Reliance Infrastructure takes flight with ₹5,000 cr bet on aircraft upgrade business, ET Infra
Advt
Advt
Join the community of 2M+ industry professionals Subscribe to our newsletter to get latest insights & analysis.
Get updates on your preferred social platform Follow us for the latest news, insider access to events and more.
This strategic foray positions Reliance Infrastructure as India's first private sector company to independently execute a comprehensive aircraft upgrade programme without being the original manufacturer - a domain traditionally dominated by public sector units and OEMs.According to a company source, the company has already marked a significant milestone by successfully upgrading 55 Dornier-228 aircraft under a contract with Hindustan Aeronautics Ltd (HAL), in collaboration with US-based avionics firm Genesys.Initially awarded a contract for 37 aircraft, Reliance secured a repeat order for an additional 18 units following the successful execution of an earlier contract.The total value of the Dornier upgrade contract was ₹350 crore, sources said.The upgraded Dornier fleet is operational with the Indian Air Force, Indian Navy, and Indian Coast Guard.With military aircraft and helicopters having a service life of 30-40 years, regular upgrades - particularly of avionics, mission systems, and safety equipment - are vital.Industry experts estimate that lifecycle investments in upgrades and MRO can reach up to 200-300 per cent of the original acquisition cost of a platform.Globally, the market for military aircraft and helicopter upgrades stands at over ₹5,00,000 crore annually, and is projected to rise to ₹7,00,000 crore in the next seven years.India, with a vast inventory of legacy platforms, offers a substantial domestic opportunity, especially as the armed forces modernise older fleets for next-gen warfare.Reliance Infrastructure is now looking to scale up its aircraft and helicopter upgrade capabilities, working with global partners to deliver world-class solutions.In addition to the Dornier upgrade success, the company is also a key player in the performance-based logistics (PBL) program for Rafale fighter jets in India, in partnership with Thales of France.Reliance investments in this domain align with the vision of ' Atmanirbhar Bharat ' while tapping into a multi-billion-dollar global market.With its growing portfolio and proven execution, Reliance Infrastructure is poised to become a major private player in the defence aviation ecosystem, bridging the gap between cutting-edge global technology and the operational needs of India's armed forces.For industry stakeholders and investors, Reliance's aircraft upgrade strategy represents a high-potential play in India's defence manufacturing and services sector, with scope for international collaboration and recurring revenue models.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
17 minutes ago
- Time of India
HC asks MMRDA to deposit Rs 1,169 crore arbitral award in dispute with Reliance Infra
The Bombay High Court on Tuesday directed the Mumbai Metropolitan Region Development Authority (MMRDA) to deposit the arbitration award of Rs 1,169 crore with the court registry in connection with its dispute with the Mumbai Metro One Pvt Ltd ( MMOPL ), a subsidiary of Anil Ambani's Reliance Infrastructure . The MMRDA, a Maharashtra government agency, has moved the HC challenging two orders -- of August 2023 and February 2024 -- passed by a three-member tribunal in arbitration between MMOPL and MMRDA for various disputes including the cost of the metro project. The MMRDA, in an application, sought an interim stay to the arbitral award till the petition was heard and decided. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like B. Tech. Engineering Technology For Working Professionals. BITS Pilani WILP Apply Now Undo Justice Somasekhar Sundaresan on Tuesday refused to grant any interim relief without the amount being deposited. When parties agreed to submit themselves to arbitration and it culminated in an award, the money decree in the arbitral award is not something "written on water and irrelevant", said the judge. Live Events "Routinely granting a stay and that too without any deposit would run counter to the explicit legislative intervention that was made by Parliament to give teeth and relevance to arbitral awards," the HC said. The court further said no case was made out for an unconditional stay. If the MMRDA deposited the entire amount by July 15, then the execution of the award would be stayed pending final hearing and decision on the MMRDA's petition, it added. MMOPL, a joint venture of Reliance Infrastructure and MMRDA, operates Mumbai's first metro line on Versova -Andheri-Ghatkopar corridor. While Reliance Infrastructure holds 74 per cent stake, the rest is with MMRDA. The disputes between the two parties relate to the development, design, engineering, financing, procurement, construction, operation and maintenance of metro rail under a 2007 agreement. The metro rail project started with a delay of over two years. MMOPL claimed that the project costs increased from Rs 2,356 crore to Rs 4,321 crores, which the MMRDA contested. PTI
Hans India
24 minutes ago
- Hans India
Sensex, Nifty 50 turn flat after rally: Time to book profits?
After five days of gains, the Sensex and Nifty opened higher on Tuesday but quickly lost momentum, turning volatile amid global cues and sectoral churn. As of 9:32 AM: Sensex: Down 160 pts to 82,284 Nifty 50: Down 5 pts to 25,097 Key Trends Nifty Auto, IT, Metal, and Oil & Gas sectors showed gains Bank and Financial Services dipped Midcaps and Smallcaps continued their uptrend Expert Views VK Vijayakumar (Geojit): Nifty to consolidate in the 24,500–25,500 range. Some profit booking is likely, but liquidity may support dips. Akshay Chinchalkar (Axis Securities): Technicals point to a bullish breakout with upside potential to 25,800, as long as Nifty stays above 24,800. Ajit Mishra (Religare): Stay cautious in mid & small caps; focus on quality stocks with a favorable risk-reward ratio. What's Next? The outcome of ongoing US-China trade talks will likely shape short-term market sentiment. While optimism exists, a quick resolution is unlikely. Should You Book Profits? Some profit booking is advised to hedge against volatility, especially after recent highs and stretched valuations. However, the underlying sentiment remains bullish with strong domestic liquidity.
&w=3840&q=100)
Business Standard
34 minutes ago
- Business Standard
GEF Capital Partners sells 5.55% stake in Premier Energies for ₹2,629 cr
GEF Capital Partners on Tuesday divested a 5.55 per cent stake in Premier Energies for Rs 2,629 crore through open market transactions. Premier Energies Ltd (PEL) is among the largest integrated manufacturers of solar photovoltaic cells and modules (in terms of installed capacity) and specialty solar photovoltaic products in India. US-based GEF Capital Partners through its affiliate South Asia Growth Fund II Holdings LLC sold a total of 2.5 crore equity shares, representing a 5.55 per cent stake in Premier Energies Ltd, as per the bulk deal data available with the NSE. The transaction, valued at around Rs 2,629 crore, was executed at an average price of Rs 1,051.60 per share. Following the stake sale, the shareholding of South Asia Growth Fund II Holdings in Premier Energies declined to 5.55 per cent from 11.10 per cent. Meanwhile, Quant Mutual Fund bought 43.55 lakh shares, amounting to a 0.97 per cent stake in Premier Energies. Also, Premji Invest's arm PI Opportunities AIF V purchased 33.28 lakh scrips or 0.74 per cent holding in Hyderabad-based Premier Energies. The shares were acquired at the same price, taking the combined deal value to Rs 808.02 crore. Details of the other buyers of Premier Energies' shares could not be ascertained on the National Stock Exchange (NSE). Shares of Premier Energies rose 1.94 per cent to close at Rs 1,082.80 apiece on the NSE. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
