Embraer makes agreement to sell freighter in India – 02/12/2024 – Market

Embraer and India’s Mahindra signed a preliminary agreement to collaborate on the sale of the C-390 Millennium freighter to the Indian Air Force, the companies reported this Friday (9).

The Indian market is seen as fundamental for Embraer’s defense unit, which seeks to expand its presence abroad with more sales of the C-390, which was selected by military forces in South Korea, Brazil, Portugal, Hungary, the Netherlands, Austria and Czech Republic.

The memorandum of understanding signed between Mahindra and Embraer at the Brazilian Embassy in New Delhi aims to obtain orders for the freighter under the Indian Air Force’s Medium Transport Aircraft (MTA) acquisition project, the companies said.

JPMorgan analysts said the deal “increases the likelihood of the C-390 being selected,” adding that it could result in an order for 30 to 60 aircraft.

Embraer shares rose more than 2.5% on the news, one of the biggest rises on the Ibovespa this afternoon.

Next steps include engaging with the Indian aerospace industry to begin developing an industrialization plan for the project, Embraer said.

“India is a key market for Embraer,” said the head of the company’s defense and security unit, Bosco da Costa Junior Costa Junior.

“The country has a diverse and strong aerospace and defense industry, and we have chosen Mahindra as our partner to compete together in the MTA program.”

The memorandum of understanding was signed between Embraer and Mahindra Defense Systems, a 100% owned subsidiary of Mahindra, which focuses on armored vehicles and security-related products.