New Delhi: Eyeing the Indian Air Force's requirement for medium transport aircraft, Brazilian aerospace major Embraer on Monday said the company would set up an assembly line for its C-390 Millennium planes in India if it emerges successful in the race for the contract.

The IAF is looking at procuring 40-80 medium transport aircraft to replace its ageing fleets of AN32 planes.

President and CEO of Embraer Defence and Security Joao Bosco Costa Junior said the company is in talks with Hindustan Aeronautics Limited (HAL) and some Indian private firms to explore ways for possible partnership to bid for the programme.

Embraer Defence and Security's C-390 Millennium, Airbus Defence and Space's A-400M aircraft and Lockheed Martin's C-130J have emerged as top contenders.

"Our C-390 Millennium is the perfect aircraft to meet India's requirements," Costa Junior told a group of journalists.

He said Embraer Defence and Security is not looking at just selling the aircraft but also setting up an assembly line in India as well to establish an MRO (Maintenance Repair and Overhaul) facility.

In December last year, the Indian Air Force issued a Request for Information (RFI) for the acquisition program.

"The C-390 has the latest technology, multi-mission capability, operational flexibility and low operating costs. All of these give it an advantage. The C-390 will bring more value to the IAF," Costa said.