Adani Enterprises’ Defense Arm To Acquire 85.8% Stake In Air Works
Adani Defence Systems agrees to buy the stake in Indian aircraft maintenance and repair company at an enterprise value of 400 crore rupees
(The Corner Office Journal) -- Adani Enterprises Ltd.’s defense arm agreed to buy an 85.8% stake in Air Works India (Engineering) Private Ltd. at an enterprise value of 400 crore rupees ($47 million) to strengthen its position in India’s airborne defense ecosystem.
Adani Defence Systems & Technologies Ltd. signed a binding agreement with Air Works, an Indian aircraft maintenance and repair (MRO) company, and its current shareholders for the acquisition, Adani Enterprises said in a stock exchange announcement.
Air Works -- India’s largest private sector MRO company -- has operations in 35 cities and a workforce of over 1,300 personnel and specializes in servicing both fixed-wing and rotary-wing aircraft.
“The acquisition enhances Adani’s capabilities in the defense MRO sector, solidifying its position in India’s airborne defense ecosystem,” it added.
Adani Airports’ Director Jeet Adani said the Indian aviation industry, now the third largest globally, stands at a transformative juncture and on track to induct over 1,500 aircrafts in the coming years. This growth aligns seamlessly with the government’s vision to connect every corner of the nation, creating unprecedented opportunities in aviation services, he added.
“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 defense aviation sectors,” said Ashish Rajvanshi, chief executive officer of Adani Defence & Aerospace.
Adani Enterprises, which didn’t disclose the deal closure timeline, said the acquisition represents a pivotal step in Adani Defence & Aerospace’s mission to strengthen India’s MRO capabilities.
About Air Works
Air Works offers an end-to-end bouquet of aviation services, spanning line maintenance, heavy checks, interior refurbishment, painting, redelivery checks, avionics as well as asset management services to its Indian and global customers.
The company, which has regulatory approvals from civil aviation authorities of more than 20 countries, undertakes base maintenance for narrow-body and turboprop aircraft, as well as rotary aircraft from its facilities at Hosur, Mumbai and Kochi.
In addition to being a market leader in civil aviation, Air Works has significant capabilities in defense MRO, executing projects for key platforms of Indian Navy and Indian Air Force, according to the statement.
Note: $1= 84.956 Indian rupees
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