Dissertation Writing Help on Case Study on Gammon India- Infrastructure Company India
Project Report on Gammon
India-Infrastructure Company India-A Case Study
Company Overview
Gammon India Limited is an India-based
civil engineering company. The company was founded in 1922 and converted to a
public-listed company in 1962. Gammon has taken on the design and construction
of bridges, ports, harbours, thermal and nuclear power stations, dams,
high-rise structures, chemical and fertiliser complexes, environmental
structures, cross country water, and oil and gas pipelines. Gammon India owns a
75% stake in Gammon Infrastructure Projects. The subsidiary is Gammon's vehicle
for undertaking infrastructure projects on public-private partnership basis,
where Gammon India would be in charge of construction works and Gammon
Infrastructure would operate and maintenance the asset.
Strategy
Gammon India is currently engaged in the
business of investing in, developing, operating and maintaining infrastructure
projects under the PPP model. The company has a strong presence in diverse
sectors such as roads, bridges, ports, hydroelectric power, biomass power and
SEZs. Going forward, the company intends to extend its operations in more major
segments such as mass rapid transit systems, power transmission lines, airports
and SEZs. Gammon regularly enters into strategic alliances and partnerships
with leading domestic and international players to jointly apply and bid for
projects, aiming to further expand its presence and remit.
Recent
Developments
In March 2013,
Gammon India was reportedly holding talks with potential investors to sell up
to 24% stake in its infrastructure arm Gammon Infrastructure. The civil
contractor was evaluating the option to divest stakes in its subsidiaries to
raise an amount worth up to INR10bn (US$1.84bn). In February 2013, Gammon India
was among five Indian companies banned by the Indian government from taking
part in three port projects in Tamil Nadu due to security issues. Gammon Infra
was barred from bidding for a INR1.25bn multipurpose berth and a barge jetty
project at the port of Chennai. According to a statement from India's home
ministry (cited from the Economic Times), Gammon India was denied clearance due
to its 'Chinese connections'.
In January 2013,
Gammon Infrastructure bagged an INR3bn build-operate-transfer (BOT) contract to
construct a coal handling terminal at Mormugao Port, with a capacity of 2.33mn
tonnes per annum. In April 2012, Gammon Infrastructure announced that it has
received the letter of award (LOA) for the Four Laning of the Sidhi - Singrauli
stretch of 102.6km of NH 75E from 83.4km to 195.8km in the State of Madhya
Pradesh from the Madhya Pradesh Road Development Corporation (MPRDC) on BOT
basis. The project cost is estimated to be INR8.7bn. The concession period of
the project is 30 years, including a construction period of two years.
In March 2012,
the National Highways Authority of India (NHAI) has awarded Gammon
Infrastructure two contracts worth a total of US$330mn for highway widening in
the Indian states of Haryana and Orissa, reports Road Traffic Technology.
Gammon will undertake the US$183.5mn widening of the
Yamunanagar-Saha-Barwala-Panchkula section of the NH-73 highway in Haryana to
four lanes, while it will also upgrade the Birmitrapur-Barkote section of the
NH-23 highway in Orissa at a cost of US$147mn.
Gammon
Infrastructure will receive a US$59mn grant from the NHAI for the projects. In
January 2012, Gammon Infrastructure had offered the lowest bid for two road
projects, each with a 23-year concession period, aside from a 2.5-year
construction time. The two projects, each worth INR10bn (US$199.62mn), are to
be carried out on a build-own-operate-transfer (BOOT) basis. The company had
secured a contract from Madhya Pradesh Road Development Corporation for the
102km Sidhi Singhruli four laning road project in Madhya Pradesh. Meanwhile,
Gammon also won a 107km road project of the National Highways Authority of
India, which is to link Birmitrapur and Barkote in Orissa. The company was due
to receive a letter of intent before March 2012.
Financial Data
The company has been hit by the global
downturn, with results for the three months to June 30 2009 (or Q1 2009/10)
showing a 52% drop in net profits. The company did post a strong increase in
net sales, growing by 45% to reach INR8.5bn from INR5.8bn in Q108/09. Despite
this, the company was hit by higher finance costs and currency fluctuations
which led to a 37% drop in profit before tax to INR398mn.
If you want to
write Survey Questionnaire in Gammon India, or
want Research Topics on Gammon India, than contact PhD Experts who provide Dissertations Writing Services at Mahasagar Publications. Also read SWOT Analysis Report on Gammon India.
