French aerospace major Dassault Aviation has decided to cement its long-term commitment to India by increasing its stake in Dassault Reliance Aerospace Limited (DRAL), its joint venture with Reliance Infrastructure Ltd., from 49% to a controlling 51%.

The transaction involves Reliance Aerostructure Ltd (RAL), a wholly owned Reliance Infra unit, transferring 2% of its holding to Dassault Aviation for a consideration of ₹175.96 crore, as determined by an independent valuation. Following completion, scheduled by November 1, 2025, DRAL will no longer be a subsidiary of Reliance but will instead be classified as an “associate company” with Reliance holding a reduced 49% stake.

This shift marks a strategic realignment in equity control, with Dassault assuming majority and management rights. The change ensures that DRAL officially operates as a controlled subsidiary of the French aerospace manufacturer, allowing Dassault to provide direct guarantees, global warranties, and life-cycle service commitments to customers in both Indian and international markets.

This move is significant against the backdrop of India’s ongoing push for localisation of aerospace production while also balancing the credibility of global warranty assurance—a factor critical for defence procurement and civil aviation customers.

Dassault Aviation, a €7+ billion global defence and aerospace powerhouse, is known for its Rafale fighter aircraft and Falcon family of business jets, both of which combine state-of-the-art avionics, composites-heavy airframes, and long-haul luxury/performance capabilities.

In recent years, Dassault has deepened its industrial footprint in India, working on local offsets linked to the Rafale deal while gradually expanding its civil aviation portfolio in the country. Dassault’s market capitalisation exceeds ₹2 lakh crore, with substantial reserves of ₹80,000 crore in cash, giving it the financial muscle to fund large-scale industrial partnerships.

The decision to assume majority control in DRAL also reflects Dassault’s intent to scale up its India manufacturing base beyond offsets. In fact, the joint venture is being upgraded to a Centre of Excellence (CoE) for Falcon aircraft, positioning the Nagpur facility at the center of Dassault’s global civil aviation supply chain. Earlier in June 2025, Dassault and Reliance had entered into an agreement to manufacture Falcon 2000 business jets in India, targeted at both domestic and export buyers.

The plan envisages a final assembly line in Nagpur, Maharashtra—the first Falcon business jet assembly facility outside France. Target timelines aim for the first "Made-in-India" Falcon 2000 to take off by 2028, a watershed moment that would place India firmly on the map of global business jet manufacturing.

Industry observers note that the Falcon 2000 is among the most successful aircraft in its executive jet category, combining transcontinental range and performance with corporate-level luxury and efficiency. 

As of June 30, 2025, Dassault Aviation holds a backlog of 75 Falcon aircraft, suggesting a healthy global demand pipeline into which Indian-assembled jets will feed. By localising assembly, Dassault stands to reduce costs, improve delivery flexibility, and diversify its industrial base, while India reaps the benefits of advanced aerospace technology transfer, high-end local employment, and skill development in composite structures, avionics integration, and final assembly.

Reliance Infra, for its part, reframes this divestment as a structural change rather than a retreat. The ₹175.96 crore inflow strengthens its balance sheet while retaining a 49% strategic stake in DRAL. Although DRAL will cease to be its subsidiary, Reliance continues to be a critical partner in infrastructure, operational management, and Indian supply-chain integration.

In strategic terms, the transaction signals Dassault’s long-term anchoring in India’s aerospace ecosystem, blending the Rafale fighter jet programme’s credibility with growing opportunities in the civilian business jet market.

For India, hosting Dassault’s only non-French assembly line for Falcons represents not only a manufacturing milestone but also a potential export hub for high-tech civil aviation products, complementing India’s broader aerospace ambitions. The deal further aligns with the government’s “Make in India” program, extending its scope from defence into premium civil aviation manufacturing.

Once the equity hike is completed by November, DRAL will embody an expansion of Dassault’s industrial sovereignty while still retaining an Indian partnership base. Over the next three years, much attention will turn to whether the Nagpur facility can deliver to global quality standards and timelines—culminating in the much-anticipated 2028 rollout and maiden flight of an Indian-assembled Falcon 2000 business jet.

Agencies