Anil Ambani's Reliance Infra sets eyes on global aerospace with a ₹10,000-cr purse and India's first commercial aircraft

Mint

11-07-2025

Anil Ambani's Reliance Defence Ltd plans to invest ₹10,000 crore in the aerospace business over the next decade, even as it prepares for India's first locally made commercial aircraft to take to the skies in about three years.
Reliance Defence houses the aviation and munitions business of Reliance Infrastructure Ltd, a listed company. Part of its investment would be funded by Reliance Infra raising capital through preferential placement of shares, sale of shares to institutional buyers, and placement of foreign currency bonds—adding up to ₹17,600 crore.
Reliance Infra also hopes to monetize nine road projects in its overall portfolio.
'That's the kind of roadmap we have ahead of us to be a global player. So five years from today, I think we would be in a position where we would be an integral part of the global aerospace domain," said said Rajesh Dhingra, managing director and chief executive of Reliance Defence, in an exclusive interview with Mint.
He also said a 'Made in India' Falcon 2000 commercial jet is expected to fly by 2028.
Reliance Aerostructure Ltd, a unit of Reliance Defence, is assembling French company Dassault Aviation SA's Falcon 2000 series jets in Nagpur as part of a 51:49 joint venture called Dassault Reliance Aerospace Ltd (DRAL). The jets will be the first Dassault aircraft to be made outside France.
'Dassault's approval for making its aircraft in India is a recognition of the capabilities and contribution of Reliance Defence," said Dhingra. 'It will also mark a proud moment for India as it will be among the few countries in the world to have the capabilities to manufacture a commercial aircraft."
The aircraft will be put together from two new hangars that are being built, said Dhingra. This will double DRAL's manufacturing footprint to 400,000 sq.ft. and allow it to assemble 22 aircraft every year.
Currently, the company is working on the most difficult sub assembly of the aircraft —the wheels—in addition to several other large and small components it assembles for both Falcon 2000 commercial jets and Dassault Rafale fighter jets.
Reliance Infra's turnaround
Reliance Group's increasing focus on the aerospace business coincides with Anil Ambani-led companies finding favour with investors.
Reliance Infrastructure shares have surged by nearly 87% over the past 12 months. The company swung to a consolidated profit after tax of ₹9,177 crore in 2024-25 from a loss of ₹1,609 crore in FY24, although this was aided by a one-time exceptional income. It has also significantly reduced debt, giving it leeway to invest in new businesses such as defence and aviation.
Reliance Infrastructure's association with Dassault began in 2017 after the Indian government placed an order to buy Rafale fighter jets for the Indian Air Force. Dassault was expected to localise some of its manufacturing operation in India as part of the deal, resulting in the joint venture with Reliance Aerostructure.
Another joint venture, Thales Reliance Defence Systems, with French avionics company Thales SA, was also formed to make more aerospace parts in India. Thales holds a 51% stake in the venture.
Reliance Defence sees itself eventually becoming a systems integrator in the aviation business on the lines of US-based Boeing Co. and Lockheed Martin Corp. and the Netherlands-headquartered Airbus SE, said Dhingra.
Although all that Reliance Defence produces currently is exported to Dassault or Thales, Dhingra expects to engage further with the French companies to grow the business.
The scope of the joint venture with Thales has been expanded to include establishing a logistics hub for the French company in the main air bases where the Rafales jets are housed. The joint venture is also helping Thales in upgrading systems in other fighter planes like Dassault Mirage 2000.
Dhingra is confident of Reliance Defence doing more business with Dassault beyond the Falcon series given the growing association between the companies as more Indian personnel from the Dassault Reliance Aerospace joint venture are being deputed to work in France.
'What is key here is that our operations in the joint ventures are not India-specific, and to that extent the components that we make here are already finding their way into Dassault's aircraft sold around the world," he said.
A push for 'Make in India'
Industry experts see Dassault Reliance Aerospace's success paving the way for more global companies to outsource aerospace manufacturing and services to India as they look to diversify away from China.
'If successfully implemented, this initiative could establish India as a reputable aerospace centre, serving not only domestic markets but also participating in global supply chains," said Monish G. Chatrath, managing partner, MGC Global Risk Advisory.
'China has a market-access-driven model and India provides a more open and intellectual property-respecting ecosystem, establishing itself as a reliable foundation for long-term aerospace collaboration," he added.
India's defence production is projected to double from ₹1.27 trillion in 2023-24 to ₹3 trillion by 2028-29, according to statistics released by the government. The increase in India's defence budget from ₹2.53 trillion in 2013-14 to ₹6.81 trillion in 2025-26 also underlines the growing opportunity in the sector.
Rising demand in domestic and international defence and aerospace markets has attracted several Indian private companies to invest in the space. Apart from Reliance Defence, Pune-based Bharat Forge Ltd, the Tata Group and Mahindra Group have also outlined similar plans.
Tata Group companies have invested in aerospace manufacturing and artillery while Bharat Forge has secured orders for its artillery from the Indian Army. Both Tata Advanced Systems Ltd and Bharat Forge have won orders from India's defence ministry for artillery guns and gun-towing systems.
Although Reliance Defence has not won any orders from the Indian government or the Air Force, it expects to eventually play a bigger role in the domestic industry, focusing on aerospace and artillery, Dhingra said.
The company has taken early steps in that direction by tying up with state-owned Hindustan Aeronautics Ltd to upgrade Germany-based Dornier Group GmbH's aircraft. Although Reliance Defence has tied up with US-based Genesis Aerosystems to carry out the job, Dhingra said it was rare for a company that's not an original equipment manufacturer to be tasked with the upgradation of an aircraft.
After the first phase in which 37 Dornier aircraft were upgraded, Reliance Defence has received an order for upgrading another 18 aircraft. With a total 250 Dorniers in service, Reliance Defence is expecting orders for upgrading another 50-60 aircraft this year. Dhingra is also expecting upgradation orders from India's defence fleet of over 800 legacy aircraft and helicopters.