Magellanic Cloud is a technology conglomerate built by buying and scaling niche businesses - it started as a project company in 1981, shed its legacy FMCG and food divisions, and reinvented itself through a string of acquisitions that turned it into a provider of IT services, e-surveillance, drones, and fintech. The recurring approach is to acquire companies with existing customers and domain expertise, then feed them shared corporate resources, cross-selling, and process discipline - the company calls it an ecosystem of strategically autonomous subsidiaries with critical synergy. # Business segments Four engines at different stages - a large IT staffing and consulting business that generates the bulk of turnover, a surveillance operation with deep bank contracts, a drone manufacturer chasing India’s first logistics certifications, and a newly acquired fintech vertical still taking shape - each built by acquisition and run with shared back-office muscle. ## 1. IT consulting and workforce solutions: the group’s revenue engine **Two US-headquartered subsidiaries - one providing cloud and AI consulting, the other supplying contract IT talent - together account for more than four-fifths of the company’s turnover, mostly from exports.** - **Staffing that puts people on site** - JNIT Technologies, another 100%-owned US subsidiary, provides contract staffing, managed workforce services (payroll, compliance, vendor management), permanent hiring, and workforce consulting, with an onshore team of 200-250 people and an offshore team, spearheaded by Motivity Labs Inc., of 300-315 mostly billable staff in India. The model is straightforward: resources work on short- and long-term client projects, and the company earns a margin on each placement. - **Exports drive the business** - exports of services contributed roughly 82% of total turnover in FY25, with customers in the United States and Singapore, while IT consulting as a whole represented about 83% of turnover. That concentration means the engine’s health is tied to global enterprise IT spending. - **Certifications open doors** - the company holds ISO 9001, ISO 27001, and ISO 20000 certifications, and both Magellanic Cloud and Provigil Surveillance Limited have achieved CMMI Maturity Level 3, which signals to large buyers that delivery processes are predictable and auditable. ## 2. E-surveillance: AI-powered monitoring with a lock on Indian banks **The company monitors over 25,000 locations for more than 100 clients, earning recurring monthly fees per site under multi-year contracts - and banks are the anchor customer.** - **Acquired with the client list** - the business was bought in FY22 through the all-cash acquisition of IVIS International and Provigil Surveillance for roughly ₹330 crore, bringing with it 100-plus clients and 25,000-plus locations, mostly in the BFSI sector. The two subsidiaries had already spent over 15 years building e-surveillance systems for ATMs, vaults, and high-risk branches, so the company bought a going concern rather than building from scratch. - **Paid per site, per month** - revenue comes from project-based contracts won through competitive bidding, with a typical structure being a fixed monthly fee per branch or ATM. For example, one public-sector bank contract covers 1,848 branches at ₹6,650 per branch per month over five years, while another covers 3,032 ATM sites across eight geographic circles. That creates a subscription-like stream once installations are complete. - **Beyond banking** - the company is pushing into retail surveillance, gold-financing vaults (three players onboarded across 270 locations), railway stations (an ₹85 crore project for 484 stations), and highway toll plazas (a ₹32 crore order from NHAI for vehicle-count cameras across eight states). The e-surveillance vertical recorded over ₹118 crore in new orders during a single quarter, showing the pipeline is diversifying. ## 3. Drone technologies: India’s first certified logistics drone maker **A 70%-owned subsidiary manufactures drones for cargo delivery and agricultural spraying, holds the country’s first DGCA type certification for a logistics drone, and is building a delivery network with a logistics partner across 160 cities.** - **Certification as a moat** - Scandron received DGCA Type Certification for its CargoMax 500HE logistics drone in February 2024, the first such certification for a logistics drone in India, and also secured certification for an agricultural spraying drone with an 8-litre tank. Being first to certify creates a window where competitors cannot legally operate similar payload drones. - **Two product families** - the CargoMax series includes a 5 kg payload variant with 30 km range and a 20 kg payload variant with 20 km range, both flying at 12 metres per second with about an hour of endurance. The agricultural drone is designed for agrochemical spraying and is being positioned for the government’s ‘Namo Drone Didi’ scheme that aims to put drones in the hands of rural women entrepreneurs. - **Delivery partnership de-risks operations** - Scandron has a strategic partnership with CriticaLog India, where CriticaLog handles customer-facing activities and Scandron runs the drone operations, starting with intra-city healthcare shipments in Bengaluru and expanding to four more cities. The company is doing route-probing to map safe flight paths and avoid congested areas, which is the operational groundwork needed before commercial deliveries can scale. - **Orders are starting to flow** - the first major logistics order was worth ₹43 crore from an Indian robotics firm for 45 CargoMax drone kits including airframes, flight controllers, payloads, and training. A subsequent order of ₹5 crore basic value followed in May 2025, and the company targets a 5% share of the estimated USD 6 billion last-mile delivery market in India. ## 4. Fintech: a newly acquired vertical still being defined **The company bought a 100% stake in Finoux Solutions through a share swap in FY26, adding a fintech subsidiary whose specific products and clients are not yet detailed in filings.** - **Acquired for equity, not cash** - the acquisition was completed via a preferential allotment of roughly 46.7 lakh shares at ₹75 each, valuing the deal at about ₹35 crore, with shareholder approval obtained in June 2025 and shares allotted in November 2025. Using equity preserved cash for the other businesses. - **Listed as a distinct vertical** - the company now references “defense, fintech, and smart infrastructure” as its opportunity areas, and Finoux sits as a subsidiary handling fintech within the group structure. Beyond that, the dossiers do not describe its products, revenue model, or customer base. # Group structure and partners **A listed Indian holding company controls seven principal operating subsidiaries across four countries, with a structure that is being simplified through an ongoing merger of its largest surveillance subsidiary into the parent.** - **Holding company** - Magellanic Cloud Ltd is listed on BSE and NSE, headquartered in Hyderabad’s Knowledge City, and originally incorporated as South India Projects Limited in 1981 before changing its name and shifting its registered office from Maharashtra to Telangana. - **Operating subsidiaries** - the group includes Motivity Labs Inc. (US, digital transformation), JNIT Technologies Inc. (US, workforce solutions), Provigil Surveillance Limited (India, e-surveillance), IVIS International Private Limited (India, video monitoring - being merged into the parent), Scandron Private Limited (India, drones, 70% stake), Finoux Solutions Private Limited (India, fintech), and MCRAY XTEND INDIA PRIVATE LIMITED (India, UAV and defence JV, 60% stake). - **Strategic partners** - Motivity Labs partners with BrowserStack for cloud-based testing, Scandron partners with CriticaLog India for drone delivery across 160 cities, and the MCRAY SPV was formed in collaboration with Rayonix Tech Private Limited for defence-focused UAV technology. - **Capital-raising levers** - the board has approved a qualified institutional placement of up to ₹500 crore, a preferential issue of shares and convertible warrants aggregating roughly ₹492 crore, and an increase in the investment ceiling for NRIs and Overseas Citizens of India from 10% to 24%, giving the company multiple avenues to fund growth.