Anant Raj Industries

First easy phase over We used the word ‘interesting’ deliberately.
 Making money in infrastructure development and construction sector was
 considered almost a certainty. Such were times. The industry has seen a
 huge boom across the country in the last few years where land prices
 spiralled, demand increased, while the players made merry.  What a time
 it was for the industry. No one complained. As a great believer in the
 economic theory of reversal to the mean, the easy times are over. In
 our language the first phase of the boom time is over. In the first
 phase everyone made money, some more some less, so long as you were
 there.
 
 Second tough begun The second phase has begun. And it wont be as easy.
 Land prices have moved up, rather significantly. Input costs have begun
 to rise and supply is catching up with demand. It is in these tough
 times that infrastructure development and construction companies will
 emerge. And thats where our sweet spot is.  Thats where our focus on
 NCR, our relentless attractiveness-of-location approach, our price
 sensitiveness and our policy only to lease will bring out the Anant Raj
 advantage.
 
 The Anant Raj advantage will get into focus in the next few years as
 the environment gets challenging. The tough will bring out the best in
 us. Expect above- average growth.
 
 We keep growing Thanks to our focus and philosophy not to get
 overwhelmed with the environment momentum, we continue to grow with
 consistency. We have used good times to strengthen our portfolio of
 land bank in NCR, strengthen our balance sheet to get aggressive in
 tough times and create a platform for consistent, long-term wealth for
 our shareholders through powerful performance.
 
 As we speak, we continue to grow. Over the next 5 years, we plan to
 undertake construction of 79.36 million sq.ft.  Everything on time. As
 we only lease, expect strong lease rentals in the coming years. With
 securitization as a possibility and the cash flow from our GDR of USD
 151 million, the balance sheet keeps getting stronger. And this is what
 will get the recognition in times to come.
 
 Recognition and respect As we continue to deliver strong numbers
 without any financial engineering, our advantage will get the desired
 recognition and respect. It will highlight our approach of building a
 great company, not just a good one. Our discipline and approach will
 differentiate us.
 
 Foray into Gujarat For the first time in the history of Anant Raj, we
 are moving into a new geography, Gujarat. We have keenly watched the
 market for a long time and find many similarities to NCR in its earlier
 days.  Gujarat has a great environment for industrial growth and
 political will is very strong to make a difference. As more money and
 industrialisation flows into Gujarat, the infrastructure development
 and construction industry is bound to have a positive impact.
 
 We are leveraging our experience of understanding the location and
 price to develop projects in Gujarat. We are executing a project under
 the GIFT Scheme in Ahmedabad. We have also been allotted 25 acres for a
 tile manufacturing plant at Jhagadia Estate Gujarat by the Gujarat
 State Industrial Development Authority.
 
 We are excited about Gujarat, but we will learn and grow.
 
 Other developments Among other significant developments, we received an
 approval from the Government for development of an IT Special Economic
 Zone (SEZ) of 25 acres at Rai, Haryana. Besides, 25 acres of land was
 also allotted for an IT Park at Greater Noida (U.P.) by the Greater
 Noida Development Authority. The estimated size of the project is 3.6
 million sq.ft. at a cost of Rs. 500 crores.
 
 Interesting times
 
 To conclude we are happy that the secon phase has begun and it is
 indeed going to be interesting. We feel confident about our philosophy
 and feel thats how we want to create value for our stakeholder.
 Consistency and longer term approach. To gradually build a business on
 strong foundation and trust. To ensure we do not get swayed with times
 and environment, but remain focused on our core. These interesting
 times will bring out the best.
 
 We thank every member and stakeholder of Anant Raj for their continued
 support and look forward to the same, as always.
 
                                             With every good wish, 
                                                  Yours Sincerely,
 
                                  Ashok Sarin           Anil Sarin
                                     Chairman    Managing Director