Adani Enterprises and Brazilian aerospace major Embraer are preparing to announce a landmark partnership that will establish India's first civilian aircraft final assembly line, marking a transformative moment for the country's aviation manufacturing sector. The collaboration represents a significant step forward in India's Make in India initiative for commercial aviation.

Partnership Details and Timeline

A Memorandum of Understanding will be signed between executives of Adani Defence and Aerospace and Embraer on January 27 in New Delhi, with Civil Aviation Minister K Rammohan Naidu present at the ceremony. The agreement is expected to pave the way for setting up a Final Assembly Line (FAL) in India for Embraer's civilian aircraft.

Strategic Significance for Adani Group

The proposed Final Assembly Line will mark Adani Group's entry into aircraft manufacturing, significantly expanding its footprint in India's rapidly growing aviation ecosystem. According to sources, over time, Adani Group is also likely to begin manufacturing aircraft components once the assembly line becomes operational, indicating a comprehensive approach to aerospace manufacturing.

Embraer's Indian Market Strategy

Embraer has been intensifying its focus on the Indian market to capitalize on long-term growth opportunities. The Brazilian aircraft maker opened a new office in New Delhi in October 2025, demonstrating its commitment to the region. Embraer's E-Jets began operating in India in 2005, and the company currently has nearly 50 aircraft in the country serving various sectors.

Market Opportunity and Growth Projections

India represents one of the world's fastest-growing civil aviation markets, characterized by rising air traffic demand, rapid fleet expansion by airlines, and a steady increase in operational airports. According to Embraer's projections released on January 21, the Indian aviation market is expected to require at least 500 aircraft in the 80-146 seat segment over the next 20 years.

The partnership with Adani Group is expected to provide Embraer with a significant competitive advantage in India's civil aviation space, where it aims to offer cost-competitive regional jets. This collaboration aligns with the government's efforts to boost civilian aerospace manufacturing and maintenance activities domestically.

Broader Aviation Manufacturing Initiatives

The Adani-Embraer partnership represents part of a larger trend toward establishing India as a global aviation manufacturing hub. In November 2025, French aerospace major Safran announced that its maintenance, repair and overhaul facility for LEAP engines in India would become operational this year, further strengthening the country's aerospace ecosystem.

In the defense segment, Embraer Defense & Security signed an MoU with Mahindra Defence Systems in 2024 to explore a joint bid for the Indian Air Force's Medium Transport Aircraft programme using the C-390 Millennium platform. Embraer is also looking to strengthen its presence across multiple aviation segments in India, including commercial aviation, defense, business jets, services and support, as well as urban air mobility.

Adani Enterprises Limited has successfully completed its strategic acquisition in the flight simulation sector, securing a 72.8% stake in Flight Simulation Technique Centre Private Limited (FSTC). The company informed stock exchanges BSE and NSE about this development on January 23, 2026, following the completion of the transaction.

Acquisition Structure and Execution

The acquisition was executed through a structured subsidiary approach involving multiple entities within the Adani group. The transaction details are outlined below:

ADSTL operates as a wholly owned subsidiary of Adani Enterprises Limited, while HASL functions as a joint venture with a 50% stake held by ADSTL and the remaining 50% owned by Prime Aero Services LLP.

Regulatory Compliance and Documentation

The company has maintained full compliance with regulatory requirements throughout the acquisition process. Adani Enterprises had previously disclosed the necessary details under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in conjunction with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

Strategic Context

This acquisition represents part of Adani Enterprises' broader expansion into the defence and aerospace sector through its subsidiary ADSTL. The transaction follows earlier intimations regarding Share Purchase Agreements for acquisitions in flight simulation companies, including both Flight Simulation Technique Centre Private Limited and Flight Simulation Solutions Private Limited.

The completion of this acquisition strengthens Adani Enterprises' position in the specialized flight simulation technology sector, with FSTC now becoming a subsidiary with the group holding a controlling 72.8% stake. Company Secretary and Joint President (Legal) Jatin Jalundhwala signed the official communication to the stock exchanges, confirming the transaction's completion and requesting the exchanges to update their records accordingly.