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Birth of the Spark:
During the mid-1990s, it was very clear that infrastructure would be
the next sunrise sector. Rao began to sell his assets in order to enter
the capital-intensive infrastructure sector. He sold his brewery to
Vijay Mallya, Vysya Bank to ING, and life insurance to Rajan Raheja. He
owns the Indian Premier League Twenty20 cricket team Delhi Daredevils.
Energy Sector:
G M Rao recognized the huge business potential in entering the
infrastructure space, with the opening up of the power sector in the 90s
in India. Within a decade, he successfully established three Greenfield
power plants in the country. GMR Energy Ltd (GMRETL) was incorporated
on 29th January'2008 with the objectives of optimizing the Group's
energy assets and bridging the demand supply gap in India by trading
power from other power generators/utilities. GMRETL is one of the few
Licensed Power Trading Companies which has acquired Trading and Clearing
Membership of both the operational Power Exchanges in the country i.e.
IEX and PXIL.
|
|
Completed Projects
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| 1) |
GMR Energy Limited: GMR's
Barge mounted power plant is an environment friendly, natural gas based
220 MW generation plant. It was originally commissioned at Mangalore in
2001. After operating successfully with naphtha as fuel till April
2010, the barge was moved to Kakinada in Andhra Pradesh in July 2010,
where it has been modified and commissioned to operate on Natural Gas.
(Aero-derivative gas turbines, GE USA). |
| 2) |
GMR Vemagiri Power Generation Ltd:
A natural gas based thermal power plant with an installed capacity of
388.5 MW. It commenced operations in Feb 2008. It is located at
Vemagiri, 12 kilometers away from Rajahmundry in Andhra Pradesh. Power
offtaker - Transmission Corporation of Andhra Pradesh. (Advanced Class
Gas turbine technology from GE, USA). |
| 3) |
GMR Power Corporation Limited:
The 200 MW power plant in Chennai was commissioned in 1998. A
distinguishing feature of this plant is a sophisticated sewage treatment
unit, the first of its kind in India. The plant treats 7200 cubic
metres of raw sewage per day from Chennai Metropolitan & Sewerage
Board to produce 5400 cubic metres of clean water for its own use. It
has received the renowned Dr. M.S. Swaminathan Award for Environmental
Protection. This plant has received ISO 14001 and OHSAS 18001
certifications from Det Norske Veritas. Power Offtaker -- Tamil Nadu
State Electricity Board. (2 Stroke Diesel engine from MAN B&W,
Germany). |
|
 Projects under Development: |
 |
2.1
MW wind project at Moti Sindodhi Village, Kutch District in Gujarat.
Commissioned in July 2011 will generate 53 lacs units p.a. The Wind
Turbine Generator (WTG), developed by Suzlon is designed to yield higher
PLFs. Eligible for RECs (Renewable Energy Certificate); the plant has
been registered with Gujarat Energy Development Agency (GEDA). |
|
1400
MW coal based thermal power project at Kamalanga, in Dhenkanal district
of Orissa. The plant's coal requirement will be met from Rampia Coal
Mines, Orissa. BOO for 25 years from COD (end 2012). |
|
180
MW Bajoli Holi project in Himachal Pradesh. BOOT basis for a period of
forty years from the commencement of commercial operations. Will provide
portion of energy to the state on no cost basis. This project will
supply power to the Northern region which has a high supply and meager
supply of power. COD 2016. |
|
900
MW Upper Karnali Hydro electric Project, in Nepal. BOOT for 30 years
from COD (2016). A consortium comprising GMR Energy Limited, GMR
Infrastructure Limited (GIL) and Italian-Thai Development Project Co.
has signed a Memorandum of Understanding (MoU) with the Govt. of Nepal
for the project. |
|
140
MW Alaknanda Hydro Electric Power Project in Uttarakhand. Free Power
Royalty of 12% of the energy generated to the State of Uttarakhand for
the PPA term. COD (21011-12). |
|
Acquired
55.84% stake in Homeland Energy Group Ltd. (HEG), a listed company
which owns coal properties in South Africa through its subsidiary the
Homeland Mining and Energy (HMESA). HEG owns a controlling interest in
the already operational Kendal mines, partially explored Eloff mines and
other exploration sites with total mineable reserves of around 300
million tonnes. |
|
25
MW Solar power project in Charanka-Santalpur Taluk, Patan District in
Gujarat. Based on "PV - Crystalline Silicon on Fixed arrays"
configuration. Power Purchase Agreement (PPA) with Gujarat Urja Vikas
Nigam Ltd (GUVNL). |
|
160 MW Talong Hydro Power Project on River Kemeng, in the State of Arunachal Pradesh. COD (end 2016). |
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1370 MW Coal based, thermal Power Plant in Raipur, Chhattisgarh. BOO for 40 years from COD (2014). |
|
Acquired
80% stake in Himtal Hydropower Company Pvt. Ltd. which is developing
the 600 MW Upper Marsyangdi Hydro Electric Project on the Marsyangdi
River in Nepal. BOO for 30 years from COD (2016). |
|
Acquired
a 100% stake in PT Barasentosa Lestari (PT BSL), an Indonesian
Greenfield coal mining company. Mining life of about 25 years. Reserve
is about 110 million ton2 scaling upto 6 MTPA. |
|
GMR
EMCO Energy Ltd. is developing a 600 MW coal based power plant, in
Warora, Maharashtra. The project is also ideally located in terms of the
transportation infrastructure and connectivity. It is also close to
critical infrastructure such as housing, education, and medical
facilities. COD (end FY 2012). |
| Highways:
G M Rao expanded the Group's presence in the infrastructure sector by
leading the Group's foray into Highways. The Group has already completed
six road projects and has recently won three road projects. |
|
| Completed Projects: Build, Own, Transfer (BOT) |
 |
Tambaram
- Tindivanam, NH45, Tamil Nadu. Project Distance 93 kms. Contract Basis
BOT Annuity Scheme. Partners United Engineers (Malaysia) Berhad and UE
Development India Limited - Engineering, Procurement & Construction
(EPC). Construction Period: 2.5 years, Operation Period: 15 years. |
|
Ambala
- Chandigarh, NH22-21, Haryana-Punjab, Project distance 35 kms,
Contract Basis BOT Toll project, Partners GMR Projects Private Limited
(GPPL) Engineering, Procurement & Construction (EPC). Concession
Period 20 years. |
|
Adloor
- Gundla Pochanpalli, 102 Km stretch on NH-7 Hyderabad - Nagpur
Highway, Contract Basis BOT annuity project, Partners GMR Projects
Private Limited(GPPL) Engineering, Procurement & Construction (EPC),
Concession Period 20 years. |
|
Tuni-Anakappalli
Annuity highway, 60 kms on NH 5, Andhra Pradesh; Contract Basis BOT
Annuity Scheme; Partners United Engineers (Malaysia) Berhad and UE
Development India Limited - Engineering, Procurement & Construction
(EPC); Concession Period 17.5 years. |
|
Farukhnagar-Jadcherla
highway 58 km stretch, NH7 on Bangalore-Hyderabad Highway; Contract
Basis BOT Toll project; Partners GMR Projects Private Limited (GPPL)
Engineering, Procurement & Construction (EPC); Concession Period 20
years. |
|
Tindivanam
to Ulundurpet, 73 km on NH-45 on the Chennai - Dindigul National
Highway commenced in July 2009. Contract Basis BOT Toll project;
Partners GMR Projects Private Limited (GPPL) Engineering, Procurement
& Construction (EPC); Concession Period 20 years. |
|
| Projects Under Development on Build Operate Transfer (BOT) Basis: |
|
Chennai
Outer Ring Road; 29.65 kms; designing, constructing, developing,
financing, operating and maintaining of the six lane and two service
lanes from the Vandalur to Nemilicheri section; Concession period 20
years. |
|
The Hungund-Hospet Highway; 99.05 Km stretch on NH 13; concession period of 19 years. |
|
Four-six lane of the Hyderabad - Vijayawada section, Andhra Pradesh;
181 kms on NH-9. The project will be implemented through a Special
Purpose Vehicle (SPV) set up by the Group for a concession period of 25
years. |
| Airports:
Realizing that Airports will drive the economy in the 21st century, G M
Rao spearheaded the Group's entry into the high profile airport
business. |
|
| Indira Gandhi International Airport, New Delhi |
| DIAL
is a joint venture consortium of GMR Group (54%), Airports Authority of
India (26%), Fraport & Eraman Malaysia (10% each). GMR is the lead
member of the consortium; Fraport AG is the airport operator, Eraman
Malaysia - the retail advisors.
Besides upgrading the existing terminals, DIAL has already
commissioned a new runway 11-29 at IGI Airport on September 25, 2008. It
has also inaugurated the new domestic departure terminal 1D (T1D) on
26th February, 2009. In March 2010, DIAL has completed the construction
of integrated passenger terminal (Terminal 3). Terminal 3 has
state-of-the-art complex that features Common Use Terminal Equipment
(CUTE) and an advanced 5 level in-line baggage handling system with
explosive detection technology for greater efficiency and security. The
two tier terminal building feature the departure complex on the upper
level and the arrivals on the lower level. Access to the new terminal
would be via a 6 lane approach road. The Airport has been connected
through dedicated high speed Metro line connecting to the city centre. |
| Istanbul Sabiha Gokcen International Airport (ISGIA), Turkey |
| Inaugurated
on 31st October, 2009. Consortium partners Limak Holding, Turkey
(LIMAK) and Malaysia Airports Holdings Berhad (MAHB). Designed to handle
20 million passenger capacity for a concession period of 20 years. A
four level car park for 4700 cars and a 128 room hotel, fully automated
baggage handling system and latest security systems with over 1000
cameras. ISGIA is located on the Asian side of Istanbul which has two
airports one each on the European and Asian sides. The airport is
targeted to handle 35-40 million ppa by the end of the concession term.
ISGIA is the fastest growing airport in Turkey and in Europe as of
today. |
| Rajiv Gandhi International Airport (RGIA), Shamshabad, Hyderabad |
GMR Hyderabad International Airport Limited (GHIAL) is a joint venture
company promoted by the GMR Group (63%) in partnership with government
of India (13%), government of Andhra Pradesh (13%) and Malaysia Airports
Holdings Berhad (11%). Design, finance, build, operate and maintain a
world class greenfield airport at Shamshabad, Hyderabad on PPP model.
The Rajiv Gandhi International Airport (RGIA) was inaugurated on March
14, 2008 by Smt. Sonia Gandhi, Chairperson of the UPA and commenced
commercial operations with effect from 00:01 hrs on March 23, 2008. It
has an initial capacity of 12 million passengers per annum (MPPA) and
100,000 tons of cargo handling capacity per annum. The airport provides
world-class facilities and infrastructure, in accordance with ICAO
standards and practices to handle large aircraft and international
traffic. First Indian airport to have the Airport Operations Control
Centre which acts as the nerve centre for all coordination within the
airport. Geographically strategic location with a two hour flying time
to all major cities in India and four hour radius from cities in Middle
East and South East Asia. Two Animal Quarantine Stations. GMR Hyderabad
International Airport Limited (GHIAL) and Airports Council
International, (ACI World) Geneva, have signed an agreement for the
appointment of the GMR Aviation Academy as a Global Training Hub for the
Asia Pacific region.
RGIA has been rated the best in the world by Airports
Council International (ACI) in the 5-15 million passengers category for
its Airport Service Quality for 2009.
Been awarded the Leadership Energy and Environment Design
(LEED) silver rating for its eco-friendly design. It has also won the
'Outstanding Concrete Structure of Andhra Pradesh' award from the Indian
Concrete Institute. Awarded the 'Airport Environmental Performance of
the Year 2009' by the Centre for Asia Pacific Aviation (CAPA). |
| Ibrahim Nasir International Airport INIA, Hulhul, Maldives |
| GMR
Male' International Airport Pvt. Ltd. is a joint venture company
promoted by GMR Infrastructure Limited (GIL) along with its sole
consortium partner Malaysia Airports Holdings Berhad (MAHB). INIA
consortium would upgrade, maintain and operate existing Airport as well
as build a new terminal by 2014. The current traffic at the Ibrahim
Nasir International Airport is at 2.6 Million passengers per annum
(Mppa). The first stage of the project will include increasing the
traffic at the Airport to 3 Mppa by way of constructing a new terminal
and thereby increasing the traffic to 5 Mppa. |
| Urban Infrastructure:
The Group has also ventured into the new business sector of Urban
Infrastructure and is in the process of setting up a 3300 acre
multi-product SEZ in Krishnagiri District of Tamil |
| GMR Krishnagiri SEZ Limited
is developing an area of approximately 3000 acres jointly with Tamil
Nadu Industrial Development Corporation (TIDCO) in the Krishnagiri
District of Tamil Nadu. The Krishnagiri SEZ is advantageously located in
close proximity to Bangalore. This multi product SEZ will focus on a
variety of industries ranging from Bio Technology, Renewable Energy and
other emerging industries besides the traditional electronics,
manufacturing and engineering areas. |
| Kakinada SEZ and Large Area Development:
GMR group acquired a majority stake in Kakinada SEZ Pvt. Limited (KSEZ)
in January 2011 and has initiated a number of activities. This SEZ has
been conceived as a Captive Port based Multi Product Special Economic
Zone. Situated strategically on the Eastern Coast in an area rich with
oil and natural gas deposits, the SEZ has excellent logistical linkages
to National Highways, Railway networks, Air and Sea Ports. |
 Corporate Social Responsibility |
| With a strong desire to serve the needs of the marginalized sections and the rural society, Rao set up the GMR Varalakshmi Foundation,
to raise their living standards. The GMR Varalakshmi Foundation is the
CSR arm of the GMR Group and has presence in 22 locations in India and
abroad. The Foundation is active in the areas of education, health and
hygiene, community development and empowerment. |
| Education:
Its objective is to make quality primary, secondary and tertiary
education accessible to all. Foundation also facilitates scholarships
and educational loans to ensure that deserving students, irrespective of
their financial backgrounds, have access to these institutions. |
| Health, Hygiene and Sanitation:
GMRVF, in collaboration with HelpAge India, is running 3 Mobile Medical
Units dedicated to taking healthcare to the doorsteps of the elderly.
The Foundation also runs ambulances in remote areas. The Foundation also
runs regular clinics for identified communities which do not have
qualified doctors. The Foundation has built and is maintaining 8 public
toilets in villages and slums. In a Public-Private Partnership with the
Municipal Corporation of Hyderabad, the Foundation is building and
operating “Pay and Use” toilets in the city. The Foundation also imparts
education on sanitation and personal hygiene to the communities. |
Empowerment & Livelihoods:
The Foundation has set up and is running several institutes of
Entrepreneurship Development. Three of these are in partnership with
Andhra Bank, and two are being run independently. Great emphasis is also
laid on developing their entrepreneurial spirit by strengthening
confidence and motivation levels, improving communication skills etc.
The Foundation goes beyond training by facilitating bank loans for those
who want to set up micro-enterprises, and engaging with potential
employers for placements. The Foundation has started Institutes of Rural
Entrepreneurship Development at Jarjangi, Nellore, Rajam, Hyderabad and
Kerala. The Foundation is currently facilitating 80 SHGs through
motivation, training, workshops etc.
On 22nd March 2012, GM Rao, chairman of infrastructure group
GMR group, committed Rs 1,540 crore ($340 million) towards the
corporate social responsibility (CSR) arm GMR Varalakshmi Foundation.
This endowment is equivalent to the entire portion of GM Rao's personal
share of the entire business. Terming the charitable decision even more
satisfying than winning the bid for the New Delhi international airport
T-3 project, Rao said he would like to thank all those who had made it
possible. “I deem it as god's greatness who has given my family and me
this opportunity to give back to society,” Rao said. |
| Corporate Values: To
face the challenges of tomorrow and meet the future needs of a fast
developing country like India, G M Rao has laid a strong emphasis in
building a transparent and system driven organization. The corporate
policies of the Group are driven by a set of seven carefully drafted
core values. The Group as a whole ensures that it adheres to all
statutory regulations pertaining to Occupational Health, Safety and
Environment along with gender and age specific issues of employment.
Specifically in the context of Child Labor, the Group abides by the ILO
guidelines and the Indian legislation which also ratifies this by not
employing children and minors either directly in its establishments or
through its contractors and vendors." The Group is also committed to
environment protection. Corporate Governance at GMR is driven by a
simple principle - 'Achieve right results by right means'. Corporate
Governance is a journey and not a destination. 'GMR Group will be an
Institution in Perpetuity that will build Entrepreneurial Organizations
making a difference to society through Creation of Value'. |
Personal Values:
Rao has also spearheaded a "Family Constitution" model for the group.
It lays down the family values, sets out a mechanism to resolve
disputes, and specifies succession principles as well as the norms for
media exposure. The aim of this is to ensure a smooth transition of
business from generation to generation, and enable professionals to
discharge their rightful roles in the growth and development of the
Group. In line with this, over a period of time, the members of the
family would provide only the strategic inputs and investment needs and
counseling for all the businesses and activities of the Group.
In spite of all his wealth, Rao has a simple lifestyle.
Those who know Rao well describe him as earthy man with no pretentions.
Skills acquired during his early days serve him well to this day.
He has 3 children - a daughter and 2 sons. His sons and
son-in-law are involved in his business. His sons, GBS Raju and Kiran
Kumar Grandhi are Chairman, Corporate International Business and
Business Chairman, Airports respectively. Srinivas Bommadilla is
Business Chairman, Urban Infrastructure and Highways.
"He is an on-the-ground entrepreneur with high native
intelligence," says Vinayak Chatterjee, the chairman of infrastructure
consultancy Feedback Ventures.
Some others see a distinct pattern in all his ventures --
these are all in sectors with some amount of government regulation. The
coincidence cannot be missed -- sugar, brewery to roads, power and
airport are all regulated sectors. Rao started out in business during
the licence raj. |
|
| Awards and Honors: |
 |
ING Vysya, Chairman Emeritus, September 2006. |
|
Honorary Doctorate, Jawaharlal Nehru Technological University, Hyderabad, India. |
|
'Entrepreneur
of the year' at the Economic Times Awards for Corporate Excellence
2006- 07 in recognition of his exemplary entrepreneurial spirit. |
|
`Most Promising Entrant to the Big League' by CNBC TV18 at its `Indian Business Leader Awards 2007'. |
|
The
Infrastructure Person (Infra Person) of the year award at the
Infrastructure Journal Award Ceremony held in London, 12th March, 2009. |
|
Sir. M. Visveswaraiah Award - 2008' instituted by the Federation of Karnataka Chamber Of Commerce and Industry (FKCCI). |
|
'Most Inspiring Entrepreneur of the Year 2008' award by National Institute of Industrial Engineering (NITIE), Mumbai. |
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'First Generation Entrepreneur of the Year' at the CNBC TV18 India Business Leader Awards 2009. |
|
ICSI National Award for Excellence in Corporate Governance, 2001 for GMR group. |
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Forbes last year put his net worth at $4.3 billion (over Rs 20,000 crore). | |
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