Brazilian aerospace leader Embraer has raised the stakes for its ambitious 'Make in India' venture by stipulating that Indian airlines must commit to at least 200 firm orders before it establishes a full final assembly line (FAL) for commercial jets, according to a report by Times of India.

This condition underscores the commercial pragmatism behind the company's expansion plans amid India's booming aviation sector.

In a strategic pivot, Embraer has floated an interim solution: a 'completion centre' that would handle final touches like painting, seat installation, and interior finishing for jets manufactured in Brazil. This phased approach allows the project to gain momentum without the immediate risk of a full-scale assembly line, potentially bridging the gap until order volumes materialise.

The proposal follows a memorandum of understanding (MOU) signed last month with the Adani Group, signalling a potent public-private partnership. Embraer President and CEO Francisco Gomes Neto has projected robust demand for up to 500 regional jets in India, fuelled by the government's UDAN scheme aimed at enhancing regional air connectivity.

Neto emphasised that firm orders for 200 jets would render the FAL economically viable, with production possibly commencing by 2028 if commitments arrive this year. To drum up support, he is engaging directly with top brass at Air India (under Tata Group ownership) and IndiGo, two of India's largest carriers.

At the heart of the plan lies the E175 regional jet, a versatile aircraft seating 76 to 88 passengers optimised for short- and medium-haul routes. Star Air already operates eight of these jets in India, while Reliance Industries deploys one, providing a nascent foothold for Embraer in the domestic market.

Location scouting is underway, with Dholera in Gujarat emerging as a frontrunner, leveraging Adani's infrastructure prowess. This site aligns with India's push for specialised aerospace hubs, potentially integrating with existing defence manufacturing corridors.

Embraer is not starting from scratch on localisation. Over the past 18 months, it has cultivated more than 15 supply chain partners in India, culminating in a recent pact with Hindalco to produce aerospace-grade aluminium domestically. Such moves aim to deepen integration into India's manufacturing ecosystem.

The Adani-Embraer tie-up pools complementary strengths: Embraer's engineering and assembly expertise meets Adani's sprawling aviation portfolio, encompassing airports, maintenance, repair, and pilot training. Jeet Adani, Director of Adani Defence & Aerospace, hailed regional aviation as pivotal for economic upliftment, crediting UDAN for amplifying the need for homegrown capabilities.

Adani's aviation ambitions amplify the stakes. The group plans a ₹1 lakh crore infusion into its airports business over five years, alongside explorations of an IPO, demerger, or strategic investment. Broader commitments exceed ₹6 lakh crore across aviation, clean energy, infrastructure, digital platforms, and advanced manufacturing.

This development fits seamlessly into India's 'Aatmanirbhar Bharat' ethos, mirroring strides by HAL, TATA Advanced Systems, and BEL in indigenous aerospace production. For Embraer, securing 200 orders would not only validate the FAL but also position it against rivals like ATR in the regional jet segment.

Embraer's high bar reflects calculated risk management, ensuring viability in a market projected to become the world's third-largest by 2025. Success here could catalyse further foreign investment, bolstering India's aerospace supply chain and export potential.

TOI