Dear Fellow Stakeholders
 
 It is with a strong sense of satisfaction that I pen this note on the
 financial year gone by, wherein we planned and started working towards
 what we set out to.
 
 We completed the administrative integration of India Foils during FY
 2010-11, the benefits of which started accuring. With this, Ess Dee now
 has pan India presence with two manufacturing hubs located at Daman and
 Kolkata and spokes located at Daman, Vasai, Goa, Sikkim, Baddi,
 Kamarhati and Hoera.
 
 In line with our Hubs and Spokes model strategy, all the facilities are
 located close to the customer base ensuring tailor made offerings,
 lower inventory carrying cost and prompt supplies. The Rolling Capacity
 has been enhanced to 37,000 MTPA enabling us to meet the rising demand
 from end user industries.
 
 It pleases me to inform you that our initiatives have bolstered our
 business model and made it even more robust than before.
 
 We are optimizing the production at Kamarhati plant (West Bengal) and
 recommenced operations at the Hoera plant (West Bengal) which had been
 shut down since 2003. With this, we have taken a giant step towards
 backward integration as Hoera also has its caster plant with an
 installed capacity of 11,000 MTPA wherein it converts aluminium INGOTS
 to aluminium foil sheets, this being the primary raw material for the
 company.
 
 We hope to raise erstwhile IFL''s performance level too to that of Ess
 Dee''s.
 
 Integration to tap the opportunities in the User Industry
 
 In terms of the macroeconomic headwinds, the outlook remained positive
 despite the continued overhang of global uncertainty.
 
 NFor our end user industry too, the outlook remains positive. India''s
 pharmaceutical market size has nearly doubled since 2005. It is
 expected to reach USD 20 billion by 2015, reflecting a compounded
 annvjal growth rate of 11.7 per cent between 2005-2015 and establishes
 India''s presence in the world\ top ten pharmaceutical markets. India is
 already the third-largest market in the world in terms oW>lume and
 Fourteenth in terms of value.
 
 According to an analysis carried out by the Associated Chambers of
 Commerce and Industry of India, the Fast Moving Consumer Goods market
 is expected to witness more than 50% growth in its rural and semi-urban
 segments by 2012. Overall, it is projected to grow at a CAGR of 10% to
 carry forward its market size to over Rs 1,06,300 crore from the
 present level of Rs. 87,900 crore.
 
 Notably, packaging is an integral aspect of the entire supply chain
 management of these companies. Packaging not only protects and
 preserves the product but is also a strong marketing and communication
 tool in today''s competitive scenario. It is interesting to note here
 that while the packaging cost to our end users ranges typically from
 2-7% of the total cost pie chart, it is responsible protection and
 preservation of 100% of its value. Hence, as the end user industries
 grow, the packaging industry is bound to grow.
 
 Innovation, the Cornerstone of Our Organic Growth
 
 Against the backdrop of such favourable headwinds in our user
 industries, our company is perfectly positioned to tap this
 opportunity. Adapting to and innovating around changing needs is our
 core strength.
 
 Over the years, we have developed long term relationships with leading
 pharmaceutical companies by way of registration as an approved vendor
 in the Pharma Dossiers of the customers.  This has primarily been on
 account of our focus on innovation. Our manufacturing facilities are
 certified with some of the most stringent regulatory and quality
 standards in the Industry, which we feel will work as entry barriers,
 secure our numbers and drive future growth.
 
 Within the FMCG space, we have made reasonable headway with the top
 food and other product companies, especially the prophylactics segment.
 
 Number Speak
 
 In term of consolidated group numbers, the income from operations grew
 by 15.7% to Rs.68,068 lacs. This was primarily driven by the widespread
 acceptance of Cold Form Blister and Child- Resistant-blister packaging.
 Other aluminium foil based flexible packaging laminates besides PVC and
 PVdC coated PVC based thermoforming solutions continue to do well. Alu
 Alu, a cold forming laminate for pharmaceutical blister pack
 applications has also gained high acceptance from consumers.
 
 Our Profit before Depreciation, Interest and Tax (PBDIT) stood at Rs.
 17,056 lacs, up by 8.2%. A clearer picture emerges at the Net Level
 where Profit after Tax stood at Rs. 11,801 lacs, reflecting a jump of
 165%. This abnormal rise was due to the Loss after Tax for FY 2008-09
 on account of the merger of India Foils which was absorbed in FY
 2009-10.
 
 Future Impact
 
 During the year, we strengthened our revenue mix, commercialized
 breakthrough new packaging products, undertook backward integration
 initiatives and enhanced capacities. The impact of these initiatives
 will not only provide us greater sustainability but also heighten the
 scalability prospects of our business.
 
 Having positioned ourselves to achieve maximum impact with our
 innovation and integration activities, we plan to increase our rolling
 capacity from 37,000 MTPA in order to meet the rapidly growing
 requirements of our consumer industry.
 
 The Road Ahead
 
 Going forward, we plan to capitalize on the opportunities presented by
 the growth in our end user industries. We are well positioned to reap
 the benefits of integration in terms of enhanced capacities, backward
 integration and an overall de-risked and stronger business model.
 
 Through our focus on Research and Development we will continue to
 remain at the forefront of innovative packaging solutions.
 
 Our Assurance
 
 The Foundation has been laid for a quantum leap in performance levels
 in the coming years. I have no hesitation in crediting much of our
 success to our dedicated employees who have worked tirelessly to build
 a sustainable and scalable business model.
 
 I also take this opportunity to thank all our stakeholders for their
 continued support and assure you that we will leave no stone unturned
 to exceed expectations.
 
 Sudip Dutta
 
 Chairman and Managing Director