Embraer Partners with Hindalco for Aerospace Aluminum in India

Brazilian aircraft manufacturer Embraer SA has signed a Memorandum of Understanding (MoU) with Hindalco Industries, an Aditya Birla Group company, to secure a domestic supply of aerospace-grade aluminum. The agreement, announced on February 20, 2026, is a critical step in Embraer's strategy to establish a comprehensive aerospace manufacturing ecosystem in India, aligning with the government's 'Make in India' initiative.

This partnership follows a separate MoU signed with Adani Defence & Aerospace on January 27, 2026, which focuses on the final assembly of regional aircraft. Together, these agreements signal Embraer's intent to build a complete supply chain within India, from raw material sourcing to aircraft production and Maintenance, Repair, and Overhaul (MRO) services. The collaboration with Hindalco, the world's largest aluminum company by revenue, aims to develop and qualify Indian suppliers for the specialized materials required for Embraer's aircraft platforms.

A Two-Pronged Approach to Indian Manufacturing

Embraer's recent activities in India reveal a strategic, phased approach to building local industrial capabilities. The first step, formalized through the Adani partnership, targets the creation of a final assembly line for Embraer's commercial aircraft, potentially including the Embraer E-Jet E2 family of regional jets. The collaboration also explores manufacturing possibilities for the Embraer C-390 Millennium military transport aircraft.

The second and more foundational step is the MoU with Hindalco. This agreement addresses the critical upstream segment of the supply chain by focusing on the production of aerospace-grade aluminum plates, extrusions, and other raw materials. By securing a local source, Embraer can reduce logistical complexities, mitigate global supply chain risks, and increase the indigenous content of its Indian-assembled aircraft, a key objective of the 'Aatmanirbhar Bharat' (Self-reliant India) policy.

Roberto Chaves, Executive Vice President of Global Procurement and Supply chain at Embraer, commented on the strategy. “This joint action reinforces our focus on identifying local partners that can become our suppliers and, in doing so, accelerate the development of the Indian industrial base,” Chaves stated.

Alignment with National Policy and Market Growth

The partnerships are explicitly designed to support India's 'Make in India' program, which encourages foreign companies to manufacture their products domestically. For India, attracting a major original equipment manufacturer (OEM) like Embraer helps develop a sophisticated aerospace ecosystem, creates high-skill employment, and enhances its industrial capabilities.

Ashish Rajvanshi, President & CEO of Adani Defence & Aerospace, highlighted this alignment in the context of their joint venture. “We are shaping India's regional transport aircraft ecosystem, a bold stride toward Aatmanirbhar aviation that bridges urban-rural divides, generates high-skill employment, and elevates India's position in the global aerospace industry,” he said. The focus on Regional Transport Aircraft (RTA) directly supports India's UDAN scheme, a government initiative to improve air connectivity to underserved Tier 2 and Tier 3 cities.

Embraer's move is also part of a wider industry trend where global OEMs are diversifying their supply chains and establishing manufacturing hubs in high-growth markets. India's rapidly expanding aviation sector presents a significant long-term opportunity for aircraft sales and MRO services.

Embraer's Existing Indian Footprint

Embraer is not a newcomer to the Indian market. According to company data, a fleet of 47 Embraer aircraft is currently operational in the country across commercial, executive, and defense sectors. This existing presence provides a solid foundation for expanding its industrial partnerships.

The Indian Air Force operates three EMB-145 AEW "Netra" aircraft, which serve as airborne early warning and control platforms. Additionally, the Indian government utilizes a fleet of five Embraer VIP jets for official transport. This established relationship with the defense and government sectors provides Embraer with valuable operational experience and credibility within the country as it expands its commercial manufacturing ambitions.

Why This Matters

This series of agreements marks a strategic shift for Embraer in India, moving from simply selling aircraft to co-creating an industrial base. By securing both upstream material supply with Hindalco and downstream final assembly with Adani, Embraer is building a resilient and localized value chain. This move positions the Brazilian OEM to compete effectively for a share of India's burgeoning regional aviation market while directly contributing to the country's industrial self-reliance objectives.

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