Embraer to Take 51% in Novavayu Aerospace with Mahindra Defence to Offer the C-390 for the IAF

21 October 2026National

Brazil's Embraer S.A. signed an agreement with Mahindra Defence Systems Limited (MDSL) to acquire a 51% stake in Novavayu Aerospace Limited (NAL), with completion expected by 1 December 2026. Post-deal ownership will be Embraer 51% and MDSL 49%, making NAL an associate company rather than a wholly owned subsidiary. The joint venture will promote the C-390 Millennium transport aircraft for the Indian Air Force's Medium Transport Aircraft (MTA) programme, which seeks to replace the ageing An-32 fleet. NAL was incorporated on 29 July 2026 in Mumbai. The tie-up follows a run of 2026 aerospace deals including HAL's GE F404-IN20 engine deliveries for the LCA Mk1A.

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Embraer is headquartered at Sao Jose dos Campos, Brazil, and is among the world's largest commercial aircraft makers after Airbus and Boeing | The C-390 Millennium is a twin-engine medium military transport aircraft that also performs aerial refuelling | India's Defence Acquisition Procedure 2020 governs capital defence procurement under the Ministry of Defence

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