Gautam Adani-led Adani Group has announced a partnership with Brazilian aerospace major Embraer for the setting up of a regional transport aircraft venture in India. This pact would mark Adani Defence’s entry into commercial aviation manufacturing.
With this partnership, the conglomerate would help push for the country’s share of aircraft manufacturing, including the assembly of parts and component production. Just last month, Adani Group-led Navi Mumbai Airport began its commercial operations.
Adani Group to manufacture aircraft in India
Commenting on this strategic partnership, Jeet Adani, Director, Adani Airport Holdings, said, “It is with immense pride that I announce that Adani Defence is today entering into a landmark partnership with Embraer, one of the world’s foremost aircraft manufacturers. Together, we will establish a regional aircraft manufacturing facility in India and a one-of-its-kind aviation ecosystem, a project that will redefine the future of aviation in our country.”
He added that the partnership extends beyond a business agreement and represents the country’s vision to develop world-class aviation capabilities domestically, adding that it also aligns with the Atmanirbhar Bharat mission.
According to a Reuters report, both the companies have inked an MoU to explore cooperation in aircraft manufacturing, supply chains, and pilot training. However, the financial details for the same have not been disclosed, it added.
“India is a pivotal market for Embraer, and this partnership combines our aerospace expertise with Adani’s strong industrial capabilities,” Reuters quoted Arjan Meijer, the President and Chief Executive of Embraer Commercial Aviation, as saying in a statement.
Adani Group Stocks: Share Price Movement
After seeing some sharp losses last week, the Adani Group stocks bounced back today, January 27.
The share price of Adani Enterprises was up nearly 5% in the intraday session, while the shares of Adani Green rose by over 2%. Adani Ports and Special Economic Zone gained 3%, and Adani Total Gas moved up 2% in the intraday hours.
The recent surge in the share prices of the companies comes as investors reacted after the flagship company, Adani Enterprises, clarified that it is not involved in any legal proceedings referenced in recent media reports.
About Embraer
The Brazilian aerospace company specialises in manufacturing commercial jets with a passenger capacity of 70–140 passengers. The corporation is the world’s third-largest producer of aircraft after Airbus and Boeing.