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In Focus: Building Business

Gammon India expects to enter $1-billion club in two years

Gammon India is among India's premier engineering and construction companies and has executed intricate projects both within the country and abroad. The company is credited with pioneering cantilever and pre-cast segmental bridge construction. Its bulging order book and improving margins are likely to push up company's profitability.

The company has executed projects as diverse as flyovers, marine structures, cooling towers, chimneys, tunnels, dams, hydro energy, pipelines etc and this diversity of operations gives it an edge of pre qualification in most of the infrastructure projects.

The company also operates in bulk storage business for storing products like bumper crops and valuable reserves. It is also a major player in thermal, nuclear and hydel power projects.

The company is expected to be a major beneficiary of the Indo-US nuclear pact and it expects to enter the $1-billion club by 2009.

It has undertaken projects in Libya, Sri Lanka and the UAE also. The company's second quarter profit in the current financial year stood at Rs 26.2 crore, while net sales surged 41 per cent to 378.4 crore. The numbers point towards the improving profit trajectory. The order backlog of the company rose 66 per cent year-on-year to Rs 7,800 crore .

It is also expected that the company's net sales growth will remain robust at 35 per cent for the next three years.