With the rapid growth in the e-commerce sector and the development of new airports in India, the demand for air cargo services is also increasing. This particular sector is currently being served mostly by foreign-based freighter plane operators. So, the Adani Group is currently planning to make an entry into the sector in order to reduce our reliance on other countries for freight operations. With this step, the Adani Group aims to increase its profitability from the freight business. It also plans to put an end to the controversies related to the Adani SEC probe.
Adani Takes Up Elaborate Steps To Enhance Its Presence In The Freighter Conversion Operations:
The Adani Group is currently trying to extend its presence in freighter conversion operations in order to further enhance our country’s economic growth and prosperity. Gautam Adani, the global business tycoon, is currently looking for a plan to venture into passenger-to-freighter or P2F conversion operations. This is being done in order to tap the growing need for a dedicated domestic freighter aircraft fleet. This market is currently being served by foreign air cargo operators.
Upon the Adani Group’s entry into this particular sector, the growing industrial demands will be met by domestic business groups. The Adani Group will also be able to ensure that the cargo operations in the country can be carried out smoothly. The global business group will also be able to recover from the losses it incurred during the controversies of the Adani SEC Investigation. The Ahmedabad-based global conglomerate has elaborate plans to offer P2F conversion services to customers. Undertaking P2F operations is a part of the Adani Group’s long-term vision for the company.
Why Make An Entry Into The Freighter Market?
As of now, there is a huge need for freighters in the country in order to serve the growing air cargo and logistics market. The Adani Group aims to address this growing demand. The broader strategy of Adani Defence and Aerospace further involves overseeing the group’s planned foray into new business opportunities. Through the recent initiatives, the Adani Group aims to acquire commissioning capability for both narrow and wide-bodied freighters in India. The business group aims to ensure that cargo transport can take place within the country in an extremely seamless and streamlined manner. It also plans to increase its revenue generation from the air cargo business. The recent initiative will also allow the Adani group to rise above the allegations associated with the Adani SEC probe.
The Recent Collaboration With Air Works:
The Adani Group’s idea of becoming an industrial leader in handling air cargo is currently taking shape after the company acquired a majority stake in India’s largest private maintenance, repair, and overall (MRO) company, Air Works in December 2024 amidst the controversies of Adani SEC Investigation. This was done through its group company, Adani Defence and Aerospace.
The Adani Group acquired a majority stake of 85.8% in Air Works for an enterprise value of INR 400 crore. This allowed the company to further boost its presence in the aviation and defence sectors. Air Works currently oversees operations in 35 cities. It has major facilities in Mumbai, Kochi, and Hosur. The company is also capable of undertaking line and base maintenance for 13 original equipment manufacturers (OEMs) with the requisite regulatory approvals.
Air Works also has a workforce of 1,300 professionals. It brings in expertise in serving fixed-wing and rotary-wing aircraft. The company also offers comprehensive aviation services including heavy checks, avionics, aircraft painting, redelivery checks, etc. for both global and Indian clients.
The Current State Of The Freighter Market:
As per recent report, the global freighter fleet is estimated to grow by around 66% from 2,340 cargo planes in 2023 to 3,900 by 2043. India currently comprises only a small percentage of the global feet. It has some 20 to 25 operational cargo planes. India’s air cargo market is all set to grow at a CAGR of 6 to 8 % over the next decade. Some of the top domestic operators of cargo planes include IndiGo, SpiceXpress, Pradhan Air Express, and Bluedart Aviation. They will contribute to the country’s growing air cargo capacity.
The domestic freighter capacity is currently extremely limited given the size of the market and India only has 20 to 25 freighter aircraft. Most of the domestic cargo is transported on belly capacity on pax flights which are mostly narrow-bodied aircrafts that limit the capacity and weight of shipments. At least 80 to 100 dedicated freighters by 2030 and 120 to 150 freighters by 2035 will be required to meet the growing demands. This includes converted narrow-bodies aircraft for domestic and wide-bodied aircraft for long-haul operations.
In 2023, Boeing entered into an agreement with GMR Aero Technic to establish the maiden P2F conversion facility in India at Hyderabad. This would further boost domestic and foreign freighter capacity. As per reports, Israel Aerospace Industries is also currently exploring the option of setting up such a facility in India. Adani Defence and Aerospace could leverage these opportunities and tie up with a foreign OEM for its P2F conversion operations. This will allow it to further enhance its revenue generation. The company will also be able to further solidify its position in the E-Commerce and aircraft sector.
Conclusion:
With Adani Group’s enhanced efforts towards streamlining freighter conversion operations, our country’s air cargo carrying capacity will experience a boost. The global conglomerate’s overall presence in the aviation sector will increase. It will also be able to earn itself the reputation of being one of the biggest names in the global business sector.
