GAMMON INDIA LIMITED

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
Our vision is to be a world-class construction and infrastructure enterprise committed to quality, timely
completion of projects, customer satisfaction, continuous learning and enhancement of stakeholders’ value.
Some of our key business strategies include:
Capture high growth opportunities throughout India: We intend to target specific sectors and
geographical areas where we believe there is high growth potential. We also intend to exploit our
competitive advantages in these high-value businesses, and will continue to evaluate and explore the
opportunities in the roads, transportation and power sectors. In particular, we believe that the road and
transportation sectors will provide significant opportunities, which may come as BOT projects that we
undertake with third parties as an EPC contractor or with our subsidiary, GIPL. We also expect the
power sector to experience robust growth, and we are positioning ourselves to capture these
opportunities by leveraging our experience and project execution capabilities in the construction of
thermal, hydroelectric and nuclear power plants. We intend to form joint ventures for a number of
power projects as well as bid for the ancillary construction work associated with these projects.
Enhance our EPC capabilities: Quality of work and timely completion of projects are critical to our
EPC and construction business. As a result, we aim to:
- consistently deliver a quality product, meeting all relevant specifications and requirements;
- achieve customer satisfaction through cost effective and timely completion;
- motivate and train our staff for continual improvement of productivity and quality standards; and
- update and implement our procedures in line with developments in international standards.
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