Dear Shareholder,
 
 Each year, it gives me great pleasure to share with you the key
 milestones and achievements of Apollo Tyres which, with your continued
 support over the years, has moved from strength to strength. At Apollo,
 we have always strived to ensure that through each activity we
 undertake, we are able to create value for you and deliver products and
 services for our customers which ensure their comfort and safety.
 
 The year gone by was truly special for us. To begin with, Apollo Tyres
 became the first Indian tyre company to cross the annual revenue
 milestone of over Rs 12,000 crores or US$ 2.5 billion in FY12. It has
 been an extremely challenging year, but despite that we have registered
 a 37% growth and added half a billion dollars to the company''s
 top line. It is quite amazing to think, that it took us 28 years to
 reach a revenue figure of US$ 500 million, and today, when we grow by
 an equal amount in one year, we still seek a greater challenge on your
 behalf.
 
 But let me put this in some context. In current times, economies across
 the globe are laboring to overcome low consumer sentiments and issues
 of debt refinancing. Even in a country like India, which is considered
 a high growth economy, this past year the GD Phasat best grown at around
 6.5%; with flat growth in the automotive sector across all vehicle
 types. In fact, April 2012 has recorded the lowest automobile sales in
 10 years in India! In our 2 other large markets, overall economic
 growth has been slow. South Africa continues to recover from the
 aftermath of the global financial crisis; while Europe registers at
 best growth rates of 2%, which is considered good.
 
 Combined with this, was a year where raw material costs were more
 expensive by over 32% compared to the year before; along with a host of
 other factors like our inability to pass on higher input costs to our
 customers, an inverted duty structure, currency fluctuations and
 competition from cheap imports.
 
 However, with Apollo Tyres'' operations in Africa, Europe and India,
 and nearly 118 export destinations, the company is not overly dependent
 on any one market; this has allowed us to focus on other crucial
 factors like research, manufacturing excellence, product performance
 and safety, and enhancing service delivery.
 
 In FY12, Apollo''s focus and hard work on ultra high performing
 passenger vehicle tyres paid off handsomely. This is apparent in the
 fact that sales of Apollo branded tyres has doubled in the most
 
 competitive global market - Europe. In addition, at the Geneva Motor
 Show, easily counted amongst the grandest automotive extravaganzas,
 your company launched Apollo Aspire 4G -- an ultra high performance
 tyre to cater to high end European cars. Simultaneously, for our
 premium passenger car tyre brand Vredestein, more new generation
 passenger tyres were introduced to further cement the brand''s
 position in the lucrative niche space it occupies.
 
 In addition, we are continuing our efforts in expanding and
 consolidating our existing markets. Dubai, an arm of Apollo''s India
 operations, proved to be an ideal hub to cater to the Middle Eastern
 region. The performance of this expansion has been worthy, nearly
 tripling our revenues from the region and poising Apollo for take- off
 in the coming year. The performance of the Dubai office has given us
 the confidence to further expand operations in the South East Asian
 region over the coming year.
 
 However, what gives me most pride to report to you is our increasing
 community and green engagement.  We have undertaken a complete audit of
 all our operations globally and our offices on critical environmental
 factors and have put in place systems to make Apollo a green
 company. Our efforts in general health and HIV-AIDS awareness and
 prevention too, have been strengthened, with currently 21 health care
 centre''s across the country catering to the commercial trucking
 community. For youth and women''s empowerment and skill building for
 self-employment, around all 4 manufacturing units in India, we have
 embarked on Project U - which educates, trains and undertakes
 livelihood creation for the young unemployed.
 
 Last but not the least, Apollo''s leadership team is constantly
 looking at ways to better internal efficiencies and operational
 effectiveness, with a clear focus on product and process quality. When
 one decides to lead in an industry where day-to-day survival is a
 struggle, it is but natural that discovering opportunities in every
 challenge and finding innovative solutions becomes a way of life! I am
 confident that Apollo Tyres will be able to outperform itself once
 again in the coming year.
 
 Wishing you all the very best.
 
 ONKAR S KANWAR 
 
 Chairman & Managing Director