Adani Group Acquires Air Works to Strengthen Defence and Aviation Business

SENSEX 78472.48 -0.39 (0)

NIFTY 50 23750.2 22.55 (0.09)

GOLD 78375 45 (0.06)

SILVER 94700 300 (0.32)

NASDAQ 20067.8 36.67 (0.18)

FTSE 8136.99 34.27 (0.42)

Nikkei 39568.06 437.63 (1.11)

Crude 5969 -1 (-0.02)

USD/INR 85.71 0.4 (0.47)

EURO 88.57 0.01 (0.01)

POUND 107.34 -0.01 (-0.01)

YEN 0.54 -0.01 (-1.85)

Adani Group Acquires Air Works to Strengthen Defence and Aviation Business

The Adani Group, headquartered in Ahmedabad, has taken a significant step to expand its presence in the defence and aviation sectors with the acquisition of an 85.8% stake in Air Works.

December 24th, 2024 News

The Adani Group, headquartered in Ahmedabad, has taken a significant step to expand its presence in the defence and aviation sectors with the acquisition of an 85.8% stake in Air Works, India’s largest privately-owned Maintenance, Repair, and Overhaul (MRO) company. This acquisition, valued at ₹400 crore, marks a strategic move to align with India's growing ambitions for self-reliance in defence and advancements in the aviation industry.

Key Highlights of the Acquisition

Strategic Expansion:
- Air Works specializes in base maintenance for narrow-body, turboprop, and rotary aircraft.
- The acquisition enables Adani Group to offer a comprehensive range of aviation services, including:
  - Line maintenance
  - Heavy checks
  - Interior refurbishment
  - Painting
  - Redelivery checks
  - Avionics upgrades
  - Asset management
Boost to Defence and Aerospace:
- Air Works has notable experience in defence MRO, having executed projects for key platforms of the Indian Navy and Indian Air Force.
- This acquisition supports India’s vision of indigenization in defence and aims to establish the country as a net defence exporter.
Commitment to Growth:
- The acquisition is part of Adani Defence and Aerospace’s broader strategy to capitalize on India's burgeoning aviation industry.
- India, now the third-largest aviation market globally, is poised to induct over 1,500 aircraft in the coming years.
Investment Strategy:
- Adani Group has identified defence and aerospace as key sectors for growth, allocating $1 billion for acquisitions in this domain.
- A broader war chest of $5-7 billion has been set aside for acquisitions across industries, signifying the group's aggressive growth strategy.

Leadership’s Vision

Jeet Adani, Director of Adani Airports, highlighted the transformative phase of the Indian aviation industry, emphasizing the group’s commitment to building an integrated aviation ecosystem. “This acquisition aligns with our vision to strengthen India’s aviation infrastructure and support the government’s ambition to connect every corner of the nation,” he said.

Ashish Rajvanshi, CEO of Adani Defence and Aerospace, added, “This landmark acquisition is a step toward scaling domestic capabilities in aviation. It reflects our commitment to Aatmanirbharta (self-reliance) and the development of indigenous MRO services to meet the needs of both commercial and defence aviation sectors.”

About Air Works

With a workforce of 1,300 employees, Air Works offers end-to-end aviation services for both fixed-wing and rotary-wing aircraft. It operates facilities in key locations, including Hosur, Mumbai, and Kochi, catering to Indian and global customers alike.

About Adani Defence and Aerospace

Adani Defence and Aerospace designs, develops, and manufactures defence products in India. The company is focused on fostering innovation and creating a robust ecosystem for startups and MSMEs in the defence and aerospace sectors.

Conclusion

This acquisition positions the Adani Group as a key player in India’s MRO and defence sectors, aligning with the government’s vision of self-reliance and technological advancement. The integration of Air Works into Adani’s portfolio strengthens India’s aviation backbone while supporting both commercial and defence aviation growth.