GAMMON INDIA LIMITED

Our Company, with its joint venture partner, Joshi Technologies International Inc., has a participating interest of
61.00% in Puma, a marginal oil field of Petroecuador (“Puma Marginal Field”) in Ecuador. Our participating
interest is held through Campo Puma Oriente S.A., a company based in Panama, of which we hold 66.40% and Joshi
Technologies International Inc. holds the remaining 33.60%. Currently, all environmental licenses in relation to
Puma Marginal Field have been obtained. Facilities have been created or upgraded to meet the project requirements.
Two of the four workover wells have been made operational and one development well of the three development
wells proposed is being drilled. All three development wells are expected to be completed by February 2010.
We have also embarked on an exploration program in Nebraska USA on a 50-50 basis with Joshi Technologies Inc..
The program envisages exploration on approximately 60,000 acres of land leased in the state of Nebraska for a
period of four years. The 2D and 3D seismic studies have been completed and analysis is underway to establish the
results.
Specialized Construction Services
Finest S.p.A.
Finest S.p.A, our associate company of which we hold 50.00%, has a 82.74% stake in Tensacciai S.p.A.
(Tensacciai”) which specializes in undertaking post tensioning works, manufacturing and erection of stay cables and
ground anchorages. Tensacciai operates in Italy and other parts of Europe as well as in Brazil, North Africa and
Middle East. The consolidated turnover and net profit of Tensacciai for the calendar year 2008 was approximately
€24.00 million and €1.50 million, respectively. As on September 30, 2009, the order book of Tennsacciai was
approximately €35.00 million.
Gammon & Billimoria LLC
Gammon & Billimoria LLC, Dubai (“GBLLC”), of which our subsidiary, Gammon & Billimoria Limited, holds
49.00%, specializes in the construction of residential and commercial complexes, villas and multi-storey structures,
including mechanical, engineering and plumbing and heating, ventilating and air conditioning. Dubai Authorities
have granted GBLLC the license to undertake unlimited works in the above segment. The order book of GBLLC as
an September 30, 2009 was approximately AED 350.00 million. Currently, GBLLC is looking at opportunities in
Abu Dhabi, Sharjah and Ras Al Khaimah.
Competition
The engineering, construction and infrastructure industry in India is highly fragmented and very competitive. In
particular, substantial domestic competition exists in the small projects segment. However, the size, scheduling and
complexity of large-scale construction projects, on which our Company focuses, create high-entry barrier for the
smaller and less sophisticated engineering and construction companies. Due to ongoing liberalization, rising
infrastructure spending by the Government on construction and infrastructure and various related policy initiatives,
we expect the Indian construction sector to be increasingly attractive and the existing players are expected to face
competition from large domestic as well as international construction and property development companies. We
believe that we are one of the most diversified construction companies in India, however we face competition from
other Indian and foreign construction companies in each of our areas of activity. See “Industry.”
Most of the construction contracts are awarded through competitive bidding processes and satisfaction of other
prescribed pre-qualification criteria. Once the prospective bidders clear the technical requirements of the tender, the
contract is usually awarded to the most financially competitive bidder. While service quality, technological capacity
and performance, health and safety records and personnel, as well as reputation and experience, are important
considerations in client decisions, price is a major factor in most tender awards. We face competition from domestic
and international companies, some of whom may operate on a larger scale than us and thus may be able to achieve
better economies of scale than us.
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