Adani to acquire India's biggest aircraft maintenance, repair and overhaul firm for Rs 400 crore
Air Works undertakes base maintenance for ATR 42/72, A320 and B737 fleet of aircraft from its EASA and DGCA-certified facilities at Mumbai, Delhi, Hosur and Kochi. Besides, it also undertakes heavy maintenance checks along with Boeing on three P-8I long-range maritime patrol and anti-submarine warfare aircraft operated by the Indian Navy.
Air Works, India's biggest and highly diversified independent Maintenance, Repair and Overhaul (MRO) firm with the largest pan-India network presence across 27 cities, is being acquired by Adani Defence Systems Technologies Ltd (ADSTL) for Rs 400 crore.
The aquisition comes as a shot in the arm for the ADSTL, as Air Works has developed extensive operational capabilities within the country for key defence and aerospace platforms. Air Works undertakes base maintenance for A320, B737 and ATR 42/72 fleet of aircraft from its EASA and DGCA-certified facilities at Mumbai, Delhi, Kochi ad Hosur. Besides, it also undertakes heavy maintenance checks along with Boeing on three P-8I long-range maritime patrol and anti-submarine warfare aircraft operated by the Indian Navy.
Air Works also manages the maintenance, repair and overhaul of the landing gear of the Indian Air Force's 737 VVIP aircraft.
Commenting on the acquisition, Ashish Rajvanshi, CEO of Adani Defence & Aerospace, said that primary growth of India's airline and airport sectors is inevitable given the country's growth trajectory and the Narendra Modi government's focus on networking the nation through a 'massive mesh of air connectivity'.
"Therefore, the Maintenance, Repair, and Overhaul sector has a crucial role in both the defence and civilian aerospace sectors. Add to this the ongoing modernisation program to make India a large market for defence aircraft, and what emerges is one of the most exciting, comprehensive, scale and digital MRO services within the country's boundaries," he said.
"Air Works has impeccable proven capabilities and has, over its 70-year aviation legacy, successfully delivered several India-first and industry-first projects. Combine this with the Adani Group's capabilities and what we get is an entity that truly represents what an Atmanirbhar Bharat in a critical sector should look like," Ashish added.
Air Works offers a host of services, including MRO and heavy checks, cabin and interior refurbishment, line maintenance, avionics upgrades, integrations and retrofits, exterior finishing and painting, maintenance training (CAR 147), end-of-lease and redelivery checks, and Asset Management services to international and domestic clients.
Air Works MD and CEO D Anand Bhaskar said that India has the potential to become the MRO hub for the region across defence and civil aircraft.
"It is a wonderful opportunity for Air Works and its employees to be subsumed under Adani Defence & Aerospace platform. The government's policy measures and initiatives, including the convergence of civil and defence MRO, would create economies of scale and huge employment opportunities," Anand said.