The maintenance, repair, and overhaul (MRO) company Air Works will be purchased by Adani Enterprises affiliate, Adani Defence Systems & Technologies Ltd, for an enterprise value of 400 crore.
With a presence in 27 cities throughout India and all the necessary domestic and international certifications for aircraft maintenance, Air Works is a well-known MRO player.
With the agreement, Adani Defence & Aerospace will have access to three Hosur, Kochi, and Mumbai-area base MRO facilities that are EASA and DGCA certified, as well as 27 other cities where Air Works had line maintenance operation.̊̊
In India, Air Works has 900+ experts and six maintenance bays.
It is operationally ready for important aerospace and defence platforms.
"The last 15 years had witnessed a significant exodus of MRO capabilities to neighbouring countries such as SL, Malaysia, Singapore, Dubai, where all the Indian airlines go for basic MRO and base maintenance, etc.," said Ashish Rajvanshi, CEO of Adani Defence & Aerospace, after announcing the agreement at the DefExpo 2022 in Gandhinagar.
The actual benefit will be realised when we perform engine MRO, not simply line and base maintenance, as is our aim from the deal.̊̊
At the moment, India has a market for MRO of USD 1.7 billion on the civil side and USD 2.5–3 billion on the defence side.
When taking into account the introduction of new aircraft in both civil aviation and defence, it is predicted to expand three times by 2030. Therefore, this market is destined to boom.
The Air Works is simply one of the pillars of Adani’s defence play strategy, Rajvanshi told Businessline, adding that this is the turning point for the nation.
Air Works performs base maintenance for the ATR 42/72, A320, and B737 fleet of aircraft, from the Phase 32 checks on the first P-8I aircraft to the Phase 48 checks and MRO on the landing gear of the Indian Air Force’s 737 VVIP aircraft.̊̊
The MD & CEO of Air Works Group, D Anand Bhaskar, described it as an excellent opportunity for Air Works and said that “its workforce will be integrated into the Adani Defence & Aerospace platform.”
The government’s legislative efforts, such as the merging of civil and defence MRO, would result in significant cost savings and job growth.
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