Reliance Infrastructure is making a decisive move to strengthen its presence in India's defence sector by targeting the lucrative military aircraft upgrade market, with a projected opportunity of ₹5,000 crore over the next 7–10 years.

This initiative marks Reliance Infrastructure as the first private sector company in India to independently execute a comprehensive aircraft upgrade program without being the original manufacturer, a domain historically dominated by public sector units and original equipment manufacturers (OEMs).

A key milestone in this strategic foray has been the successful upgrade of 55 Dornier-228 aircraft under a contract with Hindustan Aeronautics Ltd (HAL), in collaboration with US-based avionics firm Genesys. The project, initially awarded for 37 aircraft, was expanded with a repeat order for 18 additional units following the successful completion of the first phase.

The total value of the Dornier upgrade contract stands at ₹350 crore. These upgraded aircraft are now operational with the Indian Air Force, Indian Navy, and Indian Coast Guard, underscoring the critical role of modernisation in extending the service life and enhancing the capabilities of legacy platforms.

With military aircraft and helicopters typically serving for 30–40 years, regular upgrades—particularly of avionics, mission systems, and safety equipment—are essential to maintain operational readiness. Industry experts estimate that lifecycle investments in upgrades and Maintenance, Repair, and Overhaul (MRO) can reach up to 200–300% of the original acquisition cost of a platform.

Globally, the market for military aircraft and helicopter upgrades is valued at over ₹5,00,000 crore annually and is projected to reach ₹7,00,000 crore within the next seven years, highlighting the vast potential for growth. India, with its extensive inventory of ageing defence platforms, presents a significant domestic opportunity as the armed forces accelerate efforts to modernise for next-generation warfare.

Beyond the Dornier upgrade program, Reliance Infrastructure is also a key player in the performance-based logistics (PBL) initiative for Rafale fighter jets in India, partnering with Thales of France. The company is now seeking to scale up its aircraft and helicopter upgrade capabilities, working with global partners to deliver advanced solutions that bridge the gap between cutting-edge technology and the operational needs of India's armed forces.

Reliance Infrastructure’s investments in this domain are aligned with the government's 'Atmanirbhar Bharat' vision, aiming to boost self-reliance in defence manufacturing while tapping into a multi-billion-dollar global market. For industry stakeholders and investors, Reliance’s aircraft upgrade strategy represents a high-potential opportunity, with scope for international collaboration and recurring revenue models. With its growing portfolio and proven execution, Reliance Infrastructure is poised to become a major private player in the defence aviation ecosystem, driving innovation and operational excellence for India’s armed forces.

Agencies