Adani Defence Systems & Technologies to acquire Air Works at enterprise value of Rs 400 cr

Mumbai: Adani Defence Systems & Technologies Ltd (ADSTL) on October 18 said it will acquire MRO operator Air Works at an enterprise value of Rs 400 crore.

In a statement, the company said it has signed definitive agreements to acquire Air Works, which has developed extensive operational capabilities within the country for key defence and aerospace platforms.

Air works has presence across 27 cities with six maintenance bays. Currently, Air Works and Boeing are undertaking heavy maintenance checks on three P-8I long-range maritime patrol and anti-submarine warfare aircraft operated by the Indian Navy at Air Works' Hosur facility.

"The Maintenance, Repair, and Overhaul (MRO) sector has a crucial role to play in both the defence and civilian aerospace sector," said Ashish Rajvanshi, CEO of Adani Defence & Aerospace.

Indian MRO market to grow 3 times by 2030

According to industry reports, the Indian MRO market is expected to grow three times to USD 5 billion by 2030 from USD 1.7 billion at present.

Air Works has "impeccable" proven capabilities, and it has successfully delivered several India-first and industry-first projects, Rajvanshi said. "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," he added.

Last September, the civil aviation ministry announced a new policy for MRO services that include leasing land through open tenders and abolishing royalty charged by the AAI in its bid to attract more investment in the sector and make India a global hub for such services.

Besides, land allotment for entities setting up MRO facilities will be done for 30 years instead of the current short-term period of 3 to 5 years under the policy.

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.

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

(With PTI inputs)

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