New Delhi: Brazilian aircraft maker Embraer has told Indian carriers that it would require at least 200 firm aircraft orders to justify setting up a final assembly line (FAL) in India, according to media reports. The company said such a large-scale investment would only be commercially viable with strong order visibility from domestic airlines.

If airlines are not prepared to commit to 200 confirmed orders immediately, Embraer has proposed a phased alternative. It may begin with a completion centre in India, under which aircraft would be fully manufactured in Brazil and then flown to India for final processes such as painting, cabin installation and interior fittings before delivery.

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MoU with Adani Group

Last month, Embraer signed a Memorandum of Understanding (MoU) with the Adani Group to explore establishing a final assembly line for regional jets in India.

Embraer President and CEO Francisco Gomes Neto said India’s rapidly expanding aviation market and airport infrastructure make it a promising destination for long-term investment. He indicated that if firm orders are secured this year, production at an Indian facility could commence by 2028.

Market potential and aircraft plans

Embraer estimates that India may require around 500 regional jets in the coming years. Demand is expected to be driven significantly by the government’s regional connectivity scheme, UDAN (Ude Desh ka Aam Naagrik), which seeks to improve air links between Tier-2 and Tier-3 cities.

The company plans to assemble its Embraer E175 jets in India. These aircraft typically seat between 76 and 88 passengers and are suited for short- and medium-haul routes.

Currently, Star Air operates E175 aircraft in India, while Reliance Industries uses one for corporate operations.

To secure large fleet commitments, Neto has been meeting senior executives at major Indian airlines, including Air India and IndiGo.

Proposed location: Dholera

The proposed facility may be set up in Dholera, Gujarat, which is being developed as a major industrial hub under the Dholera Special Investment Region (DSIR) project. The area is planned as a smart industrial city featuring a new international airport, aircraft maintenance and repair (MRO) facilities, pilot training infrastructure and a seaport.

The Adani Group is currently finalising the site for the proposed plant.

Expanding Indian footprint

Embraer said it has been strengthening its Indian supplier base over the past 18 months and now works with more than 15 supply chain partners in the country. It has also signed an agreement with Hindalco to explore production of aerospace-grade aluminium in India.

Under the MoU, Embraer will provide aircraft engineering and manufacturing expertise, while Adani will contribute its aviation ecosystem, including airports, aerospace manufacturing, MRO services and pilot training.

Jeet Adani, Director of Adani Defence and Aerospace, said regional aviation is crucial for economic growth and emphasised the need for a strong domestic regional aviation ecosystem.

Embraer already has nearly 50 aircraft operating in India across commercial, defence and business aviation segments. The Indian Air Force operates Embraer platforms such as the Legacy 600 and the Netra airborne early warning and control aircraft based on the ERJ145 platform.

Meanwhile, the Adani Group has announced plans to invest ₹1 lakh crore in its airports business over the next five years and is considering options such as an IPO, demerger or induction of a strategic investor. Overall, the conglomerate has outlined investments exceeding ₹6 lakh crore across aviation, clean energy, infrastructure, digital platforms and advanced manufacturing.