The shares of Adani Enterprises Ltd. rose over 5% on Tuesday as the company announces strategic partnership with Brazilian major Embraer to build indigenous Aerospace hub in India.
"Our regional air transport collaboration with Embraer is not an aviation program, it is an industrial strategy. We want to connect to tier 2 and tier 3 cities," said Ashish Rajvanshi, President & CEO, Adani Defence and Aero as he announced the partnership on Tuesday.
Rajvanshi added that India is world's third largest Aviation market and in the next 20 years the company promises 3X growth in the sector.
Jeet Adani, Director, Adani Defence and Aerospace on Tuesday said that the companied together will produce Aircraft designed for shorter routes. "These aircraft will ensure no distance is too far in India," he added.
The partnership was announced at a function at the civil aviation ministry in the national capital on Tuesday.
Civil Aviation Secretary Samir Kumar Sinha said the collaboration is not just about assembling a regional aircraft but also about progressive technology transfer, skilling, having robust supply chain as well as making India a trusted manufacturing hub for regional aircraft.
The two companies will also set up a Final Assembly Line (FAL) for regional transport aircraft in the country.
Adani Enterprises stocks rose as much as 5.54% to Rs 1,965 apiece on Tuesday, highest level since Jan. 23. The shares pared gains to trade 5.08% higher at Rs 1,956.10 apiece, as of 10:21 a.m. This compares to a 0.49% advance in the NSE Nifty 50 Index. It has risen 13.44% in the last 12 months and 12.66% year-to-date. Total traded volume so far in the day stood at 2.08 times its 30-day average. The relative strength index was at 30.70.
Adani Green Ltd. was among the second gainer in the group with the stock rising over 5% on Tuesday. Adani Ports and Special Economic Zone Ltd. shares were also in the green as it rose as much as 4%.
Ambuja Cements Ltd. and Adani Total Gas Ltd. gained over 3% on Tuesday. NDTV Ltd., Adani Power Ltd., Adani Energy Ltd. and Sanghi Industries were up nearly 2%. ACC Ltd, was also up 1.2%.
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(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)
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