Reliance Infra Rallies on Dassault Aviation Deal, Falcon 2000 Jets to be Made in India

Reliance Infrastructure Ltd. (Reliance Infra) experienced a notable uplift in its share price this week, surging by as much as 5 percent in Thursday's trading session to reach ₹404 apiece on the NSE. Concurrently, the Anil Ambani-led company's shares also hit a 5 percent upper circuit at ₹386 on the BSE. This significant market movement follows twin announcements: a pivotal strategic partnership with French aerospace major Dassault Aviation and a substantial increase in promoter stake within the company. As of 11:35, the stock is trading at ₹390.00, with marginal increase of 0.91%.

Strategic Aerospace Leap with Dassault: Reliance Infra Soars on Dassault Aviation Jet Manufacturing Deal

Reliance Infrastructure's recent market rally is underpinned by a landmark partnership between its subsidiary, Reliance Aerostructure, and French aerospace major Dassault Aviation. The collaboration focuses on the domestic assembly of Falcon 2000 business jets, marking the first time Dassault will produce these aircraft outside France. This development positions India among a select group of nations including the US, France, Canada, and Brazil-capable of manufacturing business jets for global markets.

Announced at the Paris Air Show, the agreement includes establishing a final assembly line at Dassault Reliance Aerospace Limited (DRAL) in Nagpur, Maharashtra. The facility will become a global Centre of Excellence for the Falcon series, supporting future models like the Falcon 6X and 8X. The first India-made Falcon 2000 is expected by 2028, tailored for both civil and defence applications.

The deal involves the transfer of key production processes -fuselage, wings, and front section assembly to DRAL, alongside front fuselage work for other Falcon variants. This expansion is set to drive facility upgrades and create several hundred engineering and technical jobs over the next decade. The move aligns with the government's 'Make in India' and 'Atmanirbhar Bharat' initiatives. DRAL, operational since 2017, has already delivered over 100 major sub-sections for the Falcon 2000 from its Mihan SEZ unit, showcasing its manufacturing capability.

Market Reacts Positively to Aerospace Foray

Investors responded enthusiastically to the announcement, pushing Reliance Infra shares into the upper circuit amid high volumes. The stock has gained nearly 23% in the past month, outperforming broader benchmarks. The deal is seen as a major positive, given the global reputation of Dassault and the scope it offers for local manufacturing, exports, and long-term business visibility.

Analysts note that the aerospace vertical could provide Reliance Infra with a diversified revenue stream, especially as its traditional engineering, procurement, and construction (EPC) and power businesses face margin pressures. The potential scale of the deal and long-term production commitments are viewed as value accretive, even though material financial benefits are expected to flow in only from FY28 onwards.

Falcon 2000 Rollout: A Key Milestone

According to Dassault Aviation, the first Falcon 2000 will roll out from the DRAL facility in 2028, positioning India as a global hub for high-end business jet manufacturing. The aircraft, widely used for executive travel and special missions, will be built with a high degree of localisation. The announcement further underscores India’s growing significance in global aerospace supply chains.

This development is also expected to generate significant employment opportunities and build critical capabilities in precision engineering, avionics, and aerostructure manufacturing-an area where India is seeking self-reliance.

Outlook: Strategic Partnership with Long-Term Gains

The Dassault-Reliance partnership comes at a time when India is scaling up its defence and civil aviation manufacturing under various government schemes. While the commercial impact of the Falcon 2000 deal will take a few years to reflect on Reliance Infra’s balance sheet, the agreement cements the company’s position in a high-growth, high-technology sector.

For investors, the deal presents a strategic long-term opportunity despite near-term financial neutrality. The visibility into aerospace manufacturing, especially under a globally reputed brand like Dassault, may potentially re-rate the stock over the medium term, subject to execution and policy continuity.

Conclusion

The partnership with Dassault Aviation could mark a transformative phase for Reliance Infrastructure. As the aerospace vertical gains traction, the company is likely to benefit from enhanced visibility, diversification, and alignment with national manufacturing objectives. Investors and analysts will be closely tracking the progress of the DRAL facility and the delivery schedule for the Falcon 2000 jets.

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