Adani Defence Systems & Technologies Ltd has signed a binding share purchase agreement to acquire 85.8% shareholding in Air Works, India’s largest private sector maintenance, repair, and overhaul (MRO) company with the largest pan-India footprint.

With operations spanning 35 cities and a workforce of over 1,300 personnel, Air Works brings extensive expertise in servicing both fixed-wing and rotary-wing aircraft, says the Adani Group company.

“In addition to being a market leader in civil aviation, Air Works has built significant capabilities in defence MRO, executing projects for key platforms of Indian Navy and Indian Air Force,” it says.

“The Indian aviation industry stands at a transformative juncture, now the third largest globally and on track to induct over 1,500 aircraft in the coming years,” says Jeet Adani, director, Adani Airports. “This growth aligns seamlessly with the Government’s vision to connect every corner of our nation, creating unprecedented opportunities in aviation services. 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. Together, we are excited to play a pivotal role in shaping the future of India’s skies.”

Air Works offers an end-to-end bouquet of aviation services spanning line maintenance, checks, interior refurbishment, painting, redelivery checks, avionics as well as asset management services to its Indian and global customers. The company undertakes base maintenance for narrowbody and turboprop aircraft, as well as rotary aircraft from its facilities at Hosur, Mumbai and Kochi and with regulatory approvals from civil aviation authorities of more than 20 countries.

This acquisition represents a pivotal step in Adani Defence & Aerospace’s mission to strengthen India’s MRO capabilities, says Mr. Ashish Rajvanshi, CEO, Adani Defence & Aerospace. “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 defence aviation sectors. In a time when Aatmanirbharta in defence is a national imperative, we stand fully committed to scaling domestic capabilities to serve both our armed forces and the broader aviation sector.”

The acquisition enhances Adani’s capabilities in the defence MRO sector, solidifying its position in India’s airborne defence ecosystem. The company says this move marks a pivotal step in Adani’s growth trajectory, laying the foundation for its expansion into the civil aviation services domain.

The government earlier this year implemented a uniform 5% Integrated GST (Goods and Services Tax) on aircraft parts as it looks to boost domestic Maintenance, Repair, and Overhaul (MRO) industry, essential to making India a global aviation hub. Union civil aviation minister Kinjrapu Rammohan Naidu announced the implementation of a uniform IGST rate of 5% on all aircraft and aircraft engine parts, effective from July 15, 2024. "The introduction of a uniform 5% IGST rate on MRO items is a major boost for the aviation sector. Previously, the varying GST rates of 5%, 12%, 18%, and 28% on aircraft components created challenges, including an inverted duty structure and GST accumulation in MRO accounts. This new policy eliminates these disparities, simplifies the tax structure, and fosters growth in the MRO sector," said Naidu.

Air Works

Adani Defence to acquire MRO firm Air Works for ₹400 cr

Adani Defence & Aerospace to acquire Air Works for ₹400 crore