”

This is a Make-ii programme, in which players willing to invest upfront and indigenously design and develop missiles are only qualified to participate.

Tonbo has to show 60 per cent Indian content and prove that the design is indigenous. So, any foreign solution also has to first prove indigenisation and acquire all design and IPR (intellectual property rights) within India.

BDL is the front-runner meeting all the requirements and has all the necessary capabilities required in the expression of interest (EOI).

What differentiates Tonbo is that before launch of the missile, the target is acquired by the CLU.

The target picture is handed over to the missile seeker, and once fired, the missile — with Tonbo’s eyes and brain (seeker) — homes in on the target with centimetre-level precision.

This is called fire-and-forget missile launch. It is unlike older generation missile systems, which are wire guided and missile control is with the gunner even after it is fired. Also, the missile is manually manoeuvred towards the target.

In the fire-and-forget system, once

the missile is fired, the gunner has no control over it. Its seeker manoeuvres it towards the target.

“We are the eyes and brain of the missile,” said Kumar. “Our thermal and visual imaging sensors allow the missile to locate and identify the target. Our advanced AI (artificial intelligence)based algorithms track the target, even if it’s on the move.”

Tonbo was founded by Arvind Lakshmikumar, an alumnus of BITS Pilani and Carnegie Mellon University, along with Ankit Kumar, Sudeep George and Cecilia D’souza.

It has been actively supplying products and solutions to customers in India and abroad.

The firm’s sales pipeline is over $2.5 billion with a near-term execution visibility of $300 million. The company has raised a total funding of over $30 million from venture capital investors, including Edelweiss and Walden Riverwood Ventures. It is in discussions with a few global investors for more funding for its expansion plans.

It has done thermal imaging-based upgrades for cavalry reconnaissance vehicles (CRVS) in Jordan and advanced electro-optical targeting system for the Philippines army.

It also provided thermal sights to Italian firearms manufacturer Beretta and night vision binoculars to special forces in Israel and France. Besides, Tonbo is also supplying its thermal imaging vision equipment to the Indian special forces.

In 2019, China and India were the second-and third-largest military spenders in the world.

China’s military expenditure touched $261 billion in 2019, a 5.1 per cent increase compared with 2018, while India’s grew by 6.8 per cent to $71.1 billion, according to Stockholm International Peace Research Institute (SIPRI).

“India’s tension and rivalry with both Pakistan and China are among the major drivers for its increased military spending,” said Siemon T. Wezeman, SIPRI senior researcher.

Total global military expenditure rose to $1,917 billion in 2019, according to SIPRI. The total for 2019 represents an increase of 3.6 per cent over 2018 and the largest annual growth in spending since 2010. The five largest spenders in 2019, which accounted for 62 per cent of the total expenditure, were the United States, China, India, Russia and Saudi Arabia.

Tonbo is eyeing the autonomous surveillance, reconnaissance and targeting market. This market is worth over $50 billion. Over 60 per cent of Tonbo’s revenue comes from its international customers in defence, intelligent transportation and industrial applications.