Versabyte–Sanlayan Deal Strengthens India’s Defence Manufacturing Base

Bengaluru, India – Sanlayan Technologies, a vertically integrated defence electronics company, announced a strategic investment in Versabyte Data Systems, an undisputed leader in the defence power electronics market. The collaboration is a significant step in accelerating India’s journey toward technological self-reliance in the defence and aerospace sector. Founded in 1987 by PS Reddy, Versabyte enjoys OEM status for power electronics, serving marquee clients such as HAL, BEL, BDL, DRDO, Armed Forces, and key private defence OEMs. Versabyte has a proven track record of delivering cutting-edge solutions across land, air, naval, radar, and missile systems.

“Power systems is the heartbeat of modern defence equipment. Without it, the most sophisticated technology is nothing more than inactive hardware. Yet, a majority of this market remains import-dependent,” said Rahul Vamshidhar, Co-founder & CBO, Sanlayan. “Synonymous with quality and reliability, Versabyte is well-positioned to drive India’s push for import substitution. This partnership goes beyond business, it’s a step toward boosting India’s defence capabilities.”

The partnership allows Sanlayan to augment its defence stack with Versabyte’s high-reliability power solutions. Earlier, Sanlayan acquired Dexcel Electronics, a 25-year-old embedded systems company, while building in parallel, its 70-member in-house R&D team dedicatedly working on Radar and Electronic Warfare technologies. Together, these moves position the group to offer complete electronics solutions across the defence value chain.

Rahul further emphasized, “Versabyte will continue to operate as an independent unit under the Sanlayan umbrella, retaining its existing leadership and engineering teams. The collaboration aims to leverage our collective strengths to address both domestic and international markets.”

“Versabyte’s legacy lies in enabling India’s defence backbone silently and reliably for decades,” said PS Reddy, Founder & MD, Versabyte. “Partnering with Sanlayan gives us a clear and ambitious roadmap for the next five years. We will launch next-gen, high-reliability power solutions for radar, autonomous unmanned systems, electronic warfare, secured communications, and space platforms.” He further added, “With expertise in modular power supplies from 1W to 200kW, we are now setting our sights on scaling to 500kW for several emerging domains like Long-range Radars, Directed Energy Weapons (DEW), and Defence Space Applications.”

According to R Chandra Kumar, CEO, Versabyte, “Our vision is anchored in collaborative product development, new market expansion, and joint participation in strategic tenders. Together, we are building comprehensive ‘system-of-systems’ solutions that require highly efficient power management and control. This partnership will double down on R&D investments in order to capture a significant portion of India’s defence production target of INR 3 lakh crore and export target of INR 50 thousand crore by 2029.”

Chandra Kumar, Former Executive Director, Bharat Electronics Ltd (BEL), Bengaluru, led Versabyte to a revenue of INR 67 crore and a post-tax profit of INR 16.5 crore in FY25, along with an order book of INR 210 crore and a pipeline exceeding INR 200 crore. He further adds, “Sanlayan’s startup agility, combined with our legacy of reliability, will help us streamline operations to deliver faster, better, and at scale. In the coming years, we aim to double our infrastructure, triple our turnover, and quadruple our workforce to meet the growing demand for indigenous military hardware.”

Previously, Sanlayan raised INR 186 Cr as part of its Series A funding round. The announcement aligns with Sanlayan’s three-pronged strategy: strategic acquisitions, in-house R&D, and global partnerships to indigenously develop radar and electronic warfare solutions.

Image Source: Sanlayan Technologies