Mumbai: European Aviation Holding Co Pvt Ltd on Tuesday acquired Indamer Co Pvt Ltd, a leading Mumbai-based maintenance, repair and overhaul, or MRO, firm for an undisclosed amount. However, the move is a major consolidation in the domestic MRO industry, since it only leaves two leading firms in the business: Max Aerospace and Air Works Engineering Pvt Ltd, in which publicly-traded engineering company Punj Lloyd Ltd and US-based private equity firm Global Technology Investment Group each hold a 33% stake.
Bharat Malkani, one of the directors of the European Aviation Holding, is also the chairman of Max Aerospace and Aviation Ltd, which was in direct competition with Indamer.
Malkani told Mint that the Indamer acquisition has helped him to offer integrated solutions to the aviation industry. “Indamer will focus on offering maintenance solutions to the general aviation business while Max Aerospace will continue to focus on military and civil aviation business,” he said.
A Bangalore-based aviation consultant said further consolidation is expected in the MRO industry, since it is fragmented, adding that it could also witness participation of foreign players once the aviation industry stabilizes. He declined to be identified.
Founded in 1947, Indamer has been maintaining both fixed and rotary wing aircraft for private owners, charter operators, state governments and training institutes. Brazilian aircraft maker Embraer has named the firm as an authorised service centre for its private jets; operations are scheduled to begin in the first half of 2009.
“Indamer is also looking to develop huge service centre in the country. We have identified two locations. We should be able to finalise the location by end of this quarter,” Malkani added.