Sanlayan's investment in Versabyte supports local innovation in military electronics and import substitution, increasing India's defense tech self-reliance.

An integrated defense electronics company, Sanlayan Technologies, has acquired a strategic share in Versabyte Data Systems, a supplier of power electronics to India’s defense sector. Expanding across India's military technology value chain is the aim of this strategy.

Versabyte is in a strong place to lead India's import substitution movement. This collaboration is a step toward strengthening India's defense capabilities and goes beyond business. The company is allowed to continue as an independent subsidiary under its present management. A 70-member internal research and development team focusing on radar and electronic warfare technologies is being founded by Sanlayan, which previously purchased embedded systems firm Dexcel Electronics.

The company's FY25 sales and net profit were Rs67 crore and Rs16.5 crore, with an order book of Rs210 crore and a project pipeline of a similar amount, according to R Chandra Kumar, CEO of Versabyte and a former executive director of Bharat Electronics.  They will be able to improve operations to provide better, faster service because of Sanlayan's startup agility and their reputation for dependability, Kumar added. To address the increasing demand for native military hardware, they want to double the number of employees, triple the turnover, and double their facilities in the upcoming years.

In 1987, P. S. Reddy founded Versabyte, an OEM supplier of power systems, which is used by state-owned defense companies like Hindustan Aeronautics, Bharat Electronics, and Bharat Dynamics Ltd. Radar, missile, naval, and airline platforms are supported by its systems.

Previously, the business raised Rs186 crore in a Series A investment supported by venture capital firms in India. Both companies stated that they plan to increase their market share by working together on product development and participating in major agreements. India has set an annual target of Rs3 lakh crore for defense manufacturing and Rs50,000 crore for exports by 2029.