Adani group plans to foray into engine MRO as well as passenger-aircraft-to-freighter (P2F) conversion, as the diversified conglomerate bets big on the domestic aviation market, according to a top group official.
Besides airports, the diversified conglomerate is also present in the MRO and pilots training business.
"We have separated the two (aviation). One is the airport infrastructure and the other one is the aircraft services business. So that can include dual use, defence and civilian use. So, between Indamer and Air Works (MROs), we are now combining the platform into a single giant MRO company," Jeet Adani, Director of Adani Airport Holdings Ltd (AAHL), told PTI during an interaction last week.
Stating that the MRO is a fast-growing segment, Jeet Adani said, "Now we are expanding that as well to increase our capabilities on landing gear, paint, P2F (passenger-to-freighter) conversions, and hopefully at some point, engines." The group entered the MRO segment last December following the acquisition of aviation maintenance, repair and overhaul (MRO) services firm Air Works for an enterprise value of Rs 400 crore, strengthening its foothold in the defence MRO sector.
Further expanding its presence in the MRO space, Adani Defence Systems and Technologies Ltd (ADSTL), through its venture Horizon Aero Solutions Ltd, in partnership with Prime Aero Services LLP, last month signed a definitive agreement to acquire a 100 per cent stake in MRO services provider, Indamer Technics Pvt Ltd (ITPL).
And last month, ADSTL said it will buy a 72.8 per cent stake in Flight Simulation Technique Centre (FSTC) for Rs 820 crore, marking the conglomerate's foray into the pilot training segment.
"We are also expanding our bases. So, we are expanding in Ahmedabad which doesn't exist today as an Air Works base. Guwahati and Bhubaneswar (too) which don't exist as Air Works bases. So, we will see some expansion," he said.
Noting that flight training has bigger prospects in terms of expansion, Jeet Adani said, "Because FSTC right now is running with 15 simulators, I personally believe that India has the ability to absorb 40-50 simulators if we are able to execute." "So now for the next, because it is a recent acquisition, we are just putting in place the right processing systems," he said.
"But the clear vision is in the next 2-3 years how do we get this business up to 45-50 simulators all across the country," Jeet Adani said.
Indian carriers are scheduled to induct some 1,700 aircraft over a period of time.
India will need an additional 30,000 pilots once the pending orders for 1,700 aircraft from the Indian carriers are delivered, Union Civil Aviation Minister K Ram Mohan Naidu had said last week.
On the investment in these businesses, he said, "On the MRO and FSTC side, it's a little early to say because we are still in the process of finalising a long-term strategy and then putting a number to it." "At the end of the day, we are deep into it and want to keep growing our expertise and our depth," he said.
The group last week announced that it will infuse Rs 1 lakh crore in its airports business over the next five years and projected a 10-15 per cent growth in the domestic aviation market, including airports and airlines, during the next 10-15 years.
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