Embraer has agreed to acquire a 51% stake in Novavayu Aerospace Limited, an Indian company established by Mahindra Defence Systems, creating a joint venture to support the Brazilian manufacturer’s bid for India’s Medium Transport Aircraft programme. Mahindra Defence Systems will retain 49%. The venture will promote the C-390 Millennium to the Indian Air Force, with completion expected by 1 December 2026, subject to conditions.
The investment agreement was signed on 9 October 2026. Novavayu was incorporated in India earlier this year as a wholly owned subsidiary of Mahindra Defence Systems. Following completion, it will become an associate of Mahindra Defence Systems rather than remaining wholly owned, while Embraer will hold majority control of the corporate vehicle.
The transaction does not represent an Indian selection of the C-390 or approval to build a production facility. Nagpur, Maharashtra, has been identified as a potential location for a final-assembly line if the aircraft wins the competition. The proposed industrial plan could involve investment of about INR60 billion, but remains conditional on selection.
The companies’ cooperation began with a 2024 memorandum of understanding and has included plans for local manufacturing, supply-chain development and C-390 maintenance, repair and overhaul capabilities. The aircraft is being offered for a proposed requirement involving transports capable of carrying up to 26 tonnes.