• ANNUAL REPORT 2013 “GROWING WITH VISION” READ MORE
  • GRAÑA Y MONTERO IS AWARDED BEST-MANAGED COMPANY IN LATIN AMERICA 2014 BY EUROMONEY MAGAZINE READ MORE
  • GRAÑA Y MONTERO S.A.A. ANNOUNCES ANNUAL SHAREHOLDER MEETING TO BE HELD ON MARCH 28, 2014 READ MORE
  • GYM AND VIVA GYM, COMPANIES OF THE GRAÑA Y MONTERO GROUP, ARE CONSIDERED AMONG THE MOST APPEALING PLACES TO WORK. READ MORE
  • GRAÑA Y MONTERO GROUP WAS RANKED 4TH AMONG THE 100TH PERUVIAN COMPANIES WITH BEST CORPORATE REPUTATION READ MORE
  • GRAÑA Y MONTERO GROUP IS ONE OF THE MOST ADMIRED COMPANIES IN PERU READ MORE
  • FIFTH EDITION OF THE GRAÑA Y MONTERO AWARD TO PERUVIAN ENGINNEERING RESEARCH READ MORE
  • GRAÑA Y MONTERO ANNOUNCES NEW INVESTMENT IN CHILE READ MORE
  • GRAÑA Y MONTERO LISTS ON THE NEW YORK STOCK EXCHANGE READ MORE
  • GRAÑA Y MONTERO GROUP, CELEBRATING 80 YEARS OF HISTORYREAD MORE
José Graña Miró Quesada, Chairman of the Board, and Mario Alvarado Pflucker, Corporate General Manager
2011 End of the Year Celebration
Our Collaborators

Vision: To be recognized as the most reliable Engineering Service Group in Latin America.

About us

Graña y Montero is a group of 23 engineering and infrastructure service companies operating in 7 countries in Latin America, with more than 4,500 professionals and over 9,500 employees.

Its mission is to find engineering and infrastructure service solutions for its clients, beyond contractual obligations, operating in a setting that motivates and encourages the development of its employees, respecting the environment and in harmony with the communities where it operates, and ensuring a return for its shareholders.

Our vision is to be recognized as the most reliable Engineering Service Group in Latin America.

The Graña y Montero style

For us at Graña y Montero, it is clear that we remain in business after more than 79 years by respecting our four core values:

• Compliance.
• Quality.
• Seriousness.
• Efficiency.

We are also aware that our future will mainly depend on how zealous we are in preserving our well-deserved reputation for Compliance, Quality, Seriousness and Efficiency. Therefore, we have decided to establish, for each of these values, an action policy to enable us to guarantee our values and allow them to stand firm.

Compliance Before Deadline

Completing our projects before the contract deadline is the result of actions inspired by our corporate values of Compliance, Seriousness, Quality and Efficiency, giving rise to our “Before Deadline” corporate policy. After 17 years, we can proudly display the annual reports of Independent Auditors certifying that we have attained 98.8% compliance in those 17 years and 100% in 2011 (audited by Price Waterhouse Coopers).

Graña y Montero Quality

Our prestige has always been deemed to result from the high quality of our work. For us, this goes without saying, and we even refer to the “Graña y Montero Quality” as quality that goes beyond the standard.

We have recently extended this concept to the “Service Quality” policy, including not only international quality standards, but also Risk Prevention and Environmental Respect.

Seriousness and Ethics Charter

We surveyed clients, employees and the general public and found that the adjective most used to identify Graña y Montero was Seriousness.

To ensure and guarantee this policy, we have an “Ethics Charter”, followed by all of the Group’s employees, which defines our relationships with our clients, our employees and the community, and the principle of honest business practices.

Efficiency

A few years ago we resolved to raise Efficiency to the level of one of our core values and to make a focused effort to improve productivity and efficiency in all areas of our business, lowering costs and improving our production margins. The purpose of this Value is to ensure our competitiveness under new market conditions.


Mission, Vision and Values

Mission

The mission of Graña y Montero is to find engineering and infrastructure service solutions for its clients, beyond contractual obligations, operating in a setting that motivates and encourages the development of its employees, respecting the environment and in harmony with the communities where it operates, and ensuring a return for its shareholders.

Vision

Be recognized as the most reliable Engineering and Infrastructure Service Group in Latin America.


History

After 79 years, Graña y Montero continues to grow with the same enthusiasm and vision for the future shared by three young engineers in 1933.

Markedly stronger and more diversified, with large-scale projects here and abroad, with a larger human team, with a common goal: operate under the principles and values that characterize the Graña y Montero Style.


1933 – 1949 Gramonvel, The Adventure of the First Years

On June 22, 1933, three young Peruvian engineers, Alejandro Graña Garland, Carlos Montero Bernales and Carlos Graña Elizalde, with the enthusiasm of youth, agreed to form a Technical Partnership in order to pool their knowledge together. In the beginning, the company was named GRAMONVEL, since the architect Hector Velarde Bergmann also participated as designer during the first few years.

Carlos Graña Elizalde was the first president of the company. He gave the company a long-term corporate vision, which has deservedly earned him recognition as one of the creators of the construction industry in Peru.

The company continued to expand its offerings through construction of larger-scale projects, such as railways and highways, previously built only by foreign companies. In 1942, it crossed the Peruvian border with its first project abroad: the El Pato Base for the US government during the Second World War, and the Nestlé factory in Venezuela.

Between 1945 and 1957, the new town of Talara was built for the International Petroleum Company, destined for 20,000 residents. This was one of the biggest challenges for GRAMONVEL, since it encompassed schools, churches, movie theater, airport and more than 2,000 homes for a small oil town.

Major works:

1937 – Miraflores Seaside Bathhouse
1940 – Municipality of Miraflores
– Maternity of Lima
1941 – Eternit Factory
1942 – El Pato Air Base
– Casino of Ancón
1943 – Nestlé Factory in Venezuela
1944 – Restoration of the Old Plaza de Acho Bullring
– Las Palmas Air Base – Hangars
1945 – 1957 – Town of Talara
1946 – Oechsle Building
1948 – Delgado Trelles Clinic

1949 – 1968 Graña y Montero S.A. is born

To guarantee its ability to meet the deadlines for these projects, GRAMONVEL S.A. and MORRIS y MONTERO S.A. merged with INVERSIONES INDUSTRIALES S.A. on October 31, 1949, creating GRAÑA Y MONTERO S.A. The union of both companies made it possible to establish a strong company to carry out the development projects needed by the country.

At this time, the company welcomed engineer Jorge Montero Muelle, who contributed his equipment and construction management know-how; the first president of Capeco, engineer Luis Graña Garland, construction engineer; and the estimator engineer Teodoro E. Harmsen, whose technical knowledge drove the development of the Technical Section of the company.

In 1952, for construction of the former Hospital del Empleado (now Rebagliati), our firm partnered with two other Peruvian companies: Florez y Costa S.A. and Andes Constructora S.A., to form the “Consorcio de Ingenieros Contratistas Generales” in February 1952. The most evident demonstration of this newly gained strength was the construction of six stretches (500 km) of the Pan-American Highway, started in 1953. They also built the Cañón del Pato Hydroelectric Plant, the Chimbote Iron and Steel Plant, the Monterrico Racetrack, the Lima Jorge Chávez Airport in Callao, the Paseo de la República avenue in Lima, the El Alto Airport in La Paz, Bolivia, and the Nihuil Dam in Mendoza, Argentina.

Major Projects:

1952 – Northern Perú Mining Corp. Concentrating Plant
– Rebagliati Hospital
1953 – South Pan-American Highway
1954 – Ministry of Economy and Finance
1955 – Sears Roebuck Retail Store
1957 – Cañón del Pato Hydroelectric Plant
– Ministry of Labor
1958 – Chimbote Iron and Steel Plant
– First National City Bank
1960 – Monterrico Racetrack
1961 – Jorge Chávez Airport
1962 – El Alto Airport, Bolivia
1967 – Paseo de la República Avenue

1968 – 1983 The Challenge for the Second Generation

In 1968, the architect José Graña Miró Quesada and the engineer Carlos Montero Graña joined the company, which was going through a severe crisis due to the expropriations by the military government of companies that were our best clients. At this juncture, José Graña remembers:

"I learnt my first business lesson and had to make my first decision. I had discovered that companies are not inherited, but worked, and I had accepted the challenge of the Second Generation.

That is how what we could call the transitional or generational overlap stage began. Because I was not alone. We were five partners or families of partners and more than one hundred employees and engineers. This process of working concurrently, which in our case lasted ten years, is probably the most interesting and delicate period.

I believe that in this period, the key word was: Respect. Respect for people, respect for partners, respect for traditions, respect for history, respect for the company's values".

José Graña Miró Quesada

In 1969, the development of a small brochure indicating the main projects carried out by Graña y Montero strengthened the recognition of the work done by the first generation to keep the company values alive. In turn, this attitude helped the present generation to naturally start delegating functions to the following generation.

In 1977, Graña y Montero S.A. inaugurated its new offices in its own three-story building, located on the 46th block of Paseo de la República, in the district of Surquillo (Block 1 of the present building).

José Graña Miró Quesada became the General Manager of Graña y Montero S.A. in 1982.

Major Projects:

1968 – Círculo Militar del Perú
– Gálax Supermarkets
1969 – Cementos Lima Factory
1972 – Lima Sheraton Hotel
1973 – Pepesca
1976 – Cuajone Mine
1978 – Civic Center Tower
1980 – Central Reserve Bank
– Banco Continental
1981 – Juliaca – Desaguadero Highway
– Steam Thermal Power Plant – Iquitos

1983 – 1990 The Graña y Montero Holding

With the 50-year anniversary of the company’s founding, a diversification process began that would change the company. Growing and diversifying became the new corporate challenge, giving rise to the establishment of Corporación Graña y Montero S.A.A. as a holding company for the group of companies under its management and control.

In August 1984, the first company leading to the future holding company was founded: GMI, Graña y Montero Ingeniería, a consulting firm to manage engineering services separately.

Next came GMP, Graña y Montero Petrolera, on November 5, to engage in petroleum exploitation. On June 30, 1985, GMD, Graña y Montero Digital, was founded for IT engineering services as a result of the partnership with the Chilean company Sonda and with the representation of Digital. Likewise, GMB was created with Blocker, a US company, to provide services to the oil industry. On January 30, 1987, GME, Graña y Montero Edificaciones, was founded in partnership with Mario Alvarado B., to engage in real estate development and investment. On May 24, 1990, in partnership with Alshthom, GMA was founded to engage in electromechanical assembly and, lastly, on October 9, 1990, GyM, Graña y Montero Contratistas, the company’s former construction company, was established.

Major Projects:

1983 – Oxy / Lot 1AB Andoas Plus
1984 – Pucallpa Thermal Power Plant
1986 – Cuzco Regional Hospital – IPSS (Peruvian Social Security Institute)
– Machu Picchu Hydroelectric Power Plant
1987 – Palma del Espino Plant and Housing
1988 – Chavimochic Irrigation Project
– Nuevo Centro Poblado Cajamarca Housing Development
1990 – Tinajones Special Project

1990 – 1997 New Policies, New Processes, New Markets

The 1990’s began with our introduction to the Mexican market with the construction of the Four Seasons Hotel in Mexico City and the Plaza and Pasaje Santa Fe projects in that city. New projects here and abroad continue to be ongoing.

In 1991, the first edition of the "Somos GM" corporate bulletin was published to communicate major institutional events and news. In 1994, Graña y Montero S.A. was recognized as a national leader in organizational change, by developing various policies, including “Before Deadline”, the “Ethics Charter”, “Service Quality” and, later on, the “Client-Partner” policy, to ensure compliance with the three company values: Compliance, Seriousness and Quality.

The company successfully participated in the Peruvian privatization process, becoming the Peruvian partner of Telefónica, Edegel and Repsol. The Graña y Montero S.A. Holding was created by the end of 1996 to ensure the organization’s healthy growth and to leverage the existing synergy to work on increasingly more complex projects.

Major Projects:

1993 – Ventanilla Thermal Power Plant
1994 – Four Seasons Hotel in Mexico
1995 – Chinecas Service
– Oro Verde Swiss Hotel
– Sulphuric Acid Plant Stages I and II – Southern Ilo
– Chinecas Main Irrigation Canal in Chimbote
– Embassy of the United States
1996 – Milpo Mine Shaft Sinking
– Pierina Mine Project
– Chavimochic Project
– Cuajone Mine
– Sedapal

1997 – 2003 Graña y Montero in the Lima Stock Exchange

The following year, Corporación Graña y Montero received two acknowledgments: firstly, the Puente de Alcántara National Award for completion of the Chavimochic Hydroelectric Power Project, and secondly, the Business Creativity Award for the Larcomar Project started in July 1997, under our “Before Deadline” policy. In addition, on August 26, the company became a public corporation trading its stock in the Lima Stock Exchange.

In 1999, the Centro Corporativo de Aprendizaje (CCA) was created as a corporate-level knowledge management center, driving maximum leveraging of the information resulting from our experience gathered in the course of our history and as a focal point from which to transmit knowledge and learning for our professionals.

Major Projects:

1997 – Ilo – Desaguadero Highway
– Ares Mining Company
– Cement Plant Expansion
– Soboce
– Pierina Mine Project
– Yanango Dam
1998 – Cañón del Pato Hydroelectric Power Plant
– Mantaro Socabaya Transmission Line
– Ripley San Isidro
– Brocal Mine
– Larcomar
– Chinecas Project
1999 – Nor Peruano Oil Pipeline
– Messer Steel Plant
– Torata Tunnel
– Ralco Mine in Chile
– Antamina Project
2001 – USAID Building
– Camisea C1
2002 – Leach Pad Stage 5 Yanacocha
– Gas Distribution
– EPC2 Pisco Fractioning Plant 2003 – Torre Real
– TDP Oxygen Plant SIDERPERU
– Project
– Altamira Building

2003 - 2009

2003 – 2009 New Infrastructure Business: Concessions

TNew Infrastructure Business

In accordance with the Specialization Strategic Objective, in 2004, 70% of the company’s business was in the energy and mining industry. In addition, as a result of the Group’s Diversification Strategy, 40% of gross profits were obtained from non-construction related activities.

In the past few years, this strategy has been enhanced by the decision to actively participate in stable capital flow businesses, such as infrastructure, seeking further bottom line stability for the Group. Major contracts have been obtained in this area in the past few years, including:

– Concession of the Fuel Storage and Distribution System of Bolivia, as part of Consorcio Terminales
– Operation of Oil Lots I and V
– Concession of the Ovalo Gutiérrez Parking Lot
– Concession of the Arequipa-Matarani Highway
– NORVIAL Concession of Road System #5, the Ancón-Huacho-Pativilca Highway
– IIRSA Norte Concession
– IIRSA Sur Concession (two sections)

2009 – To the Present...

In the last few years, Graña y Montero has been the first company to participate in the Peruvian infrastructure concession program, with a presence in most contracts, and currently operating more than 3,400 kilometers of highways through its subsidiary, CONCAR S.A.

During 2011, five companies were incorporated to the Group: GSD, specializing in Document Digitizing; CAM, specializing in services for the electric power industry; Stracon GyM for mining services; La Chira S.A. for the La Chira Wastewater Treatment Plant Concession; and Ferrovías GyM for train operation, beginning with the Lima Metro operation.

At present, the Group has 2,992 engineers, it is the only company in the industry to trade in the Lima Stock Exchange, it is the clear leader in the country’s engineering and infrastructure industry, and operates in 6 other countries in Latin America, in addition to Peru.

– Construction of the Westin Lima Hotel & Convention Center
– Construction of the Gran Teatro Nacional
– Pueblo Viejo Mine (Dominican Republic)
– Expansion of the Machu Picchu Hydroelectric Power Plant
– Maintencillo Transmission Line (Chile)
– Punta de Lobos Mine (Chile)
– Talara Gas Plant
– Construction of Section 1 of the Lima Electric Train
– Supervision of the Paradisus Playa del Carmen Hotel (Mexico)
– Project Management of ‘The Reserve’, Paradisus Palma Real Hotel (Dominican Republic)
– Cerro de Águila Hydroelectric Power Plant
– Operation and Maintenance of Line 1 of the Lima Metro
– Pampa Melchorita Liquefaction Plant
– Bayóvar Phosphate Plant
– San Cristóbal Concentrating Plant (Bolivia)
– Malvinas Gas Plant - Camisea