A deep dive into the business of security | Kapil Bardeja @ Vehant
From humble beginnings at IIT Delhi to leading a company that plays a crucial role in India's security infrastructure, Kapil's story is both inspiring and informative.
🚀 Early Influences and Entrepreneurial Spirit
Kapil Bardeja's journey into entrepreneurship was largely influenced by his upbringing in a business family. His father was involved in the auto parts industry, operating both manufacturing and trading sectors. From a young age, Kapil was exposed to the world of business, learning the intricacies of buying and selling. He recalls,
“The smell of money was exciting from the beginning. Those were the initial days when you actually start to learn how to make money.”
This early exposure instilled in him a deep-rooted entrepreneurial spirit, motivating him to explore opportunities and take calculated risks later in life.
Foundations of a Future Entrepreneur
Growing up, Kapil was immersed in the daily operations of his family business, which provided him with invaluable lessons. He learned about product assembly and the importance of customer relationships while working in the manufacturing setup and the shop in Kishmiri Gate, an auto hub in Delhi.
🎓 The IIT Delhi angle
Incubation and the Birth of Kritikal Solutions
In the early 2000s, IIT Delhi launched its incubation program, attracting a cohort of twelve individuals, including Kapil's future co-founders. They identified opportunities in research and development and decided to create Kritikal Solutions Private Limited in 2001-2002, focusing primarily on R&D for various businesses.
However, the journey was not without its challenges. With twelve founders, decision-making became complex and often cumbersome. Kapil reflected,
“The probability of success for a company with twelve founders is miniscule.”
Despite these challenges, the team persevered, offering services in embedded design and computer vision, which would later play a crucial role in their success.
Kritikal Solutions operated as a design house, working on various projects, including a significant initiative from the Ministry of Information Technology to develop an under-vehicle scanning system. This project was born out of a need for enhanced security measures following the parliament attack in 2001.
Kapil and his team were tasked with creating a cost-effective solution that could replace expensive imported systems. He shared,
“It looked like a very simple product, but very expensive, and we need more of these.”
This project became a defining moment for Kapil, serving as the catalyst that would eventually lead to the founding of Vehant Technologies.
In developing the under-vehicle scanning technology, Kapil's team faced numerous hurdles. They had to pivot from their initial approach, moving from an area scan system to a more sophisticated line scan system. This change required rethinking the entire technology narrative, which involved significant investments and time.
🌟 The Spin-off: Launching Vehant Technologies
In 2005, Kapil and his co-founder Anoop Prabhu decided to spin off from Kritikal Solutions to focus solely on product development and commercialization. This move was strategic, allowing them to channel their energies into building a dedicated company around the under-vehicle scanner technology. Kapil noted, “We wanted to start a company and commercialize the vehicle scanning system.”
This decision marked the official birth of Vehant Technologies, a company poised to revolutionize security with innovative technology.
To fuel their ambitions, Kapil and Anup sought funding from various sources. After spinning off, they secured an angel investment that provided them with the necessary capital to further develop their product. This funding was crucial, allowing them to refine their technology and prepare for market entry.
Kapil shared insights into their financial strategies, stating,
“We were confident that the product would sell. It’s essentially a product problem.”
With initial funding in place, they focused on building a robust business model that would attract customers and generate revenue.
With a clear vision and funding secured, the team at Vehant Technologies set to work on product development. They aimed to create a rugged and reliable under-vehicle scanning system that could meet the demands of Indian security agencies.
After two and a half years of development, they reached a significant milestone in 2008, when they were ready to commercialize their product. This was a critical juncture, as they needed to prove their technology in the market.
Kapil recounted,
“We were clear this is not the only product we want to build.”
They recognized that validating their product in the market was essential for future growth and expansion.
🏛️ Government Sales: Navigating the Complex Landscape
Entering the government sector posed unique challenges for Vehant Technologies. The initial sales process was slow, as they faced the daunting task of convincing government entities to invest in their advanced technology.
Kapil and his team quickly realized they needed expertise in navigating government sales. They hired seasoned professionals who understood the intricacies of dealing with government contracts and procurement processes.
Kapil shared,
“We realized our weaknesses at that. That’s very important for any entrepreneurs to look at.”
This strategic hiring paid off, as they began to establish relationships with key stakeholders in various government departments, paving the way for successful sales.
With the under-vehicle scanner gaining traction, Kapil and his team focused on expanding their product offerings. They understood that innovation was key to staying ahead in the competitive security technology market.
By 2010, they had already introduced additional products, including a number plate recognition system that complemented their existing technology. This diversification allowed them to cater to a broader range of security needs.
✈️ Aviation Sector: The Entry into Airport Security
Kapil Bardeja's foray into the aviation sector marked a significant milestone for Vehant Technologies. The company recognized the immense potential within airport security, which was largely dominated by foreign manufacturers. Kapil elaborated on this transition, stating,
“We realized that there was a gap in the market for affordable, high-quality security solutions, especially in the aviation sector.”
In 2012, Vehant Technologies launched its first X-ray baggage scanner, a pivotal product that would reshape the company's trajectory. This scanner, designed for single-view imaging, was initially met with skepticism due to the existing reliance on expensive imported alternatives. Kapil noted,
“We had to convince customers that our technology could match, if not exceed, the performance of established brands.”
By 2013, the company had expanded its offerings to include dual-view X-ray baggage scanners, essential for meeting aviation security standards. This innovation not only positioned Vehant as a key player in the Indian market but also opened doors for future growth in international markets.
As of 2023, Vehant Technologies has successfully deployed its baggage scanning systems across 90 airports in India, generating nearly ₹180 crores in revenue from aviation sales alone.
💡 The Role of Tech
Kapil and his team have continuously pushed the boundaries of innovation, integrating advanced imaging systems and artificial intelligence into their products. The company is currently developing cutting-edge solutions, including computer tomography systems for baggage scanning, which will revolutionize the way security checks are conducted at airports. These systems promise enhanced detection capabilities, providing security personnel with more data points for identifying potential threats.
Moreover, Vehant is exploring the integration of millimeter wave scanners, a technology that has gained traction in Western countries.
🌍 Impact of COVID-19
The COVID-19 pandemic posed unprecedented challenges for businesses worldwide, and Vehant Technologies was no exception. In early 2020, the company faced a significant downturn as airports and other public venues shut down. Kapil recalls,
“We realized that none of our products would sell when everything was closed. It was a wake-up call.”
Despite these challenges, the team quickly pivoted, leveraging their existing technology to develop COVID-specific solutions. They launched a UV disinfecting system and thermal cameras for temperature monitoring, which were critical in the fight against the virus.
As a result of these efforts, Vehant managed to maintain profitability and even recorded revenue of ₹53 crores in the fiscal year 2020, down from ₹64 crores the previous year. This resilience showcased the company's ability to navigate through adversity and emerge stronger.
🌆 Smart Cities and Analytics
As urbanization continues to rise, the concept of smart cities has gained traction globally. Vehant Technologies is at the forefront of this movement, developing solutions that integrate security and analytics for urban environments.
The company's foray into traffic violation detection exemplifies this commitment. By combining their existing number plate recognition systems with advanced analytics, Vehant can monitor traffic violations such as speeding and red-light running. This innovation not only enhances road safety but also generates valuable data for city planners.
Looking ahead, Kapil believes that the demand for enterprise analytics will grow significantly. He stated,
“The future lies in understanding patterns and behaviors, and we are well-positioned to capitalize on this trend.”
📈 Revenue Growth and Business Strategy
Vehant Technologies has experienced substantial growth over the years, with projected revenue reaching between ₹230 to ₹250 crores in the current fiscal year. This remarkable growth can be attributed to a well-defined business strategy that focuses on innovation, customer relationships, and market expansion.
Currently, the company derives approximately 70% of its revenue from security screening, with smart city solutions contributing around 25%. The remaining 5% comes from the emerging enterprise analytics sector.
🚢 Going Global
While Vehant Technologies has made significant strides in the domestic market, exporting security technologies presents unique challenges. Kapil highlighted the complexities involved, stating,
“Exporting security hardware requires navigating a maze of regulations and certifications, which can be a daunting task.”
The company faces stiff competition from established foreign players who have dominated the market for years. Additionally, geopolitical concerns often hinder the acceptance of Indian-made products in certain regions. Kapil noted,
“We need to build trust and credibility in international markets, which takes time and effort.”
🔒 Balancing Surveillance with Privacy Concerns
As the demand for surveillance technologies grows, so too do concerns about privacy and data security. Kapil emphasized the importance of ethical considerations in their products, stating,
“We must ensure that our technologies are used responsibly and that privacy is respected.”
Vehant Technologies is committed to adhering to regulatory standards and implementing best practices to protect user data. Kapil believes that transparency is crucial in building trust with customers and the public. He added,
“We need to have clear guidelines on how data is collected, stored, and used.”
By prioritizing privacy alongside security, Vehant aims to create a balanced approach that addresses both safety concerns and civil liberties.
💡 Advice for Aspiring Entrepreneurs
Kapil Bardeja's journey serves as a valuable source of inspiration for aspiring entrepreneurs. He encourages them to focus on building a sustainable business rather than chasing funding. He stated,
“Funding should not be the goal; generating revenue and profits should be the focus.”
Additionally, Kapil emphasizes the importance of adaptability in the face of challenges. He noted,
“The ability to pivot and innovate is crucial for survival in today's fast-paced business environment.”
Finally, he advises entrepreneurs to surround themselves with a strong team. He believes that collaboration and shared vision are essential for success, stating,
“Building a great team is about recognizing strengths and weaknesses and finding the right people to complement your skills.”
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