Standard Engineering Technology Limited (SETL) (BSE: 544333), a leading precision and multidisciplinary engineering company in India, has announced its proposed acquisition of up to 51% equity stake in GScale Energy Private Limited, marking SETL’s strategic entry into the fast-growing AI datacenter engineering infrastructure segment. The proposed transaction will be executed through a combination of primary capital infusion and a strategic share-swap arrangement with existing shareholders.
For Phase I, SETL plans to invest approximately ₹190 crore. As part of a broader phased growth plan, the company has approved a total investment of around ₹500 crore, to be deployed toward equity acquisition, capacity expansion, and working capital for the combined business. The entire program will be funded through internal cash flows, with no new borrowings.
This move represents a significant expansion of SETL’s engineering platform beyond its established presence in the pharmaceutical, chemical, and biotechnology sectors. By entering the AI datacenter space, SETL aims to leverage its decade-long expertise in concept-to-commissioning engineering solutions to serve one of the most capital-intensive and high-growth infrastructure segments in India. With the country’s AI and hyperscale datacenter ecosystem expected to attract substantial investment through 2030, SETL intends to position itself as a key engineering partner in this transformation.
GScale Energy will continue to be led by its founder and existing leadership team, while benefiting from SETL’s financial strength, manufacturing scale, and integrated execution capabilities. The combined platform is expected to offer end-to-end solutions spanning power systems, cooling infrastructure, precision fabrication, automation, modular engineering, and commissioning for AI datacenter projects.
Commenting on the development, Nageswara Rao Kandula, Managing Director of SETL, said, “This investment represents the next phase of SETL’s growth journey. The precision, scale, and execution strength we have built over the years will now be applied to the AI datacenter sector, where demand for reliable, high-performance infrastructure is rising rapidly.”
Kasu Brahma Reddy, Founder and Director of GScale Energy Private Limited, said, “This partnership creates a strong platform for growth. With SETL’s engineering depth, financial capacity, and manufacturing capabilities, GScale is well positioned to deliver advanced AI datacenter infrastructure solutions for India’s digital future.”
GScale Energy is led by Mr Reddy, a datacenter industry veteran with more than 25 years of experience and former President of CtrlS Datacenters Limited. The company currently has approximately 4 lakh square feet of operational infrastructure and plans to scale this to 10 lakh square feet by FY2028 through phased expansion.
