SETL to Acquire 51% of GScale Energy for ₹190 Cr Phase I

Standard Engineering Technology (SETL), the Hyderabad-based precision engineering firm, will acquire a majority stake in GScale Energy, a specialist in AI datacenter infrastructure. The board approved a Phase I investment of roughly ₹190 crore for up to 51% of GScale, using a mix of primary capital and a share-swap with existing holders.

The total program runs to about ₹500 crore, covering equity, capacity expansion, and working capital for the combined entity. SETL will fund it entirely from internal cash flows, the company said.

“This investment is the natural evolution of everything SETL has built since 2013,” Managing Director Nageswara Rao Kandula told reporters Thursday. “With GScale’s domain expertise, we are building a platform to deliver complete, concept-to-commissioning AI datacenter solutions at scale.”

GScale founder and director Kasu Brahma Reddy said the deal lets his firm tap SETL’s manufacturing scale, financial muscle, and engineering depth. GScale keeps its existing leadership; SETL provides strategic guidance, capital, and execution support.

The move extends SETL’s concept-to-commissioning model – already used in pharma, chemical, and biotech plants – into AI datacenter construction. India’s hyperscale datacenter market needs an estimated $20–25 billion in investment through 2030, according to the company, and SETL wants to be a lead engineering partner in that build-out.

No closing date for the Phase I deal was given.