(Jan 27): Billionaire Gautam Adani’s conglomerate and Brazil’s Embraer SA announced a partnership to build aircraft in India in what would be the country’s first manufacturing facility in civil aviation.
Adani Enterprises Ltd and the closely held Adani Defence & Aerospace signed a memorandum of understanding with Embraer to collaborate on aircraft manufacturing, supply chain, aftermarket services and pilot training, the Indian group said in a statement Tuesday (Jan 27). The pact, which is yet to decide on the type of aircraft it’ll build, will boost India’s regional air connectivity initiatives.
“India is a pivotal market for Embraer, and this partnership combines our aerospace expertise with Adani’s strong industrial capabilities,” Embraer’s commercial aviation CEO Arjan Meijer said in the statement.
The collaboration gives a big push to the Narendra Modi-led administration’s plan to make India a manufacturing hub by luring overseas companies making smartphones to commercial aircraft. It’s also a new line of business for the ports-to-power conglomerate that’s so far limited to operating local airports.
Meijer told reporters in New Delhi that it was too early to specify an investment. Jeet Adani, director of Adani Defence and Gautam’s younger son, said the group was considering a couple of locations for the new facility and expected details to be finalised in the next few months.
Jeet Adani told Bloomberg News last month that the group was exploring aircraft manufacturing through partnerships with global players but didn’t share more details.
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While the Brazilian plane maker is in discussions with regional airline Star Air for as many as 20 aircraft, it has an ambition to increase its presence in the country.
Embraer inaugurated its India office in New Delhi last October. Nearly 50 Embraer aircraft are operating in India across commercial, defence and business segments, according to the statement.
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