Brieaf overview of Gammon India Ltd.

1. A
PRESENTATION
ON

2. Contents
Company Overview
Construction business
Infra-Development Business
Financials
HR Practices & Policies
Industry Overview

3. History

The beginning of such a formidable company is to
be found in the vision of an equally formidable man.
Mr. J. C. Gammon was the driving force behind the
introduction of prestressed concrete to India. He
designed the reinforced concrete piles of the
Gateway of India. The foundations of the arch reach
deep into the bedrock. With time, he came to be
known as the ‘Sculptor of Concrete’.

4. Vision

To lead the country from the front, through an innovative
combination of global knowledge and local expertise.

To continue our nine decades of uncompromising integrity,
honesty, excellence, continuous innovation and constant
improvement of our standards and technologies.

To inspire a sense of pride and ownership amongst our
employees.

To complete projects of the highest quality on time and within
budget, upholding our tradition of being BUILDERS TO THE
NATION.

5. Mission

To design, build and service physical
infrastructure
for improved living,
enhanced work environment and swift
transportation.

6. Board Composition

Mr. Peter Gammon (Chairman Emeritus)

Mr. Abhijit Rajan (Chairman & Managing Director)

Mr. Rajul A. Bhansali (Executive Director)

Mr. Parvez Umrigar (Non-Executive Director)
The Board is in Compliance with Clause 49 of the
Listing Agreement.

7. Areas of Specialization

8. Company
Overview

9. Company Snapshot
■
Key Financials (FY 09)
One of the oldest construction companies in
India
Rs. Million
52,790
■
Presence across Transport Engineering,
Energy, Hydraulic & Irrigation, Industrial
Structures & Buildings, Power T&D, &
Environment & Pipelines
36,994
3,779
Total Income
■
Recent entry into new segments:
➢ Power equipments such as Boiler,
Turbine, Generators (BTG) & Balance of
plant (BOP) equipments and
➢
■
Oil & Gas – Exploration
Market capitalization: Rs.26,746 Mn as of
5,367
EBIDTA
1,387
654
PAT
Standalone
Consolidated

10. Key Milestones
Shareholding Pattern
(as on Sep 30,2009 )
MF
8.0%
■
■
■
1922
z
IPO
z
1962
1991
z
z
1993
Incorporation
■
Current
Promoters
took over
■
Turnover crosses USD 1 billion
■
Overseas acquisitions
2006
z
2004
z
2nd GDR
Issue
Turnover crosses
over 1,000 crores
FIIs
21.2%
ISO Certification
■
■
■
ATSL merger
■
Turnover
Crosses
Rs. 100 Cr
FI
2.8%
Promoters
26.2%
Non-Institutions
23%
z
2009
Public 18.8%
(Based on shareholding data as disclosed to Stock Exchanges)

11. Landmark Structures
1.
Clove leaf flyover of 5 kilometers at Hebbal, Bangalore in 2003, longest in India at that time
2.
Urban viaduct of 2 kilometers at J.J. Hospital, Mumbai in 2002, longest in India at that time
3.
Longest span Cantilever bridge of 140 meters across the river Jadukatta in Meghalaya in 2001
4.
Tallest Cooling tower of 141 meter tall at Panipat in 2000, tallest in India at that time
5.
Railway tunnel of 7 kms for Konkan Railway at Ratnagiri in 1995, longest in Asia at that time
6.
First cable-stayed bridge in India at Akkar, Sikkim in 1988
7.
First 500 MW thermal power station at Trombay in 1983
8.
River bridge of 6 kilometers across the Ganges at Patna in 1982, longest in India at that time
9.
First reinforced piling job in India for construction of the foundation of Gateway of India,
Mumbai in 1922

12. Structures by Gammon India

13. Business Strategy
Enhance EPC Capabilities
■
Cost effective and timely completion
■
Update and implement technologies and procedures in line with
international standards
■
Consistently deliver quality product
■
Training staff for continual improvement
Strateg
y
One
stop Energy shop
■
Expand presence
across the entire
energy value chain
➢
➢
➢
Consulting, Design
& EPC
Manufacturing &
Supply of power
equipments
Transmission &
Recent Acquisitions
■
■
„
■
Capture the Infra Growth
Story
Capture market share in Transportation
and power infrastructure opportunity
Develop the strengths in India to
■
cater to Indian market
Turnaround our loss making
Setup manufacturing facilities in India to
subsidiaries
compete on costs
Leverage partnerships with global
players to increase market share
internationally

14. Construction Business

15. Size & Scale
SEWA HEP Stage - II
■
Among the top 5 construction companies in India in terms of revenues
■
Parbati Hydro Power Project
Indira Gandhi STPP
Delhi Metro Rail - BC
Demonstrated ability to bid for and win large projects
Teesta HRT
Chambal Bridge,
Kota
➢
Parbati Hydroelectric project: Rs. 7,377 Mn
➢
Bridge across Godavari: Rs. 7,000 Mn
➢
Secunderabad Water conveyer system: Rs. 4,359 Mn
➢
Design, Engg. & Const. of offshore container terminal in Mumbai:
Rs. 4,040 Mn
Sassan
RCC Chimney
Water In
projec
Kolkata Viaduct
Execution Ramp Up
3.8x
Gorakhpur
Road project
Cooling Tower
3.8x
Rail Road Bridge
Bridge Project
3.6x
3.5x
Vadape
Gonde Road
Lift Irrigation Project
Godavari River Bridge
130
90
56
Bridge Project
65
Major Projects
FY06
FY07
FY08
Order Backlog (Rs. Bn)
FY09
Book-to-bill
Kalpakkam Reactor Bldng.
(As on September 30, 2009)
Besides India, primarily Power T&D projects in countries such as as
Besides India, primarily Power T&D projects in countries such
Oman, Ethiopia, Nigeria, Algeria, Kenya & Afghanistan
Oman, Ethiopia, Nigeria, Algeria, Kenya & Afghanistan

16. Diversified Order book
Total Standalone Order Book: Rs. 13,179 Crores
Geographical Spread*
As of 30th Sept ember 2009
3%
3%
South
28%
Transportation Engineering
8%
Pow er Transmission and
Distribution
Energy
11%
North
33%
46%
Environment and Pipelines
Hydro Pow er Structures
14%
West
19%
Hydraulic and Irrigation
15%
Industrial structures & Buildings
East
20%

17. Infra Development Business

18. Gammon Infras t ruct ure Proj ect s Limit ed
ROAD
93.5%
93.5%
97.65%
Rajahmundry Expressway Limited
(REL) – 53 kms
Andhra Expressway Limited
(AEL) – 47 kms
Cochin Bridge Infrastructure Company
Limited (CBICL) – 700 mts
74.9%*
Vizag Seaport Private Limited (VSPL)
73.76%
50.0%
31%
POWER
Punjab Biomass Power Limited (PBPL)
– 12*** MW
Pravara Renewable Ernergy Limited
(PREL) – 30 MW
100.0%
Blue Water Iron Ore Terminal Private
Limited ( BWIOTL)
Sikkim Hydro Power Ventures Limited
(SHPVL) – 66 MW
100.0%
Youngthangkhab Power Ventures
Limited (YPVL) – 261MW
100.0%
Kosi Bridge Infrastructure Company
Limited (KBICL) – 10 kms
Operating Companies
94.9%
Gorakhpur Infrastructure Company
Limited (GICL) – 32 kms
100.0%
Rajamundry Godavari Bridge Limited
50.0%
Indira Container Terminal Private
Limited (ICTPL)
Mumbai Nasik Expressway Limited
(MNEL) – 99.5 kms
100.0%
PORTS
Under Implementation

19. Financials

20. Standalone Financials
Margins
Revenues (Rs. Mn)
13.3%
36,994
11.5%
CAGR 36%
18,710
10.2%
10.2%
9.0%
23,490
7.0%
18,218
14,740
3.7%
3.8%
3.7%
2.3%
FY06
FY07
FY08
FY09
FY06
6M FY10
FY07
EBITDA Margin
FY08
FY09
6M FY10
PAT Margin
Return on Equity (1)
12.8%
Leverage Position
11.7%
8.5%
0.6x
0.3x
4.9%
9,258
11,503
0.3x
15,808
9,720
0.2x
12,290
3,715
3,770
FY07
FY08
1,706
FY06
FY07
Networth (Rs.Mn)
FY08
FY09
RoE (%)
FY06
Total Debt (Rs.Mn)
FY09
D/E (x)

21. HR Practices & Policies

22. HR Practices

Matching skilled labour supply and demand

Creating a responsive apprenticeship system

Establishing an innovative training system

Facilitating worker mobility

23. HR Policies

Awards & Rewards policy

Travel allowance policy

Accidental policy

Medical policy

Health and Safety policy

24. Industry Overview

25. Indian Economy
■
■
Fastest growing economy after China
Changing composition of GDP
■
Reduced dependence on agriculture and growin industrial
and services sector
Next phase of growth expected to come from rural markets
➢
➢
■
GDP Growth in CY 08 (1)
9.8%
6.6%
6.0%
5.2%
Per capita income grew by 50% over the last 10 years
5.1%
3.6%
Among the world's youngest nations with a median age of 25
1.3%
(Source: World Bank; Planning Commission; MoF)
Global Equity Markets - YTD Returns
Russia
MICEX
China
India
Shanghai
Composit
SENSEX
Brazil
Bovespa
(2)
China
India
Russia
Brazil
Malaysia Thailand
US
0.7%
UK
115.35%
e
82.39%
Strong Growth in Foreign Investments (US$ Mn) (3)
77.10%
17,655
76.64%
Hong Kong
Hang Seng
56.93%
Korea
Kospi
43.64%
UK
FTSE 100
18.43%
US
Dow Jones
17.57%
Japan
Nikkei 225
(11,974)
7.20%
(1)
(2)
(3)
CIA World Factbook
Source: Bloomberg, as on Nov 23, 2009
SEBI website
8,106
2006
* Till Jul 31, 2009
7,310
2007
2008
2009*

26. Growth in Infrastructure
BOT
■
PPP model to continue to increase for infra projects
■
Award of projects to pick up pace with the stability in
new government and policy actions

Model concession agreements

Viability gap funding, 100% FDI under automatic
route, increase in ECB limit to US$ 500 Mn

100% IT exemption for 10 years
80
7,200
60
3,700
40
3,200
2,900
20
800
400
0
Power
Roads
% PPP (Plan X)
Telecom
Railways
% PPP (Plan XI)
Ports
Airports
Plan XI Investments (Rs. Bn)

27. Scope

Construction Industry carries an ample of
opportunities for all the bands involved in it,
directly or indirectly.

28. Thank You