The Exchanges

Q So what has been in the last, what is the magic recipe for the last four years?

A So one thing is that government started seeing the benefit of simulators. You know, one of the, Terry did a study on sustainability, and they said a 15 crore investment over 30 years will result in a savings of 387 crores. You know, that's like almost 25 X, uh, saving happening. So that was a kind of a shocker. And then, you know, then this is much more efficient. The people who get trained on a simulator versus actual thing, this is a much more, uh, result oriented thing. And then the time, you know, you just imagine driving tank, going to a logistic nightmare, practicing there and coming. And then, then after that is the rear and tear of the actual equipment. So, given all these things, I think the simulator was, ah, and government issued a policy also. They said, ah, the simulation for, ah, policy framework for simulation, and the way they mandated the transition to simulators. So, all these almost like, you know, I would say a perfect storm in a positive sense, ah, took us to the next.

AI assessment note: “government started seeing the benefit of simulators... and government issued a policy also”

Q So over a period of time, you know, what has been the hardest part in convincing the Indian government for, for adopting your technology?

A So when we started in 93, you know, when we say, used to say simulators, they would say stimulators. I mean, I'm talking about really senior IAS officers kind of thing. So it wasn't really known at that point in time. So obviously I would also say stimulators to not offend them, but we have come a long way after that. And now, you know, everybody knows, likes the importance of, uh, simulators. And, uh, again, our biggest pain point was, you know, we had developed world first technology and you're asking three vendors kind of thing. Parikar came and he's, you know, really evaluated that. But even now, you know, at some places in state governments and other places, they say, yeah, that's a single vendor. But that continues to be a pain point for us.

AI assessment note: “our biggest pain point was, you know, we had developed world first technology”

Q Do you think India-China war is ever possible?

A Of course, I think. So what, what do you mean by it's ever possible? What was the war that happened in Operation Sundur? It was India-China war. What can Pakistanis do? They can do nothing. I mean, they are, they are slaves to China, and they were doing whatever China wanted them to do. This war was not between India and Pakistan. It was between India, China, Turkey, and Pakistan. So we were having a multi-front war, but next war will, they'll, they'll be part of the war actually. And we have to prepare for a multi-front war. And that is only possible when we do this kind of rigorous private enterprise R and D and create world-class product in the next five years.

AI assessment note: “Of course, I think. So what, what do you mean by it's ever possible?”

Q And what happened in the first 22 years of building the company from 19 to 23 to 2015?

A So it was actually very painful in the sense that, you know, you create the world's best products and, you know, you, you are, you just cannot sell because there are no other two other competitors. So, you know, they would, they, and, you know, they used to proudly say, listen, we don't care. We will keep diluting the specifications till we get the competition. And then we'll give the bid to who? Who's L-one? So you may have, you know, you may have a rocket, Falcon rocket developed here, but they'll keep diluting it till you become Sivakasi rocket or Diwali rocket, and they'll buy Sivakasi. They'll not buy what serves their purpose. So that was a challenge. But now I think it's really dramatically improved. They're using this IDDM category a lot. And you know, what happens is, If you look at Elon Musk's rocket versus Lockheed and Boeing, they were doing contract forever. Lockheed and Boeing had a cost plus contract model. And how many rockets flew? Almost no, almost none flew from them. Because if the moment you rocket start flying, the project has to be closed down. And then this guy who our, uh, Elon Musk said, he said, don't pay me if the rocket doesn't fly. Give me based on a milestone if I achieve. So he went and he got the, uh, he delivered. So when the skin in the game is there, Which is what happens when a private company has self-funded the R&D. When skin in the game h…

AI assessment note: “it was actually very painful in the sense that, you know, you create the world's best products and, you know, you, you are, you just cannot sell”

Q If you have to categorize this for our audience to know today, the IP that the government is using is defense, right? All the ammunition, tanks, planes. Trucks. How much is the IP owned by India today, what we are using?

A So, you know, for, for example, company, for example, simulators and an anti drone system, I think we, we all, so except for the, you know, like example, we may buy a computer, a windows based computer, but all the application layer over that is completely built by us. So the, I mean, the operating system, the Intel motherboards or, you know, I'm mostly talking about the equipment, not, not the, not the. So yeah. So I think, um, uh, depending on the equipment, the hardware has been designed, designed in house now. There are weapon systems that are being designed completely in house, and there is a hundred percent ownership of those, ah, things. So sometimes they do import the barrel of a weapon, but otherwise the IP is completely owned by India.

AI assessment note: “otherwise the IP is completely owned by India.”

Q Right. So have you seen that? Was that a true incident at any time in India's history in the past?

A No, I, I would not be surprised if that was, uh, in the, in the sense that, uh, I think now it has changed dramatically. I mean, uh, you know, uh, small thing happens. There is a big reaction at this point in time. I think that is completely, you know, the thing is now you are there. They're saying don't buy anything from foreign countries and they're begging you to indigenize everything. That's a complete, so a 180 degrees reversal. So the fact that these guys are pushing India to develop and trying to say, And you know, one of the thing I, you, you, very few people know is when, ah, again, you know, you should act in the interest of the country, very frankly, whether it's Zen or a foreign company. So when Parikar came to thing, he saw that, ah, almost 70% of the trucks, Tatra trucks were out of action.

AI assessment note: “I would not be surprised if that was, uh, in the, in the sense that”