Updated: Nov 4, 2022
Adani Defence & Aerospace acquires Air Works for Rs 400 crore with the aim to capitalize on the Defence and Aviation boom.
What's happening: Adani Defence Systems & Technologies (ADSTL Ltd.) has signed
definitive agreements to acquire Air Works, India's largest and most diverse independent
MRO (Maintenance, Repair, and Operations) with a presence in 27 cities nationwide.
This is a huge boost to Adani as it would allow them to expand and utilize the base maintenance for the ATR 42/72, A320, and B737 fleets which happens to be provided by Air Works' EASA and DGCA-certified facilities in Mumbai, Delhi, Hosur, and Kochi.
What's happening: Adani Defence & Aerospace is the $250 billion Adani Group's defense manufacturing arm, with the goal of assisting in the transformation of India into a destination for world-class high-tech defense manufacturing.
Buying Air Works for Rs 400 cr will allow them to expand even further
What they're saying: There has not been much communication from involved companies
about the intricacies of the deal besides its supposed acquisition and other minor details.
According to Ashish Rajvanshi, CEO of Adani Defence & Aerospace, the maintenance, repair, and overhaul sector is critical in both the defense and civilian aerospace sectors.
The company further highlighted that the Indian MRO market is expected to grow three times from $1.7 billion to $5.0 billion by the year 2030 providing immense incentive for the deal to work through.
Basically: Adani Defence & Aerospace- India’s leading hi-tech defence manufacturer arm-
to acquire Indian legacy MRO business Air works for Rs 400 crore which is the oldest MRO
in India with a presence well across 27 cities.