Adani Defence Systems to acquire Air Works at an enterprise value of ₹400 cr

Ashish Rajvanshi, CEO of Adani Defence & Aerospace said, “Air Works has impeccable proven capabilities and over its 70-year aviation legacy has 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.”

Further, D Anand Bhaskar, MD & CEO, of Air Works Group said, “India has the potential to become the MRO hub for the region across defence and civil aircrafts. 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 convergence of civil and defence MRO would create economies of scale and huge employment opportunities.”

According to Rajvanshi, given India’s growth trajectory and the Government’s focus to network the nation through a massive mesh of air connectivity, it is inevitable that the primary growth of India’s airline and airport sector lies ahead of it.

Therefore, the Adani Defence CEO added that the Maintenance, Repair, and Overhaul sector has a crucial role to play in both, the defence and civilian aerospace sector. Add to this the ongoing modernisation program to make India a large market for defence aircrafts, and what emerges is one of the most exciting, comprehensive, at scale and digital MRO services within the boundaries of the nation.

Air Works is the oldest MRO in India, and has developed extensive operational capabilities within the country for key defence and aerospace platforms. From the first P-8I aircraft Phase 32 checks to Phase 48 checks and MRO on the landing gear of the Indian Air Force’s 737 VVIP aircraft, 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.

Air Works has 6 maintenance bays and over 900 maintenance experts. Air Works and Boeing are currently undertaking heavy maintenance checks on three P-8I long-range maritime patrol and anti-submarine warfare aircraft operated by the Indian Navy (IN) at Air Works, Hosur.

Air Works was established in 1951.

Indian MRO market is expected to grow three times from $1.7 billion to $5.0bn by 2030, Adani stated in the filing.

Adani Defence & Aerospace is the defence manufacturing arm of the over $250 billion Adani Group and has been built on the Group’s core tenet of “Nation Building” with a vision of playing an instrumental role in helping transform India into a destination for world-class high-tech defence manufacturing, aligned to the “AtmaNirbhar Bharat” initiative.

On BSE, Adani Enterprises shares closed at ₹3,285.00 apiece up by 2.27% on Tuesday.