Reliance Infrastructure takes flight with Rs 5,000 cr bet on aircraft upgrade business
Synopsis
Reliance Infrastructure is significantly expanding its defence sector presence, targeting a ₹5,000 crore aircraft upgrade market over the next 7-10 years. Having successfully upgraded 55 Dornier-228 aircraft, the company aims to become a key private player in India's defence aviation, aligning with 'Atmanirbhar Bharat' and partnering with global firms like Thales for projects such as Rafale fighter jet logistics.
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Anil Ambani (File) Anil Ambani-owned Reliance Infrastructure is stepping up its game in the defence aviation sector, signalling a new wave of growth for private players in India's strategic industries. The company plans to ramp up efforts in aircraft upgrade programs, tapping into an estimated Rs 5,000 crore opportunity over the next 7 to 10 years. According to a PTI report, this strategic move will make Reliance Infrastructure India's first private sector company to successfully implement a full aircraft upgrade program as a standalone entity without being the original manufacturer. This is a segment that has only been undertaken by public sector units and OEM's as the domain. The PTI report further mentioned that a company source revealed that Reliance Infrastructure has already achieved a key milestone by upgrading 55 Dornier-228 aircraft, as part of a contract with Hindustan Aeronautics Ltd (HAL), in partnership with the US-based avionics firm Genesys. Initially awarded a contract for 37 aircraft, a follow-on order was given to Reliance for 18 more units after completing this successful project. As per the PTI report, sources indicate that the contract value of the Dornier upgrade was approximately Rs 350 crore. The new Dornier fleet is operational with the Indian Air Force, the Indian Navy, and the Indian Coast Guard. Military aircraft and helicopters have service lives of 30-40 years, thus upgrades, particularly to avionics, mission systems, and safety equipment, need to be completed in a timely manner. According to industry experts, lifecycle costs associated with upgrades and maintenance, repair, and overhaul (MRO) may represent as much as 200-300 per cent of the a platform's acquisition cost. Globally, the military aircraft and helicopter upgrade market is worth over Rs 5,00,000 crore annually and is projected to grow to Rs 7,00,000 crore in the next seven years. With extensive legacy platforms in inventory to draw on, India has a significant domestic opportunity, especially as the armed forces upgrade their legacy jet fleets.
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Business Standard
3 hours ago
- Business Standard
RInfra takes flight with ₹5,000 crore bet on aircraft upgrade business
Reliance Infrastructure is looking to turbocharge its defence vertical with a focus on aircraft upgrade programmes, eyeing an opportunity of ₹5,000 crore over the next 7-10 years, sources said. 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 helicopte₹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 ₹700,000 crore in the next seven years. India, with a vast inventory of legacy platforms, offe₹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 partne₹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 stakeholde₹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.
Deccan Herald
4 hours ago
- Deccan Herald
Reliance Infrastructure takes flight with Rs 5,000 cr bet on aircraft upgrade business
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.
