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| Adani Group | Photo: Reuters |
India's Adani Group is entering the aircraft maintenance and repair business. the Adani Group announced that it will acquire a majority stake in India's largest private aircraft maintenance and repair (MRO) company Air Works through Adani Defense Systems and Technologies Limited (ADSTL), on Monday. An agreement has also been signed for this purpose.
The acquisition deal is valued at Rs 400 crore in Indian currency. As per the agreement, ADSTL is acquiring 85.8 percent of Air Works' shares. Air Works has businesses in 35 cities in India. They have a total workforce of over 1,300.
Air Works has expertise in maintenance and repair of fixed-wing aircraft as well as rotary-wing aircraft, The Hindu reported. The acquisition marks the Adani Group's entry into the military and civil aircraft MRO sector. At the same time, experts believe that this is an important step in expanding the Adani business into integrated aviation services.
Adani Airports Director Jeet Adani has stressed on the transformation and growth of India's aviation sector. India is now the world's third largest market for aviation and Indian companies will add more than 1500 aircraft to their services in the next few years. Air India has placed a large order for aircraft. They are buying these aircraft from both Boeing and Airbus. They aim to compete with Middle Eastern companies in operating aircraft.
In this context, Jeet said, "We want to build an integrated service system in aviation to strengthen the infrastructure of India's aviation sector. This acquisition will help in that work."
Air Works' job is to perform regular maintenance of aircraft, major tests, and to check whether the aircraft's electronic equipment is working properly. Apart from this, they also do painting and interior decoration of aircraft. Air Works serves many international companies as well as Indian airlines. Air Works has facilities for maintenance of narrowbody aircraft, turboprop and rotary aircraft at its centers in Hosur, Mumbai and Kochi. Air Works is an approved company by the aviation regulatory authorities of more than 20 countries around the world.
Air Works also carries out necessary maintenance and repair work on the Indian Navy's P-81 aircraft and the Indian Air Force's 737 VVIP aircraft.