GMR Group is an infrastructural company headquartered in Bangalore. The Company
was founded in 1978 by Grandhi Mallikarjuna Rao. Employing the Public Private
Partnership model, the Group has successfully implemented several iconic
infrastructure projects in India.
The Group also has a global presence with infrastructure operating assets and projects
in several countries including Turkey, South Africa, Indonesia, Singapore, the Maldives
and the Philippines.
Although the company started with Agro based industries like Jute/Sugar/Breweries
but slowly moved in the Infrastructure space over the past decade. Now the GMR group
interests lie in areas of Airports, Energy, Highways and Urban Infrastructure.
GMR Infrastructure Limited is the infrastructure holding company formed to fund
the capital requirements of various infrastructure projects across the sectors. It
undertakes the development of the infrastructure projects through its various
They are also actively involved in community service as a part of Corporate Social
Responsibility. The Group’s commitment to inclusive growth is achieved through
its Corporate Social Responsibility arm – the GMR Varalakshmi Foundation
(GMRVF). GMRVF works with the under-privileged sections of the community in all
the locations where the Group has business interests.
We believe that people are the cornerstone of the Group’s success, and the company
rewards hard work, knowledge and commitment. The 7 Values & Beliefs seek to
provide a platform on which employees can perform and deliver.
The company’s human resources and benefits programs are designed to attract and
retain the best employees. The organization endeavors to provide job opportunities
across businesses, depending upon company needs and professional interest and
competency of the employees.
I. Importance of Study
Organizational study is "the examination of how individuals construct
organizational structures, processes, and practices and how these, in turn, shape social
relations and create institutions that ultimately influence people", OS comprise different
areas that deal with the different aspects of the organizations, many of the approaches
are functionalist but critical research also provide alternative frame for understanding
in the field.
To develop an understanding to the management practices followed in various
II. AIM & ESTABLISHMENT OF THE COMPANY
GMR Group, started in 1978, having headquarters in Bangalore, India.
The GMR Group was started by Grandhi Mallikarjuna Rao. Mr. Rao started out on his
own by manufacturing cotton ear buds. He acquired a failing jute mill for at a bargain,
this venture proved to be lucrative and allowed GM Rao is use leverage from local
banks to acquire other assets. Eventually GM Rao divested his stake in a multitude of
industries and started a bank named Vysya Bank in collaboration with ING.
Mr. Rao- Marwari-Jute Business.
Mr. Rao sold off
A brewery to Vijay Mallya,
An insurance business to the Rahejas.
Later on this, the group expanded to various sectors like highways, airports, urban
infrastructure, power generation, educational institutions and etc.
GMR group is amongst the nation's fastest growing organizations.
and World’s 349th
richest person that makes him stands apart today as a
Values & Beliefs
To build entrepreneurial organizations that make a difference to society through
creation of value.
GMR Group will play a pioneering role in developing innovative projects in providing
world-class services in infrastructure. We will grow to become a dominant player in the
field of infrastructure while sustaining our presence in agro business.
We value intellectual modesty and dislike false pride and arrogance
We seek opportunities – they are everywhere
Teamwork and Relationship
Going beyond the individual – encouraging boundary less behavior
Deliver the Promise
We value a deep sense of responsibility and self-discipline, to meet and surpass on
Nurturing active curiosity – to question, share, and improve
Anticipating and meeting relevant and emerging needs of society
Respect for Individual
We will treat others with dignity, sensitivity and honor
Position of the Company
As per Forbes Magazine, G M Rao is the richest Telugu man by sheer quantifiable
wealth. He is known for his down to earth nature and simplicity despite his enormous
fortune. According to media reports, GMR Group is one of India's most trusted and
respect brands. GM Rao received the Economic Times Entrepreneur of the year Award
The company started with Agro based industries like Jute/Sugar/Breweries but slowly
moved in the Infrastructure space over the past decade.
The GMR group interests lie in areas like
Large Urban Development,
and is known for building and operating world class national assets.
GMR Energy Limited (GMR Energy), founded in 1996 is a subsidiary of GMR
Infrastructure Ltd. It develops and generates thermal, hydro, and solar energy. It is an
ISO 14001 and OHSAS 18001 certified company. The company has power projects
across India in Orissa, Maharashtra, Himachal Pradesh, Tamil Nadu, Andhra Pradesh,
Uttaranchal, Chhattisgarh, and Chandigarh. 15 power generation assets have been
developed by the GMR Group, of which 8 are operational and 7 are under various stages
of development. With its presence across the entire energy value chain, the GMR Group
is today a prominent contributor to the Indian power sector with installed capacity of
over 2500 MW and 4700 MW under development. GMR Energy Limited is well poised
to emerge as one of the largest power producers in India.
GMR Power Corporation Limited Chennai (220MW),
GMR Energy Ltd Kakinada (235MW),
GMR Vemagiri Power corporation Ltd Rajahmundry (388MW)
GMR Gujarat Solar power, Patan (25MW),
GMR Emco Energy Ltd Warora (200MW),
GMR Kamalanga Energy Ltd Dhekanal (1400MW),
GMR Renewable Energy Ltd Kutch (2.1MW),
GMR Power Infra Ltd TN (1.25MW).
GMR PT Barasentosa Lestari Indonesia,
GMR PT Golden Energy Mines Indonesia,
Rajiv Gandhi International Airport (Hyderabad), was constructed by GMR
The GMR Group also constructed the “Delhi’s International Airport” (3, 5, 4).
It also constructed airports in Turkey (Sabiha Gocken International Airport),
Philippines (Mactan Cebu International Airport), Malaysia and Maldives.
Tambaram - Tindivanam
Tuni - Anakapalli
Ambala - Chandigarh
Adloor - Gundla Pochanpalli
Hyderabad - Vijayawada
Hungund - Hosapet
Jadcherla Expressways Ltd
Assets under construction
Chennai Outer ring Road
foray of ‘Jhansi- Bhimsen’ railroad construction.
Phase of MMTS in Hyderabad.
GMR Led Consortium Emerges L1 In Rs. 5000 Cr DFCC Eastern Corridor
Railway Project from Mughal Sarai to New Bhaupur (near Kanpur)
The Group is developing a 4300 acre multi-product Special Investment Region (SIR)
at Krishnagiri, Tamil Nadu and a 10,000 acre port based multi-product Special
Investment Region at Kakinada, Andhra Pradesh.
KRISHNAGIRI Special Investment Region
GMR Group is developing GMR Krishnagiri Special Investment Region
(GKSIR) near Hosur, Krishnagiri district, Tamilnadu. GKSIR is a Greenfield, state of
the art, large scale integrated, multi product industrial project, developed through a
Joint Venture with Tamil Nadu Industrial Development Corporation (TIDCO).
KAKINADA Special Economic Zone
Spread over an extent of approximately 10,500 acres, the Special Investment
Region has been conceived as a Captive Port based Multi Product Special Economic
Zone. The Project would cater to the existing industries at Kakinada, mainly Process
Industries and expand into emerging sectors such as Refinery, Renewable Energy,
Ship Building, Biotech, Nanotech, IT/ITEs, Toys, Games and Sports Goods
manufacturing Park etc. in DTA (Domestic Tariff Area) & SEZ.
GMR Krishnagiri SIR
GMR Kakinada SIR
GMR Energy Trading
GMR Electronic MFG Cluster
Varalakshmi Foundation (GMRVF)
GMR Varalakshmi Foundation (GMRVF), is the Corporate Social Responsibility arm
of the GMR Group. Its objectives are to develop social infrastructure and enhance the
quality of life of communities around the locations that has the Group’s presence. This
non-profit company has its own professional staff selected from top academic and
social work institutions, and is governed by Group Chairman, GMR Group.
It deals with
2) Health, Hygiene & Sanitation,
3) Empowerment & Livelihood,
4) Community Development
The Foundation aims to make quality primary, secondary and tertiary education
accessible to all. Towards this, GMRVF focuses on
a. GMR Institute of Technology
b. Sri GCSR Degree College
c. GMR DAV Public School
d. Seethamahalakshmi DAV Public School
Health, Hygiene & Sanitation
The GMR Varalakshmi Foundation started a 135 bed, Multi-Specialty Hospital at
Rajam, Srikakulam Dist. Andhra Pradesh in collaboration with the CARE Hospitals.
Empowerment & Livelihood
To empower unemployed youth through skill training and entrepreneurship
To improve lives & livelihood through participatory programs.
Corporate Social Responsibility
GMR Group believes Corporates have a special and continuing responsibility towards
the society. The grim reality in India is that millions of people still do not have access
to basic amenities and live in abject poverty - a situation that cannot be redressed by
the Government alone. The business sector needs to understand its corporate social
responsibility and work towards making a difference to society
Performance Advisory Council keeps a check on GMR Promote.
The GMR group is full of councils —a family council at the top, a group holding
council consisting of family and two key non-family executives in the second layer,
followed by a group integration council with 25 more top executives. But the
group's most interesting initiatives is the Group Performance Advisory Council
(GPAC), a think tank of seven luminaries led by global management guru and
consultant Ram Charan.
GPAC began by assigning performance scores along various parameters. These
were uniformly low in the first year, but they have improved. "GMR's priorities
are risk management, transparency, business excellence and the council members
have enough experience to judge on these parameters," says V Sumantran, a
consultant to the Hinduja Group and GPAC member.
GMR Group, one of the fastest growing infrastructure enterprises in the country,
has adopted strategy of 'Asset Light and Asset Right' model to build upon its
advantage of the expertise it has developed over the years to shore up its revenues
and improve business.
The main competitors for the group in all the sectors are
a) Larsen & Tubro
b) Hinduja Group
c) Sarovar Group
d) Salarpuria Group
e) KVR Group
f) NCS Sugars
g) Maha Raja Sugars
h) Namma Metro
i) GVK Infra Ltd and etc.
The Government policies followed by the GMR Group are
a) Treasury Policy
b) Accounting Policy
c) Insurance Policy
d) Foreign Exchange policy
e) Corporate Policy
f) Financial and Risk Management Policies
The taxes and taxation aspects followed by GMR Group are
a) Profit After Tax (PAT)
b) Profit Before Tax
c) Provision for Taxation
d) Deferred Tax of the financial transactions and statements in a financial
a) RGIA rated as No.1 Airport in India at SKYTRAX – WORLD AIRPORT
AWARDS – 2013.
b) First Airport across the Globe to have successfully registered with United
Nations Framework Convention on Climate Change (UNFCCC) as Clean
Development Mechanism (CDM)
c) “Best Cargo Airport Award” for RGIA
d) GMR Group bags ‘Coaching Leadership Excellence Award’
e) DIAL Bags Golden Peacock Award!!
f) ASSOCHAM CSR Excellence Award 2013-14
g) VOYAGER’ AWARDS FOR ISGIA
h) Govt. of Gujarat Energy & Petro Chemicals Department –
APPRECIATION and many more.
Share Market Position
GMR Infrastructure (GMR) is the holding company of the GMR group. It is
mainly engaged in the development of power and infrastructure projects. The
company has an asset base of over Rs 25,000 million,
GMR has been awarded a hydroelectric power project in Uttaranchal. It is also
looking at entering the power trading and distribution business.
The company has major expansion plans for the future. In the power sector,
GMR plans to enter the power transmission business. It is also planning to supply
power up to 700 MW to Haryana from its proposed 1,000 MW power generation
project in Orissa. GMR has also planned a coal pit head project in Dhekanal, on
which the construction is expected to start by the end of 2007 and be completed by
i. 7s Frame Work
The GMR group has adopted strategy of 'Asset Light and Asset Right' model to
build upon its advantage of the expertise it has developed over the years to shore
up its revenues and improve business.
The group has an organized structure i.e. hierarchical structure and flattened
structure in taking decisions in the functioning of the organization.
As said, the system contains both flattened and hierarchical structures the work
progresses in a systematic manner
The style how the work progresses is fully based on expertise and experienced
people and manpower.
The Staff are fully experienced and if need to recruit; the scientific selection of
employees is applied.
The group has lot of values and beliefs which were strictly followed by the
management and the employees and even the students of the schools and colleges
which run by them.
The employees and management are trained with new technologies i.e. training
and awareness programs are conducted up-to-date.
The main strength for the group is the vision and mission that it follows
and the top management and the administration of individual units present
now in the group.
Government facilitated developmental policies
a. Domestic markets
c. Research & Development Cost
d. Stiff Competitors
e. Training of Employees
As India is a developing country, there are a lot many no. of opportunities
to the group i.e. new projects & ventures like
a) Construction of Airports,
b) Construction of Highways,
c) IT SEZs.
a) rising cost of raw materials,
b) growing competition and lower profitability,
c) increase in labor costs,
d) increasing rates of interest,
e) Global economy.
Porters 5 forces Models of Competition
a) Threat of New-Entries
The main threat here for the GMR group is new entries like Salarpuria,
Sarovar Group, The KVR Group in construction field.
1) Economies of product differences
2) Product Differentiation
3) Brand Equity
4) Switching Costs
b) Threat of Substitutes
The main threat here for the GMR group
1) Ease of Substitution
2) Quality depreciation
3) Relative price performance
c) Bargaining Power of Suppliers
The bargaining power of suppliers is also described as the market of inputs.
Suppliers of raw materials, components, labor, and services to the firm can be
a source of power over the firm when there are few substitutes.
1) Supplier switching costs relative to firm switching costs
2) Degree of differentiation of inputs
3) Impact of inputs on cost or differentiation
4) Presence of substitute inputs
5) Strength of distribution channel
6) Supplier concentration firm concentration ratio
d) Bargaining Power of Buyers
The bargaining power of customers is also described as the market of outputs.
The ability of customers to put the firm under pressure, which also affects the
customer's sensitivity to price changes. Firms can take measures to reduce
buyer power, such as implementing a loyalty program.
1) Buyer concentration to firm concentration ratio
2) Degree of dependency upon existing channels of distribution
3) Bargaining leverage, particularly in industries with high fixed cost
4) Buyer switching costs relative to firm switching costs
5) Force down prices
6) Availability of existing substitute products
7) Buyer price sensitivity
8) Differential advantage (uniqueness) of industry products
e) Intensity of Competitive Rivalry
The main threat here for the GMR group is the existing competitors like
1) Raheja Group
2) Larsen & Tubro
3) Hinduja Group
4) NCS Sugars Ltd
5) Maha Raja Sugars Ltd
6) Namma Metro
Conclusion & Recommendations
1) GMR Group has successfully achieved their goals by fulfilling their
2) It has reached its targets and going beyond the bounds and laying new
foundation steps in various sectors (recently railways).
3) Successfully implemented their own strategies for getting success.
4) The Organizational Study on “GMR Group” has provided valuable
information for me as a management student.
Limitations of the Study
The main limitations are expressed as follows
1) The first limitation concerns the factors of competitiveness of other
competitors like Raheja Group, L & T, Sarovar and GVK Infra Ltd.
2) GMR Arrogance in dealing with Maldives Airport issue
3) A challenging economic environment, coupled with issues like the rupee's
depreciation, slow movement in contracts under execution and a rise in input
costs due to natural calamities impacted business in the last financial year.