Adani Group Targets Engine MRO and P2F Conversions in Major Aviation Services Push

The Adani Group is significantly expanding its presence in India’s aviation services sector. The conglomerate plans to enter the critical areas of engine Maintenance, Repair, and Overhaul (MRO) and passenger-aircraft-to-freighter (P2F) conversion operations.

This move builds on the group’s existing portfolio. It already includes airport infrastructure, MRO services, and pilot training. The strategy separates the business into airport infrastructure and aircraft services, according to Jeet Adani, Director of Adani Airport Holdings Ltd (AAHL).

Creating a Unified MRO Giant

The group is combining its recent MRO acquisitions into a single, large company. This platform merges the capabilities of Air Works and Indamer Technics.

• The group acquired aviation MRO firm Air Works last December for an enterprise value of Rs 400 crore.
• Adani Defence Systems and Technologies Ltd (ADSTL) is acquiring a 100% stake in Indamer Technics Pvt Ltd (ITPL).
• This unified MRO entity aims to strengthen capabilities for both civilian and defense use.

Jeet Adani noted the MRO segment is growing quickly. The expansion plan includes new capabilities for landing gear, paint, P2F conversions, and eventually, aircraft engines. The group is also expanding its MRO bases to new locations. These include Ahmedabad, Guwahati, and Bhubaneswar.

Addressing the Engine MRO and Cargo Gap

The focus on engine MRO and P2F conversions addresses major gaps in the domestic aviation market. The Indian MRO market is valued at billions of dollars. However, an estimated 80–85% of MRO work is outsourced overseas.

• Engine MRO accounts for nearly half of the total MRO market value.
• This segment is serviced almost entirely outside of India.
• The Adani plan aims to localize this high-value work. This will save foreign exchange and reduce turnaround times for Indian carriers.

P2F conversions are a key opportunity driven by the growing air cargo sector. The rise of e-commerce is fueling demand for dedicated freighters. Converting older passenger aircraft is a cost-effective solution. The group’s entry will boost India’s air cargo capacity. This aligns with other industry efforts, like the Boeing Converted Freighter line established by GMR Aero Technic.

Massive Pilot Training Scale-Up

Beyond maintenance, the Adani Group is also scaling up its pilot training segment. ADSTL is acquiring a 72.8% stake in Flight Simulation Technique Centre (FSTC) for Rs 820 crore.

• FSTC currently operates 15 simulators.
• The group’s vision is to increase this to 45-50 simulators nationwide in the next two to three years.

This expansion directly addresses a critical need. Indian carriers are scheduled to induct approximately 1,700 new aircraft. This fleet growth will require an estimated 30,000 additional pilots, according to the Union Civil Aviation Minister.

Industry Impact and Investment Outlook

The Adani Group’s large-scale investment signals a strong bet on the future of Indian aviation. The domestic market is projected to grow by 10-15% over the next 10-15 years. The group is infusing Rs 1 lakh crore into its airports business over five years.

• Opportunity: The MRO market is expected to reach $4 billion by 2031.
• Benefit: Localizing MRO services will lower operational costs for airlines like IndiGo and Air India.
• Challenge: Finalizing the long-term strategy and specific investment numbers for the MRO and FSTC businesses is still underway, according to Jeet Adani.

This integrated approach, from airport operations to maintenance and training, positions the group as a major player across the entire commercial aviation news value chain. For more updates on flight operation news, visit flying.flights.