Adani Group and Brazilian aerospace major Embraer on Tuesday announced a strategic collaboration to establish a regional aircraft manufacturing facility in India, providing a major boost to the country’s indigenous manufacturing ambitions.
India, one of the world’s fastest-growing civil aviation markets, is expected to benefit from the partnership as it seeks to strengthen air connectivity to Tier 2 and Tier 3 cities.
The Memorandum of Understanding (MoU) for the strategic collaboration on regional transport aircraft in India was signed by officials of Adani Defence & Aerospace and Embraer at a function held at the Civil Aviation Ministry in the national capital on Tuesday. As part of the agreement, the two companies will also set up a Final Assembly Line (FAL) for Embraer’s regional aircraft in the country.
Adani Defence & Aerospace Director Jeet Adani said the collaboration with Embraer will lead to the establishment of a regional aircraft manufacturing facility in India. Embraer manufactures commercial jets with seating capacity of up to 150 passengers. However, details regarding the investment outlay and the location of the proposed facility were not disclosed.
Civil Aviation Secretary Samir Kumar Sinha said the collaboration goes beyond assembling regional aircraft and focuses on progressive technology transfer, skill development, building a robust supply chain, and positioning India as a trusted manufacturing hub for regional aircraft.
With this partnership, Adani Group, which already has a strong presence in India’s rapidly expanding aviation sector, will make its entry into aircraft manufacturing in the country. Jeet Adani said a couple of sites are currently being evaluated for the manufacturing facility and a final decision is expected in the next few months.
Civil Aviation Minister K Rammohan Naidu said this is the right time to be in India, highlighting the country’s manufacturing strength and growth potential. He noted that the demand for regional transport aircraft has never been stronger and will help address multiple connectivity challenges. The collaboration could also enable aircraft manufacturing for the larger South Asian market, Naidu said.
For Embraer, the venture with the Adani Group is expected to provide a significant boost in India’s civil aviation space, where the Brazilian major aims to enhance cost-competitiveness with its regional jets.
Adani Defence & Aerospace President and CEO Ashish Rajvanshi described the collaboration as a “watershed” in the country’s Aatma Nirbharata (self-reliance).
Currently, Embraer, whose E-Jets began operations in India in 2005, has nearly 50 aircraft operating in the country, serving the Indian Air Force, government agencies, business jet operators, and commercial airline Star Air. According to Embraer, the Indian market is projected to require at least 500 aircraft in the 80- to 146-seat segment over the next 20 years.