Adani Group doubles down on aviation services with engine MRO, freighter conversion space

Adani Group plans to expand deeper into aviation services by foraying into aircraft engine maintenance and passenger-to-freighter (P2F) conversions, betting on strong long-term growth in the domestic aviation market, a top group official said.

The ports-to-power conglomerate, which already operates airports, maintenance repair and overhaul (MRO) facilities and pilot training businesses, is consolidating its aviation services operations into a single platform to scale up capabilities, Jeet Adani, director of Adani Airport Holdings Ltd, said.

“We have separated the two (aviation). One is the airport infrastructure and the other is the aircraft services business, which can include dual-use, defence and civilian,” Jeet Adani said, adding that the group is combining its MRO assets into “a single giant MRO company”.

The Adani Group entered the MRO segment last December after acquiring aviation maintenance firm Air Works for an enterprise value of ₹400 crore.

The group is now expanding its MRO capabilities to include landing gear, painting, P2F conversions and, eventually, aircraft engines, Jeet Adani said.

Adani Defence Systems and Technologies Ltd last month, through its venture Horizon Aero Solutions, agreed to acquire MRO services provider Indamer Technics Pvt Ltd in partnership with Prime Aero Services.

The defence arm said it would buy a 72.8% stake in Flight Simulation Technique Centre for ₹820 crore.

Jeet Adani said the group plans to expand MRO bases into cities such as Ahmedabad, Guwahati and Bhubaneswar, where Air Works does not currently operate.

Noting that flight training has bigger prospects in terms of expansion, Jeet Adani said, "Because FSTC right now is running with 15 simulators, I personally believe that India has the ability to absorb 40-50 simulators if we are able to execute."

"So now for the next, because it is a recent acquisition, we are just putting in place the right processing systems," he said.

"But the clear vision is in the next 2-3 years how do we get this business up to 45-50 simulators all across the country," Jeet Adani said.

According to Union Civil Aviation Minister K Ram Mohan Naidu, India will need an additional 30,000 pilots once the pending orders for 1,700 aircraft from the Indian carriers are delivered.

The Adani Group last week announced that it will infuse ₹1 lakh crore in its airports business over the next five years and projected a 10-15% growth in the domestic aviation market, including airports and airlines, during the next 10-15 years.