Dear Shareholder,
 
 Five years ago, in my annual letter to you I first informed you of your
 companys strategic plan to reach a turnover of $ 2 billion by the year
 2010-11. Many in the industry looked doubtfully at a company that was
 then less than $ 500 million. However you, our shareholders, once again
 reposed in us your full faith and trust, and it is a matter of great
 delight for me to report to you that yet again the team at Apollo has
 lived up to your confidence. Targets are set, and targets are achieved.
 However, what is often critical is the manner in which a goal is
 attained. My confidence in the future stems more from the work that has
 gone into putting systems and processes in place for the coming years,
 than the achievement which is already behind us.
 
 Whatnext for Apollo Tyres?
 
 We exist in an industry, and indeed a world, that is going through a
 period of ever-escalating change. Whether in our markets, or in our raw
 materials or indeed in our people and processes, we have to keep
 pushing the envelopetoensure thatweremainaheadofthe game. Our
 imperative is to bemastersofour fate, and the only way to do that
 is to be flexible, alert,scaledupand yet agile.
 
 For your Company, at all points in time, the mantra has been to deliver
 maximum value to each of our stakeholders.We believe that realising our
 own potential - as an institution, as employees, as guardians of your
 trust - is what allows us to deliver value year on year. This means
 that as we reach a milestone, it is time again to begin a journey in
 pursuit of the next – this time one that stretches and challenges us
 even more than before, and one that seems more audacious than the last.
 Your Companys aim is to be ranked among the Top 10 tyre manufacturers
 in the world! We believe, realising our potential, is no different from
 dreaming dreams and then working hard to make them a reality.
 
 In these past few years, your Company has made certain significant and
 large scale investments towards the future. These relate to building a
 series of world class infrastructure of plants and machinery across
 India, South Africa and Netherlands, to be able to produce efficiently
 to satisfy rising market demands, including a state-of-the-art plant in
 Chennai. Significant investments are planned in research and
 development, which will move your Company to a more sustainable future,
 with the use of green materials, and increased fuel efficiency from
 our tyres. Most importantly, we will continue investing in our people,
 empowering and enabling them to make all this possible, while adhering
 to the highest standards of transparency and governance.
 
 In short, we continue to create a foundation for future growth, which
 your Company will now use as a springboard to realise its true
 potential. Our plans going forward continue to remainas ambitious 
 a sever.
 
 Expansion across geographies: A widening of our product range and
 providing best-in-class services continue to remain focus areas. Even
 as we plan the path ahead to becoming one of the Top 10 tyre
 manufacturers in the world, the challenges of operating in a global
 world are a reality like never before.
 
 For the tyre industry as a whole, it has become increasing difficult to
 secure profits – the much-needed resources to fuel future growth. The
 challenges before your Company and the industry are multiple. Uneven
 levels of growth, and the inability of some economies to recover fully
 from the slowdown, might be dampeners, but definitely are not
 deterrents for your Company. These are global realities.  What works to
 mitigate this is a team that is in place, capable of strategic
 planning, continued innovation and quick implementation to work around
 todays global issues.
 
 However, one critical area continues to plague our industry –
 unmitigated rise in the price of our raw materials. As you well know,
 this year, we have witnessed unprecedented naturalrubber prices which
 shownosigns of softening. Moreover, the gap between the demand for
 natural rubber across the world, and its supply, is also increasing
 every day. I assure you, your Company is workingon this issue, on all
 fronts toaddress it effectively.  Our research teams are working to
 find ways and means to decrease this unconditional dependence on
 natural rubber to whatever extent possible. Simultaneously, your
 Company is working to decisively enter the area of rubber plantations
 to secure for ourselves a captive source of natural rubber. We have
 made a small beginning, which we are now looking to grow to its 
 complete potential.
 
 As I look ahead, I am confident and optimistic about the direction
 being taken by your Company. We believe that realising our potential is
 not a one time job. The horizon expands every day. Your Company will go
 the distance to bring to you its real potential in all that it does,
 year on year.
 
 I would like to thank you for being an active partner throughout our
 journey so far,and seek your supportinthe growth years that area head 
 of us.
 
 With all good wishes to you and your families.
 
 ONKAR S KANWAR 
 
 Chairman & Managing Director