Afcons Targets Big Growth in Europe and Middle East After Africa Slowdown

Afcons, a leading construction company under the Shapoorji Pallonji Group, is strategically refocusing its efforts towards Europe and the Middle East following a slowdown in Africa. The company is awaiting formal approval for three major bids in Croatia valued at over ₹11,300 crore (approximately €1.3 billion), which are expected to significantly enhance its international order book.

International Expansion Strategy

Currently, about 12% of Afcons’ order book comes from international projects. The company aims to substantially increase this percentage through the new contracts in Croatia, marking a crucial milestone in expanding its global footprint, especially in Europe.

Expertise and Market Diversification

Afcons has developed expertise in infrastructure development across challenging environments such as railways, marine works, and metro projects. Its move into the Croatian market demonstrates its broader ambition to diversify beyond traditional markets.

Market Conditions and Opportunities

• The African market has recently experienced slower growth.
• Europe and the Middle East continue to offer large-scale infrastructure projects with steady investment prospects.

Afcons is leveraging its competitive bids and expertise to establish a strong presence in these regions. Winning the Croatian contracts would significantly elevate the company’s profile among international contractors.

Future Prospects and Industry Impact

1. Expected increase in order book and revenues internationally.
2. Enhanced shareholder value through strategic growth.
3. Focus on efficient project execution to build a strong track record in new markets.

Industry analysts view Afcons’ pivot to Europe positively, as it aligns with lucrative infrastructure investments supported by the European Union and government initiatives targeting connectivity and sustainability.

Outlook for the Middle East

Afcons continues to monitor global infrastructure trends and plans to explore further opportunities in the expanding Middle Eastern sector. The company’s ability to adapt to new geographic markets underscores its ambition to become a globally leading infrastructure firm.

Stay tuned to Questiqa Europe News for more updates.

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