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Syonpsis - GMR Group

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Syonpsis - GMR Group

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jacobhall2324
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BUSINESS SUMMIT 2020

GMR GROUP

MISSION
Our ultimate goal is to build and nurture meritocracy and potential talent. We
believe in building holistic corporate professionals resulting in exposure to
development. Our organization is like an umbrella which is offered to our
employees . This leads to internal growth opportunities .We also aim identify high
potential talent who have true potential to grow with the organization

VISION

GMR Group will be an institution in perpetuity that will build entrepreneurial


organizations, making a difference to the society through the creation of value .
Our vision can be emphasized by a set of the seven core values and beliefs . They
are :

• Humility : We value intellectual modesty and dislike false ride and


arrogance
• Entrepreneurship : we seek opportunities .They are everywhere .
• Teamwork and Relationship : Going beyond the individual encouraging
boundaries behavior
• Deliver to promise : We value a responsibility and self discipline , to meet
and surpass on commitments made .
• Learning and Inner Excellence : nurturing active curiosity
• Social Responsibility : Anticipating and meeting relevant and emerging
needs of the society
• Respect for Individual : We will treat others with dignity , sensitivity and
honour

SUCCESS STORY
GMR Group entered the airports space in early 2000s and is today counted
amongst the top 5 airport developer and operators globally. GMR Group presently
owns and operates Delhi International Airport and Hyderabad International
Airports. Further, GMR Group has recently won the concession to develop and
operate Goa’s Greenfield airport at Mopa reinforcing our standing as India’s
largest private airport company.
Apart from being the largest private airport company in India, GMR Group is also
the only Indian airport developer to have developed and operated airports outside
India. GMR Infrastructure in partnership with Megawide Construction Corporation
of Philippines is operating and developing Mactan Cebu International Airport – the
second largest airport of Philippines. Our company’s founder and the ladder behind
the success of this company is G M Rao . G M Rao, a Mechanical Engineer, is the
Founder Chairman of the GMR Group, the global infrastructure developer.
Born in Rajam in the Srikakulam district of Andhra Pradesh in India, G M Rao
ventured into business starting with a single jute mill in 1978. Since then, till
before India’s economic liberalization, circumstances compelled him for
opportunity driven business building.
He entered 28 businesses as a serial entrepreneur and exited most of them with the
opportunities thrown up by the opening up of the Indian economy in the early
1990s. As a part of the post-liberalization generation of entrepreneurs, his moves
became entirely strategy driven and focused on long term objectives. Eventually,
his single-minded focus on the core infrastructure sector resulted in GMR Group
exiting some of the highly attractive businesses of banking, insurance, software,
breweries, jute .
In April 2009 GMR bought English Premier League’s liver pool FC for a
whopping 500 million pounds . We are proud to say that 40 percent of our revenue
from the airport sector comes from non aeronautical revenues .
COMPANY PROFILE

GMR group is a global infrastructure major with interests in infrastructures.


Founded in 1978, the company is well diversified and professionally managed.
They span the domains of developing, operating, managing and owning
international airports as well as setting up and operating major energy utilities.The
core businesses of the company are in the sectors of infrastructure which comprises
airports, energy, transportation and urban infrastructure. Through GMR
Varalakshmi Foundation, it is actively engaged in the areas of education, health,
community development which reaffirms its grass root presence as a change agent
and holding a strong base in the field of corporate social responsibility. Employing
its public private partnership, the group has successfully leveraged its core
strengths in development of several projects across India.

• AIRPORTS- Its airport segment entered the market in 2003, is engaged in


the development and operation of airports.
• Apart from being the largest private airport developer in India, GMR group
are only Indian airport developers to operate outside India. It presently owns
and operates the Delhi international airport (DIAL)
• The airport has an ultimate design capacity to handle 100 million passengers
and 2.3 million tonnes of cargo per annum, Hyderabad international airports
is strategically located providing excellent opportunity to develop it as a hub
for domestic and international passenger and cargo traffic. Mopa airport
Goa, Heraklion Crete International Airport, Greece. Mactan Cebu airport,
Philippines.
• A few of the airports currently operated by us are
-Indira Gandhi International Airport
-Rajiv Gandhi International Airport
-Bidar Airport
• According to July 2020 ,Groupe ADP acquires 49% stake in our company.

COMPANY RESOURCES
GMR Airports is a leading airport developer possessing a marquee airport asset
portfolio. Our integrated airports platforms possess capabilities across a large part
of the airport value chain. We provide a suite of capabilities across our airport
platform covering airport operations, travel, retail, duty-free as well as duty paid,
airport-linked real estate development, hospitality and allied services including
airport construction services, project management, Airport O&M, MRO and
Aviation Academy services. Our Indian aviation market share was approximately
27% in the nine months ended December 31, 2017. Our Promoter, GMR
Infrastructure Ltd (“GIL”) is the flagship company of the GMR Group, a leading
diversified Indian infrastructure conglomerate.

We also provide extensive solution in building airports . Delhi international


Airport was the first airport to be built under ppp and it is the largest revenue
earning airport of India . this airport has an extensive five level line baggage
system . It is one amongst the 3 airports in Asia to have the longest runway . Apart
from that we started the first Greenfield airport setup in cochin with the Public
Private Partnership (PPP) model in Civil Aviation infrastructure sector in India as a
joint venture with Government of Kerala (13%), Central Government (13%) and
Non-Resident Indians (NRIs) etc. as major shareholders (74%). The airport
pioneered the concept of private investment in the airport sector after being
incorporated as a public limited company, receiving investments from nearly
10,000 NRIs from 30 countries. Cochin International Airport has the state-of-the-
art facilities and traditionally designed architecture unique to Kerala. We also
control the Hyderabad international airport whose non aeronautical revenue is upto
36 percent and growing . there are a total of 6 airports set up by the GMR Group
and two under construction .

GMR has also diversified its field in various other sectors which include :
• Energy - GMR Energy is a part of GMR Group, which is one of the largest
diversified Infrastructure Conglomerates in India. With an operating capacity of
over 4400 MW, it has a balanced fuel mix of coal, gas, LSHS as well as renewable
sources of wind and solar energy. Apart from this, plant of over 2300 MW
generation capacity are under various stages of development in India and Nepal.
• Transportation - GMR’s Transportation business focuses on surface
transport projects including Roads, Railways, Metros and Airstrips/ Runways in
both DBFOT (under GMR Highways)and EPC (under GIL – EPC) segments. With
four operating assets adding to total length of over 1824 Lane kms of Roads &
Highways, GMR is one of the leading developers in India. Innovation in
construction as well as maintenance practices, quality of construction and
operational safety are of utmost priority for the division.
• Infrastructure - Urbanization has given the country rapid growth and
contributing towards this growth, GMR Group ventured into this business
sector.With a special focus on Special Investment Region, the division leverages
on it’s collective experience and expertise in building successful projects across the
country.
• Aviation – We also have our own aviation academy which has more than
2000 courses and almost 40,000 graduate per year .

WHY CHOOSE GMR

Gandhi Mallikarjuna Rao is the 4th largest private airport developer in the world
and India’s one of the leading infrastructure company . Expertise in management
and innovation of projects.
From the Indira Gandhi Airport in Delhi to the Mactan CEBU International Airport
in the Philippines are a few of our works.
RESPONSES AMIDST THE UNPRECEDENTED PANDEMIC-
The COVID-19 pandemic has triggered an unprecedented crisis in
the tourism, given the immediate and immense shock to the sector . The impact
of the crisis is being felt throughout the entire tourism sector and reopening and
rebuilding destinations will require an approach.
• We have established Air Bubbles – bilateral arrangements with the US , UK
, France and various other countries to restart commercial passenger services
• Cabin air is freshened every 3 minutes. Clean and hygienic conditions
through periodic sanitization . Fleet air is constantly changed with fresh air.
Safety is our first measure.
• We have built a stronger , more sustainable and resilient tourism
economy. The crisis is an opportunity to rethink tourism for the future .
• Test on arrival facility at our airports since July 2020 . Likely to aid traffic in
India once such measure is permitted. It is a non evasive technology
and include voice test etc.
• Asset utilization is on the rise due to the revival of the industry . We ensure
continuity of our business and shall make five star airports as it will act as an
attraction. We shall enable our airport businesses to reach our ultimate goals
.
• We shall issue an additional share for every 5 shares. All existing
shareholders of GIL will be able to continue their same shareholding in GIL .
• The Goa Airport the construction and development of the site had to be
stopped due to the nation wide lockdown . We have started to implement
our plan . The designing and planning is in progress at the moment. We were
awarded with a concession period of 40 years extended by 20 years .
• Construction of the Delhi Airport and the Hyderabad Airport (GHIAL) which
are the best in class airports in India. Our company was established as one of
the largest and leading developers in this segment.
• We have been trying to constantly develop our capabilities in order
to create the best infrastructure projects . We strive to span the
domain of developing , operating , managing and maintaining not only the
international but also the domestic airports .
• We have signed a concession agreement for
development of Bhogapuram Airport . The Government of India has declared 6
projects including Bhubaneshwar , Varanasi and other states . Chennai's
second airport is under planning .
• We have 12 power projects which include in coal mines in Indonesia as
well.

DEVELOPMENT MODEL ( PPP ) :

Public-private partnerships involve collaboration between a government agency


and a private-sector company that can be used to finance, build, and operate
projects, such as public transportation networks, parks, and convention centers.
Financing a project through a public-private partnership can allow a project to be
completed sooner or make it a possibility in the first place .

In this type of partnership, investments are undertaken by the private sector


entity, for a specified period of time. These partnerships work well when private
sector technology and innovation combine with public sector incentives to
complete work on time and within budget. As PPP involves full retention of
responsibility by the government for providing the services, it doesn’t amount to
privatization.There is a well defined allocation of risk between the private sector
and the public entity . Private entity is chosen on the basis of open competitive
bidding and receives performance linked payments.

GOA

BOOT with ODMA arrangements : : A private-public partnership (P3) project


model where private organizations conduct large development projects under
contract to public sector partners such as governmental agencies.
A BOOT (build, own, operate, transfer) project is seen as a means of developing
large public infrastructures with private funding. The public sector partner enters
into a contract with private developers, usually a consortium of businesses with
experience and expertise in a particular industry or a corporation that specializes
in designing and implementing large projects.

Here there will be a joint venture consortium with the company GMR Group
(68%) and the government of India (32%) .

WHY SHALL THE GOVERNMENT CHOOSE THIS MODEL :

• Almost all the airports made under PPP in India are working under this
model and this includes the Delhi International Airport and the Hyderabad
international airport which were made by the GMR group . The Delhi
airport is also the most profitable airport for the airport authority of india .
Thus BOOT is a feasible option to build a new airport in GOA
• It is also a safer bargain for the government as there wont be much of a
public debt to handle . This will therefore help the government in financing
different projects .

Advantages of BOOT –

• It allows each party to focus on their strengths -


In the BOOT model, the private and public sectors are able to both focus on
what they do best. That allows projects to be completed faster, often with
reduce delays, because the public sector provides structure and cost
containment, while the private sector provides efficiencies and resource
access.
• It keeps public-sector funds where they are most needed Because the
private sector is managing the funding aspect of the project, the public
sector is able to direct resources to other areas of socioeconomic welfare
required by the community. This allows the processes of governing to
continue unimpeded while the infrastructure requirements can be met at
the same time
• It allows for innovation
The public sector brings in the best private contractors possible when
developing infrastructure using the BOOT model. This process encourages
innovation, which allows the community to benefit from advanced
technologies which would be included with the project. If the project was
implemented by the public sector only, this inclusion factor would not
always be possible because of the costs involved
• It minimizes the public cost for infrastructure development.
Using the BOOT model, the public sector is able to take advantage of the
efficiencies found in the private sector for a minimal investment. Many PPP
relationship using this model will offer an incentive, such as tax breaks, to
the private organization to develop the infrastructure. Because the private
sector assumes the risk for planning and use, they are given an opportunity
to profit from the structure by recruiting tenants for it. Then, after the
contracted time, the public sector takes over ownership.

Scope:

• Runway (4000m x 45m) to cater for Code 4E aircraft and Runway ( 8000m *
50m ) for code 8F aircrafts .
• Parallel full length taxiway (4000m x 25m) designed for Code F aircraft with
three rapid exit taxiways and other connecting taxiways
• Apron with 80 aircraft stands (351,300 sq. m) and Isolation Bay (14,710 sq.
m).
• 4 km long main access road with two rotary intersections and a grade
separator.
• Other secondary access roads and major and minor service roads for
connecting the apron and service areas totaling about 30 km.
• Landside parking facility for 2000 cars excluding the taxi stands .
• Detailed marking plans for runway, taxiway & apron. Detailed road markings
and signage.
• Airport vicinity of around 5 km radius to keep the nationals from the noise
pollution

2,00,000 square meters around airport for infrastructural development

UTTAR PRADESH
BOT WITH ODMA –

The Build-Operate-Transfer (BOT) model is widely gaining popularity in the


offshore business services as it allows the client to incubate a project in an
offshore destination under a regional service provider, until it reaches satisfactory
maturity for full transfer of ownership. The BOT model is not Outsourcing and it
has a completely different framework . The BOT model is a business arrangement
in which an organization builds a project, operates it and eventually transfers the
ownership to the client after a specific period of contract. This ensures that the
organisation recovers its initial investment in a reasonable span of time.
The term was initially coined for building generic infrastructures such as roads
and shipyards. The organisation building the same is allowed to operate (and
maintain) it and generate revenue to recoup the money invested in the project.
The project is handed over to the public entity after a specific period.

WHY SHALL THE GOVERNMENT CHOOSE BOT :

• The number one benefit of a BOT model is its massive cost benefits.
Typically, an off-shored BOT project saves as much as 60% of the normal
cost as the project itself is owned, operated and managed by an off-shore
team . This will help us save a lot of revenue and cost amid pandemic . it
will also help us in the cost cutting of the project . Thus the BOT model will
be feasible .
• The involvement of private sector and experienced commercial lenders
ensures in-depth review as an additional sign of project feasibility.
• Project risk and burden that would otherwise have to be borne by the
public sector is allocated to the private sector

ADVANTAGES OF BOT MODEL

• Use of private sector financing to provide newsources of capital, which


reduces public borrowing and direct spending and which may improve the
host government’s credit rating .
• Ability to accelerate the development of projects that would otherwise
have to wait for and compete for sovereign resources.
• Use of private sector capital, initiative and known how to reduce project
construction cost, shorten schedules and improving operating efficiency.
• The involvement of private sponsors and experienced commercial lenders,
which ensures an in-depth review and is an additional sign of project
feasibility.
• Technology transfer, the training f local personnel and the development of
national capital markets.
• In contrast to privatisation, government retention of strategic control over
the project, which is transferred to the public

SCOPE :

• A new runway ( 4500m * 50m ) to cater code 4H flights

• Parallel length taxiway full (4500m x 25m) designed for Code F aircraft with
three rapid exit taxiways and other connecting taxiways
• A new terminals to an apron with 25 new aircraft stand ( 1,20,000 sp.m ) with
isolation bay .
• Landside parking facility for 2000 cars excluding the taxi stands .
• Detailed marking plans for runway, taxiway & apron. Detailed road
markings and signage.
• 2,00,000 square meters around airport for infrastructural development
• Upgrading the old terminals to state of the art facility
• radation of the existing terminals to make it feasible

MODEL FOR OPERATION , DEVELOPMENT AND MANAGEMENT FOR GOA AND UP :

Cost and fee contract –

The cost-plus-fee is also referred to by the abbreviation of CPF, and represents a


variant of a cost reimbursable contract in which the buyer provides
reimbursement to the selling party for the allowable costs that have been accrued
by the seller in the commission of the service, the creation, manufacture, delivery
of the product, or in any other performance of the contracted work. In addition to
this reimbursement, the seller also receives a fee that has been previously
determined and calculated as a percentage measure of the total costs. The fee in
these situations will tend to vary with the actual costs. Cost-plus-fee is
advantageous to the seller because it allows for some baseline costs and
expenditures to be reimbursed in a more guaranteed way, but also allows for
the opportunity to modify fees based on percentages.

Finance ( GOA )
PROJECT LAYOUT -

Particulars AMOUNT IN ₹ ( crores )


LAND ACQUISITION
( 3000 acres . 1500 acres 2053
acquired by government )

Civil structure development 5240

Administrative 157
infrastructure
Electrification and solar 1735
panel

Staff quarters 87

Maintenance facilities and 280


equipment
Pre operative and legal 140
expenses

Working capital 723

Total Project Outlay 10415

REVENUE –
Particulars AMOUNT IN ₹ ( crores )

Aeronautical revenue 2300

Ground holding charges 480

Fuel and oil 120

Duty free shops 230

Automobile parking 70

Rentals from shops and 279


restaurants

Cab subsidies 59

Other non aeronautical 72


revenue

Total 3380

Expenditure
Particulars AMOUNT IN ₹ ( crores )

Repairs and maintenance 164

Annual fee paid for the 270


usage of navigation system
Aviation expenses ( fuel , 320
air traffic management )
Utility bill ( water , 106.
electricity , internet etc )

Total Variable cost 860

Operator fee 72

Salaries 129

Insurance 31

Marketing costs 11

Interests 23

OtherAdministrative over 6
heads

Other utilities 6

Total fixed cost 278

BREAK EVEN POINT


Here the break even point is calculated by total fixed cost / contribution ratio

Therefore the break even point is 4.24 years . ( after the date of completion )

FINANCE ( UTTAR PRADESH )

PROJECT OUTLAY

Particulars AMOUNT IN ₹ ( crores )


LAND ACQUISITION

( 1200acres in total . 600 728


provided by government)

Civil structure development


and up gradation cost in the 2580
new airports

Administrative infra 83
Particulars AMOUNT IN ₹ ( crores )
Electrification and solar
860
panel

Staff quarters 38

Maintenance facilities and


135
equipment

Pre operative and legal


87
expenses

Working capital 227

Total Project Outlay 4738

REVENUE

Particulars AMOUNT IN ₹ ( crores )


Aeronautical revenue (
landing fee , hanger rental 1200
etc )

Ground holding charges 210

Fuel and oil 84

Duty free shops 101

Automobile parking 39

Rentals from shops and


153
restaurants
Particulars AMOUNT IN ₹ ( crores )
Cab subsidies 30

Other non aeronautical


32
revenue

Total 1849

EXPENDITURE

Particulars AMOUNT IN ₹ ( crores )


Repairs and maintenance 81

Annual fee paid for the


110
usage of navigation system

Aviation expenses ( fuel ,


162
air traffic management )

Utility bill ( water ,


72
electricity , internet etc )

Total Variable cost 425

Operator fee 24

Salaries 59
Particulars AMOUNT IN ₹ ( crores )
Insurance 20

Marketing costs 6

Interests 10

OtherAdministrative over
6
heads

Other utilities 5

Total fixed cost 130

Here the break even point is calculated by total fixed cost / contribution ratio

Therefore the break even point will reach after 3.4 years . ( after the date of
completion )

NEEDS OF THE STATES

UTTAR PRADESH AND GOA


• To boost air connectivity and fuel growth, the state government has set a
target to build the maximum number of airports in the country, which means
at least one airport will come in each division in the state.
• We are focusing on air connectivity to boost growth and bring
development.
• Land is to be acquired for an airport divisions.
• To ready 20 airports in the next two to three years to boost air
connectivity.
• Districts having state owned airstrips at Divisional level can be developed
as No-Frills Airports
• Divisions having airstrips at a place other than Divisional headquarters,
which needs to be upgraded to No-Frills Airports
• Divisions with a defence airport, which can be developed as No-Frills
Airports.
• All the divisions which does not have any airport related facility needs to
have air connectivity.
• The states are intended to develop new airports to connect all the regions
of the state with the rest of the country. Private sector participation will be
encouraged for the same.
• Along with facility of dry cargo, aircraft maintenance hubs will also be
encouraged.
• Development of new or up gradation of existing airports/airstrips/
heliports/ helipads including all infrastructure required to operationalize air
transport.
• States may explore the possibilities of development or up gradation of
airports on PPP mode.
• The No-Frills Airports needs to be upgraded on requirement basis.
• The state government is looking forward to promote international
connectivity with its airports, including facilitating the inclusion of its airports
under bilateral rights for airlines desirous of linking airports in the state with
international destination.
• Need of growth of aviation sector with a focus on employment generation
and industrial development.
• To develop air cargo hubs and related facility development and logistics
infrastructure in the state.
• In order to promote agro-exports and other perishable commodity exports
from the state, facilitate the development of facilities at airports for handling
perishable goods.
• Special facilitation centres with single window clearance facility for
promotion of air cargo and logistics businesses.
• Growth in aviation sector demands the development of adequate
Maintenance, Repair and Overhaul (MRO) facilities for aircraft.
• Growth in civil aviation will require trained work force like Pilots, Aircraft
Maintenance Engineers, Ground Handling Professionals, Cabin Crew, IT and
Support service professionals, airport related professionals etc. hence
demands private training institutes.
• Connecting underserved and unserved locations in India at affordable rates
to bring air travel close to common person.
• Development of helipads/heliports to connect the remaining of the
following tourist destinations.
• To reduce passenger traffic at the capital airport of the states.
• Ambulance services and medical facilities at the airports and dedicated bus
service to and fro from airport.
• Extension of the terminal building and creation of parking bays.
• The airports, in addition to serving passengers, should also cater to the
growing need of cargo movement to and from the coastal state.
• Allotment of a counter at the airports so local products can be sold there,
whether it be souvenirs produced by local self-help groups or local produce
grown by farmers.
• Measures to counter the problem of inadequate number of immigration
counters, poor housekeeping, limited food outlets and inferior quality of civil
work.
• Providing world-class facilities at the airport which receives thousands of
international travellers.
• Increase in the number of lounges to counter overcrowded lounges.

STATE BENEFITS
GOA-
It is a very famous state in India . It lies along the Konkan region . It is a tiny
emerald land on the west coast of India . It was once a part of the Union Territory
of Goa. It is the smallest state in India. From shopping at the various markets to
eating from different cuisines. There is a water sports galore.

Tourism is the second largest sector and the second highest revenue
generating industry after mining . Yet the attraction of the high end tourism lacks
. ‘Goa is famous for its fauna and flora’ is an understatement. We believe its
beauty is too grandeur to be true and deserves the world’s attention. That being
said , airports should be upgraded and be five-star ones . We believe in the saying
‘first impression is the last impression’ and by upgrading its airports this can be
attained.

We plan on building an Airport in the city of Margao . Margao is a beautiful state


with its beaches and the flora at its best . This is a great tourist destination in the
state . It is located in the South Goa. Southern Goa does not have any airports
which is a drawback . Hence by doing so , the tourists will be able to visit the
Southern Goa easily
which will also be
affordable.

Goa Airports face


several problems like
inadequate counters
(domestic and
international) , poor
civil works , lack of
cafeterias and food
outlets. The airport has only about 21 aeroplanes (domestic and international
flights included) which is not enough if Goa wants to attract more tourism. The
area around the airport should be an airport city , which Goa lacks of . This is what
it'll take Goa to become one of the most popular states .

• We promise to help Goa the get the recognition it deserves by building up


an airport and upgrading terminals of the airports and turn it into a five star
airport . We shall also provide your state with 5G towers near the airports
built by us which will not only be added as a boon to your tourism sector
but also provide tourists to have a better experience. We shall develop
sustainable airports and reduce pollution .
• Needless to say , we shall also provide tourists with rapid test on arrival
which shall give accurate results within 30 seconds . We also promise that
as and when the Government of India permits the use of ‘fingerprick test’
we shall enable the usage of it at the earliest .
• As stated above , we shall provide the best vicinity around our airports . We
shall also set up 5G towers and provide the tourists with the 5G network .
This shall be done by partnership with Vodafone. This shall give you the
best and the fastest network. We shall also give the tourists free Wifi.
Needless to say , this shall attract a lot of attention.
• We will not only provide the state with the aforementioned things but also
make sure of the clean environment. For this , we shall use various ways of
sustainable development of airports and its vicinity.

WAYS OF SUSTAINABLE DEVELOPMENT-

Airports have an impact on the environment. Be it the carbon footprint of the


flights or the noise pollution caused or the inferior air quality . We have come up
with a few strategies for Airport Sustainability.
• Many airport operators have started using BREEAM and other ways in
order to make the airports environmentally sustainable. We shall opt for
BREEAM in order to sustain our airport. Now what is BREEAM ? Well ,
BREEAM ( Building Research Establishment Environmental Assessment
Method) is the world’s leading sustainability assessment for master
planning of building from construction to refurbishment. This will make the
airport the first Indian Airport to use BREEAM .
• We shall increase the use of socially and environmentally responsible
products. We shall minimize the energy usage as much as we can and
maximize the usage of green power at our airport .
• We shall adopt the national regulations which will provide environmentally
sustainable airports. We shall involve local communities in the developing
airports .
• Land utilization and wastage . Airport waste is the waste generated by the
airports , it may be caused by the passengers , managing activities etc. We
shall make sure that there is optimum utilization of the runways’ capacity .
• Now , coming on to the next problem, noise. Noise pollution disturbs
people . Flights produce a lot of noise during the take off and landing . So to
solve this problem , we shall reduce the number of people exposed to the
excessive noise level, help the local community recieve the airport’s plans
and activities , we shall also apply the latest technologies and designs and
we shall also take into consideration the frequency of the flights and night
time flights .
• We shall use HEPA filters to filter the air in and around the airport facility to
ensure our passengers breathe a fresh air . The air is filtered every 2 to 3
minute.

UTTAR PRADESH -
It is a well known state in North India .. It is divided into around 18
divisions and about 75 districts. The forest cover is almost 6.09% of the state’s
geographical area. It is the 4th largest state by area in the country. The state was
once known for its sugar production , now it is dominated by the service sector .
The state has many historical, natural and religious destinations.
The state can be divided into two regions – the Central Plains and The Southern
uplands. The state is blessed with a very fertile land. The elevation of the region
rarely exceeds a thousand feet .

Though the state is blessed with a very fertile land , it is featureless . A very
famous city of this state is Varanasi. It is famous for its muslin and silk fabrics ,
sculptures and many more thing. We believe it is underrated and deserves a lot
more attention.

Though the Varanasi airport was awarded with the ‘main tag' it also faces a lot of
air congestion. And this drawback might affect the tourism sector of this
beautiful city. We do not want them to suffer because of this slight drawback.
We are here to the rescue.

• We plan on adding an extra terminal to the Lal Bahadur Shastri Airport


while upgrading the rest . This shall not only help in reducing the air traffic
but also attract tourists as we want to turn it into a five star airport. We
shall also build 5G network towers in the vicinity .
• We also aim on upgrading the airport vicinity which would give it an ‘airport
city’ look . We shall be building the 5G network towers in partnership with
Vodafone . This shall not only attract the tourists as it will give fast speed
network but also give them a closure.
• We strive to give our tourists the best experience. We shall also provide
them with free Wifi. We also make sure there is no side affect of this , since
many birds are harmed due the 5G radiations we shall decrease our
frequency by a millimeter as this will reduce the harm caused drastically .
• We also care about the environment hence we shall come up with various
strategies of sustainable development of airports.

SUSTAINABLE DEVELOPMENT

Aeroplanes have an impact on the environment be it the carbon


footprints left behind or the noise caused. We have come up with a few
strategies to help reduce these and save our environment a little.
• We shall try our best to reduce the energy consumption . We shall
also reduce the impact on air and water quality by decreasing the
pollution caused and by minimizing other impacts.
• We shall use the best technology available and improve
construction operations which will lead to the reduction of the
pollution.
• By upgrading terminals in the city , one of its major problems-
unemployment, can be solved. This will increase the rate of
employment and benefit the state.
• We shall use HEPA air filters to filter the cabin air. We refresh the
air every 2 to 3 minutes. We will provide the tourists free PPE kits.
We shall also make sure that everyone follows the safety norms at
all point of times.
• We shall try reducing the frequency of the flights as this will help
reducing the noise pollution as well as the land wastage.
• We shall also involve the local communities in the development of
the airports. We shall also keep in mind the vicinity of the place
and make sure the noise pollution is reduced.
• We shall opt for steps that help in integrating responsible
procurement like :
- Choosing suppliers whose supplies are environmental
friendly.
- Following the purchasing and procurement policy.

These are a few strategies we shall use to maintain the sustainability of the
airports.

CODE OF CONDUCT
PREAMBLE-
The Code of Business Conduct and Ethics, articulated below, embodies the
Group’s Values and Beliefs and endeavours to lay down guidelines for employees

of the Group to follow to in their day to day work life.

CODE OF CONDUCT

• National Interest- GMR Group is committed in all its actions, to promote


the economic development of the country and shall neither engage in any
activity that would adversely affect such objective, nor shall undertake any
activity that violates the national interest.
• Stakeholders- GMR Group is committed towards enhancing Stakeholders’
Value and complying with all the laws that govern Stakeholder’s rights
• Social Responsibility- GMR Group’s Social Responsibility is aimed at
anticipating and meeting the needs of the society in the areas of Education,
Community Service and Livelihood.
• Competition- GMR Group will market its products and services and shall not
make unfair and misleading statements about competitors’ products and
services. Further, an employee shall not take up employment with any
competitor, including the Vendors, Partners of GMR Group, without prior
written permission from President HR, within 12 months from the date of
leaving.
• Confidentiality- Employees shall ensure that all information available to
them in the course of employment in the Company are kept strictly
confidential and will not be disclosed to any party.
• Policy- No employee shall make any statement or do any act that
encourages unlawful, untimely, false or intentional misrepresentation,
concealment or destruction of information in order to mislead.
• Infrastructure- Usage of company resources- Employees shall ensure that
all departmental equipment, resources, and consumable items are used for
the work and business of the Department.
• Our employees avoid any improper, unauthorized or unlicensed use of
property or resources for non-business-related reasons.
• . Relationship with Government and Public Officials- An employee of GMR
may contact government and regulatory officials to keep them informed
about our operations and works on the issues.
• Public Representation- No employee shall, without the consent of the
management can call for press meets, and discuss any issues related to the
business of the Company or future prospects or of the present .
• Dress Code expects its employees to follow a dress code which helps them
to work comfortably at the workplace and at the same time project a
professional image.
• Ethical Conduct- GMR Group expects its employees to be highly ethical.
Selling, manufacturing, distributing, possessing, using or being under the
influence of illegal drugs and alcohol on the job is absolutely illegal. No use
of unparliamentarily words or committing any acts of violence or
possession of weapons, explosives in the workplace, or doing any action
that violates or impact adversely the environment, health of the employees
within the premises.
Company policy –
This is committed to creating and maintaining a securework environment where
it’s employees, agents, vendors and partners can work and pursue business
together in an atmosphere free of harassment, exploitation and
intimidation caused by acts of sexual harassment within but not limited to
the office premises and other locations directly related to the company’s
business. The objective of this policy is to provide protection against sexual
harassment of women at workplace and for the prevention and re-dressal
of complaints of sexual harassment and for matters connected therewith all
concerned should take cognizance of the fact that GMR strongly opposes
sexual harassment, and that such

behaviour against women is prohibited by the law as set down in the sexual
harassment of women at workplace (prevention, prohibition and redressal) act,
2013 and rules framed there under being the sexual harassment of women at
workplace (hereinafter referred to as “act”) as well as the terms of employment.
Commission of any act of sexual harassment as defined in the act and in this
policy shall result in strict disciplinary action. At GMR, we have zero-tolerance for
sexual harassment. We value each and every employee working with us and wish
to protect their dignity and self respect. In doing so, we are determined to
promote a working environment in which persons of both genders complement
each other as equals in an environment that encourages maximum productivity
and to keep the personal dignity. We at GMR are committed towards giving every
employee a just and fair hearing on issues encountered by them at the workplace
with special attention to sexual harassment. GMR will take very serious
disciplinary action against any victimization of the employee who is complaining
or the alleged harasser that may result from a complaint.

• Harassment Policy- Harassment violates fundamental rights of gender


equality and liberty and right to work as guaranteed by the Constitution of
India. We ensure that in the workplace, no employee harasses one another.
We also ensure there is no gap between the gender salary.
• Whistle Blower Policy- OUR group provides a platform for employees to
disclose information internally, which we believe shows serious
malpractice, dishonesty, abuse or wrong doing within the company without
fear of any pressure and victimizing.

CSR POLICY –

the Company and in pursuance of the requirements of the Companies Act,


2013, the company as part of its CSR initiatives proposes to engage and work
on the following areas (with a special focus to geographical locations in India
where GMR infrastructure Limited has presence), herein after referred to as
the CSR Policy:

i) Education:

Support for promotion of education of all kinds (school education, technical,


higher, vocational and

adult education), to all ages and in various forms, with a focus on vulnerable
and under-privileged;

Education for girl child and the under-privileged by providing appropriate


infrastructure and groom

them as future citizens and contributing members of society;

ii) Health, Hygiene and Sanitation:

Ambulance services, mobile medical units, health awareness programmes


and camps, medical check-
ups, HIV/AIDS awareness initiatives, health care facilities and services,
sanitation facilities;

Eradicating hunger, poverty and malnutrition, promotion of preventive


health care and sanitation , and

making available safe drinking water;

Reducing child mortality and improving maternal health;

Corporate Social Responsibility (CSR) Policy

iii) Empowerment & Livelihoods:

Employment enhancing vocational skills training, marketing support and


other initiatives for youth,

women, elderly, rural population and the differently-abled, and livelihood


enhancement projects;

promoting gender equality, empowering women, working for senior citizens


and measures for reducing

inequalities faced by socially and economically backward groups;

Assist in skill development by providing direction and technical expertise for


empowerment;

iv) Community Development:

Encouraging youth and children to form clubs and participate in community


development activities such

as like cleanliness drives, plantation drives etc.

v) Environmental sustainability:
ensuring environmental sustainability, ecological balance, protection of flora
and fauna, animal welfare,

agro-forestry, conservation of natural resources and maintaining quality of


soil, air and water;

vi) Heritage and Culture:

protection of national heritage, art and culture including restoration of


buildings and sites of historical

importance and works of art; setting up public libraries; promotion and


development of traditional arts and handicrafts;

vii) Measures for the benefit of armed forces veterans, war widows and their
dependents;

viii) Training to promote rural sports, nationally recognized sports, Paralympic


sports and Olympic sports;

ix) Contribution to the Prime Minister's National Relief Fund or any other fund
set up by the Central Government or the State Governments for socio-
economic development and relief, and funds for the welfare of the Scheduled
Castes, Scheduled Tribes, other backward classes, minorities and women;

x)Contributions or funds provided to technology incubators located within


academic institutions which are approved by the Central Government;

OUR FUTURE PROSPECTS


• There has always been a culture of innovation within the GMR Group
and we have been pushing hard to think differently and follow a
policy of ‘unlearning and relearning through our digital initiatives’.
• Our idea of digital airport will need to combine three key elements –
product, service and brand – for both the physical and digital
environments.
• A single token ID system to do away with multiple screening, use of
artificial intelligence(AI) which will allow us to achieve high degree of
operational efficiency and use of drones and advanced robotics to
simplify passenger baggage operations.
• The GMR Group is planning to consolidate its airport business with
selective divestment opportunities the other sectors of the company.
• The GMR group is focusing on reducing debt and improving cash flow
and profitability.
• The next international airport we are currently working on within the
state, will be ready for operation within the next three years.
• Very soon the work of the new aerodrome will begin.
• Due to the lockdown and covid 19, there has been a delay in few
projects which is likely to push the project cost but its impact could
be minimized so there will be cost escalation but GMR has the ability
to minimise the impact.
• The new airport, would have a capacity to handle 30 million
passengers annually once fully operational.
• The previous airports have far exceeded their target capacity of
passengers and we have already embarked on an expansion plan to
increase the capacity of passengers per annum by 2022.
• The concession period for the Greenfield project will be 40 years with
a possible extension of another 20 years through a bid process. The
airport will be built under the BOT (Build Operate Transfer) model.
• Only up to 30 per cent of the non-aeronautical revenues, which
include segments like retail, food and beverages and parking, would
be used for cross-subsidisation of aeronautical charges.
• We have also indicated how our airport business, with major
investments, is well poised for the next phase of growth.
• Despite the ongoing turbulence, our airport business has huge
underlying opportunities and will continue to be the growth engine
for both the company and the state.
• The airport expansion has been well funded and is insulated in the
near term from the disruptions by the pandemic for which we are
rescheduling the future capital expenditure.
• The gas based assets of the company will be efficiently invested to
meet round the clock demand for clean energy.
• We also have potential to monetize our various land assets at the
airport and also at strategic industrial locations.
• We are also planning to enable a successful trial of biometric enabled
gate processing, which is already in operation at various airports.
• We will be closely working towards finding the right balance between
investments, customer satisfaction while dealing with the security
related issues and acknowledging the need to be more financially
and environmentally stable to tackle the uncertainties of the future.
• We will also be improving the airspace capacity with the improved
technologies and working closely with stakeholders to generate
various modes of solutions.
• Our group is also planning to install an innovation lab which allow us
to imagine in a more focused way and we will work closely with
startups in the state to have more feasibility and agility in our
approach.
• This approach of the GMR of embracing collaboration and failing fast
puts us in a strong position and taking front seat in the development
of the state and henceforth of the nation’s.
THANK YOU !

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