Adani–Embraer deal: Major announcement expected during Brazilian President’s India visit

Days after Embraer and the Adani Group announced a partnership to develop an integrated regional transport aircraft ecosystem in India, President Lula’s upcoming visit is likely to see announcements related to investments and timelines for the project, sources said.

Embraer and Adani Defence & Aerospace have signed an agreement to collaborate on opportunities across aircraft manufacturing, supply chains, aftermarket services, and pilot training. A memorandum of understanding (MoU) between the two companies was signed on January 27. However, both sides had refrained from disclosing details related to project costs, timelines, and the proposed location.

Details of the investments to be made by both companies, along with indicative timelines for the project, are now expected to be announced during President Lula’s visit, sources added. The detailed blueprint of the project, however, is likely to take more time, with a series of meetings between the two companies scheduled over the coming months.

The Brazilian President will be in India on a State Visit from February 18 to 22 and is scheduled to hold a bilateral meeting with Prime Minister Narendra Modi on February 21. He is expected to be accompanied by around 14 ministers and a large delegation of top chief executives from Brazilian companies.

The accompanying ministers are expected to hold meetings with their Indian counterparts, while the CEOs will participate in a business forum being organised during the visit. This reflects the growing trade and commercial engagement between the two countries, according to a Ministry of External Affairs (MEA) communiqué.

With the setting up of a final assembly line in India, the Brazilian aviation major aims to ramp up aircraft production. This would mark the first final assembly line for commercial aircraft in the country. Embraer manufactures fixed-wing aircraft with seating capacity of up to 150 passengers.

In India, regional carrier Star Air is currently the only airline operating Embraer jets for commercial services. The Kolhapur-based airline, promoted by the Sanjay Ghodawat Group, has plans to add second-generation Embraer jets to its fleet as part of its expansion strategy.

Given the projected growth in India’s aviation sector, the government has been encouraging global aviation manufacturers to set up final assembly lines in the country under the Make in India initiative. According to reports, the government is also considering incentives for customers placing orders from India’s first major commercial aircraft FAL.

Embraer already has a significant footprint in India, with nearly 50 aircraft across 11 models operating in commercial, defence, and business aviation segments. The Indian Air Force operates Embraer aircraft such as the Legacy 600 and the ‘Netra’ AEW&C platform based on the ERJ-145, while Star Air operates a fleet of 13 E175 and ERJ-145 aircraft.