Embraer acquires 51% stake in India's Novavayu Aerospace

Embraer has signed an agreement to acquire a 51% majority stake in Novavayu Aerospace, an Indian company formed by Mahindra Defence Systems. The transaction is valued at approximately 510 million rupees (roughly US$ 5.35 million) and is expected to close by December 1, 2026.

This strategic move aims to bolster Embraer's presence in the Indian defense market. The partnership supports efforts to promote the KC-390 Millennium, a multi-mission military transport aircraft, for the Indian Air Force's Multi-Transport Aircraft (MTA) program. While the acquisition strengthens local ties, it does not guarantee the selection of the KC-390 for the military contract.

Embraer and Mahindra have previously discussed establishing an assembly unit in Nagpur, Maharashtra, to handle assembly, systems integration, and local manufacturing should the KC-390 be selected. Novavayu Aerospace, which was established in late July and has not yet commenced operations, is a separate entity from Mahindra's industrial unit in Nagpur.