How can satellites, drones, and ground systems all use the same homegrown optics? What makes designing space cameras tougher than using them? To find out, EFY’s Vidushi spoke with Punit Badeka of EON Space Labs, uncovering how they are tackling these challenges and shaping the future of optics in India.
Q. Can you give a brief about Eon Space Labs and the products you manufacture?
A. Eon Space Labs, developing a multi-domain Earth Observation Network, designs and builds optical payloads for satellites, drones, and UAVs, primarily for long-range surveillance and earth observation. EON operates across three main areas: for space, we develop optical systems that can be mounted on satellites for applications such as agricultural monitoring and perimeter surveillance. In agriculture, our systems can measure soil levels, water content, and moisture, helping predict crop yields. For aerial applications, we provide payloads for drones and UAVs designed for long-range surveillance and identification of enemy movements. On the ground, we offer a range of IR and day/night cameras suitable for use by the Army, Air Force, and Navy.
All of our products combine highly specialised sensors with optics that we design, develop, and manufacture entirely within India, allowing us to provide tailored solutions for different applications while maintaining complete control over the design and production process.
Q. How does Eon Space Labs design and produce its optical systems?
A. Eon Space Labs leverages extensive experience and expertise to design optical systems from scratch, ensuring that we meet the specific requirements of each customer. From initial design to development, we handle the entire process and can customise the optics for their particular needs. Our design and optomechanical development are carried out at our facility in Hyderabad. At the same time, the precision manufacturing of the optical components is done at HHV Advanced Technologies in Bengaluru, which specialises in high-precision technology. I personally bring over seven years of experience working with these precision technologies. Once the components are manufactured, they are brought back to our Hyderabad facility for final integration, where we carefully position mirrors and assemble the system according to precise specifications. After integration, we conduct thorough testing at our facility to ensure the products meet all requirements and performance standards.
Q. What gap in the market does Eon Space Labs address?
A. The key challenge in India’s optical industry is that, according to the latest data, the country imports approximately $ 11 billion worth of optical products, making it heavily dependent on foreign suppliers. Furthermore, many imported products are not tailored to meet the specific requirements of Indian customers. This is where Eon Space Labs comes in with our expertise and experience in designing optics from scratch; we can develop fully customised solutions to meet individual customer needs. We manage the entire process, from initial design to development and manufacturing, ensuring that the products are precisely aligned with the intended applications. With ongoing geopolitical tensions affecting trade negotiations and the implementation of import restrictions of specialised components, we also see ourselves as a long-term partner contributing to India’s technological sovereignty in earth observation across the spectrum.
Q. What kind of cameras or sensors does Eon Space Labs make?
A. At EON Space Labs, we design optical systems that range from visible light to infrared. For our drone and aerial products, we offer day and night cameras, which include four different variants with zoom capabilities ranging from 10x to 55x, allowing observation of objects up to 10 kilometres away. Our infrared, or night vision, cameras cover diameters from 19 mm up to 225mm. Within this range, we offer multiple products capable of detecting humans, drones, or vehicles at various distances, as well as objects that are not visible to the naked eye under nighttime conditions, utilising infrared sensors.
Q. How do these products differ from the normal cameras we use every day? What technologies are being used?
A. Our cameras differ fundamentally from standard cameras because they are specifically designed to meet customer requirements. For example, suppose a forest officer needs to monitor animal movement in a forest at a distance of approximately 1km during nighttime. In that case, a standard camera cannot capture this, so specialised optics and sensors are required. Based on such requirements, we design the optics and integrate imported sensors, which are currently the only components we source from outside India. At the same time, all other parts are manufactured within India.
We then manufacture the system, attach it to the client’s platform, whether it’s a drone or a fixed installation, and deliver a fully operational solution catered explicitly to their requirement. Another use case is that of a company based in Bengaluru, which required a system to monitor ship movements for a maritime surveillance project located 10km from the coast. We installed our Buho 225 product at Vizag Port on a pan-tilt platform. This system can detect and track ships at a distance of 10km, and our software, trained with AI and machine learning, is also capable of detecting humans, vehicles, and drones. This approach allows us to provide highly customised solutions tailored to the client’s exact operational requirements. There are many such dual-use cases for both defence and civilian purposes.
Q. Can this technology be applied to both drones and satellites?
A. As I mentioned earlier, we operate across three segments. The first is space, where we develop optical systems for satellites. We are creating the MIRA space telescope for that purpose. The second is aerial, which includes drones and UAVs which utilise the LUMIRA series. For example, if a drone is approaching at a distance of 1km, we can deploy a system that continuously tracks it. The third is ground-based applications, such as pan-tilt systems mounted on the ground that can rotate to monitor specific areas. The BUHO series installed at the Vizag Port is an example of this system. Depending on the required range and platform, we can install either day or night cameras. In this way, we offer solutions across all three segments, with products tailored to the specific needs of each category.
Q. What is the toughest challenge in building these space cameras?
A. Initially, the toughest challenge was manufacturing the required optics, as the technology requires ultra-precision diamond turning, which was not readily available in India for private companies until recently. Through our collaboration with HHV Advanced Technologies, they procured the necessary machinery, significantly reducing lead times and ensuring the high precision required for space applications could be developed in India itself. It is for this very reason that we partnered with HHV Advanced Technologies which is also a strategic investor in EON Space Labs, along with MountTech Growth Fund. While we could have attempted to manufacture these components on local machines, the quality would not have met the required standards. With these advanced machines, we are now ahead of where we expected to be. In the future, we aim to establish our own in-house manufacturing capability. This collaboration has allowed us, as a deep-tech startup, to deliver high-quality products while building towards self-sufficiency, without requiring excessive capital to enable such an endeavour.
Q. Did you face any design challenges?
A. Not at this stage, because Sanjay brings extensive experience in designing optical systems, with almost seven years of experience in this field. Together with Manoj and me, we have worked on developing and validating these technologies. Sanjay has previously designed optics for ophthalmic institutes, including L.V. Prasad Eye Hospital, where we collaborated to manufacture his designs using diamond-turning machines and validate them against clinical requirements. The design and manufacturing concepts we follow are consistent, whether for medical applications or for space systems. Sanjay, with an IIT Madras background, also has research experience at the University of Roorkee and at the University of Manchester for almost three years, which further strengthens his expertise. As a result, design has never been a significant challenge for us more than the lack of specialised equipment required to develop such optics, which HHV Advanced Technologies has now filled.b
Q. How does Eon Space Labs make sure that the images are clear and accurate from space?
A. As mentioned earlier, we have to get our products validated at specialised space facilities, where they provide the functional and environmental testing, thermo-vacuum and temperature testing. We run our systems under these conditions and perform tests such as MTF (Modulation Transfer Function) to evaluate performance. These tests generate detailed reports that ensure the product can survive extreme conditions and deliver the performance it was designed for, a process we refer to as metrology.
Q. Can you explain how you manage to design and manufacture everything in-house?
A. There were challenges, particularly in manufacturing the optics, because very few precision machines were available in India at the time. It took us almost three years to gain access to these machines. Our investors, HHV Advanced Technologies and MountTech Growth Fund – Kavachh, recognised our vision and provided capital and strategic support, giving us access to their facilities. Now, we can share our designs, and they manufacture the optics to the exact surface quality, tolerances, precision, and specifications that we require.
Q. What is the cost of the precision machines used for diamond cutting that you mentioned earlier?
A. These are precision machines, such as the diamond-turning machines I mentioned earlier. One of these machines alone costs around INR 30 to 40 million. However, the machine by itself does not provide a complete solution. Peripheral equipment is also required, including coating machines, metrology instruments to verify surface thickness and tolerances, and facilities for protective layers and coatings. Overall, setting up a complete system would require an investment of approximately INR 100 to 120 million.
Q. Earlier, would an Indian startup like EON have needed to depend on an international company for this?
A. Previously, one of the challenges we faced was that international-grade precision machines were not being used to manufacture our optics. As a result, we had to design our systems around the limitations of the available equipment, which meant we could not fully optimise our designs. Now, with access to advanced precision machines, we can design optics to the full capability of the equipment. For example, one of our products, the Naga night vision camera, previously weighed around 400 grams due to design limitations. With the new machines and improved design precision, we are now able to reduce the weight to less than 200 grams, significantly improving both size and performance.
Q. What is the target audience exactly? Where are these applications exactly being used?
A. For space applications, our target audience primarily includes satellite manufacturers who are currently procuring payloads, such as telescopes for earth observation and defence, from other countries. These traditional payloads are often three to four times bulkier and heavier than necessary. Our advantage lies in reducing the weight and size of these telescopes by three to four times while maintaining the same or higher resolution, making them far more cost-efficient for satellite integration. Immediate customers in this segment include companies such as Galaxeye, Dhruva Aerospace, Digantara, Kepler Aerospace, and Inspecity Space Labs, with whom we are actively in discussions.
For drone and aerial applications, potential customers include defence agencies such as the Army, Navy, and Air Force. Additionally, private companies like IdeaForge, Airbotix, Zebu Intelligent Systems, Arka Aerospace, and raphe mphibr have requirements for day and night camera payloads. Currently, many of these organisations import such systems, and we are now in a position to provide them with fully indigenously designed and manufactured solutions.
Q. Is Eon Space Labs working on any new projects or products?
A. Regarding new projects and products, we operate across three segments. In the space segment, we have a product called MIRA. The lenses for MIRA have already been manufactured, and we expect to begin initial testing early next month at facilities such as IIAP and LEOS(ISRO). Once the tests confirm that Mira is fit to fly, we plan to launch it into space later this year with ISRO. The same product is also scheduled to fly with SpaceX. In the aerial and ground-based segments, our current focus is on replicating existing imported products, allowing us to fulfil domestic demand quickly, market quickly, also while ensuring quality and performance and validating export readiness to service global demand.
Q. How large is the market for this technology, and who needs it the most, in your opinion?
A. Currently, for drones and aerial applications, the products we are manufacturing, namely LUMIRA and BUHO series, along with the upcoming product lines, are expected to generate approximately 300 to 350 million INR in orders within this year alone. These products are largely being imported at present, and no one is offering designs customised to the specific requirements of the customers. With the variety of products we are introducing, we can cater to different sizes, whether for large drones or smaller ones, providing tailored solutions that meet precise operational needs.
Q. How does the company make money from these imaging systems?
A. We have two revenue models. The first involves collaborating with satellite manufacturers who want to deploy their payloads but cannot afford to pay the full cost upfront. In this model, we charge a partial price for the payload, and the balance is shared based on the revenue generated from the data captured by the payload. The primary revenue model for these satellite manufacturers is derived from the revenue they generate for their clients. The second revenue model is a straightforward sale of the optical system, where we provide a tested and certified optical payload to the customer and receive a payment. For drones and aerial systems, we follow the second model, delivering fully tested products and generating revenue from sales. To ensure accurate testing, all our products are validated through NABL-accredited labs. We provide these labs with the product specifications, and they certify that the products meet the required standards, including military specifications where applicable.
Q. How much investment is typically required to develop and launch the products?
A. During our initial funding round, approximately INR 105 million or $1.2 million, was raised by MountTech Growth Fund – Kavachh and HHV Advanced Technologies to ensure that we could deliver high-quality products and collaborate to establish the necessary infrastructure and processes to keep operations running smoothly.
Q. Do you sell only the cameras or also the data that is captured by those cameras?
A. As mentioned earlier, the first revenue model involves selling the payload to, for example, a satellite company and jointly generating revenue based on the data captured for the satellite company’s customer. Currently, we are not directly involved in handling the data, as we are a deep-tech manufacturing company specialising in advanced optical payloads. However, our primary focus is also to ensure that our products function correctly and meet all required specifications. Once this is established, entering the data services space will become a straightforward next step for us and could be explored as the next evolution of EON Space Labs’ offering to customers in India and globally as well.
Q. Over the next two to five years, which areas of growth are you focusing on the most?
A. Our immediate focus is to ensure that our products are successfully deployed across all three segments: space, aerial, and ground, building confidence among satellite manufacturers, drone manufacturers, the armed forces, and other customer segments. Once we have established this confidence, we plan to raise a larger funding round of approximately USD10-15 million to set up our own in-house manufacturing facilities and establish exports. Currently, we rely on HHV for production; however, with a capital infusion into our own facilities in Hyderabad, we will have the capability to manufacture optics in-house, conduct R&D, and further reduce delivery lead times. Currently, lead times are approximately six to eight weeks, and our goal is to reduce this to three to four weeks, enabling us to meet market demands better.
Q. How do you manage global risks, given that regulations in the defence and space sectors are particularly strict?
A. One of our key advantages is that we operate across multiple segments, which allows us to provide customised solutions based on customer requirements. For example, if a client only needs the optics and not the complete system, we can supply just the lenses or lens assemblies. Recently, an international company placed a query for almost 10,000 units of the monolithic lens and other IR lenses that we have designed and can now manufacture. These products are not limited to defence applications. They can also be used in agricultural mapping with fleets of drones, solar panel monitoring, and thermal monitoring at electrical substations. Because the design and optics are entirely under our control, we have the flexibility to sell optics independently across the defence and civilian sectors, similar to companies like Sony or Canon, and integrate our lenses into clients’ existing systems. For example, if a client wants to replace lenses in a DSLR or binoculars with our optics, we can fulfil that order. This approach opens up multiple revenue streams and production opportunities beyond defence and space applications.
