Afcons Eyes Major Growth in Europe and Middle East After Africa Market Slows

Afcons Infrastructure Limited, a prominent company within the Shapoorji Pallonji Group, is strategically redirecting its focus towards Europe and the Middle East due to a slowdown in the African infrastructure market. The company is currently awaiting formal award decisions for three major projects in Croatia, valued at over ₹11,300 crore (approximately $1.4 billion). These projects are expected to substantially increase Afcons’ international order book share, which currently stands at 12%.

Shift in Market Focus

Afcons has been actively expanding beyond its traditional markets as the African region experiences a decline in infrastructure projects caused by economic and political instability. This shift is driven by the search for more stable and lucrative markets, with Europe and the Middle East presenting promising opportunities.

Significance of Croatian Projects

The three projects in Croatia are critical to Afcons’ growth strategy in Europe. These contracts involve:

• Road development
• Bridge construction
• Other civil engineering works

Winning these bids will not only enhance Afcons’ presence in Europe but also diversify its project portfolio.

Company Outlook

The CEO of Afcons expressed optimism, noting that the projects will:

1. Increase the company’s international business share
2. Strengthen its position as a global infrastructure player
3. Leverage its expertise in delivering high-quality, large-scale infrastructure projects

The formal award of these projects is expected soon after receiving the necessary approvals from Croatian authorities.

Strategic Alignment and Future Prospects

This strategic pivot aligns with the broader vision of the Shapoorji Pallonji Group, which pursues international expansion by tapping into markets with higher growth potential and stable demand. The move is anticipated to foster:

• New partnerships and collaborations across continents
• Entry into robust infrastructure markets supported by government investments and urban development programs
• Increased international order book share, reinforcing Afcons’ ambition to become a leading global infrastructure player

Success in the Croatian bids could serve as a springboard for further expansion across Europe and the Middle East, marking a significant milestone in the company’s global growth trajectory.

For ongoing updates, stay tuned to Questiqa Europe News.

About The Author