Afcons Eyes Massive Growth in Europe and Middle East as African Projects Slow Down

Afcons Infrastructure, a key player within the Shapoorji Pallonji Group, is making a strategic pivot to focus on the European and Middle Eastern markets due to a slowdown in its African infrastructure projects. The company is currently anticipating the formal awarding of three major bids in Croatia valued at over ₹11,300 crore (approximately $1.4 billion). This marks a significant expansion of Afcons’ presence in the European landscape.

This move is expected to substantially enhance Afcons’ international order book. At present, only 12% of the company’s orders originate outside India. Successfully securing these Croatian contracts will increase Afcons’ share of global projects, positioning it as a more prominent player on the international stage.

The shift towards Europe and the Middle East reflects the broader challenges faced by infrastructure companies operating in Africa, where economic and political uncertainties have hindered project progress. Afcons aims to focus on more stable and growing markets such as Croatia, the UAE, and other Middle Eastern countries to:

• Maintain steady revenue growth
• Diversify its project portfolio

The three Croatian projects are part of extensive infrastructure development plans intended to enhance regional connectivity and improve transportation systems. Although specific details of these projects remain confidential, their combined contract value highlights their scale and significance.

Afcons has built a strong reputation in delivering complex engineering and infrastructure projects spanning sectors like:

1. Ports development
2. Roads construction
3. Bridges engineering
4. Metro rail projects

This expertise will be key to the successful execution of these substantial European contracts.

Industry experts highlight that expanding into Europe and the Middle East can offer more predictable cash flows and better profit margins compared to emerging markets experiencing economic instability. For Afcons, winning these bids will help realize its ambition to become a global infrastructure giant.

The Shapoorji Pallonji Group’s robust financial and operational support underpins Afcons’ capability to pursue these international opportunities. The group is actively expanding its global footprint with Afcons playing a central role in this growth strategy.

Afcons is expected to provide further updates once the formal awards are finalized. This strategic shift demonstrates the company’s proactive approach to evolving market conditions and its commitment to strengthening its standing in global infrastructure development.

Stay tuned for more updates from Questiqa Europe News.

About The Author