Despite decades of reliance on imports, India’s private defense tech sector is beginning to assert itself, with homegrown companies now building world-class systems from scratch, Srinivasagopalan Rangarajan, Chairman, and Managing Director, Data Patterns (India) highlighted in a Fireside Chat at the MSME Growth Conclave 2025.

Data Patterns, established in 1985, is a vertically integrated Defence and Aerospace electronics solutions provider, which has developed fire control systems for BrahMos and supplied products for LCA-Tejas and Light Utility Helicopter, among others.

Speaking to Raghuvir Srinivasan, Editor, businessline, on the company’s journey, he said: “India imports almost everything even today. All these imports give us a market opportunity to build world-class systems in India, also designed here,” he said.

He added that Data Patterns built automatic test systems from scratch, the first of which was sold to the Department of Space (DoS). However, convincing the Department of Space was difficult initially, as they had concerns about the system’s durability. Over time, the company secured single-vendor status for all launch system orders.

Core idea

Rangarajan also emphasised that for MSMEs to succeed, they must focus on the core idea they start with and build deep expertise around it, rather than constantly shifting direction. “If it’s not outstanding, you will be forgotten and remain just one of the other players among many,” he said.

The Managing Director added that along with patience, long-term persistence, and passion, MSMEs should refrain from taking shortcuts due to a lack of funding. Smaller companies must also be frugal with their money, and prudent with their spending.

“Don’t spend the money because you have it. It has to create returns and value propositions. Cash flow is as important as your profitability. You have to sell it profitably. If you look across Europe and the US, MSMEs could be family-run businesses for 50-70 years, but each of them had an investment of $50 million to $100 million $50 million. Their knowledge base is high, and so, they get bought over large companies. This is because they do very specialised work.”

Rangarajan concluded by stressing that businesses must carve out clear differentiation and develop niche specialisations to truly thrive. “You have to control the market, and your product must have a say,” he added.

Published on June 25, 2025