Global Generation ; Gmr has Also Undertaken Half-a-Dozen Road Projects, of Which Two in Andhra Pradesh and Tamil Nadu Are Ready. But Power Is Something Rao Never Lost Sight Of. Indeed, Till December 2007, Power Accounted for Two-Thirds of the Gmr Group's Revenues.

Summary

---

Over the past decade, The Netherlands-headquartered InterGen has built a powergenerating capacity of a little over 16,000 MW in 10 countries. Some 10 years ago, back in India, a firstgeneration entrepreneur called Grandhi Mallikarjuna Rao was taking his first tentative steps in the Indian power sector. Frustrated by complexities courtesy of a maze of regulations, Rao steered his enterprise into a different direction of infrastructure-creation. In 1999, he thought of building airports and today his company, the GMR group, has developed the state-of-the-art Hyderabad airport. GMR has also undertaken half-a-dozen road projects, of which two in Andhra Pradesh and Tamil Nadu are ready. But power is something Rao never lost sight of. Indeed, till December 2007, power accounted for two- thirds of the GMR group's revenues.Rao has as many as seven projects in hand three completed and four under development with a total capacity of 5,148.50 MW. But as Pankaj Namdharni, Senior Investment Analyst at SPA Securities, points out: The market always valued the company for its airports, roads and SEZs. However, last fortnight GMR, the owner of the Delhi Daredevils team in the Indian Premier League, propelled his power operations into a totally different orbit with some daredevilry on a global scale in the power sector. Rao bought out InterGen for $1.1 billion, making it the largest ever acquisition of a global energy utility by an Indian company.

Future play

See the full content of this document

Extract

---

Global Generation ; Gmr has Also Undertaken Half-a-Dozen Road Projects, of Which Two in Andhra Pradesh and Tamil Nadu Are Ready. But Power Is Something Rao Never Lost Sight Of. Indeed, Till December 2007, Power Accounted for Two-Thirds of the Gmr Group's Revenues.

How GMR benefits from the InterGen buyout.Power now takes centre stage, completely overshadowing the airports and roads businessReveals t...

See the full content of this document

---