Annual Report 2004 - Gammon India

GAMMON INDIA LIMITED
1. Industry Structure and Developments :
The dynamics of infrastructure industry has undergone a massive change in the last few years. Though
importance of infrastructure sector and the crucial role it plays in the growth of the economy was never in doubt,
nonetheless remained undermined. However, its acknowledged importance and the impetus provided by the
Central and State Governments have ensured that this industry gets due attention. Various sectors of this industry
such as roads, bridges, ports, airports, hydroelectric projects, water and pipeline projects are witnessing a lot of
activities with new projects coming up across the country at a furious pace.
Various arms of the Central and State Governments and nodal agencies viz. NHAI, NHPC, NEEPCO are
on the verge of releasing work orders, the sheer size and scale of which will make this sector post robust
growth.
2. Opportunities and Threats :
National Highways Authority of India (NHAI) is expected to release the balance work orders of Golden
Quadrilateral and NSEW corridor work orders for NHDP – Phase III are also expected to be released in the
current year. Magnitude of these orders will be huge making road projects as one of the fastest growing sectors
of the industry. Water and pipeline projects also offer vast opportunities.
An area that has awesome business potential is Urban Infrastructure. Annoying traffic jams and bottlenecks
have provided impetus to the development of faster, economical and reliable mass transport systems. This
offers huge potential and your Company has taken measures to tap the same.
Your Company had taken a strategic decision to aggressively explore business opportunities overseas, in
general and in the Middle East, in particular. Pipeline and Transportation sectors, which have great potential, will
be the focus areas of your Company in the region.
The opportunities invariably bring with them competition as is natural in case of every business and industry.
Sensing the boom the industry has seen influx of a large number of players with the result that except where
complicated techniques or expertise are involved or the size of the project is large, competition is increasing
especially in transport sector.
3. Projects :
The Company’s range of operations covers entire gamut of construction activities and it has proven expertise in
almost all the spheres of civil construction.
(a) Transportation Engineering :
MANAGEMENT DISCUSSION AND ANALYSIS
Your Company has bagged Anji Khad Bridge project (Rs. 208 crores) which is one of the longest arch
bridges in India. It has secured a contract of Rs. 108 crores involving construction of more than 100 bridges
in the State of Karnataka. It has also secured contracts for construction of two bridges, one on Mahanadi
(Rs. 65 crores) and the other in West Bengal (Rs. 36 crores) for Railways. Your Company is the lowest
bidder in respect of a bridge & flyover project of NHAI (Rs. 156 crores), a flyover project in Hyderabad
(Rs. 34 crores) and a bridge project in Himachal Pradesh (Rs. 25 crores).
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