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What would you tell us if you would have to pitch your business to us in one phrase?

We are engaged in development of multifunctional non-aerodrome based unmanned aerial vehicle (UAV SmartVehicle (SV)), designed for air cargo traffic in hard-to-reach areas. We build the cargo delivery business system using our UAV. That unmanned aerial vehicle of short/vertical take-off and landing (S/VTOL) with the gas-dynamic control is actually a new type of aerial vehicle.

The technical essence is that the jet engines are integrated into the airframe, and they are installed in the wings and fuselage according to tandem configuration.

What problem does your product solve?

Our UAV is capable of taking off and landing outside aerodromes, from the ground. The UAV does not require a runway, it takes off almost from its place along dynamic trajectory, it has a high cruising speed and is therefore able to provide fast cargo delivery to almost any point chosen by the Customer.

Tell us about the technology behind your product or service?

The technical essence is that the jet engines are integrated into the airframe, and they are installed in the wings and fuselage according to tandem configuration. The jet engines plane nozzles are specifically adjoined with the UAV lifting surface areas, and provide a gas-dynamic control system of the UAV. The gas turbine engines, electric motors or hybrid-type propulsion systems may be used as the jet engines.

As a result, the UAV demonstrates high maneuverability and steadiness during take-off and landing, and if necessary, the UAV may be operated in hovering mode. The UAV takes off on dynamic inclined line using minimum take-off time, and goes into forward flight without any divergent dangerous transition modes.

Therefore, the S/VTOL UAV has significant competitive advantages over aircrafts and helicopters of customary aerodynamic configurations.

The developed 3D design of the UAV and a scaling up prototype, which was demonstrated to experts and customers, confirms the world-class of engineering solutions.

The UAV key specifying nodes met quantitative and experimental tests, acknowledging the efficiency and competitive advantage.

A number of fundamental and applied research of plane slot and radial slot jets, their compatibility with aerial vehicles wings lifting surface areas and aerial vehicles control elements.

Is it protected through patents?

The invention is protected by the Russian Federation patents. The company is the patent holder of two "new" patents for inventions that have world-wide novelty, and which are challenging for further patenting. The company's engineers are also the authors of three inventions in respect of this technology.

Nowadays we performed a lot of numerical and experimental tests related to aerodynamics, we developed a digital standard, the UAV twin, made a large-scale UAV prototype with electric engines and automated control system.

What exactly is your product and how does it solve the problem?

The UAV developed by us and the cargo delivery business system will provide for fast, all-season and all-weather delivery of cargo to clients nearly to whatever place specified by the Customer.

Our clients are the companies engaged in carrying out of air cargo transportations for various customers, as well as the life support entities in hard-to-reach areas of various countries in Asia, Africa, etc., in the North, Arctic Region, Siberia, in the Far East, deserts, etc.

The UAV may be operated for transportation and delivery of cargo nearly in any industry sectors, i.e.: gas, oil, Ministry of the Russian Federation for Civil Defence, Emergency Management and Natural Disasters Response, Border Guard, communications and mass media, marine fleet and railways, electrical energy industry and postal service.

Why is NOW the right time to enter the market?

The most of companies are similarly now at the development stage, and we have a great opportunity to compete with them. The forthcoming wide-scale yield of such-like UAVs is being planned to occur in 2023, and the date of implementation of the project supervised by us.

How did you validate this with potential customers?

We coordinate technical and economic requirements as to the invention with the major potential customers engaged in performance of more than 60% air cargo transportation, with public services and institutes which determine economic development of country and hard-to-reach areas.

How does your product fulfill their needs?

The UAV may deliver cargo of up to 1000 kg over a distance of up to 1000 km during two hours almost to any place to be specified by the customer, and equipped with landing ground with minimum dimensions of 30 x 50 m subject to minimum requirements.

It is capable of providing nearly all-weather service of up to 4000 hours per year, and ensuring delivery of goods to clients as soon as practically possible.

In Russia there are E-business requirements as follows, i.e.: delivery of goods during 72 hours across 90% of the country.

Tell us about your competitors.

Our competitors are the unmanned helicopters and aircrafts of short/vertical take-off and landing, designed for transportation of goods, as well as the companies engaged in their operation.

The Table 1 represents specific inventions of the other companies, which are classified according to design features.

These features offer in general the possibility to evaluate advantages and disadvantages of the UAV being offered, which are capable of cargo transportation.

 

Advantages

Disadvantages

Photo

Fixed - wing

  • Long range

  • High speed

  • Endurance

  • Horizontal take-off, requiring substantial space (or support, e.g., catapult)

  • Inferior maneuverability compared to VTOL (Vertical Take-Off and Landing)

Unmanned helicopters

  • Vertical take-off/landing

  • Maneuverability

  • High payload possible

  • Expensive

  • Comparably high maintenance requirements

  • Increased susceptibility to weather conditions

With rotary wing / engines

  • Combination
    of fixed-wing and VTOL advantages

  • Expensive

  • Technologically complex

  • generally dynamically unstable in take-off and landing modes

With gas-dynamic control

  • Combination
    of fixed-wing and VTOL advantages

  • "Spot" take-off/landing

  • Maneuverability

  • High payloads

  • Comparably high maintenance requirements

With lift engines

  • Combination
    of fixed-wing and VTOL advantages

  • Technologically complex

  • Comparably high maintenance requirements

  • Low payload

Multirotor

  • Vertical take-off/landing

  • Inexpensive

  • Easy to launch

  • Low weight

    • Limited payload

    • Short flight time

    • Susceptible to wind

Table 1

Why are you in the position to be more successful than they might be?

The VTOL UAV designed by us is much more competitive as compared to them because of the following, i.e.:

  • it is more maneuverable and steady during take-off and landing;
  • it does not require aerodromes and runways;
  • it is safer in as much as there are no dangerous blades or propellers;
  • it is more reliable in as much as there are no any transient take-off and landing modes; it is quite simple in its configuration;
  • it is much more environmentally-oriented because it does not have heavy force and thermal effect on a surface;
  • it is lower priced and much more effective in service due to superior aerodynamic and lifting characteristics owing to integration of the aircraft engines, wings and fuselage;
  • it is capable of handling activities in a confined space;
  • it demonstrates high capacity of cargo compartment, as well as easy and convenient access for loading and unloading.

How do you plan on acquiring market shares with you product?

Nowadays, we plan:

  • to acquire manufacturing capability for VTOL UAV
  • to undertake the sales of UAVs
  • to establish logistic company
  • to establish operating company, and to purchase shares in existing companies

What major milestones has the company achieved?

KAMA, Ltd. has been established for the purposes related to management of project dedicated to development of VTOL UAVs and air cargo transportation market. The Company is the patent holder for inventions, and executes author's technical supervision. In order to implement the project, the Company signed commercial contracts with core businesses and concerned entities, established a consortium and may be deemed to be the head of such consortium.

The following milestones:

  • elaboration of design and process control documentation
  • elaboration of production process, including inter alia the use of composites
  • development of automated control system and its software
  • acquisition of five jet engines
  • manufacture of two airframes for UAV for the purposes of testing and development
  • manufacture of one prototype of full-scale flying technology demonstrator
  • certification of UAV

How are you going to make money, ultimately?

The cost of one UAV may be from two and up to three million US dollars. The cost of transportation of cargo weighing 1 t for 1000 km - starting from 6 000 US dollars.

The company which operates 100 UAVs is capable of making arrangements for cargo traffic being equal to 100 million t/km, and may collect the proceeds in the amount of 600 million US dollars per year.

Taking into account the competitive advantages of UAV, the companies which operate our UAV will be capable of taking on up to 10% of air cargo transportation market in international markets. The growth of air cargo transportation is in excess of the growth of global economy level, and is even more challenging in emerging market areas.

What is your sales approach?

Sale of licenses and rights to manufacture, operation of VTOL UAVs.

Sale of software licenses for automatic control system for VTOL UAVs.

Sale of software for arrangement of operation, maintenance and repair of aircraft park.

Equity interest in concerned companies authorized capital, where we will be able to increase significantly the cargo turnover.

Receipt of profit from operating and logistics company.

How are you going to acquire customers and conquer the market?

We are going to establish logistics and operating companies specializing in fast delivery of goods to hard-to-reach areas, of all-season and all-weather operation.

We plan to perform batch manufacturing of UAVs, to sell it and its transportation services for export.

Has the company worked with any major players in the Aerospace industry?

The project team and the company's partners being the members of consortium are long-term experienced with the best-known development companies, the manufacturers in aviation and airspace industries, namely: The JSC Sukhoi Company, Antonov Company, ROSTEC, The JSC YMZ (Yuzhmash) , РКК «Energia», Central Aerohydrodynamic Institute and others.

Tell us your story.

Who are you, and why are you qualified to lead this opportunity?

The development of our UAV has a great history. The studies were carried out independently and simultaneously by our team's members, friends and colleagues, in leading specialized firms and corporations.

Certain solutions were successfully implemented abroad.

The unification of like-minded associates into a goal-oriented accentuated new company resulted in generation, as we believe, of a breakthrough solution in terms of short/vertical take-off and landing aerial vehicle.

This will provide us with opportunity to fight off competition in the UAV Cargo manufacturing and air cargo transportation market.

Subject to the scale of challenges, we have already established the Consortium of companies concerned in the project under review.

Our team may be treated as an alloy of successful friends and colleagues, experience and youthfulness who have impressive achievements in management of production and projects, performance of research in the field of aeronautics and space, creation, testing and operation of aeronautical equipment, automatic control systems and IT.

Who founded and is running the company?

Tell us about the team and leaders?

Vladimir Sychev - the company's founder, and team leader.

He graduated from Kharkiv Aviation University. During the period of 30 years being in Russia and abroad, he performed his respective activities running the teams of professionals in major private and public companies and institutions, while organizing and implementation of the hardest industry projects and challenges oriented towards the upgrade of industrial construction and scientific research. He is the author of development of various innovative projects and programs in the largest companies in Russia, in various industries. He was a success in implementation of more than 40 major industry and innovative projects, including in particular the benchmark global companies such as Honeywell, Emerson, Siemens. Vladimir Sychev is the author of more than 10 inventions. He is supported in his activities by the respective Japan CCP and PMI projects management certificates.

More than 20 years of experience in organization and management at a senior management level in the well-known business companies of Russia. The decades of experience in multinational environment, with foreign companies, experts and senior officials of efficiently-run companies in the USA, Australia and Great Britain.


Vadim Anatolyevich Oleynikov - the class 1 evaluation pilot, airline pilot. He mastered 67 types and modifications of aircrafts, he created aeronautical equipment, starting from consideration of requirements specifications, sketches, layouts, and up to carrying out of flight tests; starting from the stage of general designer and up to official public tests. He graduated from Orenburg Air Force Aviation School of Pilots; qualified as the engineer-pilot; Moscow Aviation University, majoring in aircraft manufacturing.

Doctor of Engineering Sciences, Director of the Aviation Center. Master of Sports in Aircraft Sports.


Dmitry Pshichenko - the professional of IT Technology and automated enterprise control systems. He held an honours degree from Moscow State Technical University of Civil Aviation; his total years of service in information area exceeds 15 years. MBA, Information Management (CIO) in the Russian Presidential Academy of National Economy and Public Administration. Key competencies are the build-up of competitive advantage for the company using people, IT systems and processes. Build-up of primary and key competencies of the company, ensuring competitive advantages. Strategic and operating planning of business areas activity. Greenfield establishment of efficient teams, recruitment, adaptation, development, training and certification of staff, appraisal and coaching technology.


Boris Kulikov - the facilitating agent. He graduated from Moscow State Institute of International Relations. He has a well-proven rewarding experience in building of mutually beneficial, trust-based and honest partnership relations, including the same with foreign partners; management of investments in technological and knowledge-intensive products and technologies. He was employed for years by well-known Russian and foreign commercial businesses.


Alexander Ambrozhevich - the research advisor and generator of solutions, Doctor of Engineering Science, professor, expert with more than 40 years of scientific and research experience in aviation and engine building. He took part in resolution of the most complicated technological and design challenges; the author of know-how and development of numerical modelling of engines and aircrafts implemented in resolution of practical complicated production applications. Moreover, he is the author of 8 inventions and over 90 scientific and technical publications


Andrei Kartashev and Alexei Korenev are the authors of engineering development and projects in aeronautical engineering, aeromodelling and UAVs. The energy and golden future for the team already having in their portfolio real, successful, unparalleled completed aircrafts and UAV projects as part of well-known research institutes.

How much funding do you want to raise?

We would like to offer you the share in the company and to obtain gradually 18 million US dollars in investments to build up flight demonstrator, to elaborate design and process control documentation, production technologies, automatic control system and its software, to acquire five jet engines and certification of UAV, to make your company a part of our consortium.

Please paint us a picture of where this is going to bring your company five years from now.

Five years later, i.e. in 2025, we must operate 100 UAVs and provide for cargo transportation of 100 tons of cargo at a distance of 3000 km per day. This will provide with opportunity to take revenue in the amount of at least 1.8 million US dollars per day. Five years later, we must sell at least ten licenses for use of our technologies and sell at least 20 licenses for use of UAV automatic control system software and UAV enterprise asset management software as well.

At this moment, what is the status of the project?

2000 - Conducting fundamental, numerical and scientific research in the field of aerodynamics, aircraft and engine building, development of a new type of VTOL concept.

2009 - Start of applied scientific experimental research, initiation of project work.

2014 - Development of a numerical model and conducting numerical experiments.

2017 - An experimental lifting module and a digital standard were created, experimental studies of the lifting module were conducted, and design work was initiated.

2019 - Received 2 patents in the Russian Federation. Conclusion of strategic contracts with manufacturers. Creating a layout, receiving letters of interest, and forming a consortium.

2020 - Creating a large-scale layout, working out design options, patenting abroad (in the US), attracting a strategic investor and moving the development office to the investor.

2023 - Creating a full-scale flying demonstrator and conducting flight tests.

2026 - Development of small-scale production and conquest of the freight transport market.

If you have financial projections?

One cargo-type VTOL UAV, capable of transportation of 1 t (ton) of cargo over a distance of 1000 km and at a speed of 500 km/h, can provide for cargo turnover of up to 1 million t/km per year, with a flight time of 2000 hours per year. With the estimated cost of total charges related to air cargo transportation with cargo turnover being equal up to 20 000 t/year in the amount of 380 rubles/t km, the revenue from one UAV operation will be equal to 380 million rubles/t km per year.

S = 1 t x 500 km/h x 2000 h x 380 rubles/t km = 380 million rubles/year.

The principal component of expenditures for air transportation will be the fuel costs, the average cost of which is 50 thousand rubles/t. The fuel consumption per 1000 km will be 2200 kg. Total fuel costs per year per 1 million km S = 2 200 000 kg x 50 rubles/kg = 110 million rubles per year. Other average variable expenses for UAV are being estimated to be not more than the fuel costs = 110 million rubles per year.

Total average VARIABLE expenses will be equal to 220 million rubles per year.

CONSTANT average expenses, i.e. the factory overhead costs will be equal to 120 million rubles/year.

In that case, the margin of profit may be equal up to 40 million rubles per year, that will provide with the opportunity to reckon upon high return from investments in build-up of the UAV. The expected value of S/VTOL UAV - within the boundaries of 120 million rubles.