Afcons Eyes Big Growth in Europe and Middle East as Africa Market Slows Down

Afcons Infrastructure, a prominent construction company under the Shapoorji Pallonji Group, is redirecting its strategic focus towards Europe and the Middle East due to a slowdown in the African infrastructure market. The company is awaiting formal announcements for three major bids in Croatia, collectively worth over ₹11,300 crore (approximately $1.4 billion), marking a pivotal expansion in its international operations.

Strategic Shift in Market Focus

Currently, Afcons’ international order book represents 12% of its total business. The successful acquisition of the Croatian projects is expected to:

• Increase the share of international orders
• Expand the company’s presence within the European market

The Croatian infrastructure initiatives, including road construction and bridge building, aim to enhance regional connectivity and drive economic growth over several years. These developments will provide both employment opportunities and economic benefits to the region.

Diversification Amid Slowing African Market

Afcons’ executive management has highlighted the necessity of diversification against the backdrop of declining infrastructure activity in Africa. Previously, the company had substantial operations across Africa, but shifting market conditions and economic challenges have encouraged a pivot towards more promising regions such as Europe and the Middle East.

Opportunities in Europe and Middle East

Key factors motivating this shift include:

1. Increasing government spending on infrastructure
2. International support to modernize infrastructure in these regions
3. Afcons’ proven technical capabilities and strong track record

This strategic realignment positions Afcons to capitalize on growing infrastructure investments and secure more contracts, further bolstering its international reputation and revenues.

Outlook and Future Prospects

Industry analysts anticipate that winning the Croatian projects will be instrumental in driving growth. The formal awarding process is expected to conclude soon, with announcements likely within the next quarter.

Afcons remains vigilant in monitoring global markets to identify emerging infrastructure demands, ensuring it remains competitive and adaptive in evolving economic environments.

Stay tuned to Questiqa Europe News for further updates on Afcons’ international expansion.

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