A globalised world with various uncertainties and rapidly changing
 scenario brought to the Indian economy opportunities and challenges
 simultaneously. The economy is growing, but a number of adverse
 features are apparent and seem to be here to stay such as persistent
 and stubborn inflation, unprecedented higher commodity and all other
 input costs, which are impediments to industrial progress. Though the
 Reserve Bank of India has adopted tighter monetary policies to contain
 or reduce inflation, this has correspondingly resulted in hardening
 interest costs which is another burden that industry has to cope with.
 
 The emphasis on addressing structural concerns such as weak supply
 chain linkages and shortcomings in the marketing of commodities are
 expected to provide long term solutions for sustainable growth of the
 industry in future.
 
 The continued thrust of the Government on improving infrastructure
 (which lags far behind what our country needs and what is available
 even in developing nations) and promoting education at all levels is
 expected to provide a significant impetus to the growth of the cement
 and paper industries, which are two major businesses of the Company.
 
 I would like to extend my gratitude to all our stakeholders including
 customers and the staff members for their unstinted support in shaping
 the performance of the Company.
 
 B. K. Birla
 
 Chairman