GAMMON INDIA LIMITED

Position ourselves as a one stop energy shop: The power segment in India has witnessed and is
expected to have a robust growth with projected demand for new projects of 100,000 MW during the
period 2008-2013. (Source: Ministry of Power) There is an increasing trend for the utility power project
owners to engage companies which can provide solutions from concept to commissioning. In light of
the above, we intend to position ourselves as a ―one-stop energy shop‖, providing consulting, design,
EPC, O&M, manufacturing and other related services for nuclear, thermal, hydroelectric and nonconventional
power projects. As a result of the amalgamation of ATSL to our Company, we have
scaled up our power transmission and distribution business. We believe that our acquisitions will
produce substantial synergistic benefits, including a centralized command structure, economies of scale,
diversity of operations and better visibility as an integrated construction company. We intend to utilize
these synergies and expand our products and services offering in India, and we also plan to exploit
these advantages by participating in large-scale projects to optimize the allocation of resources and
improve profitability. We have been pre-qualified to supply boilers and turbines to various Indian
companies, such as NHPC Limited, National Thermal Power Corporation and North Eastern Electric
Power Corporation. We believe we are ideally positioned to capitalize on the strengths of the different
businesses in which our subsidiaries and joint ventures are engaged.
Increase our international presence: We intend to strengthen our international operations by exploring
business opportunities for developing projects outside India. We have acquired substantial stakes in two
Italian companies, Sofinter and FTM. Although Sofinter, FTM and SAE Powerlines made losses of
€41.69 million, €17.66 million and €2.77 million, respectively, in the year ended December 31, 2008,
various improvements have been carried out in areas such as the product and market mix, the supply
chain management process and costs control. We also aim to bring cost-competitiveness to our Italian
subsidiaries and joint venture through sharing resources or using low-cost manufacturing facilities in
India. Furthermore, to meet the anticipated growth in demand in energy we have ventured into drilling
and exploration, through a participating interest of 61.00% in a marginal field in Ecuador in joint
venture with Joshi Technologies International Inc. and a participating interest of 50.00% in an
exploration program in Nebraska, U.S. We will continue to evaluate opportunities to expand into new
geographical and business areas whether by means of organic growth or through strategic acquisitions.
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