Adani Defence Systems and Technologies Limited (ADSTL), a wholly owned subsidiary of Adani Enterprises, has signed a Share Purchase Agreement (SPA) to acquire an 85.8% stake in Air Works India (Engineering) Pvt. Ltd (AWIEPL) for an enterprise value of ₹400 crore. The agreement, finalized on December 23, 2024, marks a significant step in Adani Defence’s strategy to enhance its presence in the growing maintenance, repair, and overhaul (MRO) sector.
Strategic Expansion in MRO Services
This acquisition is poised to transform Adani Defence’s capabilities in the aviation sector, particularly in MRO services. Air Works India boasts over 70 years of experience in civil and defence aircraft maintenance and will now become an integral part of Adani’s broader aerospace and defence portfolio. With operations spanning 35 cities and a workforce of over 1,300 personnel, Air Works is recognized as India’s largest private-sector MRO company.
The deal allows ADSTL to gain substantial control over AWIEPL, including the right to appoint directors and influence key strategic decisions such as share issuance and changes to the company’s capital structure. This move aligns with Adani Group’s commitment to the Make in India initiative, focusing on building indigenous capabilities in high-value sectors like aerospace and defence.
Enhancing Aerospace Capabilities
Ashish Rajvanshi, CEO of Adani Defence & Aerospace, emphasized the significance of this acquisition: “This landmark acquisition represents a pivotal step in our mission to strengthen India’s MRO capabilities. 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.”
Air Works provides a comprehensive range of aviation services including line maintenance, heavy checks, interior refurbishment, painting, avionics upgrades, and asset management. The company has executed key projects for the Indian Navy and Indian Air Force, further solidifying its reputation in the defence sector.
Conclusion
With this acquisition, Adani Defence is set to enhance its position in the aerospace industry by leveraging Air Works India’s established market presence and operational expertise. This strategic move not only strengthens Adani’s capabilities but also reinforces its commitment to supporting India’s aviation infrastructure amidst rising demand for MRO services.
Disclaimer: This article summarizes recent developments regarding Adani Defence’s acquisition of Air Works India based on available news sources.
