Adani Group’s Big Bet on Aviation Sector: Focusing on Engine MRO
The Adani Group is planning to enter the engine MRO (Maintenance, Repair, and Overhaul) and passenger aircraft-to-freighter (P2F) conversion businesses to further strengthen its presence in the domestic aviation market. This information was provided by a top group official, according to a PTI report. According to the report, Jeet Adani, Director of Adani Airport Holdings Limited (AAHL), told PTI in an interaction last week, “We have bifurcated both (aviation) into two. One is airport infrastructure and the other is the aircraft services business. This can include dual-use, defense and civilian use. So, between Indamer and Air Works (MROs), we are now consolidating the platforms into a single large MRO company.”
The Adani Group will also develop capabilities such as landing gear, painting, P2F conversion, and engine MRO in the future. The group has also strengthened its foothold in the defense MRO sector after acquiring Air Works for Rs 400 crore in December.
Entry into the MRO Segment
The group entered the MRO segment in December by acquiring Air Works, an aviation maintenance, repair, and overhaul (MRO) services firm, for an enterprise value of Rs 400 crore, strengthening its position in the defense MRO sector. Recently, Horizon Aero Solutions, a subsidiary of Adani Defence, acquired 100 percent of Indamer Techniques. Additionally, the group has also entered the pilot training segment by acquiring a 72.8 percent stake in Flight Simulation Technique Centre (FSTC) for Rs 820 crore.
New MRO bases will be developed in Ahmedabad, Guwahati, and Bhubaneswar under Air Works. These cities were not previously part of the company’s network. FSTC currently operates with 15 simulators, but Jeet Adani believes there is a demand for 40-50 simulators in India. The plan is to expand this business to 45-50 simulators across the country in the next 2-3 years.
Need for 30,000 new pilots
Indian airlines will be adding approximately 1700 new aircraft in the coming years, which will require around 30,000 new pilots. The Adani Group has announced an investment of ₹1 lakh crore in the airport business over the next five years and has projected a 10-15% growth in the domestic aviation sector.
