Aviation push: Adani Group enters MoU with Brazil's Embraer to set up regional aircraft manufacturing facility

Adani Group on Tuesday entered in a strategic collaboration with Brazilian aircraft maker Embraer to set up a regional aircraft manufacturing facility in India, taking a step towards the country’s push towards indigenous manufacturing in civil aviation.

Adani Defence & Aerospace and Embraer formalised the partnership with the signing of a Memorandum of Understanding, at an event held at the civil aviation ministry in New Delhi. The collaboration comes at a time when India stands as one of the fastest-growing civil aviation markets globally, with increasing demand for improved connectivity to Tier 2 and Tier 3 cities.




Under the agreement, the two companies plan to establish a Final Assembly Line in India for Embraer’s regional transport aircraft. Currently, Embraer manufactures commercial jets with seating capacity of up to 150 passengers.

Adani Defence & aerospace director Jeet Adani said that the tie-up with Embraer would result in the setting up of a regional aircraft manufacturing facility in the country. He added that a couple of potential sites are under consideration and that details would be finalised over the next few months. However, the companies did not disclose investment plans or the location of the proposed facility.

The civil aviation secretary, Samir Kumar Sinha also hailed the collaboration saying that it goes beyond the aircraft assembling, rather focuses on broader objectives. He further added that the initiative is aimed at making India a trusted hub for regional aircraft manufacturing.

With this move, Adani Group will make its foray into aircraft manufacturing in India, expanding its footprint in the fast-growing aviation sector.

Civil Aviation Minister K Rammohan Naidu said this is an opportune time to invest in India, citing the country’s manufacturing and growth potential. He said the demand for regional transport aircraft has never been stronger and that such aircraft would help address several connectivity challenges. He also said the collaboration could cater to manufacturing needs for the larger South Asian market.

For Embraer, the partnership is expected to provide a significant boost in India’s civil aviation space, where the company is seeking to offer cost competitiveness through its regional jets. Adani Defence & Aerospace President and CEO Ashish Rajvanshi described the collaboration as a "watershed" moment in India’s Aatma Nirbharata, or self-reliance.

Embraer’s presence in India dates back to 2005, when its E-Jets began operations in the country. At present, nearly 50 Embraer aircraft are operating in India, serving the Indian Air Force, government agencies, business jet operators and regional airline Star Air.

According to Embraer, the Indian market is expected to require at least 500 aircraft in the 80 to 146 seat category over the next two decades.