Adani Group Acquires 85.1% Stake in Air Works for ₹400 Crore to Strengthen MRO Footprint

In a significant move to strengthen its presence in India’s aviation sector, Adani Group has acquired an 85.1% stake in Air Works for ₹400 crore, marking its foray into the critical Maintenance, Repair, and Overhaul (MRO) segment. This acquisition aligns with Adani’s broader strategy to diversify and consolidate its infrastructure and transport portfolio while tapping into the burgeoning Indian aviation ecosystem.

Adani’s Strategic Aviation Push

Air Works is one of India’s oldest and largest independent MRO companies, providing services to both commercial and defence aircraft. It operates across 27 cities with six maintenance hangars and over 900 employees. The acquisition is expected to accelerate Adani’s vision of creating a comprehensive aviation services ecosystem, complementing its airports business.

Speaking on the acquisition, Adani Group emphasised that Air Works’ capabilities in heavy maintenance, line maintenance, cabin and interior refurbishment, and paint services will play a pivotal role in strengthening India’s self-reliance in aviation MRO.

Why MRO Matters for Adani

The Indian MRO market is expected to grow from $1.7 billion in 2021 to over $4 billion by 2031, driven by the increasing fleet size of commercial airlines, defence requirements, and the Indian government’s push to develop domestic MRO capacity.

Adani, which already operates airports in Mumbai, Ahmedabad, Lucknow, Jaipur, Guwahati, Mangaluru, and Thiruvananthapuram, sees synergy between its airport operations and MRO services, aiming to reduce turnaround times and costs for airlines operating through its hubs.

About Air Works

Founded in 1951, Air Works has a rich legacy in Indian aviation MRO. It holds approvals from international regulatory authorities such as EASA and FAA, making it eligible to maintain and repair aircraft registered in Europe and the US. Its key offerings include:

• Base maintenance and heavy checks for narrow and wide-body aircraft
• Avionics upgrades, modifications, and retrofits
• Aircraft painting, cabin refurbishment, and component overhaul
• Defence MRO services for platforms such as the Indian Navy’s P-8I and Indian Air Force aircraft

Financial Details of the Deal

The ₹400 crore deal gives Adani an 85.1% controlling stake. The remaining stake continues to be held by existing promoters and investors. The acquisition was carried out through Adani Defence and Aerospace, the Group’s dedicated defence vertical, which also manages UAV and radar businesses.

Indian MRO Market Overview

Source: Industry estimates consolidated for strategic analysis

Adani Group’s Recent Expansion Spree

The acquisition of Air Works is part of Adani Group’s recent spree of consolidations across infrastructure, energy, logistics, and aviation:

India’s Push for MRO Independence

The Indian government has identified MRO as a key sector under its Atmanirbhar Bharat initiative. Historically, airlines sent aircraft abroad for heavy checks, costing India over ₹5,000 crore annually in foreign exchange outflows. The acquisition of Air Works by a strong domestic player like Adani is expected to:

• Enhance MRO capacity within India
• Attract global airlines for heavy checks
• Enable faster turnaround for Indian carriers
• Develop skill sets for high-end aviation engineering jobs

Expert Views on the Acquisition

Aviation analyst Prashant Singh commented, “This deal will fundamentally alter India’s MRO landscape. Adani’s financial muscle, combined with Air Works’ technical expertise, can create a competitive MRO hub for South Asia.”

Defence sector expert Lt Gen (Retd) V K Kapoor added, “Air Works has a proven track record in maintaining P-8Is and Dornier aircraft. Under Adani Defence, it could expand deeper into indigenous defence MRO manufacturing and services.”

Adani Defence and Aerospace Plans

Adani Defence and Aerospace, which is executing UAV projects and radar manufacturing, plans to integrate Air Works’ capabilities with its upcoming drone maintenance facilities and proposed defence aircraft assembly units. This positions Adani as a full-spectrum defence and aviation services conglomerate.

Future Outlook

With this acquisition, Adani will focus on:

• Upgrading Air Works’ facilities to global standards
• Expanding MRO hangars near its major airports
• Creating an integrated aviation services ecosystem, including cargo, ground handling, and MRO
• Serving defence forces with faster turnaround times for operational readiness

Potential Challenges

While the acquisition has strategic merit, experts caution that:

• MRO remains a margin-sensitive business, requiring efficient cost controls
• Global OEM tie-ups will be crucial for certifications
• Attracting and retaining skilled engineers remains a sector-wide challenge

Final Words

The acquisition of Air Works by Adani Group marks a significant milestone in India’s aviation sector journey. It reflects India’s ambition to become a self-reliant MRO hub, reducing dependence on foreign facilities while creating thousands of skilled jobs domestically. As India’s aviation market is projected to become the world’s third largest by 2030, a strong domestic MRO ecosystem is not just a strategic requirement but also a critical economic imperative.

Disclaimer: This news content is for informational purposes only, prepared for publication in general business media. All financial data are sourced from public disclosures and industry estimates. Readers are advised to verify independently before forming investment or strategic decisions.