Gautam Adani Led Adani Defence To Acquire 85.8% Stake In Air Works For Rs 400 Crore; Shares In Focus

The Ahmedabad-based Adani Group has taken a step to expand its footprint in the aviation and defence sectors. Its defence arm, Adani Defence and Aerospace, announced on Monday the acquisition of an 85.8% stake in Air Works, India's largest privately-held aircraft maintenance, repair, and overhaul (MRO) company. The enterprise value of the transaction stand at Rs 400 crore.

The conglomerate stated that this development would enable it to offer a comprehensive range of aviation services, including line maintenance, heavy checks, interior refurbishment, painting and redelivery checks, avionics, and asset management services.

Air Works brings robust capabilities to the base maintenance of narrow-body, turboprop, and rotary aircraft. Operating facilities in Hosur, Mumbai, and Kochi, the company has also carved a niche in defence MRO services, handling projects for key platforms of the Indian Navy and Air Force.

Speaking about the deal, Jeet Adani, Director of Adani Airports, noted, "India is now the third-largest aviation market globally, with plans to induct over 1,500 aircraft in the coming years. This growth aligns with the government's vision to connect every corner of the nation and create unprecedented opportunities in aviation services."

The government has been focusing on the indigenisation of defence capabilities to transform India into a net defence exporter.

Following the announcement, Adani Enterprises' shares gained over 2%, trading at Rs 2,394.90 per share on the National Stock Exchange (NSE). Adani Ports also saw mild gains of 0.60%, trading at Rs 1,198.90 per share as of 10:45 am.

According to Ashish Rajvanshi, CEO of Adani Defence and Aerospace, "This landmark acquisition represents a pivotal step in our mission to strengthen India's MRO capabilities. Our vision is to deliver a full-spectrum MRO offering that caters to both commercial and defence aviation sectors."

Rajvanshi further emphasised the role of Aatmanirbharta (self-reliance) in defence, stating, "In a time when domestic capability-building is a national imperative, we are fully committed to scaling India's MRO capacity to serve the armed forces and broader aviation sector."

About Air Works

Founded in 1951, Air Works offers an end-to-end bouquet of aviation services, catering to both Indian and global customers. The company employs over 1,300 personnel and has extensive expertise in servicing fixed-wing and rotary-wing aircraft. Air Works' clientele includes commercial aviation players and defence entities.

Its expertise spans across line and base maintenance, interior refurbishment, aircraft painting, avionics upgrades, asset management.

Adani Defence and Aerospace has been designing, developing, and manufacturing defence products in India. It has cultivated an export-oriented mindset while fostering an ecosystem for startups and MSMEs in the sector.

This acquisition offers multiple advantages to the Adani Group like strengthening MRO capabilities, boosting self-reliance in defence, tapping into aviation growth, and enhancing investor confidence.