CHAPTER TWO

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 VALUESMission:

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 2 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 VALUESMission:

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 2 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 cultureINTERNATIONAL 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.