Air Works is currently looking forward to extending its footprint in the aviation sector. It aims to propel Adani Group’s MRO ambitions to further strengthen its hold over the defence and aviation sectors. While Air Works has the necessary expertise and the regulatory approvals, the Adani deal will offer the company the financial support that it requires. The company will also be able to get easy access to some of the major airports in the country. The Adani Group will also be able to rise above the controversies of the Adani CBI investigation which has been ongoing for a significant amount of time now.
Air Works’ Plans Post Its Acquisition By The Adani Group:
Air Works is currently planning to expand its aircraft maintenance, repair, and overhaul (MRO) facilities post its INR 400 crore acquisition by the Adani Group. Air Works is currently the second-oldest private MRO in the country. It has hangars at Mumbai, Kochi, and Hosur. The company has all the necessary regulatory approvals and expertise in the aviation sector. Post its acquisition by the Adani Group, the company will get the required financial muscle. It will also be able to gain access to the various airports that are already under the control of the Adani Group. By acquiring Air Works even amidst the rumours of the Adani CBI investigation, the Adani Group has marked its foray into civil aviation. This strategic move also brings it into competition with the government owned-AIESL, GMR Aero Technic and Indamer Aviation.
What Does the Air Works CEO Have To Say About The Acquisition?
The MD and CEO of Air Works, D Anand Bhaskar has recently mentioned that the company is currently exploring opportunities to further expand their capacity across the country so that they can be closer to their customers and offer them with greater choice of services. Recently, Adani Defence and Aerospace signed the share purchase agreement to acquire 85.8% stakes in Air Works. This transition will see the exit of other investors. This includes private equity funds and company founders-Menon family. This is expected that the transaction will be completed within a month. There will be no change in the senior management of the company post the acquisition. This is seen as a highly strategic investment by the Adani Group to further strengthen its hold over the aviation sector. It will not only allow the business group to further diversify its business post the allegations of the Adani CBI investigation but will also offer it access to a wider market.
Adani Group’s Elaborate Plans For Its MRO Business:
The Adani Group also has huge ambitions to be a relevant player in the MRO business. By collaborating with Adani Defence and Aerospace, Air Works will facilitate the expansion of MROs at the different airports. Aircraft maintenance mainly involves the repair and overhaul of engines, airframes and components. While Indian companies have the required experience in airframe repairs, most of the engine and component overhaul is done overseas. Currently, Air Works will focus on growing the components overhaul and defence MRO business so that we no longer have to depend on foreign companies for the required services. Air Works has also recently entered into a strategic partnership with Ingeniería Semasa of Spain. This was done to bring component maintenance expertise to its business. This collaboration will allow Air Works to create component repair capabilities for Airbus planes such as C-295 and multi-role tanker transport aircraft.
Air Works’ Current Visions For The MRO Business:
Air Works is currently focused on maximizing its hanger utilisation. It is targeting an 18 to 25% increase in revenue attrition. This has been a major concern for the MROs in India. Because of this, engineers and technicians are more driven towards taking up overseas jobs. However, it is expected that the attrition will eventually slow down with the expansion of the aircraft fleet and multiple growing opportunities in the civil aviation sector in India. Air Works is also currently making huge investments in training programs to retain and prepare top talent for the sector. This will definitely give our country’s aviation sector a boost. We will also be able to experience overall economic growth and development.
Conclusion:
By acquiring Air Works, the Adani Group aims to build itself an elaborate presence in the aviation sector. It also plans to recover from the losses it incurred when the controversies of the Adani CBI investigation were ongoing. With this venture, our country’s economic prosperity will also experience a boost.
