In less than 20 years, Mapna has built up a dominant position in Iran’s power sector. It has also branched out into new industries with considerable success. Its strategy has served it well to date.
But the company’s biggest challenge is ahead with its expansion into foreign markets. It will need to compete with international developers on the quality of equipment and price. Crucially, it will need to secure debt funding at a competitive rate. Without a sizeable backlog of completed international projects and with the UN sanctions on Iran, it will be tough to convince lenders to back the firm as a developer. Mapna’s overseas experience is limited to EPC projects.
The sanctions also make it difficult for Mapna to export manufactured products, thus limiting its ambitions.