GAMMON INDIA LIMITED

once these projects commence commercial operations. GIPL also provides project advisory services for these five
projects. GIPL‘s O&M arrangements with the SPVs are described under the relevant projects set out above.
Our International Business
In order to be responsive to the increasing trend to seek one-stop services and for civil contractors to take
responsibility for the engineering, supplying, erecting and commissioning of projects. We have adopted a long-term
plan to create a vertically integrated power business, which would include EPC civil, BTG engineering, manufacture
and supply and BOP for power utility projects. To this end, in the year ended March 31, 2009, we acquired interests
in the companies or launched the businesses listed below:
Sofinter Group
The Sofinter Group comprises Sofinter, which is also the controlling company of several other companies, including
Ansaldo Caldaie S.p.A. (―Ansaldo‖), Europower S.p.A. (―Europower‖) and ITEA S.p.A (―ITEA‖). Established in
1979, Sofinter engages in the manufacturing of industrial boilers and power utility steam boilers including heat
recovery steam generators, EPC related to power utilities and research and development of flameless technology
using waste and low grade coal with zero carbon emissions. Through our subsidiary, Gammon International B.V.,
our Company acquired a 50.00% stake in Sofinter in August 2008 for €50.00 million.
Some of the major divisions of Sofinter include:
Macchi, manufacturing industrial boilers for the oil and gas and petrochemical sectors;
Saline Water Specialists (SWS), specializing in the worldwide supply and installation of multi-effect
distillation (―MED‖) sea-water desalination plants;
Other major companies of the Sofinter Group include:
Ecoengineering Impianti S.r.l., implementing plants for the treatment of municipal solid waste and sludge
treatment with gasification technologies;
Commissioning Italia S.r.l., providing technical assistance, supervision and commissioning of power
generation, water treatment and waste to energy plants; and
Ecopower S.r.l, acting as the holding company for the Sofinter Group for energy production using
renewable energy sources.
The consolidated turnover and order book of Sofinter for the year ended December 31, 2008 was €499.20 million
and €600.00 million, respectively. The Sofinter Group has finalized an additional line of credit amounting to
approximately €120.00 million from a consortium of Italian banks, and as a condition precedent, the existing
shareholders of Sofinter have infused additional equity of €10.00 million, of which Gammon International B.V.‘s
share amounts to €5.00 million.
For the six months ended June 30, 2009, the combined turnover, EBITDA and loss of Sofinter, Ansaldo, Europower
and ITEA, the four major operating entities in the Sofinter Group, as certified by the board of directors in case of
Sofinter, was €216.48 million, €7.40 million and €3.72 million, respectively.
Some projects undertaken by Sofinter Group are set forth below:
HRSG QAFCO: This project involves the design, manufacture and assembly (but not the erection and
commissioning) of four HRSGs for Nuovo Pignone in Qatar. This project commenced in December 2007.
Boiler delivery has been completed in June 2009, and the project is scheduled to be completed in 2011. The
contract value of this project is €29.00 million.
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