Sankhya to focus on mission-critical applications

To accelerate global growth, expansion in the US and Asia.

By Author   |   Published: 11th Jan 2018   11:56 pm Updated: 13th Jan 2018   2:43 pm
Sankhya

Hyderabad: Sankhya Infotech Limited, Hyderabad-based simulation and cloud-based training management solutions provider with specific focus on aerospace & defence sector has drawn its roadmap to accelerate its growth and capitalise on global market opportunities. As part of the aggressive growth plan, the company will look to rapidly expand operations in Americas and Southeast Asia besides further strengthening its presence in Europe and MENA region.

The company has established an international subsidiary in Singapore and has presence in France. The company has plans to significantly expand in the US to cater to North and South American markets.Listed on BSE, Sankhya’s annual turnover was Rs 161.60 crores in the last fiscal. The company has over 1.5 million users across 50 global locations spread in four continents. Sankhya, founded in 1997, ventured into an area where India had no presence earlier, and became the world’s first to launch an internet-based training to aviation pilots and is the first to offer Evidence Based Training with immersive experiential training tools.

The company’s flagship training and simulation systems comprehensively address the need for building competency especially in sectors that are subject to strict regulatory compliance and safety norms. Sankhya had been serving companies such as Airbus, Boeing, Embraer, Etihad and Safran Aircraft Engines (formerly Snecma). Sridhar Nadupalli, CMD, Sankhya Infotech, told Telangana Today, “Sankhya is launching an analytics and artificial intelligence-based solution that predicts specific training needs, customised for an individual, over an immersive experience.”

Aerospace & defence

He added, “Where mission critical operations are involved, customers need both simulation and a strong training management platform and this has been our core competency. We focus on the vital organisational functions, failure of which could cause catastrophic impact to the organisation, customers and its stakeholders.

Whether it’s the simulation of a fighter jet aircraft engine for maintenance that covers over a million parts and thousand sub-systems for maintenance purposes or a platform to implement world’s first Evidence Based Training to Etihad Airways (to begin from March 2018), we are keen on shaping the future of training technology with our innovations.”With the help of the company’s solution, Etihad is able to reduce around 12,000-person days in training per year, while significantly improving training standards resulting in over 500 per cent return on investment (RoI) in two years.

Much of this aviation growth will happen in Asia and US where fleet renewals will spur demand. Besides, defence modernisation and expansion of platforms is expected to be concentrated in Asia and Americas due to increased threats in these regions. US has 23,000 aircraft today and this number will go to 40,000 aircraft by 2025. And atleast 14,000 aicraft will be recycled. With Bhaskar Pramanik, former chairman, Microsoft, Corporation (India); Anil Valluri, president, NetApp India & SAARC; Ravindran Govindan, founder, Mercatus Capital joining on board, Sankhya is looking at global opportunities yet remaining asset-light. He said, “The board has decided that aerospace and defence will be the core drivers for growth as there is global requirement and the kind of technology and training standards we have set.

Every organisation globally will need evidence based training in these sectors to minimise the risk and accidents. Airlines will be keen to minimise and avoid incidents. India alone is going to see deployment of 1,000 aircraft. There is a huge opportunity.”Under cockpit resource management (CRM), factors such as fatigue and emotional bearing are becoming important in the aviation space.

Sankhya is using artificial intelligence to take real-time data to provide training to individuals accordingly. “We have won a $19.6 million contract from Boeing and defence and contracts from who’s who in aerospace. We hire top-notch subject matter experts in each segment so that we understand the client’s need and come out with custom-made technology and solution,” he added.

Growth opportunities

Sridhar informed, “In future, there could be scope in energys space as well. We have signed a five-year agreement with BHEL to develop simulators for aerospace, defence and energy sectors. We have executed energy training for NPTC Ramagundam project. India is going to have at least 10 nuclear plants and training is going to be crucial in this space, not just in nuclear generation but also in disposal. We will be in every mission critical application possible.” Energy being a huge sector needs a lot of manpower. The sector needs high quality training, training assessment and training standard. There are not many technology companies with expertise in all three areas. Nuclear power is going to be a key sector for India.

There is a large compliance requirement in pharmaceuticals and medical technologies and the company is seeing opportunities here. Diversity, complexity and scalability are something that is on its agenda.

Consolidation mode

He informed, “We had been spending 10 per cent of our spending on research and development. We are going to focus on virtual reality and immersive simulation and expand our team size by 25 per cent. Our capital revenue is four times than any other Indian IT company. And we are the only Indian company to sell a software product to American defence organisations.

We have restructured our board and we will have a clear edge. Sankhya has created a technology committee to look at how much R&D should happen and where.”Sridhar further adds, “There is a phenomenal interest for collaborations, joint ventures and investments from overseas companies. We will partner with companies who will bring technological and financial advantage along with access to new geographies.

We already had preliminary talks with 6-7 global companies with different interests. We could also look at acquisitions that will give us access to new markets in Asia and other potential geographies besides the US.”