Adani Group acquires Air Works to boost defence business
The acquisition, with an enterprise value of ₹400 crore, will enable Adani Group to offer a range of of aviation services spanning line maintenance, heavy checks, interior refurbishment, painting, redelivery checks, avionics as well as asset management services to its Indian and global customers.
MUMBAI: Ahmedabad-headquartered Adani Group's defence arm Adani Defence and Aerospace on Monday entered into an agreement to acquire an 85.8% stake in Air Works, India's largest privately-held aircraft maintenance, repair, and overhaul (MRO) company.
The move is in line with the conglomerate's strategy to capitalise on the country's ambition to become self reliant in defence capabilities and take advantage of a thriving aviation industry.
The acquisition, with an enterprise value of ₹400 crore, will enable Adani Group to offer a range of of aviation services spanning line maintenance, heavy checks, interior refurbishment, painting, redelivery checks, avionics as well as asset management services to its Indian and global customers, the group said in a statement.
Air Works is engaged in the business of base maintenance for narrow-body and turboprop aircraft, as well as rotary aircraft from its facilities at Hosur, Mumbai and Kochi.
Apart from civil aviation sector, Air Works has built capabilities in defence MRO, executing projects for key platforms of Indian Navy and Indian Air Force.
On 20 September, Mint reported that the Adani Group has identified defence and aerospace as one of the key areas for acquisitions and has set aside $1 billion purely for defence acquisitions via Adani Defence and Aerospace Ltd.
"The group’s plan is aligned with the country’s goal to strengthen the technology play in defence space. Certain (acquisition) opportunities have been identified, especially in the field of advanced technology, artificial intelligence and machine learning to bring in higher efficiency," the Mint report had said, citing sources.
While announcing the acquisition of Air Works on Monday Jeet, Adani, director, Adani Airports, said, "The Indian aviation industry stands at a transformative juncture, now the third largest globally and on track to induct over 1,500 aircraft in the coming years."
The government has been emphasizing indigenization of India's defence capabilities as part of its goal for the country to become a net defence exporter.
“This growth aligns seamlessly with the government’s vision to connect every corner of our nation, creating unprecedented opportunities in aviation services. For us, creating a presence in the MRO sector is more than just a strategic step—it’s a commitment to building an integrated aviation services ecosystem that strengthens the backbone of India’s aviation infrastructure," said Adani.
"This is our pledge to the nation—to build capabilities that secure our skies and strengthen our sovereignty," said Ashish Rajvanshi, CEO, Adani Defence and Aerospace.
The 20 September report by Mint said that the airports-to-electricity conglomerate has created a war chest of $5-7 billion for acquisitions over the next six months, reviving an aggressive growth strategy thay defined Adani Group before US-based short-seller Hindenburg Research hit it with its alarming allegations last year.
"This landmark acquisition represents a pivotal step in Adani Defence & Aerospace’s mission to strengthen India’s MRO capabilities,” Rajvanshi added.
“Our vision is to deliver a full-spectrum MRO offering—spanning line, base, component, and engine maintenance—to meet the needs of both commercial and defence aviation sectors. In a time when Aatmanirbharta in defence is a national imperative, we stand fully committed to scaling domestic capabilities to serve both our armed forces and the broader aviation sector," said Rajvanshi in the group's statement.
About the company
Air Works offers an end-to-end bouquet of aviation services spanning line maintenance, heavy checks, interior refurbishment, painting, redelivery checks, avionics as well as asset management services to its Indian and global customers. With a workforce of 1,300 employees, Air Works has extensive expertise in servicing both fixed-wing and rotary-wing aircraft.
Adani Defence and Aerospace is a company that designs, develops, and manufactures defence products in India. The company has established an export-oriented mindset along with an ecosystem for startups and MSMEs in the sector, according to the statement.
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