Adani Defence Expands Aerospace Reach with Air Works India Acquisition

Adani Defence Systems and Technologies Limited has acquired an 85.8% stake in Air Works India, worth Rs400 crore. The deal strengthens Adani's position in the MRO sector, enhancing its capabilities in aerospace and defence. This move aligns with the 'Make in India' initiative, focusing on indigenous growth.

Adani Defence Systems and Technologies Limited (ADSTL), a subsidiary of Adani Enterprises, has announced its purchase of a majority stake in Air Works India (Engineering) Pvt. Ltd (AWIEPL). The Share Purchase Agreement (SPA), valued at Rs400 crore, was signed on December 23, 2024, marking a strategic expansion into the burgeoning maintenance, repair, and overhaul (MRO) sector.

The transaction, finalized between ADSTL, AWIEPL, and existing shareholders, signals a major step in Adani's growing presence in MRO services. Air Works India, a leader in both civil and defence aircraft maintenance, brings over seventy years of experience to Adani's aerospace and defence portfolio.

The acquisition is poised to enhance Adani's capabilities in the Indian and global aerospace markets, driven by increasing demand for MRO services. Under the agreement, ADSTL will secure 85.8% ownership of AWIEPL, enabling increased control over its operations and strategic decisions in alignment with SEBI regulations.

This move aligns with Adani Group's 'Make in India' initiative, focusing on boosting indigenous capabilities in aerospace and defence. By integrating Air Works India into its operations, Adani Defence aims to strengthen its market position by leveraging Air Works India's established reputation and expertise.

The deal, not classified as a related party transaction, adheres to the regulatory standards set by the Securities and Exchange Board of India (SEBI). Details of the acquisition were shared with stock exchanges on December 23, 2024, ensuring transparency and compliance with listing regulations.

(With inputs from agencies.)