Reliance Infra Looks To Ramp Up Aircraft Upgrade Business

New Delhi: Reliance Infrastructure is looking to turbocharge its defence vertical with a focus on aircraft upgrade programmes, eyeing an opportunity of Rs5,000 crore over the next 7-10 years, sources said.

This strategic foray positions Reliance Infrastructure as India's first private sector company to independently execute a comprehensive aircraft upgrade programme without being the original manufacturer -- a domain traditionally dominated by public sector units and OEMs. According to a company source, the company has already marked a significant milestone by successfully upgrading 55 Dornier-228 aircraft under a contract with Hindustan Aeronautics Ltd (HAL), in collaboration with US-based avionics firm Genesys.

Initially awarded a contract for 37 aircraft, Reliance secured a repeat order for an additional 18 units following the successful execution of an earlier contract. The total value of the Dornier upgrade contract was Rs350 crore, sources said.

The upgraded Dornier fleet is operational with the Indian Air Force, Indian Navy, and Indian Coast Guard. With military aircraft and helicopters having a service life of 30-40 years, regular upgrades -- particularly of avionics, mission systems, and safety equipment -- are vital. Industry experts estimate that lifecycle investments in upgrades and MRO can reach up to 200-300 per cent of the original acquisition cost of a platform.

Globally, the market for military aircraft and helicopter upgrades stands at over Rs5,00,000 crore annually, and is projected to rise to Rs7,00,000 crore in the next seven years. India, with a vast inventory of legacy platforms, offers a substantial domestic opportunity, especially as the armed forces modernise older fleets for next-gen warfare.