The ₹11.21 Lakh Crore Opportunity: Why Now is the Time for India’s Infrastructure Suppliers
India is on the cusp of an unprecedented infrastructure boom. With the government’s capital expenditure (capex) allocation hitting an all-time high of ₹11.21 lakh crore for FY 2025-26 and mega-projects like the PM Gati Shakti National Master Plan driving multi-modal connectivity, the foundation is being laid for a decade of robust growth.
While large Engineering, Procurement, and Construction (EPC) companies hog the spotlight, the real multibagger potential often lies in the specialized equipment manufacturers and component suppliers—the companies that are crucial to every road, bridge, and metro line being built.
Here are three companies, each a leader in its niche, that are perfectly positioned to capture India’s next infrastructure wave.
Contender 1: BEML (Bharat Earth Movers Limited)
BEML is a public sector giant undergoing a massive transition that is expected to re-rate its business. While historically a major player in mining and construction equipment, its future growth engine is increasingly pivoting towards the strategic sectors of Defence, Rail, and Metro.
- Growth Driver: The government’s relentless push for Aatmanirbhar Bharat (self-reliance) in Defence, Rail, and Metro is BEML’s primary tailwind.
- Strategic Shift: The company is aggressively expanding its Rail and Metro segment, which is set to rise significantly as a percentage of its total business. It is investing heavily—including an estimated ₹18 billion—to achieve an annual manufacturing capacity of 800 metro coaches. This massive capacity expansion is in anticipation of a huge order inflow from new and expanding metro projects across the country.
- Key Segment: The Defence and Aerospace segment is also poised for strong expansion due to reduced import dependency, securing BEML a pipeline of steady, high-value orders.
Contender 2: Action Construction Equipment (ACE)
ACE is a diversified construction equipment manufacturer that is practically synonymous with India’s material handling sector. It holds the title of the world’s largest Pick & Carry Crane manufacturer, commanding a market share of over 63% in the Mobile and Tower Crane segments in India.
- Growth Driver: ACE is a direct beneficiary of two major national themes: the infrastructure push and the “Make in India” and “China+1” strategies driving the Manufacturing & Logistics sectors.
- Diversified Portfolio: Its exposure is strategically split across Manufacturing & Logistics (45%), Infrastructure (35%), and Real Estate (13%). The company is poised to capitalize on the estimated $10 billion investment expected in the warehousing and logistics sector over the next 4-5 years.
- Market Position: With a broad product portfolio encompassing cranes, material handling, and construction equipment, ACE is a diversified play on the broader economic expansion, not just government capex.
Contender 3: Ajax Engineering
Ajax Engineering is a specialized player with an unshakeable market leadership in a critical piece of the construction puzzle: concrete equipment. The company is the undisputed leader in the Self-Loading Concrete Mixer (SLCM) segment in India, boasting a formidable 75% market share by volume.
- Growth Driver: Ajax is positioned to benefit from the general acceleration of all construction activities. As infrastructure projects (roads, housing, and commercial) move from planning to execution on the ground, the demand for concrete application equipment—from production to placement—surges.
- Core Strength: Its market dominance in SLCMs provides a high barrier to entry and strong brand recall. The company offers services across the entire concrete application value chain, ensuring it captures value at every stage of a project.
- Future Outlook: Despite near-term demand fluctuations, the medium-term outlook for equipment makers like Ajax remains highly encouraging. Their capacity expansion plans, coupled with an export push, are on track to support the robust growth expected from FY26 onwards as project momentum gathers pace.
The Road Ahead
India’s commitment to building world-class infrastructure is non-negotiable, offering a long-term structural tailwind for the entire ecosystem. While the short-term market may see subdued demand, companies like BEML, ACE, and Ajax Engineering, with their market leadership and strategic alignment with key government and industrial themes, are best positioned to deliver superior growth and potentially multibagger returns in the coming years.
