Business · Companies · 3 hrs ago
Embraer buys majority stake in Indian military aviation company
Embraer has agreed to buy 51% of Novavayu Aerospace in India, expanding its presence in the country.
Novavayu is a pre-operational military aviation company and a subsidiary of Mahindra & Mahindra’s defence business.
The deal began on October 9 and is expected to be completed by December 1, after which Embraer would be the majority owner.
The move comes as India seeks 60 military transport aircraft through a government contract estimated at US$10.5 billion.
US company Lockheed Martin is also competing for the contract.
If Embraer wins, it would build C-390 Millennium aircraft in India; the company has said India could buy up to 80 of the planes.
Embraer and Mahindra already have an agreement to work together on producing the C-390 in India, and the contract decision will determine whether that production plan moves ahead.
Embraer announced it is acquiring a 51% stake in Novavayu Aerospace Limited, an Indian military aviation company and subsidiary of Mahindra & Mahindra.
The transaction began on October 9 and is expected to be completed on December 1.
Novavayu is pre-operational and will remain associated with Mahindra Defence Systems Limited.
The deal comes as Embraer competes for an Indian government contract for 60 military transport aircraft estimated at US$10.5 billion.
If Embraer wins the contract, it would set up a C-390 Millennium production line in India.
- Who
- Embraer is buying a majority stake in Novavayu Aerospace Limited, a subsidiary of Mahindra & Mahindra.
- What
- Embraer is acquiring 51% of the company. The transaction involves 510,000 Indian rupees.
- When
- The transaction began on October 9 and is expected to be completed on December 1. The article was published on October 14, 2026.
- Where
- India.
- Why
- The acquisition comes as Embraer pursues opportunities in India’s military aviation market, including a contract for 60 transport aircraft.
This story does not have two clearly opposing sides.
Embraer and Mahindra signed a strategic cooperation agreement to produce the C-390 Millennium in India.
Embraer made a high-level visit to India and opened an office in New Delhi.
Novavayu Aerospace Limited was incorporated as a subsidiary of Mahindra Defence Systems Limited.
Embraer began the transaction to acquire 51% of Novavayu.
The transaction is expected to be completed.
- Stake
- 51% of Novavayu Aerospace Limited
- Transaction value
- 510,000 Indian rupees, reported as about R$26,700
- Expected completion
- December 1
- Indian contract under competition
- 60 aircraft, estimated at US$10.5 billion
- Potential production in India
- C-390 Millennium aircraft