Adani Group among finalists for India’s SSLV privatization

Adani Group and two state-backed firms are finalists to take over India’s Small Satellite Launch Vehicle production in a major privatization push.

Small Satellite Launch Vehicle and the Indian flag are seen in this illustration taken on October 10, 2024. Photo by Dado Ruvic/Reuters

By Alana Salsabila and Laila Azzahra

Indian conglomerate Adani Group has emerged as a finalist, alongside two government-linked groups, in the bid to take over private production of India’s Small Satellite Launch Vehicle (SSLV), according to three sources familiar with the matter.

The SSLV, developed by the Indian Space Research Organisation (ISRO), is a low-cost launch vehicle designed to deploy satellites of up to 500 kg (1,100 pounds) into low-Earth orbit (LEO). This segment is one of the most in-demand areas of the global satellite launch market, currently dominated by private players like SpaceX.

Following its first successful launch in 2023, the Indian government moved to transfer the SSLV’s production and technology to private industry as part of a broader effort to expand India’s commercial space sector. This initiative marks one of the most significant privatization efforts in the country’s space program, aiming to enhance India’s presence in the rapidly growing global satellite launch market.

India’s space privatization push

Under Prime Minister Narendra Modi’s policy drive to open up India’s space industry, about 20 companies initially expressed interest in bidding for the SSLV project. The competition has now been narrowed down to three consortiums:

Alpha Design Technologies, in which Adani Defence Systems and Technologies holds a stake
Bharat Dynamics Limited (BDL), a state-backed defense company
Hindustan Aeronautics Limited (HAL), India’s largest aerospace and defense manufacturer

Reuters has not been able to verify the exact structure of each bidding group. None of the companies involved responded to requests for comment, and the sources requested anonymity as the bidding process remains confidential.

The winner is expected to pay ISRO approximately 3 billion rupees ($30 million) for the SSLV technology transfer. This includes access to the SSLV’s design knowledge, manufacturing processes, quality-assurance training, and up to 24 months of technical support or two successful launches.

Beyond financial investment, the bidders must demonstrate the ability to manufacture, sustain, and market the SSLV successfully.

Rising competition in satellite launches

Industry experts believe that the winner of the SSLV contract will have a significant opportunity to tap into a rapidly expanding market.

“LEO is the name of the game right now, so the potential winner has the opportunity to really tap into a rapidly growing market,” said Damodaran Raman, a director at Deloitte specializing in space technology.

The demand for satellite launches has surged in recent years, with LEO deployments becoming increasingly critical for communication, navigation, and earth observation. However, launch slots with major providers like SpaceX are limited, creating an opportunity for new entrants.

A second source familiar with the bidding process highlighted that the lack of availability with dominant industry players presents a significant opening for an Indian launch provider. The chosen SSLV manufacturer could position itself as a key launch partner for South Asia and beyond.

India’s ambitions in the global space economy

India currently accounts for only 2% of the global space economy, but the Modi government has set an ambitious goal of expanding this share fivefold to $44 billion by the end of the decade.

The global satellite launch vehicle market is projected to grow from $5.6 billion in 2025 to $113 billion by 2030, according to research firm Mordor Intelligence. With LEO launches expected to dominate, India’s SSLV privatization could play a crucial role in capturing a larger portion of this rapidly expanding industry.

To qualify for the SSLV contract, companies were required to meet strict financial and operational criteria. The lead bidder must have:

At least five years of manufacturing experience
Annual revenue of at least 4 billion rupees ($50 million)
A proven track record of profitability

These requirements ensure that only well-established and financially sound companies take on the responsibility of producing and commercializing the SSLV.

Future of SSLV privatization

The selection of a private manufacturer for the SSLV represents a pivotal moment in India’s space sector. By transferring production to private industry, the government aims to create a competitive, self-sustaining commercial space ecosystem capable of meeting both domestic and international satellite launch demands.

The final decision on the SSLV contract is expected soon, with the chosen company set to play a crucial role in shaping India’s future in space exploration and satellite deployment.