GAMMON INDIA LIMITED

flue chimneys, nuclear containment structures in pre-stressed concrete (“PSC”) and segmental construction
technique for reinforced concrete piles.
Diversified business model: Our projects, both completed and in the construction phase, are spread across
different sectors and are geographically spread across various states in India and certain countries overseas.
Currently, we are executing 167 projects across India. We also have operations, primarily power
transmission and distribution projects, in countries such as Oman, Ethiopia, Nigeria, Algeria, Kenya and
Afghanistan. We believe that through such sectoral and geographic diversity, we are able to effectively
mitigate operational risks of specific sectors and geographical locations in India or a particular country
where we operate. The northern, southern, eastern and western part of India accounted for 32.22%, 30.21%,
19.71 % 17.86%, respectively, of the order book of our Company on September 30, 2009. Further, we have
a project portfolio with a healthy mix of fixed and market-driven revenue streams. Approximately 35.00%
of our contracts are fixed price contracts, with the rest containing price variation clauses. We believe that
the blended project portfolio offer us significant upside potential with market-based projects and stable
revenues from assured-return projects.
Ability to mobilize financial resources: We believe that with our experience in raising capital (both by way
of debt and equity) through efficient structures in the financial markets, we are suitably poised to take
advantage of future opportunities in the infrastructure sector. During the year ended March 31, 2006, we
successfully completed a global depositary receipt offering of US$100.00 million. In April 2008, we
successfully listed our infrastructure development business in India, raising Rs.2,763.85 million for new
projects. Furthermore, on March 4, 2009, CARE assigned an “AA” rating for our non-convertible
debentures of Rs.3.00 billion, and on October 22, 2009, CARE assigned a “PR1+” rating for our short-term
commercial paper of Rs.4.00 billion. CARE has also assigned an “AA” rating for our long-term bank
facilities and a “PR1+” rating for our short-term bank facilities, under BASEL II norms, aggregating
Rs.37.00 billion. As the sectors that we operate in are highly capital-intensive, we believe that our ability to
mobilize financial resources efficiently gives us a competitive advantage over our competitors.
Substantial experience in infrastructure development: Our subsidiary, GIPL, is among the first companies
in India incorporated exclusively to participate in infrastructure development through the PPP model. We
believe that the PPP model is increasingly becoming the preferred model for construction and operation of
highways, ports and other infrastructure services in India. The PPP model offers significant advantages in
terms of attracting private capital in the creation of public infrastructure as well as in improving efficiencies
in the provision of services to users. A PPP model also brings in specialization in implementation of
projects. Further, a number of initiatives have been taken in recent years under India's 11 th Plan by both the
central and state Governments to promote infrastructure development through PPPs. We have significant
experience with the development, operations and maintenance of road, bridge and port projects in India and
we believe that this will help us ensure the continued growth of our business operations through
participation in PPP infrastructure projects.
Experienced management team and highly qualified personnel: As on September 30, 2009, our Company
had an experienced management team and technically qualified work force of 3,976 employees. In addition,
our Company had 9,250 skilled project-specific employees. Our experience in the Indian construction
industry enables us to estimate and manage costs for the fixed-price projects for which we bid. We provide
our staff with a high growth environment, competitive compensation packages and continuous training
programs. We believe that the combination of these factors has been successful in reducing our attrition
rates.
Gammon brand and synergies within the Gammon Group: Due to our long-standing history, we believe
that our brand enjoys strong brand recognition in India. Over the years, we have received several
recognitions and awards from various industry bodies, such as International Federation of Asian and
Western Pacific Contractors Association (IWPACA), India Institute of Bridge Engineering, the Indian
Concrete Institute and Association of Consulting Civil Engineers (India). As an integrated company, we
have built upon the synergy we have derived from our strong brand recognition in other lines of business.
Our Strategy
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