PNN
Hyderabad (Telangana) [India], June 26: Standard Engineering Technology Limited (SETL, BSE: 544333), India's leading precision and multidisciplinary engineering company, today announced the acquisition of a majority 51% equity stake in GScale Energy Private Limited -- marking a defining moment in India's AI infrastructure journey and SETL's evolution as a full-spectrum engineering platform.
Engineering Parallels That Power the Future
What makes this acquisition extraordinary is not merely strategic -- it is deeply engineering-logical.
For over a decade, SETL has mastered the art of building mission-critical infrastructure for pharma and chemical industries -- delivering cooling skids, heat exchangers, vacuum systems, electrical systems, automation, Air Handling Units (AHUs), Process Distribution Units (PDUs), modular process equipment, and complete turnkey plants.
Every pharma facility demands precision-engineered power management, thermal control, clean utilities, and fail-safe automation. So does every modern AI datacenter.
The engineering DNA is identical. The applications simply differ.
Where SETL engineered cooling for reactors, GScale engineers cooling for GPU clusters.
Where SETL delivered electrical systems for chemical plants, GScale delivers power infrastructure for hyperscale AI factories.
Where SETL executed integrated turnkey pharma facilities, GScale delivers complete, concept-to-commissioning AI datacenters.
GScale: Led by India's Most Accomplished Datacenter Engineer
GScale Energy is led by Mr. Kasu Brahma Reddy -- former President of CtrlS Datacenters Limited, one of India's largest datacenter businesses, with over 25 years of critical infrastructure experience.
Under his leadership, GScale brings a proven track record of 486 MW delivered and over 1 GW under execution, deep hyperscaler relationships, and ready-to-market LOIs -- capabilities that would take SETL years to build organically.
GScale is positioned to manufacture and engineer the complete spectrum of AI datacenter components -- power systems, cooling infrastructure, modular systems, AHUs, PDUs, electrical distribution, automation, and end-to-end turnkey datacenter facilities -- bringing India its first vertically integrated AI infrastructure engineering platform.
A Market Opportunity of Historic Scale
The global AI datacenter infrastructure market demands $5.2-6.7 trillion in capital expenditure by 2030, with 125 GW of incremental capacity required globally.
India alone is projected to see $40-50 billion in AI and hyperscale datacenter investment through 2030, growing at 28% CAGR -- creating one of the largest engineering build-out opportunities in the nation's history.
Investment Discipline Meets Execution Confidence
SETL enters this opportunity from a position of undeniable financial strength.
The Company reported FY2026 revenue of ₹793 Crore with an EBITDA margin of 17.4%, holds ₹220 Crore in cash and liquid assets, and carries an upgraded CRISIL rating of A/Positive as of April 2026.
The total investment program is structured at ₹500 Crore across phases, entirely self-funded from operating cash flows.
Phase I commits ₹190 Crore -- comprising ₹125 Crore primary capital infusion and ₹65 Crore via share swap.
GScale is targeting ₹250 Crore in revenue from its first four months of operations in FY2027 alone, as manufacturing commences from November 2026.
Meanwhile, SETL's existing core engineering business is targeting 40-50% revenue growth in FY2027 -- reflecting the full-platform momentum now in motion.
A Vision Built on Engineering Truth
"The same engineering discipline that makes a pharma plant safe and efficient makes a datacenter reliable and powerful," said Mr. Nageswara Rao Kandula, Managing Director, SETL.
"SETL and GScale share the same fundamental engineering mission -- design it right, build it with precision, deliver it to perform. Together, we are not entering the datacenter market. We are building India's most capable AI infrastructure engineering platform."
"GScale was built to deliver infrastructure at gigawatt scale," said Mr. Kasu Brahma Reddy, Founder & Director, GScale Energy.
"With SETL's manufacturing depth, financial strength, and execution culture, we now have everything required to build world-class AI datacenter infrastructure at speed and scale India has never seen before."
About Standard Engineering Technology Limited
SETL (BSE: 544333) is India's leading precision and multidisciplinary engineering company, delivering concept-to-commissioning solutions for pharma, chemical, biotechnology, food processing, and AI datacenter industries.
Established in 2013 and headquartered in Hyderabad, SETL operates 1.2 million sq ft of manufacturing infrastructure with 400+ engineers and 170+ products.
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(This article was generated from news agency ANI without modifications to the text.)
