In the world of Indian business, few comebacks have been as remarkable as that of GM Rao, the chairman of the GMR Group. After a few years in the shadows, the 74-year-old infrastructure mogul has once again ascended the Forbes India Rich List with a fortune estimated at $3.99 billion in 2024. His wealth surge has been driven by impressive market rallies in two of his listed entities—GMR Airports Infrastructure Limited and GMR Power and Urban Infra. This resurgence is not just a testament to his resilience but also a reflection of the significant strides made by the GMR Group in transforming India’s infrastructure landscape.
GMR Group: A Robust Infrastructure Powerhouse
The GMR Group, an industrial giant with diversified interests in airports, highways, and the power sector, has emerged stronger than ever. Its listed subsidiaries, GMR Airports and GMR Power and Urban Infra, have seen stellar growth on the stock markets, which has, in turn, fueled GM Rao’s return to the billionaire ranks.
GMR Power and Urban Infra: The Energy and Infrastructure Giant
From April 2023 to November 2024, GMR Power and Urban Infra witnessed a jaw-dropping 517% rally in its stock price. This meteoric rise is a result of the company’s aggressive expansion in energy and urban infrastructure projects. The company’s portfolio includes two thermal plants—one with an operational capacity of 1,650 MW and another under construction with 350 MW. Additionally, it operates gas, hydropower, solar, and wind energy plants, contributing to the group’s long-term growth. GMR Power and Urban Infra is also involved in building road infrastructure projects, with notable highway developments across the country.
The group is also positioning itself at the forefront of sustainable energy initiatives, having announced plans to set up 50 electric vehicle (EV) charging stations in India, in line with the country’s growing push toward cleaner energy. Furthermore, GMR is developing a sprawling 2,101-acre Special Investment Region (SIR) in Tamil Nadu’s industrial hub, Krishnagiri, showcasing its commitment to strengthening India’s industrial infrastructure.
GMR Airports: Shaping India’s Aviation Landscape
GMR’s airport business has been a significant contributor to the group’s revenue and stature. The company operates some of the most prominent airports in India, including the Indira Gandhi International Airport (Delhi) and Rajiv Gandhi International Airport (Hyderabad). These airports are not only crucial to the country’s aviation ecosystem but also serve as benchmarks for quality and operational efficiency.
The MOPA airport in Goa, another successful addition to GMR’s portfolio, exemplifies the group’s ability to develop world-class infrastructure. With GMR operating airports in Indonesia and the Philippines, it is becoming a key player on the global stage. In fact, GMR’s airport business has grown to become the second-largest private airport operator in India, only behind the Adani Group, which entered the airport space in 2021. Together with the Airport Authority of India (AAI), GMR now forms part of the duopoly in India’s airport sector.
The company’s commitment to excellence is evident in the accolades received by its airports, with Delhi’s Indira Gandhi International Airport being frequently rated among the best in Asia-Pacific. Industry experts, such as Alok Anand, chairman of Acumen Aviation, have praised GMR’s transformation of the Delhi airport, citing improvements in passenger and cargo handling, modern operational practices, and overall quality management.
A Vision for the Future: GMR’s Role in India’s Growing Aviation Market
India’s aviation industry has seen phenomenal growth in the past decade, with the number of operational airports in the country doubling from 74 in 2014 to 157 in 2024. This growth trajectory is expected to continue, with the government aiming for 400 operational airports by 2047. Domestic air traffic is projected to reach 170 million passengers in FY25 and could soar to 300 million by 2030.
The government’s push for more private participation in airport infrastructure presents GMR with ample growth opportunities. Alongside the Adani Group, GMR is poised to capitalize on this growing market, particularly in Tier 2 and Tier 3 airports where privatization is on the cards. As Alok Anand points out, GMR’s airports have set global benchmarks, surpassing many airports in the US and Europe. This positions GMR favorably in the Indian aviation ecosystem as it continues to lead with modern, efficient infrastructure.
GM Rao’s Journey: From Andhra Pradesh to Global Business Success
GM Rao’s rise from humble beginnings in the small town of Rajam in Andhra Pradesh to becoming a prominent business leader is nothing short of inspiring. A trained mechanical engineer, Rao began his career as a junior engineer with the government before venturing into business. In 1978, he set up a jute mill, marking the start of his entrepreneurial journey. Over the next few years, he diversified his business interests, acquiring a stake in Vysya Bank, which he eventually sold in the early 2000s for a substantial profit.
Rao’s most significant business shift occurred in the early 1990s, when he pivoted from jute to the power sector. He established the GMR Vasavi Diesel Power Plant, followed by the Vemagiri Power Plant in Rajahmundry, Andhra Pradesh. With these early moves, Rao set the stage for the GMR Group’s expansive foray into infrastructure, particularly in power, highways, and airports.
A Trailblazer in Airport Infrastructure
Rao’s strategic vision led the GMR Group into the airport sector in the mid-2000s. In 2004, GMR won the contract to develop the Rajiv Gandhi International Airport in Hyderabad, in collaboration with Malaysia Airport Holdings Berhad. This was a defining moment for the group, as the Hyderabad airport became a flagship project, showcasing the group’s capability in handling large-scale infrastructure projects.
The GMR Group’s success in Hyderabad was followed by another major milestone: the development of the Indira Gandhi International Airport in New Delhi. GMR’s involvement in the development of Delhi’s airport has helped it become one of the best airports globally, frequently ranked among the top in Asia-Pacific by the Airports Council International.
Expanding into Energy and Infrastructure
Rao’s business acumen also led GMR to diversify into energy and urban infrastructure. The group expanded its power portfolio, including the development of thermal, solar, wind, and hydropower plants across India. It also ventured into urban infrastructure with projects like smart metering initiatives in Uttar Pradesh and large-scale highway developments.
Despite these successes, the group faced mounting debt issues due to its aggressive expansion strategies. Between 2011 and 2015, GMR’s debt ballooned from ₹21,200 crore to ₹46,000 crore. However, the group undertook significant restructuring, which involved disinvesting non-core assets, reducing debt, and partnering with global players. This restructuring has paid off, with GMR Group now focused on core businesses such as airports and power, setting the stage for sustained growth in the coming years.
GMR Group’s Debt Reduction Strategy: Navigating Financial Challenges
The GMR Group’s restructuring efforts, particularly its demerger in 2021, have played a pivotal role in reducing its debt load. The demerger created two listed entities—GMR Airports Infrastructure and GMR Power and Urban Infra—allowing the group to streamline its operations and focus on its most profitable sectors.
As a result of these efforts, GMR’s debt burden has significantly decreased, with the company managing to reduce its consolidated debt by ₹4,500 crore over the past two years. The power sector, which has become a key area of growth, is also performing well, with the group’s thermal plants operating at strong plant load factors. This healthy financial performance has enabled the group to pay down its debt steadily and position itself for further expansion.
Conclusion: A Resilient Leader and a Bright Future
GM Rao’s journey from a small-town engineer to one of India’s leading infrastructure magnates is a testament to his vision, perseverance, and business acumen. His comeback to the Forbes India Rich List is a reflection of his ability to adapt, innovate, and lead in a rapidly changing economic landscape.
With GMR Group’s continued growth in airports, power, and urban infrastructure, GM Rao’s legacy as an infrastructure king is set to endure. His focus on sustainable development, strategic partnerships, and debt reduction will ensure that the GMR Group remains at the forefront of India’s infrastructure revolution. As India’s aviation, energy, and infrastructure sectors continue to expand, GM Rao and the GMR Group are well-positioned to capitalize on the numerous opportunities that lie ahead.
