Bengaluru-based global defence electronics original equipment manufacturer (OEM) Tonbo Imaging India Limited expects its next phase of growth to be driven by thermal weapon sights, missile seekers and high power microwave (HPM) systems, with the company preparing to scale up production as investments in research and development (R&D) begin to deliver results.
Arvind Lakshmikumar, Founder and Chief Executive Officer of Tonbo Imaging, said, “The way we looked at investment is we are investing for the future. What we are seeing today is what we invested 5-10, years back. If you want to build a large defence tech business out of India, it can’t be done overnight. It needs time and it needs gestation and we are seeing fruition for it.”
Tonbo Imaging’s initial public offering (IPO) opened for subscription on October 15 and will close on October 19. The company is looking to raise over ₹850 crore through an offer for sale (OFS), which allows existing investors to sell their shares. The proceeds will go to the selling shareholders rather than the company.
Tonbo Imaging sees significant room for growth in thermal weapon sights and other tactical imaging systems used by soldiers. The company has developed products for helmets, weapons and handheld imaging devices, and is now seeing stronger adoption of these technologies.
“65% of the market is owned by us in India,” Lakshmikumar said, referring to the company’s position in thermal weapon sights.
According to the CEO, around 30,000 thermal weapon sights have been deployed in India, of which Tonbo Imaging has manufactured and supplied approximately 20,000. He added that India’s requirement could increase from around 30,000 units to 300,000 units, providing a substantial opportunity for the company.
The business is part of Tonbo Imaging’s broader focus on defence technology, which includes imaging, sensing, communication, control and neutralisation systems. The company has deployed more than 28,000 systems across over 24 countries.
The second growth opportunity lies in missile seekers, which help missiles identify and track their targets. Tonbo Imaging supplies systems used in defence platforms and is the sole-source supplier for a couple of missile manufacturers, Lakshmikumar said.
He expects the adoption of these systems to gather pace in 2028-29, making missile seekers another important contributor to the company’s growth.
The company has invested in R&D over several years to develop these products. Lakshmikumar said the returns from such investments take time to materialise, particularly in the defence technology business, where development and adoption cycles can be lengthy.
High power microwave systems represent another potential growth driver, although revenue from this business is expected to begin only around 2029-30.
Tonbo Imaging has received minimum order quantities (MOQs) and letters of intent (LOIs) from the Indian Navy and customers in Europe. Lakshmikumar said the current opportunity covers around 11 systems, with each system priced at approximately ₹200 crore in India and $25 million in international markets.
The combined opportunity could be worth around ₹2,500 crore, based on the company’s current estimates. However, the business is still progressing through its product development phase, and Tonbo Imaging does not expect revenue from it over the next three years.
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Tonbo Imaging bets on thermal sights, missile seekers and hyper microwave systems for growth