Adani Defence Systems and Technologies has signed a binding share purchase agreement to acquire an 85.8% stake in Indian MRO Air Works for an enterprise value of 400 crore rupee (approximately $47 million).
Adani Group made a similar attempt to acquire Air Works in October 2022, but the deal fell apart due to the liquidation of Air Works shareholder Punj Lloyd, causing legal delays in closing the deal. In a statement, Air Works says the new agreement is subject to the fulfilment of certain conditions and obtaining necessary approvals.
Adani Group’s strategic investment in Air Works is aimed at enhancing its capabilities in India’s defense MRO segment and establishing a strong foothold in the country’s growing civil aviation MRO sector.
“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,” says Adani Defence and Aerospace CEO Ashish Rajvansh.
“For us, creating a presence in the MRO sector is more than just a strategic step—it's a commitment to building an integrated aviation services ecosystem that strengthens the backbone of India's aviation infrastructure,” adds Jeet Adani, director of Adani Airports Holdings Limited.
Rohit Tomar, founder and managing director of Caladrius Aviation, a boutique consulting firm in India, says the acquisition was a much-needed strategic investment to bring consolidation in the MRO market and the catalyst needed to push MRO reforms in the country’s aviation sector.
“We have lost decades to move from high labor, low value MRO services to high labor, high value services offerings in the MRO sector in India, and now it’s time for the next big leap,” says Tomar. He predicts that India’s MRO segment will also soon see conglomerate Tata Group, which acquired Air India in January 2022, look to leverage the airline’s AI Engineering Services MRO subsidiary, which is up for sale.
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