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Adani Defence to acquire India's biggest MRO Air Works

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Capital Market
Last Updated : Oct 19 2022 | 10:31 AM IST

Adani Enterprises said that Adani Defence Systems & Technologies has signed definitive agreements to acquire Air Works for an enterprise value of Rs 400 crore.

Established in 1951, Air Works Group is India's biggest and highly diversified independent MRO with the largest pan-India network presence across 27 cities.

It is the preferred MRO partner to global aviation OEMs, aircraft owners/ operators (including fixed wing & rotary wing), lessors, airlines and the Indian Defence Services, offering a host of services including MRO and heavy checks, line maintenance, cabin and interior refurbishment, exterior finishing and painting, avionics upgrades, integrations and retrofits, end-of-lease/ redelivery checks, maintenance training (CAR 147), and asset management services to domestic and international clients.

Air Works 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.

The Indian MRO market is expected to grow three times from $1.7 billion to $5 billion by 2030.

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Ashish Rajvanshi, CEO of Adani Defence & Aerospace said: 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 maintenance, repair, and overhaul (MRO) 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.

Adani Defence & Aerospace is a subsidiary of Adani Enterprises and the defence manufacturing arm of the $250 billion plus Adani Group.

Adani Enterprises is the flagship company of Adani Group, one of India's largest business organisations. Over the years, Adani Enterprises has focused on building emerging infrastructure businesses. The next generation of its strategic business investments is centered around green hydrogen ecosystem, airport management, roads, data center and water infrastructure.

The company's consolidated net profit jumped 72.9% to Rs 469.46 crore in Q1 FY23 as against Rs 271.46 crore in Q1 FY22. Revenue from operations in the first quarter stood at Rs 40,844.25 crore, surged 224.7% from Rs 12,578.77 crore reported in the same period last year.

The scrip rose 0.54% to currently trade at Rs 3302.65 on the BSE.

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First Published: Oct 19 2022 | 10:14 AM IST

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