Essar Group eyes aviation maintenance market

Diversified oil, construction and steel Essar Group (combined turnoverRs10,000 crore / $2.2 billion) may enter the rapidly expanding Indian aviation sector. Under the aegis of group company, Essar Constructions Ltd, it proposes to set up an aircraft engineering and overhaul facility to service the growing domestic aviation sector.

According to reports Essar Constructions has initiated talks with global aircraft maintenance, repair and overhaul (MRO) service providers to set up a facility in India. The growing Indian MRO market is estimated at $800.

Essar Constructions plans to tie up with global giants to develop its expertise and may also consider strategic alliances for setting up its proposed MRO facility, which it may locate at Thiruvananthapuram.

The Group is believed to have submitted an expression of interest to the ministry of civil aviation for locating the facility in Thiruvananthapuram.

The group believes the growing fleet strength of airlines and the increasing frequency of services to and from India, the country would present a strong and growing market for MRO service providers.