Adani Group Bets Big on India's Aviation Boom, Adding Engine MRO and Cargo

The Adani Group is significantly expanding its footprint in India’s commercial aviation sector. The conglomerate is moving beyond airport infrastructure to focus on high-value aircraft services. This strategic shift includes plans to enter engine MRO and passenger-to-freighter (P2F) conversion services.

Jeet Adani, Director of Adani Airport Holdings Ltd (AAHL), confirmed the group's vision last week. He stated the company is separating airport infrastructure from its aircraft services business. This new services division will cover both civilian and defense aviation needs.

Building India's Largest Private MRO Platform

The group is actively consolidating its Maintenance, Repair, and Overhaul (MRO) assets. The goal is to create a “single giant MRO company.” This platform will combine the capabilities of its recent acquisitions.

• Air Works: Acquired in December for an enterprise value of Rs 400 crore.
• Indamer Technics (ITPL): A 100% stake acquisition agreement was signed last month.

This consolidation is intended to unlock synergies and expand technical capabilities. The combined entity will offer a full spectrum of MRO services. Current capabilities are expanding to include landing gear and aircraft paint. The ultimate goal is to add engine MRO at some point.

The Strategic Move into Engine MRO and P2F

The move into engine MRO is critical for India’s aviation self-reliance. Engine overhaul was the largest revenue-generating segment in India’s MRO market in 2024. The overall Indian MRO market is booming. It was valued at up to $3.77 billion in 2024. The market is projected to reach up to $6.887.5 million by 2030.

Targeting passenger-to-freighter conversion (P2F) is another strategic step. This is a response to the growing global cargo demand. It also addresses the need for cargo aircraft conversion in the region. The group is also expanding its MRO bases. New bases will be established in Ahmedabad, Guwahati, and Bhubaneswar.

Addressing India's Pilot Training Deficit

Beyond maintenance, the Adani Group is investing heavily in pilot training. Adani Defence Systems and Technologies Ltd (ADSTL) acquired a 72.8% stake in Flight Simulation Technique Centre (FSTC). The deal was valued at Rs 820 crore.

This investment directly addresses a major industry bottleneck. Indian carriers are scheduled to induct around 1,700 new aircraft. Union Civil Aviation Minister K. Ram Mohan Naidu stated that India will need an additional 30,000 pilots. This demand is driven by the pending aircraft orders.

FSTC currently operates 15 simulators. Jeet Adani shared a clear vision to rapidly expand this business. The goal is to reach 45 to 50 simulators nationwide within the next two to three years. This massive increase in pilot training simulator capacity is vital. It helps close the gap between fleet growth and pilot availability.

Outlook for India's Aviation Ecosystem

This significant investment underscores the group's confidence in the domestic market. The group projects a 10-15% growth in the domestic aviation market. This growth is expected over the next 10-15 years. The government is also supporting the MRO sector. The MRO Policy 2021 and tax rationalization are key factors.

Opportunities and Impact:

• Cost Savings for Airlines: Domestic MRO work reduces reliance on foreign service providers. This can save up to $15 billion in foreign exchange for the country.
• Global Hub Status: The expansion supports the government's goal. India aims to become a premier global MRO destination.
• Integrated Services: The Adani platform offers a rare single-point solution. It covers airports, maintenance, and crew training. This strengthens the entire aviation value chain.

While investment figures are still being finalized for MRO and FSTC, the strategic direction is clear. The Adani Group aviation expansion aims to capture a large share of India's rapidly growing aviation services market.