[Exclusive Interview] This Made In India Robotics & Automation Company Aims Rs 1000 Crore Revenues In Next 2 Years

Recently we interacted with Mr. Sangeet Kumar, Co-founder & CEO, Addverb – India’s leading automation and robotics company. We asked him about the vision of his organization, and their future plans.

Here are the interview highlights:

1. What is Addverb? Brief us on the company.

• Addverb is a leading global robotics company headquartered in Noida, India, providing end-to-end warehouse automation solutions. Within a short time, Addverb has set up offices in the USA, the Netherlands, Australia, Singapore, the UAE, and Germany, along with R&D facilities in India and the USA. Addverb designs and delivers intelligent automation solutions with a combination of its wide product portfolio consisting of Mobile Robots, ASRS, Picking Technologies, and Warehouse Management Software.

Using a four-pronged strategy, Addverb discovers the intralogistics issues that its customers encounter by fusing the strength of fixed and flexible automation. Addverb identifies the best automation for a customer’s issue, creates a customized solution with its own hardware and software, delivers and executes the project, and offers dedicated after-sales support. Addverb has delivered innovative warehouse automation solutions to 300+ global clients like Coca-Cola, PepsiCo, Unilever, Johnson & Johnson, Reliance, Flipkart, and Amazon to name a few.

2. How has the journey of Addverb been from a homegrown company turned global.

• The Addverb journey began at Asian Paints, where the five co-founders worked on automating warehouses. Since robotics manufacturing was not India’s strength, Asian Paints had to import the machinery, equipment, robots, and everything else needed for this task. The five co-founders realised the need and decided to launch Addverb from a two-room setup in Delhi’s Tagore Garden neighbourhood. Addverb went into a trial and error phase during the first year of operations, and the focus was more on finding the right fit of suppliers and enablers. 

Despite no external funding, the company could generate revenue of INR 1 Cr in its first year (FY 2016-17). But to scale up, the company needed funds. In initial year, the company raised invest $1 Mn in a pre-seed round from Mr. Jalaj Dani, the Co-promoter of Asian Paints. In addition, Addverb also raised INR 70 Lakh from GAIL India in its first year.

The biggest challenge in that first year included setting up components manufacturing in the country while simultaneously carrying out R&D or product development and cycle. Despite several challenges, Addverb posted INR 1 Cr. Revenues during FY 2016-17 grew to INR 10 Cr, INR 65 Cr and INR 200 Cr. between 2017 and 2020. In FY22, the company clocked in revenue of around 40 million USD last financial year and aims to achieve INR 1000 Cr in revenue by FY25.

Addverb’s majority revenue, 80 per cent, has been coming from India. The company does have customers in Singapore, Australia, the Philippines, Brazil, the US, the Netherlands, and the UK, among others.

3. What are the different range of products the company has?

• Addverb delivers the automation solutions with a combination of its wide product portfolio consisting of Mobile Robots, ASRS, Picking Technologies, and Warehouse Management Software. Our product portfolio is as follows:

• Cruiser: This pallet shuttle robot is equipped with state-of-the-art electronic components inside it which enables vertical space utilization, facilitates FIFO & LIFO operations for safe and faster pallet load movements.
• Dynamo: Dynamo, the robust autonomous mobile robot powered by natural navigation, enables efficient and seamless material movement. It can carry payloads of up to 1500 kg.
• Quadron: The versatile carton shuttle robot, that swiftly enables accelerated picking, order sequencing and order fulfilment, driving the storage efficiency through the ceiling. It comes with a payload capacity of 30 Kg
• Zippy: The ultra-fast moving Sorting Robot performs 100% accurate SKU level sortation up to 30,000 sorts/hour
• Rapido: Pick-To-Light through our own electronic hardware and in-house software enables high-speed order fulfilment operations, with best-in-class picking rate and outstanding productivity
• Zesty: Zesty is based on Voice-directed picking technology powered by indigenously developed electronic hardware, offers paperless and hands-free order fulfilment solutions for smart warehouses, enhancing accuracy and productivity
• Multi Pro: Our shuttle based ASRS system for multi-deep pallet storing, adept at handling increased warehouse demands of intensive material storage and handling. It comes with a payload capacity of up to 1000 kg.

4. What are the key robotics trends in the market and which market segment is experiencing maximum demand for robotics?

• AMRs/ AGVs

Forklifts and conventional fixed automation solutions, such as ASRS cranes and shuttles, which need extensive infrastructure, are progressively being replaced by hybrid or contemporary flexible automation solutions, which include autonomous mobile robots and automated guided vehicles. By expanding the fleet of robots and making just minor modifications to the infrastructure, these adaptable systems may be scaled up with ease. 

• Cloud-based warehousing management systems

The consolidated access to information offered by cloud-based WMS helps to keep total control over the inventory and improve scalability. WMS aids in the simpler integration of other applications to simplify and streamline operations. 

• Internet of Things

The Internet of Things (IoT) is a network of physically connected devices that are integrated with electronics, sensors, and software. These networked objects communicate with one another over the internet. It is critical in the industry and other contexts for achieving high productivity, efficiency, and a safe working environment. IoT in the supply chain is used to have better communication between the suppliers and the customers and increase the speed of shipment and delivery. This will be further boosted with the introduction of faster 5G network.

According to a report by skyquest, The size of the global robot market was estimated at USD 29.81 billion in 2021, and it is anticipated to increase at a CAGR of more than 17.84% over the forecast period to reach USD 94.06 billion by 2028. (2022–2028). With around 30% of the worldwide market, the automotive industry continues to be the largest consumer of industrial robots.

5. How emerging technologies like AI, ML, IoT and 5G changing the robotics landscape?

• Emerging technologies like AI, ML, IoT, and 5G are significantly changing the robotics landscape in several ways:

• Increased Efficiency: The integration of AI and ML technologies in robotics has resulted in improved automation and efficiency. Robots equipped with these technologies can now perform complex tasks, recognize objects, and even learn from their experiences.
• Better Connectivity: The emergence of 5G networks has improved the connectivity between robots and other devices, resulting in faster communication and data transfer rates. This enables robots to operate in remote locations and collaborate more effectively with other robots.
• Enhanced Sensing: IoT technologies have allowed robots to be equipped with sensors that can gather and transmit data in real-time. This provides robots with a more comprehensive understanding of their environment and enables them to make more informed decisions.
• Improved Safety: AI-powered robots are now equipped with safety features that can detect and avoid potential hazards. This makes them safer to work with, reducing the risk of accidents and injuries.

Overall, these emerging technologies are transforming the robotics landscape, enabling robots to perform more complex tasks and operate more efficiently, safely, and collaboratively. This has the potential to revolutionize many industries, including manufacturing, healthcare, and logistics.

6. How is your company working towards meeting the global and Indian market demand?

• Due to expanding consumer demand and a thriving e-commerce industry, there is an increase in need for warehouse management systems and automation solutions on a worldwide scale. As a result, we are seeing growth in the FMCG, F&B, and e-commerce sectors. Intralogistics systems are being used by businesses to manage inventory, supply chains, and to satisfy consumer demand for faster delivery.

As we can see, Addverb has created a global presence, particularly in the American market. The business is ready to satisfy the escalating demand. Moreover, Addverb has hired industry professionals to help ensure that the solutions are adaptable and adhere to industry standards. These professionals are well-versed in respective international markets.

7. How Addverb is faring with the aim to become a billion-dollar company in the next 5 years?

• Addverb is aiming to achieve billion dollars in terms of revenue in the next 5 years. In order to achieve the same, the company is establishing its second manufacturing facility which will be the world’s largest manufacturing facility. The new facility can manufacture up to 60,000 robots in a year. Recently, Addverb inaugurated its new software development centre in Noida, that will enable Addverb to focus on developing cutting-edge enterprise software solutions for the company’s expanding range of robots and will help it to become the world’s biggest robotics company and provide products and solutions in different domains like airports and healthcare apart from material handling and warehouse automation.

Currently 80% of our revenue comes from India and 20% from overseas markets, which will change in the next five years. Addverb intends to broaden its business operations to ensure that 50% of its revenue comes from international markets and 50% from the Indian market.