Capacit'e eyes Middle East market after Maldives foray, cites growth

Data centres and hospitals are key growth drivers for EPC firm Capacit'e Infraprojects as it enters global markets after its first international project in Maldives

Mumbai-based engineering, procurement and construction firm Capacit’e Infraprojects is venturing into international markets, with its first project underway in the Maldives through a joint venture (JV) with a local partner.

 

The company, which has an order book of ₹12,000 crore from the Indian market, is also exploring similar partnerships and projects in West Asia, said Subir Malhotra, whole-time director, in an interaction.

 

“We are quite open to looking for partners and good projects in West Asia. Our first steps are always to find very strong local partners with whom we want to form a JV,” he said.

 

Malhotra identified data centres and hospitals as key growth segments, offering significantly higher revenue per square foot compared to traditional high-rise construction.

 

“While a pure vanilla high-rise project might yield ₹3,000 to ₹4,000 per square foot, a hospital can generate ₹6,500 to ₹7,500, and a data centre can bring in at least ₹12,000 per square foot,” he said.

 

This comes as the Indian data centre market is experiencing explosive growth. It is valued at $6.48 billion in 2024 and poised to reach $10.70 billion by 2030, with investments expected to exceed $100 billion by 2027.

 

This expansion is being driven by increased digitalisation and data localisation trends, leading to a projected increase in India’s data centre capacity from 1.5 gigawatts (Gw) to 17 Gw by 2030. 

 

Capacit’e, which recorded a revenue of ₹1,700 crore for the quarter ended December 2024, expects a 20 to 25 per cent compound annual growth rate (CAGR) year-on-year in the industry.

 

The Indian construction market is poised for substantial growth, expected to reach ₹25.31 trillion by 2025, with an annual growth rate of 11.2 per cent, and projected to hit ₹39.1 trillion by 2029 with a CAGR of 8.8 per cent from 2025 to 2029.

 

A significant portion of the company’s revenue — approximately 65 to 70 per cent — stems from the government and public sectors, a segment the company aims to maintain due to its stability and consistent cash flows.

 

“Some of the largest orders that we have tracked come under the Pradhan Mantri Awas Yojana (PMAY) scheme,” Malhotra said.

 

Private sector projects contribute the remaining 30 to 35 per cent of the order book. The company also specialises in the construction of super high-rises (defined as more than 50 storeys) in Mumbai.

 

Malhotra emphasised the company’s selective engagement with private developers, prioritising those with strong credentials and assured cash flows. “Repeat orders from established clients like Lodha, Raymond, Emaar in Delhi, Godrej and Brookfield underscore Capacit’e’s strong track record and reliability in the private sector,” he added.