Internationalization Strategy of Afcons: Planning and Implementation

Abstract

Afcons, a major Engineering Procurement and Construction (EPC) firm in India, has been engaged in the business of marine and industrial, oil and gas, rail and metro, surface transport, hydro underground, LNG and downstream hydrocarbons. Mr K. Subrahmanian, the Managing Director (MD) of Afcons, was contented with the internationalization efforts of Afcons. He was also satisfied with the work of Afcons carried out in the last few years in the domestic Indian market. Particularly the order book of the marine business, roads/bridges and rail and metro were satisfactorily filled for the next few years. This was gratifying for Mr Subrahmanian as the external socio-economic context for the EPC firm had been challenging. The growth registered by Afcons had come in hard times. But one of the major focus areas for Afcons had been to generate a substantial amount of revenue, profit and number of projects from international clients. The entry of new competitors and the socio-political changes in India during the past decade have made implementation of infrastructure projects difficult. Given this pressure cooker situation in India, it is important for Afcons to internationalize further so that they are insulated from the risks and tumults of the Indian domestic market. This case talks about the nature and extent of internationalization that Afcons had undertaken. Further, it deliberates on the strategic reasons and logic for the contour of international influence regarding the nature and extent of internationalization.