Adani Group is preparing to enter aircraft manufacturing in India through a partnership with Brazil’s aircraft maker Embraer. According to a Times of India report, Adani Aerospace, a subsidiary of the Adani Group, has signed a memorandum of understanding (MoU) with Embraer to set up a final assembly line (FAL) for regional passenger jets in India.

A final assembly line is where aircraft parts are brought together to build complete aircraft. This will be India’s first commercial aircraft assembly line for fixed-wing passenger aircraft. A formal announcement about the project is expected later this month at the Wings India air show in Hyderabad. Details about the project location, investment and production capacity are likely to be revealed during the event.

Embraer manufactures regional jets that typically carry between 70 and 150 passengers and are used for short and medium-distance routes. The Brazilian company is best known for its E195-E2 aircraft, its largest commercial jet currently in production. With long waiting periods for Airbus and Boeing aircraft, in some cases stretching up to a decade Embraer is becoming an attractive option for airlines looking to add aircraft quickly.

At present, Star Air, a regional airline based in Karnataka and promoted by the Sanjay Ghodawat Group, is the only Indian carrier operating Embraer jets. The airline is planning to add more next-generation Embraer aircraft as part of its expansion plans. Some new airline start-ups in India are also exploring Embraer jets to launch short and mid-haul operations.

The Indian government has been encouraging global aircraft manufacturers to set up production facilities in the country under the Make in India initiative. According to the report, the government is also considering offering incentives to airlines that place orders for aircraft manufactured in India. These incentives may be provided in stages, linked to the number of aircraft ordered.

India’s domestic airlines have placed orders for more than 1,500 aircraft with Airbus and Boeing, but currently, there is no commercial aircraft assembly line in the country. Airbus is setting up two assembly lines in India for military transport aircraft (C295) and helicopters (H125) in partnership with Tata, but no such facility exists yet for civil passenger aircraft.

From airports to aircraft... is Adani building India’s first aviation superpower?

The proposed Embraer final assembly line could mark the beginning of a new phase for the Adani Group, one that may transform it from an airport operator into a full-scale aviation powerhouse.

Over the last few years, the Adani Group has rapidly expanded across the aviation value chain. Through Adani Airport Holdings Ltd (AAHL), it has become India’s largest private airport operator, handling nearly 23% of passenger traffic and about 33% of cargo movement in the country. The group has also entered aircraft maintenance through acquisitions of Air Works and Indamer Aviation, and has announced plans to invest in engine MRO, aircraft conversion (passenger-to-freighter) and flight simulation training.

Now, with the proposed Embraer assembly line, Adani is stepping directly into aircraft manufacturing, a space traditionally dominated by global giants like Airbus and Boeing.

For India, the project could help build a domestic aircraft manufacturing ecosystem, create high-skill jobs and reduce dependence on overseas assembly lines. For Embraer, it provides a strategic base in the world’s fastest-growing aviation market. For the Adani Group, it opens up an entirely new business vertical of aircraft production thus strengthening its presence across airports, MRO, training, cargo and now manufacturing.

With investments of over INR 1 lakh crore planned in airport infrastructure over the next five years, and growing interests in maintenance, cargo and manufacturing, the Adani Group appears to be laying the foundation for what could become India’s first fully integrated aviation conglomerate.