Adani Group has entered the airport sector, and now it is planning to expand in it. That’s why he made a proposal to buy Air Works, but now it is delayed. Know what is the reason
Industrialist Gautam Adani Slowly spreading their feet in the aviation sector. First winning the bid to handle the operations of 6 airports, then acquiring Mumbai airport and now Maintenance, Repair and Overhaul (MRO) Planning to get into the business of The company had planned to acquire Air Works to enter the MRO business, but now it is getting delayed.
Let us tell you, after the acquisition of Air Works, Adani Group may have a war with Tata Group in this sector. The reason for this Tata Group continuously Air India Engineering Service Limited (AESL) Trying to buy. It was a subsidiary company of Air India, which was separated at the time of privatization. Now the government is preparing to sell it.
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Last date has been missed 2 times
Adani Group had signed MoU with him to buy Air Works. The deadline of this MoU has passed twice. Its last deadline was the fourth quarter of the financial year 2022-23 i.e. January-March.
In October last year, Adani Defense Systems and Technologies, a company of Adani Group, had signed an agreement to buy Air Works for Rs 400 crore. But the reason for its not being completed is the Punj Lloyd Group.
Punj Lloyd Group reason for delay in deal
Quoting sources, ET has reported that Punj Lloyd Group has a 23 per cent stake in Air Works. These days Punj Lloyd Group is facing the situation of liquidation ie closure of the company. Due to this the properties of Air Works are also under the bank and due to this it is taking time to deal with Adani Group.
However, no official statement has been made by Adani Group, Air Works and Punj Lloyd Group in this regard. Adani Group wants to enter MRO sector through Air Works. The company wants to increase its revenue by starting duty free, ground handling work along with airport operations.
Adani will compete with Tata
Air Works is one of the oldest private MRO companies in the country. It was established in 1951 by P.S. Menon and B.G. It was done by two friends named Menon. It provides its service in 27 cities of the country. The company has hangars at Mumbai, Hosar and Kochi.
At the same time, the government-owned Air India Engineering Services Limited is the largest MRO company in the country. In 2021-22, it handled 450 aircraft and its profit has been Rs 840 crore. Tata Group has also formed a group in agreement with Germany’s Lufthansa and France’s Air France-KLM to buy this company. The company has 6 hangars.