Afcons Eyes Big Growth in Europe and Middle East as African Markets Slow Down

Afcons, a key player in infrastructure and part of the Shapoorji Pallonji Group, is strategically shifting its focus toward expanding operations in Europe and the Middle East as growth in African markets slows. The company is on the brink of securing three major infrastructure projects in Croatia valued at over ₹11,300 crore (approximately $1.4 billion), which are crucial for significantly increasing its international project portfolio.

Key Highlights of Afcons’ Expansion Strategy

• Current International Presence: Projects outside India currently represent about 12% of Afcons’ portfolio.
• Potential Growth: Winning Croatian infrastructure contracts is expected to greatly boost Afcons’ share of international projects.
• Expertise: The company excels in complex infrastructure developments including railways, bridges, tunnels, and ports.

Market Dynamics and Opportunities

The pivot toward Europe and the Middle East is driven by several factors:

1. African Market Slowdown: Economic and political challenges have hindered infrastructure growth in many African countries.
2. European Investment: Croatia, as an EU member, is investing heavily in transportation infrastructure to enhance trade and tourism.
3. Middle Eastern Prospects: The region continues to focus on substantial infrastructure investments, especially in transport and energy sectors.

This move also aligns with Afcons and the Shapoorji Pallonji Group’s broader goal of diversifying markets to mitigate economic risks while capitalizing on regions with strong growth prospects.

Looking Ahead

The formal announcement of the Croatian project awards is anticipated soon, which will clarify Afcons’ international expansion trajectory. Alongside these bids, the company is actively exploring new opportunities in the Middle East to further enhance its global footprint.

Afcons remains committed to maintaining high standards of quality and timely delivery as it scales its operations internationally, strengthening its position as a global leader in infrastructure development.

About The Author