The existing cash flows force Gammon India to monetize its real estate assets. Gammon India is the company which constructed ‘The Gateway of India’ in 1919.

Gammon India fell in trouble as the company ended in a financial loss in the 3^rd quarter of the current year.  The company officials pointed to the higher financing costs as a main reason for the loss. The sales of the company went down. This  is said to be another reason for the loss.

The company is believed to have Rs.3200-Crore of debt at present. ChrysCapital and JP Morgan are two important stakeholders of Gammon India. Both the companies have shares of 9.84% and 3.01% respectively.

Gammon India is one of the oldest and largest civil engineering companies in the country. The company boasts of its longer experience which the company acquired by operating in India for more than a century. The Gateway of India’ was constructed by the company.

Besides real estate and infrastructure development, the company has diverse fields such as energy production. The group has a dominant presence in all three power sectors viz. hydro, nuclear and thermal power sectors.

Gammon India undertakes designing and construction of modern bridges and overpasses. Further the company operates them. The development of metro rail is also undertaken by the company. Normally the company undertakes such projects on contract basis.

At present Gammon India has a major project for ISKCON. The ISKCON project includes erection of a temple complex along with a modern cultural center. The project is situated at Sri Mayapur in West Bengal.

Franco Tosi Meccanica, Sofinter group, SAE Power lines, etc. are some of the international presences in Gammon. Gammon plans to bring another partner for its Italian business. The company expects to lessen the borrowing burden by doing so.

Lanco Infratech, another major infrastructure player, was also planning out to bridge the debt gap. The company has a debt around Rs.23000-Crores.

Real estate sales have gone down to very deep. Reduced bank lending and higher debt added more afflictions to the real estate developers and players. It was reported in the Last month that Indiabulls Real Estate was to sell its stakes in Indiabulls InfraEstate for around Rs.800-Crore. The real estate group had talks with Xander Group.

HDFC PMS sold its shares worth Rs.250-Crore in Mulund Projects. Among the sellers real estate developer DLF too sold a prime plot in Mumbai. Lodha Group bought DLF’s prime land for Rs.2700-Crore.