Adani and Embraer to make regional aircraft in India
What's the story
Adani Group and Brazilian aerospace giant Embraer have announced a strategic partnership to establish a regional aircraft manufacturing facility in India. The move is expected to bolster India's indigenous manufacturing capabilities and enhance air connectivity to Tier 2 and Tier 3 cities. The Memorandum of Understanding (MoU) for this collaboration was signed by officials from Adani Defence & Aerospace and Embraer at an event hosted by the Civil Aviation Ministry in New Delhi today.
Partnership
MoU signed for regional transport aircraft collaboration
The MoU signed by Adani Defence & Aerospace and Embraer is for a strategic partnership on regional transport aircraft in India. As part of this deal, both companies will also establish a Final Assembly Line (FAL) for Embraer's regional aircraft in India. The exact investment details and location of the proposed facility have not been disclosed yet.
Strategic goals
Collaboration to enhance India's aviation capabilities
Civil Aviation Secretary Samir Kumar Sinha emphasized that this collaboration is not just about assembling regional aircraft but also involves progressive technology transfer, skill development, and building a robust supply chain. He stressed on making India a trusted manufacturing hub for regional aircraft. Jeet Adani, Director of Adani Defence & Aerospace, confirmed that they are looking at multiple sites for this manufacturing facility and will finalize everything in the coming months.
Market potential
Partnership to address India's regional aircraft needs
The need for regional transport aircraft in India was emphasized, with the collaboration potentially leading to manufacturing planes for the larger South Asian market. Adani Defence & Aerospace President & CEO Ashish Rajvanshi called the partnership a "watershed" moment in India's self-reliance journey.
Operational details
Embraer's presence in India
Embraer has been operating in India since 2005, with nearly 50 aircraft serving the Indian Air Force, government agencies, business jet operators, and also commercial airline Star Air. The Brazilian company is known for its commercial jets with up to 150 seats. According to a press release on January 21, Embraer estimates that the Indian market will need at least 500 aircraft in the 80-146 seat range over the next two decades.