Aditya Infotech’s ₹45.4 crore investment for a 30% stake in BLUE brings a new dimension to its CP PLUS 2.0 strategy. At the heart of the partnership is a technology that could reduce video storage and bandwidth requirements by up to 90%, potentially addressing one of the biggest cost challenges facing modern surveillance infrastructure.
As SECURITY TODAY reports, Aditya Infotech Limited, owner of the CP PLUS brand, is currently trading at approximately ₹4,170.50 per share (6 Nov 2026), giving the company an estimated whopping market capitalisation of ₹51,162 crore! The company made its stock market debut on August 5, 2025, listing on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Its IPO was priced at ₹675 per share, at the upper end of the issue price band.
The rapid expansion of video surveillance across smart cities, government establishments, critical infrastructure, industrial facilities and commercial enterprises has created an interesting paradox for the security industry. While advances in camera technology have made it possible to capture increasingly detailed video, storing, transmitting and managing this ever-growing volume of data has become a significant operational and financial challenge.
Higher resolutions, increasing camera counts, longer video retention requirements and the growing adoption of AI-powered video analytics are placing unprecedented demands on storage infrastructure and network bandwidth. For many organisations, the cost of managing video data is becoming as important as the cost of acquiring surveillance equipment.
It is against this backdrop that Aditya Infotech Limited, the company behind the CP PLUS brand, has announced a strategic investment of ₹45.4 crore in KGraph AI Solutions Private Limited, popularly known as BLUE, an AI-powered video compression technology company. Following Board approval, Aditya Infotech will acquire a 30% stake in BLUE on a fully diluted basis.
The investment represents another important step in the company’s CP PLUS 2.0 journey, aimed at evolving from a predominantly hardware-led surveillance business into an integrated provider of intelligent security solutions.
But beyond the investment itself, what makes this development particularly interesting is BLUE’s approach to a fundamental technology challenge: how can surveillance video be made significantly smaller without compromising the visual information that matters?
The Growing Problem of Video Data
A modern surveillance installation may comprise hundreds or even thousands of cameras, operating continuously and generating enormous quantities of video footage. As organisations move towards 4K cameras, higher frame rates and more sophisticated analytics, data volumes increase correspondingly.
Traditional video compression technologies have helped address this challenge. Standards such as H.264 and H.265 reduce file sizes by identifying redundancies in video frames and encoding information more efficiently. These technologies have become integral to practically every modern video surveillance system.
However, conventional compression largely approaches the video as a collection of pixels and mathematical patterns. It does not inherently distinguish between information that is critical to a security operator and visual information that contributes relatively little to the surveillance objective.
For example, consider a camera monitoring the entrance to a commercial building. The movement of a person, facial details, a vehicle registration plate or an object being carried may be important to an investigator. The surrounding walls, pavement, sky or other relatively static background elements may be considerably less significant.
Yet, conventional compression processes do not necessarily prioritise these elements according to their importance to human observation.
BLUE’s Semantic Codec technology attempts to address this limitation.
Understanding BLUE’s Semantic Codec
BLUE describes its technology as a perception-aware compression layer that works on top of the standard H.264 video codec.
The distinction is important. Rather than replacing the established video compression standard, BLUE adds an intelligent processing layer that analyses visual content and identifies redundant or less significant information.
In simple terms, it attempts to understand what is happening in a video scene and allocate data more intelligently.
This approach draws on the concept of human visual perception. When people observe a surveillance screen, their attention naturally gravitates towards meaningful activity: moving objects, people, faces, text, vehicles and other elements relevant to the situation.
A static background or an area with little visual activity generally attracts less attention.
BLUE’s technology uses this principle to identify areas where video information can be compressed more aggressively while retaining essential visual details in areas of greater significance.
The objective is not simply to make every pixel smaller. It is to reduce the amount of information being stored and transmitted by prioritising what is visually important.
How does it work?
The technology can be understood through three broad stages:
- Building on standard H.264 compression
H.264 is one of the most widely adopted video compression standards. It reduces video data by identifying similarities between successive frames and encoding changes efficiently.
BLUE does not replace this established standard. Its Semantic Codec operates as an additional layer, allowing the resulting video to remain compatible with conventional H.264-based playback and recording ecosystems.
This is particularly relevant to the surveillance industry, where compatibility with existing cameras, recorders and video management systems is essential.
- Analysing visual importance
The technology introduces perception-aware processing. It analyses the visual content of a scene to distinguish between elements that are important to human observation and those that contain relatively redundant information.
For instance, in a scene showing a person walking along a road, the person’s movement and identifying details may be more important than the relatively unchanged surroundings.
The compression process can therefore prioritise preserving essential details while reducing data allocated to less significant visual regions.
- Reducing redundant information
Video footage frequently contains substantial amounts of repetitive or low-value visual information, particularly in scenes where the background remains unchanged over extended periods.
By identifying these areas, the semantic layer seeks to avoid storing or transmitting unnecessary visual data at the same level of detail.
The result is a smaller video data footprint, with the objective of preserving the information that matters for viewing, monitoring and subsequent investigation.
It is important to understand that perception-aware compression is not the same as lossless compression. It is an intelligent trade-off that aims to maintain perceptually important details while reducing overall data requirements. Its effectiveness must ultimately be evaluated against the specific surveillance application and evidentiary requirements.
Up to 90% Reduction: What Could This Mean for Surveillance Operators?
According to BLUE, its proprietary technology can reduce video storage and bandwidth requirements by up to 90%, based on its deployment data.
If achieved in a particular installation, the implications could be considerable.
Consider a surveillance system that requires 100 TB of storage under its existing configuration. A 90% reduction in storage requirements could theoretically bring the equivalent data requirement down to approximately 10 TB.
Similarly, a reduction in bandwidth requirements could allow organisations to transmit video more efficiently, particularly across geographically distributed surveillance networks.
For large installations, the potential benefits include:
- Lower storage costs: Organisations could potentially retain surveillance footage for longer periods without proportionately increasing storage infrastructure.
- Reduced bandwidth consumption: Smaller video streams could ease network congestion and improve the economics of transmitting footage across multiple locations.
- Improved scalability: Large camera networks could become more economical to expand, particularly in smart cities, industrial campuses and critical infrastructure.
- Greater operational efficiency: Reduced data volumes could help optimise the infrastructure required for video management, transmission and archiving.
- Better use of existing infrastructure: Compatibility with existing cameras and recording systems could make adoption easier without requiring wholesale replacement of installed equipment.
The actual savings, however, will depend on scene characteristics, camera settings, compression configurations, required image quality and the applicable retention and evidentiary requirements.
An Interesting Proposition: Edge-Based Processing Without GPU Infrastructure
Another notable aspect of BLUE’s proposition is that its technology is designed to operate on cost-efficient edge hardware without requiring dedicated GPU infrastructure.
This could be significant for surveillance deployments where processing resources, power consumption and equipment costs are important considerations.
Instead of depending entirely on expensive centralised computing infrastructure, the technology can potentially be deployed closer to the point where video is generated.
The company also states that its solution is compatible with existing cameras and recording systems. This could lower the barriers to adoption for organisations with substantial investments in installed surveillance infrastructure.
BLUE is led by six co-founders with 15 to over 20 years of experience and academic backgrounds from IIT Bombay and IIM Bangalore. The company has a 10-patent pipeline, with three applications filed and seven in progress.
Why This Investment Matters to CP PLUS
For Aditya Infotech, the investment is about more than acquiring a stake in a technology company. It represents an opportunity to strengthen an important component of its future surveillance ecosystem.
The security industry is gradually moving beyond the conventional camera-recorder model towards integrated solutions combining video surveillance, AI-powered analytics, edge computing, cloud services and intelligent monitoring.
In this emerging environment, the ability to capture video is only one part of the equation. The ability to process, transmit, store and extract meaningful intelligence from that video will increasingly determine the value delivered to customers.
BLUE’s technology complements this direction by addressing the data management layer.
The partnership will bring together BLUE’s capabilities in computer vision, embedded systems and video compression with Aditya Infotech’s engineering, manufacturing and market reach. BLUE will continue to operate independently while collaborating with Aditya Infotech’s R&D and engineering teams across Noida, Ahmedabad and Taiwan.
Commenting on the investment, Aditya Khemka, Managing Director, Aditya Infotech Limited, described video compression as foundational to the next phase of surveillance, highlighting the growing cost of storing and transmitting video as cameras multiply and resolutions increase.
Kunal Kislay, Co-founder and CEO of BLUE, said the partnership would provide an opportunity to make the company’s video intelligence technology more accessible by leveraging CP PLUS’s established surveillance ecosystem and customer reach.
The transaction, comprising a combination of fresh equity infusion and purchase of shares from existing shareholders, implies a post-money valuation of approximately ₹151 crore.
Looking Ahead: The Future of Intelligent Video Surveillance
The surveillance industry is entering a phase in which the value of a camera will increasingly be determined not just by its resolution or imaging capabilities, but by how effectively the information it captures can be managed and utilised.
AI-powered analytics, intelligent edge devices, cloud-based monitoring and centralised command-and-control platforms are creating new opportunities for the security industry. However, all these developments depend on the efficient movement and management of increasingly large volumes of video data.
Technologies such as semantic video compression could become an important part of this transition.
For system integrators, consultants and end users, the proposition is worth watching. If the promised efficiencies can be demonstrated consistently across different surveillance environments, the technology could influence how future video surveillance systems are designed, deployed and scaled.
For CP PLUS, the investment in BLUE is therefore a strategic bet on a capability that could become increasingly important as surveillance evolves from simply recording events to generating actionable intelligence.
The next big development in video surveillance may not necessarily be about capturing more pixels. It could be about becoming smarter about which pixels need to be preserved.
