CHAPTER TWO

ORGANISATION PROFILE

INTRODUCTION:
G.M.Rao a mechanical engineer by profession is the chairman of the GMR group.
Mr. Rao began with a jute yarn manufacturing business in his hometown, Rajam in
1978. This venture was a success and enabled him to diversify into Ferro-alloys
and subsequently, sugar .Between 1980 and 1990, the GMR group entered into
banking and played a key role in transformation of vysya bank in to a new
generation bank.
New policies of liberalization and economic reforms in India have accelerated the
need for infrastructure development. Over the past 25 years, GMR have
implemented some of the most innovative and technologically superior initiatives
in the country.
AIRPORTS:
The public private Partnerships model is ideally suited to infrastructure
development projects in India because it combines the best features of the public
and private sectors. Government involvement brings a sense of stability and
security, while private participation draws on the sector's efficiency, expertise and
cost-competitiveness.

MANUFACTURING:
GMR Industries 30 acre research farm is dedicated to providing local sugarcane
with research inputs and greenhouse facilities. Through this initiative, farmers are
educated on the benefits of drip irrigation and advantages of intercropping with
groundnut for additional income
ROADS:
GMR Group firmly believes that an improved highway system will directly impact
the overall growth of Indian economy, the standard of living of our citizens, and
the competitiveness of Indian industry.
POWERING GROWTH:
GMR Group supports integrated development of power sector projects in India,
from captive mining to delivering power to the end consumer.
ACTIVITIES:
Vision To be a model corporate social responsibility organization and
committing to a better society.
GMR Varalakshmi Foundation (GMRVF), a Section 25 (not-for-profit) Company
is the corporate social responsibility arm of the GMR Group. Since 1991, GMRVF
has been working with communities in the quest to improve lives and livelihoods.
GMR groups act as community development facilitators, working with the local
people to improve their living environment, increase health and hygiene
awareness/ facilities and create income-generating opportunities for them. The
other activities are Identification camps for handicapped, medical help, assistance
to Trusts Philanthropists.

MISSIONS AND VALUES

Mission:
To build entrepreneurial organizations that makes a difference to society
through creation of value.
Values:
Humility:
We value intellectual modesty and dislike false pride and arrogance
Entrepreneurship:
We seek opportunities they are everywhere
Teamwork and Relationships:
Going beyond the individual encouraging boundary less behaviour
Deliver the promise:
We value a deep sense of responsibility and self discipline, to meet and
surpass on commitments made
Learning:
Nurturing active curiosity to question, share, and improve
Social responsibility:
Anticipating and meeting relevant and emerging needs of society

Respect for individual:

We will treat others with dignity, sensitivity and honour.

ACHIEVEMENTS:
GMR Group is an Infrastructure Development Company founded in 1978 and
headquartered in Bangalore. It has completed five green field projects in its power
and roads businesses and has another six green field projects in power, road and
airport sectors, which are under implementation. This besides the company has
also bagged the brown-field project of restructuring and modernizing the Delhi
International airport. The Vemagiri Power Generation Plant (VPGL), which is the
third power project of the Group, has an installed capacity of 388.5 MW and is
located 12kms away from Rajamundry in Andhra Pradesh. The 140 MW
Alaknanda Hydro Electric Power Project in Uttaranchal is the Group's first project
in the Hydro Power sector and the very first in North India. Financial closure of
the Vemagiri Project was achieved in a record time of three months with the
seamless integration of 12 lenders.
GMR Group's Mangalore Power Plant is the world's largest, and India's first
barge-mounted combined cycle power plant. It is also the first medium-sized
Independent Power Producer (IPP) in Karnataka. GMR Power Corporation's
Chennai plant is the first Independent Power Project in Tamil Nadu.
GMR Power Corporation received the prestigious Dr.M.S. Swami Nathan award
for eco-friendly processes deployed at the Basin Bridge-Chennai plant. GMR
Group's competitive bidding for NHAI's road projects set a new benchmark in the
roads sector and resulted in considerable saving to the national exchequer. A year
since the Foundation Stone Laying Ceremony of the GMR Hyderabad
International airport on 16 March, 2005, all the work on the laying the foundation

of the Passenger Terminal Building and 15 per cent of the building structure have
been completed.
The GMR HIAL project which will be constructed on the BOO model under the
public-private partnership in Hyderabad will initially be equipped to handle 7
million passengers annually which will be upgraded to 50 million depending on
the traffic.
The contracts for the Air Side and Landside Works and the Passenger Terminal
Building Works of the GMR Hyderabad International Airport were awarded to
Larsen and Turbo Limited and China State Construction Engineering (Hong Kong)
Limited (CSCEHK) through an international competitive tender process. GMR
Group's Sankili Sugar plant is recognized as the largest in the state of Andhra
Pradesh.
GMR Group Helping Build India!

Mission:
To build entrepreneurial organizations that makes a difference to society
through creation of value.
GMR Group is one of the fastest growing private sector organizations in the
country with Infrastructure as its core business. Founded in 1978, by its present
Chairman
Sri G. M. Rao, It is well diversified and professionally managed with interests in
Energy,
Transportation and Manufacturing. GMR Groups entry into Infrastructure started
with the opening of the power sector. Efforts are now seen in three power plants,

GMR Energy Ltd at Mangalore, GMR Power Corporation Pvt. Ltd. at Chennai and
the Vemagiri Power Generation Ltd. in Andhra Pradesh.
1. Worlds

Largest

stroke

Stationary

Engine

Power

Plant

Commissioned in 1998, the 200 MW Chennai power plants is the first

Independent Power Project in Tamil Nadu. The striking features of the plant
is its sophisticated sewage treatment unit, the first and only of its kind in
India, treating 7200 m3/day of sewage into fresh water for plant usage. As
an appreciation for environment, it has received the renowned Dr. M. S.
Swaminathan Award.
2.

Power Plant Worlds Largest Barge Mounted

Commissioned in 2001, GMR Groups Mangalore Power Plant, is the

worlds
largest and Indias first barge mounted combined cycle power plant. The
220 MW naphtha-based plant is located off the coast of Mangalore and is
the
first medium sized Independent Power Producer (IPP) in Karnataka.
3. Vemagiri Power Plant...
The Groups third power generation project with a capacity of 370MW is
nearing completion at Vemagiri in Andhra Pradesh. It would be one of the
most
cost effective Power Producers in the country.
4. Alaknanda Power Project

The 270 MW Alaknanda Hydro Electric power project in Uttaranchal

marks the
Groups maiden and latest venture into Hydro Power generation The
Group has
identified transportation as another thrust area for its infrastructure
business.
5. World-class Airport at Hyderabad GMR Group along with its partner
Malaysian Airport Holding Berhad is developing the New Hyderabad
International Airport Project under Public Private Partnership. The first
phase of the project would be completed by the first quarter of 2008 with a
capacity to handle 5 million passengers and 1, 00,000 tons of cargo.
6. Modernization of Delhi Airport
GMR with its consortium partners have bid for the modernization of Delhi
and
Mumbai airports. The GMR-Fraport consortium emerged as the only
technically
successful and qualified bidder for both the airports. The consortium has
got the
clearance from the eGoM and the Union Cabinet for the modernization of
Delhi
airport.

7. National Highways
The Group has already completed two projects under the Golden

Quadrilateral Scheme. These involve a 4-lane Highway between Tuni

Anakapalli on NH-5 in Andhra Pradesh and the other between
Tambaram Tindivanam on NH-45 in Tamil Nadu. The Group has recently won
three more
road projects spanning a length of about 205 km at an estimated cost of
Rs.
1500 crores on for a concession period of 20 years. While two of these
projects
are on NH-7 in Andhra Pradesh, the third project entails expansion of
the
Ambala-Chandigarh corridor.
8. Manufacturing
The other business areas of the group include Sugar and Ferroalloys.
While
the Sugar Plant has a cane crushing capacity of 3125 metric tons per
day, the
installed capacity that of the Ferroalloys is 25,000 metric tons per
annum. All
the plants of GMR Group have the distinction of being ISO Certified
and
practicing high quality standards.
9. GMR Varalakshmi Foundation
The Group all along its growth, has believed in the philosophy of
sharing

prosperity with the communities it operates in. GMR Varalakshmi

Foundation has been set-up to serve in the areas of Education, Health
&
Hygiene, community service and livelihood.

Empowerment of Rural Youth and Community Development:

GMR Group in its quest for growth has brought in the process of
institutionalization and evolved a set of seven core values - Humility,
Entrepreneurship, Collaborative Teamwork, Delivering Promise,
Constant
Learning, Social Responsibility and respect for Individual.
These values which will ultimately define GMR Group culture

INTERNATIONAL TRADING DIVISION:

INDUSTRY STRUCTURE AND DEVELOPMENT:
With most of the countries coming into the WTO umbrella, the opportunities
for trading in the international market have taken a quantum jump. The company
has utilized this opportunity and traded mainly in Ferro, steel and coal,
commodities where the company has inherent strength.

With the USD weakening against most of the international currencies, there
is a pressure on the export realizations to a small extent but with the import
becoming cheaper the margins will be taken care of in the long run.
FUTURE OUTLOOK:
The company is constantly watching the global markets to exploit
business opportunities as and when they arise. The unpredictability in global
markets is sought to be mitigated through exercise of caution before venturing into
the transactions.

CHAPTER TWO

ORGANISATION PROFILE

INTRODUCTION:
G.M.Rao a mechanical engineer by profession is the chairman of the GMR group.
Mr. Rao began with a jute yarn manufacturing business in his hometown, Rajam in
1978. This venture was a success and enabled him to diversify into Ferro-alloys
and subsequently, sugar .Between 1980 and 1990, the GMR group entered into
banking and played a key role in transformation of vysya bank in to a new
generation bank.
New policies of liberalization and economic reforms in India have accelerated the
need for infrastructure development. Over the past 25 years, GMR have
implemented some of the most innovative and technologically superior initiatives
in the country.
AIRPORTS:
The public private Partnerships model is ideally suited to infrastructure
development projects in India because it combines the best features of the public
and private sectors. Government involvement brings a sense of stability and
security, while private participation draws on the sector's efficiency, expertise and
cost-competitiveness.
MANUFACTURING:
GMR Industries 30 acre research farm is dedicated to providing local sugarcane
with research inputs and greenhouse facilities. Through this initiative, farmers are
educated on the benefits of drip irrigation and advantages of intercropping with
groundnut for additional income
ROADS:

GMR Group firmly believes that an improved highway system will directly impact
the overall growth of Indian economy, the standard of living of our citizens, and
the competitiveness of Indian industry.
POWERING GROWTH:
GMR Group supports integrated development of power sector projects in India,
from captive mining to delivering power to the end consumer.

ACTIVITIES:
Vision To be a model corporate social responsibility organization and
committing to a better society.
GMR Varalakshmi Foundation (GMRVF), a Section 25 (not-for-profit) Company
is the corporate social responsibility arm of the GMR Group. Since 1991, GMRVF
has been working with communities in the quest to improve lives and livelihoods.
GMR groups act as community development facilitators, working with the local
people to improve their living environment, increase health and hygiene
awareness/ facilities and create income-generating opportunities for them. The
other activities are Identification camps for handicapped, medical help, assistance
to Trusts Philanthropists.
MISSIONS AND VALUES

Mission:
To build entrepreneurial organizations that makes a difference to society
through creation of value.
Values:
Humility:
We value intellectual modesty and dislike false pride and arrogance
Entrepreneurship:
We seek opportunities they are everywhere
Teamwork and Relationships:
Going beyond the individual encouraging boundary less behaviour
Deliver the promise:
We value a deep sense of responsibility and self discipline, to meet and
surpass on commitments made
Learning:
Nurturing active curiosity to question, share, and improve
Social responsibility:
Anticipating and meeting relevant and emerging needs of society
Respect for individual:

We will treat others with dignity, sensitivity and honour.

ACHIEVEMENTS:
GMR Group is an Infrastructure Development Company founded in 1978 and
headquartered in Bangalore. It has completed five green field projects in its power
and roads businesses and has another six green field projects in power, road and
airport sectors, which are under implementation. This besides the company has
also bagged the brown-field project of restructuring and modernizing the Delhi
International airport. The Vemagiri Power Generation Plant (VPGL), which is the
third power project of the Group, has an installed capacity of 388.5 MW and is
located 12kms away from Rajamundry in Andhra Pradesh. The 140 MW
Alaknanda Hydro Electric Power Project in Uttaranchal is the Group's first project
in the Hydro Power sector and the very first in North India. Financial closure of
the Vemagiri Project was achieved in a record time of three months with the
seamless integration of 12 lenders.
GMR Group's Mangalore Power Plant is the world's largest, and India's first
barge-mounted combined cycle power plant. It is also the first medium-sized
Independent Power Producer (IPP) in Karnataka. GMR Power Corporation's
Chennai plant is the first Independent Power Project in Tamil Nadu.
GMR Power Corporation received the prestigious Dr.M.S. Swami Nathan award
for eco-friendly processes deployed at the Basin Bridge-Chennai plant. GMR
Group's competitive bidding for NHAI's road projects set a new benchmark in the
roads sector and resulted in considerable saving to the national exchequer. A year
since the Foundation Stone Laying Ceremony of the GMR Hyderabad
International airport on 16 March, 2005, all the work on the laying the foundation

of the Passenger Terminal Building and 15 per cent of the building structure have
been completed.
The GMR HIAL project which will be constructed on the BOO model under the
public-private partnership in Hyderabad will initially be equipped to handle 7
million passengers annually which will be upgraded to 50 million depending on
the traffic.
The contracts for the Air Side and Landside Works and the Passenger Terminal
Building Works of the GMR Hyderabad International Airport were awarded to
Larsen and Turbo Limited and China State Construction Engineering (Hong Kong)
Limited (CSCEHK) through an international competitive tender process. GMR
Group's Sankili Sugar plant is recognized as the largest in the state of Andhra
Pradesh.
GMR Group Helping Build India!

Mission:
To build entrepreneurial organizations that makes a difference to society
through creation of value.
GMR Group is one of the fastest growing private sector organizations in the
country with Infrastructure as its core business. Founded in 1978, by its present
Chairman
Sri G. M. Rao, It is well diversified and professionally managed with interests in
Energy,
Transportation and Manufacturing. GMR Groups entry into Infrastructure started
with the opening of the power sector. Efforts are now seen in three power plants,

GMR Energy Ltd at Mangalore, GMR Power Corporation Pvt. Ltd. at Chennai and
the Vemagiri Power Generation Ltd. in Andhra Pradesh.
10. Worlds

Largest

stroke

Stationary

Engine

Power

Plant

Commissioned in 1998, the 200 MW Chennai power plants is the first

Independent Power Project in Tamil Nadu. The striking features of the plant
is its sophisticated sewage treatment unit, the first and only of its kind in
India, treating 7200 m3/day of sewage into fresh water for plant usage. As
an appreciation for environment, it has received the renowned Dr. M. S.
Swaminathan Award.
11. Power Plant Worlds Largest Barge Mounted
Commissioned in 2001, GMR Groups Mangalore Power Plant, is the
worlds
largest and Indias first barge mounted combined cycle power plant. The
220 MW naphtha-based plant is located off the coast of Mangalore and is
the
first medium sized Independent Power Producer (IPP) in Karnataka.
12. Vemagiri Power Plant...
The Groups third power generation project with a capacity of 370MW is
nearing completion at Vemagiri in Andhra Pradesh. It would be one of the
most
cost effective Power Producers in the country.
13. Alaknanda Power Project

The 270 MW Alaknanda Hydro Electric power project in Uttaranchal

marks the
Groups maiden and latest venture into Hydro Power generation The
Group has
identified transportation as another thrust area for its infrastructure
business.
14. World-class Airport at Hyderabad GMR Group along with its partner
Malaysian Airport Holding Berhad is developing the New Hyderabad
International Airport Project under Public Private Partnership. The first
phase of the project would be completed by the first quarter of 2008 with a
capacity to handle 5 million passengers and 1, 00,000 tons of cargo.
15. Modernization of Delhi Airport
GMR with its consortium partners have bid for the modernization of Delhi
and
Mumbai airports. The GMR-Fraport consortium emerged as the only
technically
successful and qualified bidder for both the airports. The consortium has
got the
clearance from the eGoM and the Union Cabinet for the modernization of
Delhi
airport.

16. National Highways

The Group has already completed two projects under the Golden
Quadrilateral Scheme. These involve a 4-lane Highway between Tuni
Anakapalli on NH-5 in Andhra Pradesh and the other between
Tambaram Tindivanam on NH-45 in Tamil Nadu. The Group has recently won
three more
road projects spanning a length of about 205 km at an estimated cost of
Rs.
1500 crores on for a concession period of 20 years. While two of these
projects
are on NH-7 in Andhra Pradesh, the third project entails expansion of
the
Ambala-Chandigarh corridor.
17. Manufacturing
The other business areas of the group include Sugar and Ferroalloys.
While
the Sugar Plant has a cane crushing capacity of 3125 metric tons per
day, the
installed capacity that of the Ferroalloys is 25,000 metric tons per
annum. All
the plants of GMR Group have the distinction of being ISO Certified
and
practicing high quality standards.
18. GMR Varalakshmi Foundation

The Group all along its growth, has believed in the philosophy of
sharing
prosperity with the communities it operates in. GMR Varalakshmi
Foundation has been set-up to serve in the areas of Education, Health
&
Hygiene, community service and livelihood.

Empowerment of Rural Youth and Community Development:

GMR Group in its quest for growth has brought in the process of
institutionalization and evolved a set of seven core values - Humility,
Entrepreneurship, Collaborative Teamwork, Delivering Promise,
Constant
Learning, Social Responsibility and respect for Individual.
These values which will ultimately define GMR Group culture

INTERNATIONAL TRADING DIVISION:

INDUSTRY STRUCTURE AND DEVELOPMENT:
With most of the countries coming into the WTO umbrella, the opportunities
for trading in the international market have taken a quantum jump. The company

has utilized this opportunity and traded mainly in Ferro, steel and coal,
commodities where the company has inherent strength.
With the USD weakening against most of the international currencies, there
is a pressure on the export realizations to a small extent but with the import
becoming cheaper the margins will be taken care of in the long run.
FUTURE OUTLOOK:
The company is constantly watching the global markets to exploit
business opportunities as and when they arise. The unpredictability in global
markets is sought to be mitigated through exercise of caution before venturing into
the transactions.