Adani partners with Brazil's Embraer to make regional jets in India

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In a first, Adani, Embraer tie up to build commercial fixed-wing planes in India - The Times of India

India Business News: NEW DELHI: India will soon join a select group of nations that have a final assembly line (FAL) for commercial fixed-wing aircraft. The Adani Group ha.

timesofindia.indiatimes.com

India will soon join a select group of nations that have a final assembly line (FAL) for commercial fixed-wing aircraft. The Adani Group has tied up with Brazil's Embraer to make in India the latter's popular regional jets, which are operated on short- to medium-haul routes with seating capacity ranging from 70 to 146 passengers.

Last month, Adani Aerospace signed an MoU with Embraer in Brazil for the FAL, in the biggest boost for PM Modi's make-in-India programme in the aviation space. The two groups did not comment on the story.

Details such as the site and investment for the proposed FAL and when it will get operational are not yet known. A formal announcement is expected later this month at the Hyderabad air show.

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Govt mulls sops for aircraft orders
Being the world’s fastest growing aviation market with over 1,800 planes on order from airlines, including Air India group, IndiGo and Akasa, govt has been keen that global aerospace majors set up final assembly lines (FALs) for commercial aircraft in India.

With Embraer taking the lead, govt is looking at ways to incentivise customers who order from India’s first major commercial aircraft FAL. Its success and the presence of an ecosystem for assembling commercial planes, govt feels, will nudge the big two — Airbus and Boeing — to follow suit instead of just focussing on increasing their sourcing from the country.

"Several things are under consideration, including fiscal incentives for those ordering from this FAL. Like any new programme, the idea is to give incentives on a reducing basis as the orders grow, say, after every 50 orders placed,” said an official.

Embraer has a footprint with nearly 50 aircraft of 11 types in India, covering commercial, defence, and business aviation.

At present, in the commercial airline space, Star Air uses Embraer and is likely to order more of these regional jets. With no Airbus and Boeing single-aisle aircraft available for delivery till almost the middle of next decade for fresh orders placed now, some startups in India are planning to launch operations with Embraer.

“There is a vast market for our capacity aircraft that ranges from 80 to 146 seaters. We believe India will require 500 such aircraft in the next 20 years,” Raul Villaron, Embraer senior VP, had said.

Gautam Sahni, MD of Subha Aviation and leading Indian charter operator for two decades, has sought govt nod for operator’s permit. Sahni is said to be in talks with Embraer.

“I am awaiting clearance from govt and can’t comment any further. But it’s a fact that the Indian regional aviation market is gearing up for massive growth thanks to new airports opening in tier II and III cities and the focus on the subsidised Udan scheme. Delhi and Mumbai getting secondary airports each will boost regional flights connectivity from these two mega urban centres,” said Sahni, who plans to have his base in the upcoming Noida Airport.

Last June, Embraer had told TOI it would increase sourcing and could even set up an FAL based on getting sizeable orders from India. It already has a fully owned Indian subsidiary to scout for business opportunities across defence, commercial aviation, business aviation, services & support space here.

 

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https://www.reuters.com/world/india/adani-embraer-announce-pact-next-week-assemble-civil-aircraft-india-source-says-2026-01-23/

Billionaire Gautam Adani's aerospace and defence business and Brazil's Embraer will announce a tie-up next week to assemble commercial aircraft in India, a source with direct knowledge of the matter said, boosting the country's civil aviation industry.

Adani Aerospace and Embraer sent invitations to the media teasing a "historic" development in commercial aviation on Tuesday. The announcement will be made at the office of India's civil aviation ministry, the invitation said.

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Embraer project could take off from either Gujarat or Andhra Pradesh - The Times of India

India Business News: NEW DELHI: India’s first final assembly line (FAL) for commercial fixed-wing aircraft could come up in either Gujarat’s Dholera or Andhra Pradesh's Bh.

timesofindia.indiatimes.com

India’s first final assembly line (FAL) for commercial fixed-wing aircraft could come up in either Gujarat’s Dholera or Andhra Pradesh's Bhogapuram, with Dholera widely being seen as the frontrunner. Brazilian regional aircraft major Embraer and the Adani Group's upcoming JV FAL is being aggressively wooed by both states that are implementing very ambitious aerospace plans for these two places. India is looking at giving fiscal incentives to customers placing orders for made-in-India planes.

A formal announcement for the Adani-Embraer JV is expected next Tuesday, when more details may emerge. The two groups did not comment for this story on the likely location of the FAL.

 

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Embraer and Adani Defence & Aerospace announce strategic partnership to establish regional transport aircraft ecosystem in India

Adani Defence & Aerospace and Embraer announce a strategic partnership to develop, manufacture, and sustain the regional transport aircraft ecosystem in India

www.embraer.com

Embraer (NYSE: EMBJ / B3: EMBJ3), a global leader in aerospace, and Adani Defence & Aerospace, a leading player in India’s aerospace and defence and the flagship company of Adani Enterprises Ltd, have signed a Memorandum of Understanding (MoU) to develop an integrated regional transport aircraft ecosystem in India. The companies aim to collaborate on opportunities in aircraft manufacturing, supply chain, aftermarket services, and pilot training.

The collaborative industrial partnership will aim to establish an assembly line, followed by a phased increase in indigenization to advance India’s Regional Transport Aircraft (RTA) program, in alignment with the Aatmanirbhar Bharat initiative and the UDAN regional connectivity vision.

“India is a pivotal market for Embraer, and this partnership combines our aerospace expertise with Adani’s strong industrial capabilities and commitment to indigenisation,” said Arjan Meijer, President and CEO, Embraer Commercial Aviation. “Together, we will evaluate the most viable, advanced, and efficient solutions in support of India’s RTA ambitions and their potential for implementation.”

This potential partnership will leverage Embraer’s deep engineering and aircraft manufacturing expertise alongside Adani’s aviation value-chain footprint, which includes airport infrastructure, aerospace manufacturing, MRO services, and pilot training.

 

[Ashwin]

I would really prefer TASL to handle the RTA development because they already produce military transport of that size and they own an airline. Above all, it has an engineering culture.

This Adani with partnership is like Reliance JV with Dassault. Unlikely to end well. But still better than nothing.

 

[Shan]

I would really prefer TASL to handle the RTA development because they already produce military transport of that size and they own an airline. Above all, it has an engineering culture.

This Adani with partnership is like Reliance JV with Dassault. Unlikely to end well. But still better than nothing.

I am hoping he spends some money and hires talent from elsewhere.

 

[TARGET]

I would really prefer TASL to handle the RTA development because they already produce military transport of that size and they own an airline. Above all, it has an engineering culture.

This Adani with partnership is like Reliance JV with Dassault. Unlikely to end well. But still better than nothing.

Though it's better to collaborate with a corporate that has an engineering background, it's not always true... Now you see JSW they have zero background in automobile engineering, but they grabbed an opportunity in the automobile industry and did a joint venture with SAIC to build MG cars and SUVs, and now since SAIC is moving out, they are ready to join with JETour. JSW will directly purchase the vehicle's blueprint and adapt it for the Indian market to facilitate sales in India.



Adani can initially do the screwdrivergiri and later improve the Indianization to increase the localization percentage, and once the supply chain is available, they can buy the entire blueprint of the jet.

Embraer E2 is a nice product, if they can bring it to india.

 

[Ashwin]

Though it's better to collaborate with a corporate that has an engineering background, it's not always true... Now you see JSW they have zero background in automobile engineering, but they grabbed an opportunity in the automobile industry and did a joint venture with SAIC to build MG cars and SUVs, and now since SAIC is moving out, they are ready to join with JETour. JSW will directly purchase the vehicle's blueprint and adapt it for the Indian market to facilitate sales in India.

JSW just started. How can you presume it's a good model?

Corporations coming from commodities markets don't understand R&D and always take shortcuts. Unless there is some serious leadership initiatives like what Adani and Reliance doing with Solar.

Embraer E2 is a nice product, if they can bring it to india.

E2 product is struggling in the american market. So, You need a minimum order to come from indian airlines. TATA could have done it with ease.

 

[TARGET]

JSW just started. How can you presume it's a good model?

Corporations coming from commodities markets don't understand R&D and always take shortcuts. Unless there is some serious leadership initiatives like what Adani and Reliance doing with Solar.

E2 product is struggling in the american market. So, You need a minimum order to come from indian airlines. TATA could have done it with ease.

Aadani and Reliance are not going to start anything from ground zero they are large corporates sitting on huge market capital. If they are interested in R&D, they will acquire some industries like solar industries or some European companies. Indian companies mostly concentrate on pricing by using India's cheap labor power and material costs. To show some intial success for aero industries, the GOI will provide the incentive to reduce the cost.

Now, if E2 is manufactured in India and costs 15% less than the Airbus A220, there you go...opportunities for E2 in India. Aadani will start with EmbraerMRO facilities, and component-level manufacturing; maybe later they will assemble some planes.

 

[Subgradewalker]

I would really prefer TASL to handle the RTA development because they already produce military transport of that size and they own an airline. Above all, it has an engineering culture.

This Adani with partnership is like Reliance JV with Dassault. Unlikely to end well. But still better than nothing.

Culture Aside, Would Embraer even want a JV with TASL?

Dont they have a competitive relationship with Airbus? If yes, I think it would raise a conflict of interest issue for TASL. After all, it's not about just one product. Such partnerships are usually long lasting and only widens in scope across the sector.

If it doesn't, will Embraer have save advantage with TASL as compared to with ADANI during negotiations? We assume that only India decides the partner and not the other party.

I remember LM in talks with TATA for F-16 FA. But they derailed once TATA-RAFALE partnership for fuselage came in action. Now, I doubt LM would proceed with TASL even in a hypothetical scenario of LM getting any FA orders or something.

Edit: It's quite different compared to reliance-Dassault JV too. Anil's Reliance did not have good fiscal health , capacity to build capability even. And unlike ADANI, they didn't have the 10 gruesome years of experience being a player in Corporate -geopolitical churn

 

[Ashwin]

Culture Aside, Would Embraer even want a JV with TASL?

Outsiders prefer partners dumb so that they can make them happy with simple screwdriver assembly. TASL is milking the C-295 assembly with more than 90% localisation targets.

But it's fine for civil aviation. Business interests should take precedence over any others. That should not be the case with MTA. Contractually, we should aim to achieve maximum localization.

Dont they have a competitive relationship with Airbus? If yes, I think it would raise a conflict of interest issue for TASL. After all, it's not about just one product. Such partnerships are usually long lasting and only widens in scope across the sector.

TASL is not a JV, they are licence producing the C-295. Embraer is offering JV with Mahindra and Adani for C390 and now E2. Meaning, its a partnership in which they will own half the indian company. In the case of C-295 that is not the case.

So, no there is no conflict.

If it doesn't, will Embraer have save advantage with TASL as compared to with ADANI during negotiations? We assume that only India decides the partner and not the other party.

Adani has zero experience compared to TASL. They are not the same.

 

[Ashwin]

There is also a chance that this is towards the RTA related SPV that this news is indicating.

Govt likely to allocate Rs 12,511-crore to SPV for home-grown transport aircraft​

Nothing official yet.

 

[Subgradewalker]

Outsiders prefer partners dumb so that they can make them happy with simple screwdriver assembly. TASL is milking the C-295 assembly with more than 90% localisation targets.

But it's fine for civil aviation. Business interests should take precedence over any others. That should not be the case with MTA. Contractually, we should aim to achieve maximum localization.

Agree about the dumb part. Reminds me of Reliance-Meta partnership. Global giants are using indian businesses as logistics partner cum insider(govt orders) mostly.

TASL is not a JV, they are licence producing the C-295. Embraer is offering JV with Mahindra and Adani for C390 and now E2. Meaning, its a partnership in which they will own half the indian company. In the case of C-295 that is not the case.

So, no there is no conflict.

That is only platform centric view. But think from pov of global corporate especially monopolistic corporate like Airbus. Would they like that TATA conglomerate goes into JV with their rival. Assembly is just a start ain't it? 10,20 years down the line Indian corporates ideally will compete ( Indian market) with global giants or integrate even more as opposed to current dynamics. For example, look at Hero-Honda partnership and it's eventual breakdown. Or the Maruti-suzuki partnership which has only integrated more with time. In both scenarios, the competitive nature b/w Embraer and Airbus will eventually raise a conflict of interest for TATA as a sole partner. Given the distinct supply chain, strict QCs issues.

This is not about TATA vs ADANI but more about Embraer and Airbus. The former are same in most of their approach to innovation.

Adani has zero experience compared to TASL. They are not the same.

Exactly my point. Which gives Embraer an advantage in negotiations with Adani compared to negotiation with TASL. Who would they prefer?

As for experience of 10 years, I was talking about experience in handling attacks from global corporates and Geopolitics. Adani has been attacked ruthlessly by vested interests. They also have been increasingly used by GOI as the choice of corporate when it comes to strategic ventures outside india. Hindenburg, Haifa port, Israel, US, Global left, GOI, China was one such scenario of adani being in middle of geopolitical chess. You can bet that JV in aerospace sector especially civilian market and brazilian company at that... It will unnerve a lot of powers. TATA usually plays it safe, which is not to say that it's any less important for India.

 

[spice]

Embraer Advances Supply Chain Development in India

Embraer's Media Center: News, insights, and press releases on commercial aviation, defense & security, executive jets, and more. Filter by category and date.

embraer.com

New Delhi, India, February 09th 2026 – Embraer (NYSE: EMBJ; B3: EMBJ3) concluded another executive-level visit to India as it continues expanding and strengthening its supply chain in the country. The visit reinforces the company’s commitment to deepening industrial cooperation between Brazil and India and exploring new business opportunities across its portfolios.

“We reaffirm our strong commitment to collaborating with India’s aerospace industry. Our focus is on advancing joint initiatives in defense and civil aviation, contributing to technological innovation, operational excellence, and long-term strategic partnerships,” said Roberto Chaves, Executive Vice President of Global Procurement and Supply Chain at Embraer. “India is a key partner in shaping the future of aerospace, and we are dedicated to building sustainable cooperation that supports both the domestic industrial base and global initiatives.”

This visit builds on Embraer’s longstanding presence in India and follows ongoing discussions with local industry players and government stakeholders. Embraer assessed a range of potential suppliers in India, including capabilities in aerostructures assembly, machining, metal forming, composites, wiring systems, and hardware and software development.

Embraer views India as a key strategic partner in the Asia Pacific region and plans to implement an extensive local supply chain program in the country. Recently, the company inaugurated its Indian office in New Delhi, further strengthening its Asia Pacific footprint. A dedicated local Procurement team has also been established to support Embraer’s supply chain initiatives in India.​

 

[Ashwin]

 

[spice]

I doubt they will get 200 orders.