Adani Defence Systems & Technologies Ltd. (ADSTL), a wholly owned subsidiary of Adani Enterprises, has signed a share purchase agreement to acquire an 85.8% stake in Air Works India (Engineering) Pvt. Ltd. for an enterprise value of ₹400 crore. This acquisition, announced on December 23, 2024, marks a significant expansion of Adani's presence in the Maintenance, Repair, and Overhaul (MRO) sector, enhancing its capabilities in both civil and defense aviation.

Established in 1951, Air Works is India's largest private-sector MRO company, offering a comprehensive suite of services including line maintenance, heavy checks, interior refurbishment, painting, redelivery checks, avionics, and asset management. The company operates across 35 cities with a workforce exceeding 1,300 personnel. Its base maintenance facilities for narrow-body and turboprop aircraft, as well as rotary aircraft, are located in Hosur, Mumbai, and Kochi, holding regulatory approvals from civil aviation authorities of over 20 countries.

In addition to its commercial aviation services, Air Works has developed significant capabilities in defense MRO, executing projects for key platforms of the Indian Navy and Indian Air Force. Notably, the company is responsible for the heavy maintenance of the Indian Navy’s Boeing P-8I maritime surveillance aircraft.

Jeet Adani, Director of Adani Airports, emphasized the transformative growth of India's aviation industry, now the third-largest globally, with plans to induct over 1,500 aircraft in the coming years. He stated, "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."

Ashish Rajvanshi, CEO of Adani Defence & Aerospace, highlighted the acquisition's role in enhancing India's MRO capabilities, stating, "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."

Societal and Economic Impacts

• Strengthening Domestic MRO Capabilities: By integrating Air Works' extensive experience and infrastructure, Adani aims to bolster India's domestic MRO capabilities, reducing reliance on foreign entities for aircraft maintenance and aligning with the government's 'Make in India' initiative.

• Job Creation and Skill Development: The expansion of MRO services is expected to generate employment opportunities and foster skill development in the aviation sector, contributing to economic growth.

• Enhanced Defense Preparedness: With Air Works' established defense MRO services, the acquisition could lead to improved maintenance and readiness of critical defense assets, thereby strengthening national security.

Prior to this acquisition, Air Works had engaged in various strategic partnerships and expansions:

• International Collaborations: In 2010, Air Works partnered with Denmark-based Scandinavian Avionics to enhance its service offerings.

• Acquisitions: The company acquired Dubai-based Empire Aviation Group in 2012 and an 85% stake in British firm Air Livery Limited in 2013, expanding its global footprint.

However, the acquisition by Adani Defence represents a significant consolidation within the Indian MRO sector, potentially setting a precedent for further mergers and acquisitions aimed at strengthening domestic capabilities.

This strategic move marks a pivotal moment for Adani Defence & Aerospace as it seeks to integrate Air Works' expertise into its broader strategy of developing a robust aerospace and defense portfolio in India.