G ammon Speaks 1 Editorial Column

Dear Colleagues:

Welcome to this the third edition of Gammon way forward to help Gammon become more robust Speaks (GS). It is heartening to note the and efficient. We have also featured a snashot of the encouraging feedback received from readers on new look Gammon website which should hopefully the themes and events that have been covered enthuse the readers to purview and use it actively. thus far in GS. Continuing with the philosophy adopted in publishing the earlier two issues, we As we went to the press, we had a stark reminder of are happy to now feature an interactive article on how uncertain the turn of events could be in life- we the ongoing Port Trust (MbPT) Project as lost one of our dear colleagues in Human Resources, the cover story of this issue. This project provides Vinod Prabhu who succumbed to a cardiac arrest some good practices and learnings for replicating while on tour to Chennai. May God give his family in our other ongoing projects. and near and dear ones the strength and resilience to combat this terrible tragedy. In addition, among other regular sections, this issue also brings home the Systems and Processes On behalf of GS, I convey good wishes, greetings Department who are working at bringing and prayer to make the lives of each member of the an inclusive culture of improved operational Gammon family peaceful, satisfying and meaningful performance across the organisation. The issue as we usher in Dusherra and the festival of lights very also has an article on the financial highlights shortly. focussing on the first quarter of the year with indicative trends for the future from the CFO of the company. Warm regards,

In addition, we have a column on the recently held offsite meet of the senior management team highlighting the organisational challenges and the Vijay Vancheswar

E d i t o r i a l Te a m C o n t e n t s

Editorial Desk: Editorial / Contents 2 Dr. Vijay Vancheswar Projects and Group Updates 3 Deepankar Shyam Non-Financial Organisational Initiatives 6 Department Update 8 Committee Members: Cover Story: MbPT in for a major facelift 9 Ashutosh Inamdar Offsite meet: Reflections 12 Suryakantam Bansal Gammon Springss 13 Kaushal Shah Achievement & Senior Appointments 14 Financial Highlights 15 Awards & Recognitions 18 Flash Back/Condolence 20

2 G ammon Speaks Projects and Group Updates

Kolkata Metro: Design and construction

Scope: Design and construction Erection of Segments: Spans Pvt. Ltd.; the power generating of 4.7 km viaduct (8.8m carriage are erected by means of overhead Flagship Company of the Coal width) for Kolkata Metro and launching girder. The segments and Oil group. 1.065 km single lane (4.4m are brought over by trailers of carriage width) including utility suitable capacity from casting Scope of work involves civil shifting and road restoration yard to the required location. The and structural works for the work on lump sum basis; part launching girder is erected over Main plant: design and construction of 4.7 the piers. Segments are erected km elevated viaduct is designed with help of fixed mounted 80 • Station Building RCC to provide Single Cell, Precast, tonne capacity hoist, and then foundations and structural steel Segmental constructed, PSC brought to the required position superstructure including TG Box Girder, simply supported with help of sliding beam. equipment foundation, CEP, BFP superstructure resting over foundations, Service Building Elastomeric bearing. Underslung Erection System: An underslung system consists • Design and construction of An aesthetic RCC pier cap is of supporting trolley which has 275m Bi flue Chimney provided to fit with the bearings provision for vertical levelling, and other supports of Launching longitudinal alignment and • Mill and Bunker foundations Girders during erection. A transverse alignment by means including structural steel circular pier of 1.7m diameter is of jacks provided in trolley. superstructure and coal storage provided in the median of the The system consists of other bunkers road which in turn is supported components like longitudinal by pile foundation system. There beam, trestle and pre-cast • Foundations for Boiler, ESP and are standard precast segmental footing. Segment is lifted with ESP control building spans of 16m, 19m, 22m, 25m, help of 250 metric tonne capacity 28m & 31m length. The deck crane and placed on underslung Chimney Works: width is 8800mm to facilitate system. Double Track with standard Gammon has achieved gauge of 1435mm and ballast- An underslung erection system is a World Record, breaking the less track at 4200mm cubic used for erection of spans having previous record by over 67%, by capacity. radius of curvature less than accomplishing 4mm of vertical 800m. For the first time in the tolerance from 0-275 metres for Pre-casting the segments history of metro construction, Coastal Energen Pvt. Limited. (long line method): Long line spans having radius of curvature Mr. S. M. Zafrulla, MD, Coastal casting technique is adopted 120m and 150m are designed Energen Pvt. Limited, is delighted for casting the pre-cast, pre- and executed. with the quality of works stressed single cell box girder executed by Gammon. segments. Long line bed consists Thermal Power Plant, of adjustable soffit formwork, Tuticorin: Civil Works: movable external and internal formwork, bulk head, etc. The Gammon India is executing the • Mass pours of two TG rafts long line bed is designed to construction of civil and the 1700 cum each was done in adjust the geometry as per the structural works for 2x600 MW one continuous operation. horizontal alignment of the Thermal Power Plant in Tuticorin, The maximum temperature of viaduct. Tamil Nadu for Coastal Energen the concrete at pouring point

G ammon Speaks 3 Projects and Group Updates

was restricted to 23 degrees. Established record in concrete pouring time (23 hrs and 21 hrs respectively for the two pours) • Embedded anchor bolts (over 1500) were erected within 2mm tolerance • Completed over 13, 000 MT of fabrication with high quality standards

GTPL: EHS – Not only a Priority, it’s a core value: Various safety related activities at GTPL In ever-growing construction industry, the main problem is Construction industry is one of the upper echelons of the failure to identify occupational the fastest growing economical construction industry. Sadly, safety and health as a strategic sectors in India, providing that is the exception rather enabler of sustained economic employment to millions of than rule, so, if our industry is to growth. Most often the people. The magnitude and become safe and in the future, productivity and profits are seen complexity of the workforce everyone at every level needs to as priorities. Industry must also required to drive the economic understand the importance of understand a healthy workforce growth makes it essential to focus these issues and implement the is very much essential and on health and safety of its labour best practices that will safeguard beneficial to the organisation. force. While technologies can be both planet and our people. bought, human resource has to Comprehensive occupational be developed, maintained in good We at GTPL believe that ‘’ SAFETY safety and health services, if functional state. Hence providing IS A CULTURE ‘’ and every adopted by the organisation, will occupational health and safety individual must co-operate whole boost the morale of the worker, services to construction workers heartedly in the promotion of increase productivity, project forms the ‘need of the hour’ if the Environment, Health and Safety( completion, decrease attrition organisation is planning a leap in EHS), i.e., each one of us must rate, decrease accidents, decrease economic growth. personally bear the responsibility compensation costs, decrease to minimise and avoid accidents insurance costs, above all it will Construction work is a diverse, at all cost in order to create and safeguard from statutory penalty labour-intensive industry where maintain a safe work place. GTPL and legal issues which otherwise the workers are exposed to variety is committed to the provision bring down the image of the of hazards both occupational and of a safe and healthy working organisations. environmental that can result environment for all employees in injury, disability, ill health and contractors, as well as other It’s high time the organisations, and even death. Occupational people affected by our activities. employers in construction hazards can be classified as This may include employees of industry identify Occupational Physical, Chemical, Biological, the client or owner, our own Safety and Health services Ergonomical, Psychological and visitors and those of contractors, as an integral part of their Social. and third parties such as the development and a good return general public and suppliers. on investment. Environment Health and Safety are already crucial issues in We recognise that the project

4 G ammon Speaks Projects and Group Updates

work may create potentially Power Generations show the dangerous work environment, strength of Ansaldo. The first and our aim is to achieve our boiler of 80 MW to OPG was objectives by eliminating all commissioned last year and inherently life-threatening and the second boiler of 80 MW disabling situations, and minimise construction is in progress. the occurrence of all incidents The third boiler of 80 MW has which could lead to injury, been awarded and it is under damage to or loss of property and Griha pravesh puja (top) and a execution. plant, damage to environment. snapshot of the new premises The safety plan is also available (below) during the function Mrs. Barbara Lefebvre, Managing at all sites to assist and contribute Director of Ansaldo Caldaie, Italy to the establishment of safe, (AC), and Ansaldocaldaie Boilers healthy and environmentally India Pvt., Ltd (ACBI), addressed sound work environment. It also the employees on August 12 includes details of the project and wherein she has underlined the its EHS requirements, anticipated M i s s i o n a n d V i s i o n o f t h e c o m p a n y site hazards and conditions and briefed the strategies framed and means of their control. Prabhadevi Road, Prabhadevi, for growth. As a strategic move, Hazard identifications and Risk Mumbai – 400 025 (Behind the engineering office from Trichy Assessment is conducted at sites Marathe Udyog Bhavan). All staff has been shifted to Chennai and to design control measures and members of GIPL would shift to now all have come under one to have an idea of the relative this new office in due course. A roof in Chennai. importance of risks and to know griha pravesh puja was organised as much about them as we can in this regard on September 9. Ansaldo Caldaie – Italy has received in order to finalise decisions from Rockson Engineering on effective controls measures As demand for power (EPC Contractor) the L.O.I. for which are appropriate and cost increases, world looks engineering, manufacturing, effective. towards India (AnsaldoCaldaie supply and supervision of Boilers India): erection and start-up of 4 Heat We believe that training for EHS is Recovery Steam Generators, not an end in itself; it is a means AnsaldoCaldaie Boilers India supplementary fired, operating to an end. Talking in general (ACBI) under the roof of Gammon behind 125 MW GE9A GT’s to terms to employees about the is moving ahead with a VISION be installed at Alaoji Combined need to be safe is not training; and meticulous planning quoting Cycle Power Plant in the Abia workers and management need for various tenders ranging from state (Niger-Delta Region).When to know what to do for their own 80 MW to 660 MW Supercritical completed, Alaoji Power Plant health, safety and protection of SG Packages, including many will be one of the biggest power environment, as well as what is government and private tenders. plant in Nigeria, supporting the required by statute. (Inputs by As per the demand in market, country’s economic growth. Samir Desai) ACBI along with Franco Tosi This award marks the beginning Meccanica (FTM) is bidding for of a long lasting relationship with GIPL shifts to new premises: BTG packages. We succeeded in Africa’s most populated country, getting a 1x150 MW BTG package giving Ansaldo Caldaie the chance Gammon Infrastructure Projects for Nagai Power Limited from of contributing to the growth Limited (GIPL) has now got a new KVK Energy through Nagarjuna in Nigeria’s Power generation office premise at Orbit Plaza, 5th Construction Company Limited. capacity in the years to come. Floor, Plot No. 952/954, New The repeated orders from OPG

G ammon Speaks 5 Non-Financial Organisational Initiatives

Employee Environment Safety and Occupational Health (EESOH)

ESOH (Employee Environment group companies to enhance energy conscious” ESafety and Occupational productivity • Initiate data capture and Health) is an organisation wide • Launching internal customer management for environmental initiative being undertaken in satisfaction platform for parameters Gammon to promote, inculcate improving efficiency • Measure energy consumption and strengthen sustainable • Competency mapping for with respect to turn over for work processes, procedures and various departments such as major equipment/plant practices. Plant, Administration, Human • Ensure that all environmental Resource, etc management procedures are Recognising the importance of • SBS (Shared Business Services) standardised at group level involving and engaging employees establishment for backend across all functions and businesses recruitment activities Information Technology in the organisation, Gammon • Outsourcing payroll for greater India has structured relevant productivity • Revamp of existing data centre programmes primarily lead by • Talent retention and skill and network solutions functions in the non-financial development • Advanced disaster recovery areas. system Occupational Health And • Revamping existing e-mail, All in all, this programme will over Safety intranet portal and vendor portal time add to the “intangible asset • Communication partner for base” of Gammon Group which • Skill development and bringing all communication needs shared positively reflect on its training based on competency under one umbrella (e.g. video/ operations, financial records and assessment audio conferencing) at Gammon India. • Contractor safety management system to be implemented New Inititatives Focus Areas Of 2011-2012 • Standardisation of procedures Human Resource to enable significant improvement • Integration of management in performance from 2010-2011 systems across GIL to be ready • Increasing employee • Establishing the system across for certification by 2012 and productivity by initiating the group for awards-recognition- training 100 auditors and 150 IMS studies for rationalising roles, penalties implementers at all sites responsibilities and rightsizing • Medical check-ups for workers • Train at least 100 employees for through a third party for critical jobs the 5S internal assessors training • Establishing a comprehensive • Appointment of occupational • At least four sites to participate Employee Self Service (ESS) health practitioner and in 5S competitions and award System at Group level establishing standardised check- programmes • Leadership Development- ups and systems • At least four sites to targeted Elite Task Force of 200 achieve a score of 600 for 5S Project-in-charges and 100 Environmental Management implementation leaders by 2013 • Integration of human • Initiate programs for “using Measures for enhancing resource management for all water responsibly” and “being stakeholder engagement

6 G ammon Speaks Non-Financial Organisational Initiatives

External Stakeholder formal and informal methods of They areas identified where Interactions communication such as vendor improvement was required meetings, the Annual General were timely completion of jobs, • AGM Body meetings, customer housekeeping etc. There are a • Vendor meetings interactions, etc., where feedback lot of new initiatives like 5S that • Customer meetings and is taken about the organisation are introduced to strengthen our interactions which then taken up for action at weaknesses. • Customer satisfaction surveys various levels and forums. One of and analysis the primary methods of feedback Magazines • Informal interactions has been our customer feedback • Investor meet mechanism. Our in-house magazine, Gammon • Various forums and platforms Speaks is a unique magazine • Interactions with various Customer feedback that covers details on our new government and private bodies projects, customer interactions, A sample survey was conducted departmental functioning, Internal Stakeholder at our sites for customer feedback environmental and safety Interactions on our performance and more so initiatives, 5S information and an to identify the areas that were employee corner. • Monthly planning meetings important to the customer. This • Safety committee meetings at survey was done for the following Given the vast reservoir of technical HO and sites areas of timely project completion, knowledge within the company, • Circulars interaction between the the organization will soon be • Gammon Speaks in-house customer and Gammon, safety, publishing a technical magazine magazine subcontractor management and Gammon Technical highlighting • Gammon Technical so on. The average satisfaction the competencies and skills of • Gammon Springs T h e r e score of 8.4 was obtained on 10. Gammon in undertaking complex are various forums through which The strengths were quality of and challenging projects. stakeholder interactions are execution, customer interface, conducted. These include both and responsive employees.

Averting a near mishap- A job well done! Commendation

At the Kosi Bridge Project in under the trailer platform under , a major accident was the right hand side to arrest any averted by the site team lead further tilt. Subsequently the by N V Acharya involving a team successfully straightened trailer with the S3 segment. the segment using the external The hydraulic hose connecting jacks thus averting what could the jacks to pump burst have been a major accident. Harsh Kapur, Advisor (MIS accompanied with the failure &Monitoring) with the National of a valve between the front Kudos to Acharya and his team! Power Corporation’s (NPCIL) and rear axles resulting in a Well done… a good learning Leadership Award received dangerous tilt of the segment example for other sites. recently from BARC for 2007 during his tenure there for his by around 600mm. The site outstanding contributions in team acted promptly by Make Safety a way of Life... project management of Kaiga 3 releasing the left side jacks and Adopt Safe Work Practices & 4 wherein Gammon was the further provided external jacks Regularly and Consistently lead contractor

G ammon Speaks 7 Department Update

Systems and Processes

ammon was known to have these initiatives Gthe best of systems and was is to revisit all pioneer in bringing in some of the our existing best practices in infrastructure documentation industry even as early as 1960’s. p r e p a r e d The Systems and Processes team during our ISO was formed in 2010 with the certification. objective of bringing systems and process oriented approach to the With your support forefront. and guidance, we are responsible Secondly, as all of you may be for facilitating The Systems and Processes team at Head Office aware that the issues of safety the design, and environment are becoming development, implementation, through one-day workshops at very critical for our sustenance and later maintenance of the sites and a dedicated 5S website. and that of our future generation. Integrated Management Systems Further, to objectively evaluate Sustainability is being addressed across the organisation. We have the success of 5S implementation, on global basis and Gammon initiated training programmes we have internally developed a cannot remain in isolation from developing and organising 1000-point protocol on 5S. It is a these global issues. Gammon intensive six-day workshops for maturity model where the score in its sustainable policy made IMS implementation in Pune, will get matured as you move a commitment to operate Bengaluru, , Kolkata and ahead in implementing 5S to its business today without derive organisation’s benefits. A compromising the benefits of Butiburi through September formal training is being arranged tomorrow’s generations. and October 2011. The support from all our internal customers at Mumbai, Kolkata and Delhi in September 2011 with an objective Towards meeting these is excellent and we hope that to create awareness and to create commitments, the management we together can achieve the internal pool of competent/ has decided to implement objective of the top management management systems in line to be recognised as IMS certified qualified 5S assessors. with international standards for company. environment (ISO 14001) and Being an internal service provider, occupational health and safety Simultaneously management our aim is to provide you our (OHSAS 18001) across the is also focusing on productivity best and timely services in the organisation and integrate them improvement, inventory control, areas of systems, processes, with its existing valid quality minimisation of waste in supply management certification and management certification (ISO chain and better housekeeping to business excellence. Your every 9001). This is also commonly improve the safety performance feedback is valuable to us and called as Integrated Management at site through an initiative called will provide us an opportunity System (IMS). The target to 5S. Many of our sites have made to improve. So do write us and implement the best practices remarkable improvement in this demand the best out of us. in line with these standards and regard. We expect a couple of For further information please get it audited and certified from sites to participate in external contact [email protected]. reputed third party agency is assessments and award exercises. – Suryakantam Bansal, Systems & by 2012.The first step towards We have spread the knowledge Processes

8 G ammon Speaks Cover Story

MbPT in for a major facelift

Traffic handling capacity to go up by 12 million TEUs

umbai Port Trust (MbPT), basis under license Mestablished as Bombay agreement by Mumbai Port Trust on June 26, 1873, is Port Trust (MbPT) and the oldest of its kind in India. It the BOT operator — a has traversed a long distance consortium of Gammon ever since its inception. Today, India, Gammon the 138-year-old MbPT handles Infrastructure and around 58 million tonnes Dragados SPL, Spain. (estimated as on financial year 2010-11) of traffic annually. Gammon Speaks spoke to the Chief Engineer However, containerised (C.E) of MbPT, Mr. cargo comprises only a small Uttam Suryavanshi, portion of it with bulk of the for his views on the U. Suryavanshi (C.E) in discussion with the Gammon Speaks team containerised cargo making its upcoming offshore way to Jawaharlal Nehru Port container terminal project and addressed all these objections (JNPT), since MbPT has draft of on the work undertaken by raised by various forums. The about 10-10.5 metres, which is Gammon thus far. project has gone through incapable of handling larger ships. appraisal by the Government of Nevertheless, its traffic handling GS: Can you please give a brief India and finally approved by the capacity is set to get a major background on the roadblocks, Cabinet Committee on Economic boost when its offshore container resistance encountered on this Affairs in the year 2007. terminal (OCT) project gets project? ready by 2012. Once completed, GS: Please provide for the its capacity is likely to go up US: The Japan International benefit of our readers the key initially by about 12 million TEUs Corporation Agencies (JICA) advantages that this project (Twenty-foot equivalent units; a prepared a Master Plan for will deliver in the context of standardised maritime industry Mumbai Port, who recommended the challenges on growth, measurement for cargo), which the project for Offshore Container capacity constraints (volume would later be increased as per Terminal. Subsequently, the in numbers) and limitations demand. Consulting Engineering Services on JNPT expansion (terminal (CES) has prepared Detailed expansion). At present, dredging is being Project Reports recommending done for the OCT terminal to the same for implementation. US: The necessity of this project accommodate and handle larger However, this project faced has been established through the ships of 6,000 TEUs and above. strong resistance from some Master Plan prepared by JICA and The terminal will be 800 metres NGOs, mainly, opposing filling of also the Detailed Project Reports inside the sea and the draft after Prince’s & Victoria Docks. They (DPR) prepared by the CES. It is to completion will be about 14.5 were also alleging that the said state that this Container Terminal metres deep. The OCT project project, after commissioning, will cater to the requirement of is being implemented on a Build, would congest city roads. mainly Mumbai region and the Operate and Transfer (BOT) Mumbai Port has adequately adjacent area. The MbPT and

G ammon Speaks 9 Cover Story

that Mumbai Port have taken many steps in improving the evacuation of cargo. Some of the main steps taken by the Port for easing evacuation are – • Laying of dedicated railway track for goods from Wadala to Kurla. • Construction of Eastern Express Freeway through Mumbai Port estate (being executed by State Government). • Improvement and Visual representations of the Alexandra Victoria and Prince’s Docks during their initial days concretisding the important road networks of Mumbai Port. JNPT have prepared Master Plan laying of railway tracks for RCD. in the year 2007 which clearly M/s. ICTPL shall construct 700 m GS: What has been the progress established the need of the long x 5m-wide berth at 800 m of the project thus far and the project. The traffic forecast for offshore to existing Indira Dock main challenges encountered? the MbPT and JNPT hinder land Harbour Wall Berths. M/s. ICTPL shows projection of 27.7 Million will also procure and install US: Unlike other civil engineering TEUs by 2025-26. The JNP would required equipment for handling works, I feel that marine works face capacity constraint of about containers. is the most challenging job. 11 Million TEUs around 2016-17. Procurement and fabrication of The capacity of MbPT’s Offshore The total cost of the project is specific construction equipment, Container Project is about 1.2 `1460 crore, out of which `445 programming of works Million TEUs. It can be said that crore will be invested by Mumbai considering the tidal variation there is sufficient traffic in the Port and the rest by M/s.ICTPL. and concreting works through region even for the additional barges are some of the challenges port like Revas. The Offshore It is also pertinent to mention encountered in this project. I feel Container Terminal would, therefore, have sufficient traffic 5S IMPLEMENTATION AND IMPROVEMENT to handle.

GS: A few words on the scope of work assigned to Gammon…

US: The consortium of Gammon India Group alongwith Dragados SPL Spain were selected as BOT operator. They formed a company viz. M/s.Indira Container Terminal (ICTPL). As per the license agreement, Mumbai Port will carry out the work of capital dredging, filling of Prince’s & Victoria Docks and Zone wise designation boards displayed at site

10 G ammon Speaks Cover Story

Terminal. I found Gammon Team technically competent, efficient and committed to their work. I have seen in our project, they have developed plant and equipments ingeniously which are vital asset for implementation of any marine project. The Gammon Team is also very keen in implementation of safety precautions as per the norms which can be seen from accident-free records for many months.

GS: Any suggestions or areas Work in progress at the MbPT for improvement for the Gammon Team? that Gammon India have set up rock dredging which is difficult a good team of professionals for and challenging. US: Every project is unique this project. GS: What has been your and provides ample learning experience with the Gammon opportunities by throwing up The other major issue is that Team in terms of people, unexpected challenges and issues. the execution of work by technical expertise and It may be a good idea if you could Gammon India Ltd. linked to the commitment? capture this and share it with your completion of capital dredging clients, your operational team and and filling by MbPT. By liaising US: The Gammon India Ltd. is senior management periodically. and programming, we have renowned company and known This will help us work together made efforts to see that there is to me for long time. However, for improved results and also no idling of work from both the my association with them is learn through some of the best parties. MbPT has undertaken during the implementation of practices that get developed as capital dredging work including our project of Offshore Container these challenges get addressed.

Mumbai Port Trust - Fact file

n MbPT was established as the n Is considered the gateway to n Crude and petroleum products Bombay Port Trust on June 26, India, and has been the principal are handled from four jetties at 1873. contributing factor in the Jawahar Dweep, an island in the n Mumbai Port Trust lies midway emergence of Mumbai as the Mumbai harbour, and chemicals on the West coast of India. commercial capital of India. are handled from Pirpau. n It is located on the western n MbPT has three enclosed wet n It caters to about 11% of the shore of Mumbai Harbour, along docks: total sea borne traffic handled the eastern edge of Mumbai • Indira Docks by major ports of the country in city. The harbour opens to the • Prince’s Docks (built in the year terms of volume. Arabian Sea to the south. 1885) n It handles about 20% of POL n Has natural deep-water • Victoria Docks (built in the year traffic and 21% of general traffic harbour of 400 km2. 1891) handled by major ports of India. n Its first chairman was Col. J.A. n MbPT provides 63 anchorage Ballard. points.

G ammon Speaks 11 Assesment of Organisational Performance

Offsite meet: Reflections

he senior management team investment analysts and firms Tof the company gathered for a in the prevailing infrastructure three-day meet (between August business market scenario. The 28-30) at North Point, Khandala. session proved to be interactive The context was to interact as it generated lot of queries on and assess the organisation’s issues amongst the Gammon performance, challenges and Knights. approaches to efficiently deliver on its business goals while Offsite management meet in progress Aroor Joshi as a facilitator at the same time effectively complimented all the participants capitalising on its human resource important areas for improvement for combating challenging issues capabilities. of the organisation’s processes in the industry that Gammon and workings. The responses were operated in involving ethical Starting with an ice-breaking anonymously collated to enable subjects such as corruption, session over cocktails and dinner the participants to provide free monitoring and insufficient on the evening of Sunday, August and unhindered inputs. support from multiple agencies 28, the first day’s session the concerned with mega projects next day had Sukumaran, Chief As part of the programme the that the company’s businesses People’s Officer welcoming the participants were divided into engaged with. He urged the senior participants and setting the 12 groups with Mr. Modi and team to continue the good work context of the meet. Manish the facilitators providing inputs and set the tone and provide the Chheda, managing director of and clarity to each group so as right examples and guidelines for Auctus Advisors, a strategic to identify action plans on the the junior members to follow. management advisory firm, themes that they focused upon provided a perspective to the from amongst the 10 thrust areas. All the participants were asked to global and national infrastructure The presentations on August 30 present their KRAs and BSCs with scenario. and 31 by each of the groups a two page summary on their helped highlight and identify the action plan by early September Rohit Modi, Deputy Managing issues and action agenda thereof along with a template for Director of the company for the company post the meet monitoring and review. summarised the session’s key in a regular and planned manner. takeaways by providing insights on Among others was Luis Miranda, Rohit Modi summarised the critical areas that the organisation an investment banker of repute meet by identifying three themes led by its senior team, needs to as a guest speaker. He provided as enablers of success for the focus on to establish, sustain and an outsider’s perspective on participants and the organisation. reinforce its leadership position Gammon India and on the These were a giving and receiving in the industry. infrastructure business. He feedback with an open frame of highlighted various dimensions mind; sustaining the belief that Aroor Joshi, a seasoned across areas of Gammon’s “we have in ourselves to be the management practioner and businesses that needed to best in the business” and not to a former member of board of be reviewed to strengthen sit on our laurels but constantly Cadbury India facilitated the the company’s competitive work towards making Gammon as process of identifying 10 key thrust advantage and standing, the most respected organisation areas for Gammon after asking particularly in the light of the in its domain. the participants to identify two perceptions on the company by

12 G ammon Speaks Gammon Springs

After retirement...WHAT?

his is a question that bewilders he never took on any trekking or Tmany! When faced with this mountaineering expeditions. big ‘Q’, I am sure many of you must have answered “I don’t The name of this brave heart know”, while others must have who decided to make the second retorted wryly, “Why bother innings of his life eventful and about it when there’s still a long more exciting than the first, is Mr. way to go”. Mr. J. J. Shah with Kala Patthar in the J.J. Shah, and I am his proud son, background Kaushal. I, too, was of the same opinion, completed a 17-day trek to until the time I met a person who (Kaushal Shah from GIPL is Mount Everest Base Camp and two years post his retirement actively involved with trekking Kala Patthar in 2010. decided to do something unique. since 1991 and has done his basic When most people of his age mountaineering course from His achievement is even more would be rather content to while Nehru Institute of Mountaineering, commendable considering the away their time playing cards or Uttarkashi.) fact that prior to this 17-day trek catch up with old mates for some idle chit-chats, this young at heart had different plans altogether. When charity beckons Having seen his son trek to Mount Everest Base Camp Inspired by the good work (17,056 ft.), Kala Patthar (18,187 done by GOONJ (an NGO ft) in 2007 and even undertake that have won many coveted awards for its yeoman service a solo expedition of Island Peak for the underprivileged, both (20,205 ft) in 2008, he too from the Government of India decided to give mountaineering and World Bank, including a try. The call of the lofty peaks the NGO of the year award), was perhaps too strong for Puneet Dammani (Accounts him to overcome. So, despite Department, GIPL) along Puneet and his friend with the clothes collected suffering from osteoarthritis with a friend set up a Sunday and notwithstanding his age, Camp in February, 2011, at his housing society to collect used he undertook and successfully clothes to be handed over to GOONJ for distribution amongst the needy and the disadvantaged.

The drive not only witnessed collection of a whooping 204 kilograms of clothes donated by the society members, Puneet’s selfless endeavour even prompted his ex-employer, S.R. Batliboi & Associates, to donate Rs. 10,000 to a NGO of Puneet’s choice (Amravati-based NGO dedicated to providing free education to the deaf and dumb) as a recognition of his service to the poor.

Gammon Speaks congratulates Puneet on this and hopes that he carries on with his good work. Keep it up Puneet! Mr. J. J. Shah in the snowfall

G ammon Speaks 13 Achievement & Senior Appointments

Akshay Balasubramanian, son of Presently pursuing B. Tech. from Veermata Mr. S. Balasubramanian (Secretarial Jijabai Technological Institute, Matunga Department), has secured 94 percent (VJTI), in Electronic & Telecommunication, aggregate in the HSC Examination, Akshay wishes to do Ph.D in Mathematics 2010-11. He also secured 177 marks in in future. AIEEE and 292 marks in BIT-SAT with Gammon Speaks congratulates Akshay very good AIR rankings in both of these on his achievement and wishes him examinations. success in his future endevours.

Ruchita N. Patil, daughter of Mr. Nilkanth Patil Yoshihide Kado: (Working as a security staff in Belapur office), cleared the SSC exam (2011) with flying colours, Project Director scoring 495 out of the total of 550, aggregating Chennai Metro Project ninety percent. Gammon Speaks congratulates Ruchita for this Y o s h i h i d e achievement and wishes her all success in future. Kado has been a p p o i n t e d J Srikant: Director-Mktg. of Franco Tosi Project Director of Chennai Metro Project J. Srikant has been appointed the daughters. Director-Marketing of Franco Tosi recently. He has varied and rich experience recently. A graduate in Mechanical Gammon Engineering from National of 47 years, out of which 25 S p e a k s years in Underground Metro. A Institute of Technology, Calicut, welcomes native of Japan, he has worked Kerala, Srikant has over 29 years of J Srikant in various countries like Hong Industry experience in Engineering, to the Project Management, Business Gammon Kong, Singapore, Malaysia and Development and Business group and Saudi Arabia. Operations. w i s h e s him success in all his future Married to Sachiko Kado, his Srikant is married to Vandana, a endevours. family consists of two sons and home-maker and they have two a daughter, who are now settled in Tokyo, Japan. New HR Manual released “Imagination is everything. It is the preview of life’s coming attractions. Imagination is more important than knowledge,Logic will take you from A to B. Imagination will take you everywhere.” – Albert Einstein

Rohit Modi, Deputy Managing Director, PP Sukumaran, CPO along with the other members of board of management at the release of the new Human Resouces Manual on Friday September 23 at the head office.

14 G ammon Speaks Financial Highlights

Gammon: On the transformation path in right earnest

uring the First Quarter that 1PAT is flat at Rs. 29 crore v/s Rs. advances and improve cash Dended on June 30 2011, 30 crore last year. flow. our performance has improved • Reduce Debtors: T&D team despite the challenging business Our borrowing has gone up to to work with focused task environment. Our top line has Rs. 2800 crore (up Rs. 650 crore force to bring significant grown by 6% to Rs. 1390 crore from March 2011) due to increase reduction in debtors. Construction business revenue in debtors by Rs. 200 crore being • Inventory Management: up by 10% but Transmission cyclical in nature as we collected Reduce inventory levels and and Distribution (T&D) business Rs. 800 crore in the last quarter ensure vigilance in ordering revenue is down by 8% due ending March 2011. Our creditors along with improvement in to slower execution in a few have reduced by Rs. 200 crore stores and stock management projects. due to reduction in mobilisation at all sites. a d v a n c e • Cost Management and Qtr 1 Performance and timely Efficiency: Must improve Rs cr Qtr 1-2011 Qtr1–2010 Change payment of on cost management and creditors. In drive efficiency at all levels Turnover 1390 1309 +6% addition we to improve contribution Operating Margin 122 105 +16% have to fund at budgeted level, manage Op Margin % 8.8% 8.1% - Metropolitan indirect cost and overheads Depreciation 26 21 +26% t o w a r d s at all location (be prudent Interest 52 37 +41% acquisition of while spending each penny), PBT % 3.2% 3.7% - land. identify and block leakages, PAT 29 30 -4% if any, to improve operating Clearly we margin. Performance at operating level have the following challenges: • Borrowing Reduction: Work is satisfactory with decent rise • Improve Operating margin: on reduction in borrowing in operating margin to 8.8% We are speeding up the at corporate level on key (8.1% LY). The depreciation execution of low margin projects. charge is higher by 26% due to legacy projects with a view • Build People Capability: high capex of Rs. 325 crore last to exiting them earlier which Must have capable managers year impacting margin by 0.3%. puts pressure on borrowings and leaders for every project With the peaking of interest and margin. This needs to and support functions rate in the economy and our be compensated by faster to enhance business higher borrowing, the interest execution of new projects performance. cost has impacted the margin and improving margin on all • Concurrent audit: Must by 1.5% (though net impact is other projects. improve audit process and 1% due to interest income from • Quality Margin Order enhance frequency of audits Metropolitan debentures). PBT book: Must work to get good by covering all projects margin has been lowered by 0.5% margin new orders in all to enhance controls and due to impact of depreciation and sectors which will help us to discipline, creating awareness interest cost. Overall Quarter hold the reduction in client for adherence to process and

G ammon Speaks 15 Financial Highlights

16 G ammon Speaks Financial Highlights

strong compliance. Identify Committee: We have set communication (Voice, data issues quickly before damage up CMC to review weekly and VC), provide mailing is being done. cash performance in terms of solution, build business collection and recoupment portals, provide help desk We have taken significant vs. budget. This has enabled and uniform imaging. This initiatives to transform the timely disbursement of will help us to build flexible business which include: cash, monitor collection and and scalable IT platform, liability at sites. However integrated processes and • Budget Process: Setting up we must link recoupment systems, real time visibility budget process from April vs. billing to ensure that across to build operational 2011, wherein each project overall billing is higher than excellence through employee has been reviewed for balance recoupment on overall basis productivity and decision cost to completion, along by 15% to ensure appropriate making along with mitigating with execution timelines and cash utilisation and linking critical risks and enhance IT overall control estimates. cash to margin. security. This has helped set up targets • SOP and DOA, People • SAP HRIS Module: We have for each project for 2011-12 Policy: The standard also undertaken major HR covering billing, contribution operating processes and initiatives to transform the and Cash flow. In addition delegation of authority existing HRIS/ERP to SAP each function (HOD) has matrix has been developed Human Capital Management budget for the year in detail. to improve decision making System. SAPHCM is a This will help to improve and building accountability. robust ERP solution that will accountability and focus on This will empower mangers enable HR for data accuracy, key deliverables. for decision making. Along seamless information flow • Monthly Review: We have with this, people policy is of all the HR processes into started monthly review of being revamped. These will a single window application. each project performance be rolled out shortly. This will help to share the vs. budget. The standard • Redefined role of SFM and information easily, provide template for review has been FC: The role of Sector Finance employee self service and set up along with quarterly Managers and Financial effective organisation targets. The review covers Controller is defined clearly management. billing performance, blue to review and drive project sheet and yellow sheet performance and to partner The challenges are plenty and the cost (top 10 items) for cost project manager and CMS. agenda is long. So we, as a team variance, working capital This will help to build strong must raise the bar individually analysis in detail, project team work with openness and collectively to deliver on our execution plan vs. actual and transparency and address agenda, meet our commitment performance, plant, energy business challenges better. to business to improve margin, and labour performance vs. • IT transformation (Project enhance asset utilisation, improve standard parameters, quality Pride): We have commenced net cash flow and enhance returns and safety tracking. The our major IT initiative to build on investment. The 1st Quarter review has helped the project Best –In- Class IT universe has begun satisfactorily but we managers and team to across Gammon Group. must raise our sights to deliver improve their learning, focus The key tracks covering this on budgets we have committed on delivery and improve initiative are new data centre, to the management and Board. accountability. building disaster recovery, – Girish Bhat, • Cash Management improve connectivity and CFO, Gammon India

G ammon Speaks 17 Awards & Recognitions

Gammon has been chosen as Starbrand 2011 in the perception survey conducted by the ICMR-IIPM combine

Gammon Speaks has been awarded Certificate of Merit by Shailaja Nair Foundation for In-house Communication Excellence at the ICE Awards 2011.

Your magazine ‘Gammon Speaks’ scored very well in the Design and Layout category. However, our jury felf there could be even more improvements in terms of employee participation and content.

PS: Please participate actively by sending your articles and write-ups to help ‘Gammon Speaks’ win such laurels in coming times!

18 G ammon Speaks Awards & Recognitions

Dr. Prabhat Kumar, Project Director, Kalpakkam with the Award of Appreciation for the construction of the 500 MW Prototype Fast Breeder Reactor Project at Kalpakkam, (where Gammon is the lead Contractor) during the ICI Concrete Day Celebrations held on September 6 in Chennai

Given above is a screen shot of the new user-friendly and informative Gammon’s website. Please visit the site and use it actively and provide us your feedback at [email protected] to help us maintain it dynamic and customer-driven.

G ammon Speaks 19 Down Memory Lane

A snapshot of the first Gammon Bulletin Published in 1971

Remembering Vinod Prabhu

With profound grief, we regret to completed at Chennai. 16 graduate announce the demise of our dear engineers selected. 6 issued spot colleague, Vinod Prabhu (GM, HR), offers. Balance on staggered in Chennai, on September 19. manner. Well coordinated and brand building event. Purpose Vinod, joined Gammon India in and objective met. Thank you and November 2010 and breathed signing off. Vinod” his last after suffering a massive cardiac arrest. He is survived by his (17.05.1967 – 19.09.2011) Today in this hour of grief, we wife and two daughters. from the Gammon family extend “Those we love don’t go away, our heart-felt condolences to the Poignantly, his last text message They walk beside us every day, bereaved family and pray to the to Maruti Jambagi, Project Chief, Unseen, unheard, but always near, Almighty to give them the strength Chennai Metro read as follows: Still loved, still missed and very dear.” to overcome this enormous loss.

“Last message: selection process – Unknown May his soul rest in peace!

FOR PRIVATE CIRCULATION ONLY. Published by Corp. Commn. Dept., Gammon India Ltd. Designed & Printed by Red Sky Designs, Mumbai.

20 G ammon Speaks