Udanvat Leasing IFSC Ltd, a wholly-owned subsidiary of Adani Ports and Special Economic Zone Ltd (APSEZL) has approached IFSC Gift City to set up an aircraft leasing unit. Over the next five years, the company has said, it will make an investment of ₹555 crore. 

The estimated Free on Board (FOB) value for the export of services over a five-year period is projected at ₹304 crore, and the funding will come from the promoter company in the form of a loan. The net foreign exchange outgo for the said proposal for the next five years would be ₹250 crore, company said.

Udanvat has said in its application it had plans “to undertake activities which include leasing, acquiring, managing, procuring, selling of aircrafts and related parts as operating lease”. According to sources, Adani-owned Udanvat will buy the aircraft and rent it further.

The company has said that it will employ three people including Gudena Jagannadha Rao, who is currently the Director at Adani Ports and Special Economic Zone, Kalpesh Ajitkumar Pathak, who is the Associate Manager at Adani Enterprises   and Pranav Choudhary, who is the Joint President and Head (Container Business), Adani Ports and SEZ.

In an exchange filing, Adani Ports and Special Economic Zone Ltd (APSEZL), port and shipping arm of the Gautam Adani-led Adani Group said Udanvat Leasing IFSC Ltd will be a wholly-owned aircraft leasing unit with a ₹2.5 crore authorised and paid-up share capital. Adani Ports will hold a complete stake in the entity, situated in Gujarat International Finance Tec-City (GIFT), which is yet to commence operations, as indicated in an October 23 regulatory filing.

Significant player

The Adani Group has become a significant player in India’s airport sector, commanding 23 per cent of the nation’s total passenger traffic by the end of August. With seven operational airports, including Mumbai, Ahmedabad, and Lucknow, and an upcoming facility in Navi Mumbai, Adani Airport Holdings plays a pivotal role in the country’s aviation landscape.

Venturing further into aviation, the Adani Group established Adani Aviation Fuels Limited in September 2022, focusing on sourcing, transporting, supplying, and trading aviation-related fuels. This aligns with the broader trend in the industry, as other key players like Tata Group-owned Air India and IndiGo have also announced plans for aircraft leasing units at IFSC Gift City.

India aims to tap into the global aircraft leasing market, offering a competitive environment akin to hubs like Dublin, with the government actively encouraging aviation players to establish a presence at GIFT City over the past two and a half years.