Dear Shareowners,
 
 Greetings!
 
 Congratulations on yet another successful year of growth and
 achievements for your Company.The top-line grew by a remarkable 30% to
 reach Rs 32,459 crore and the market capitalization crossed Rs 58,000
 crore by the end of the year. We a re consistently moving forward
 towards greater heights.
 
 Globally, there is an increasing thrust on developing cleaner energy
 sources and clearly, the spotlight is on natural gas. In Asia itself,
 gas consumption in China and India grew at a galloping rate of 21.8%
 and 21.5% respectively in the year 2010. These two emerging energy
 powerhouses - China and India - are re-defining the Asian gas markets.
 In this scenario, it will be particularly gratifying for you to know
 that your Company has been ranked as Asia''s No. 1 Gas Utility Company
 and globally, No. 2 Gas Utility Company in PlattsTop250 Energy
 Company rankings. It underscores the rise of Asian companies among
 global energy majors and the strong position of your Company in the
 global gas-utility space.
 
 India is slated to become the world''s 3rd largest consumer of energy by
 2025, and growing climate change concerns will play a significant role
 in increasing the demand for clean energy sources like natural gas. In
 order to leverage the opportunities, your Company is taking effective
 steps to consolidate its position in the entire gas value chain.The
 underlying philosophy of your Company is to grow in a manner that is
 sustainable for the economy, stakeholders, community and environment.
 
 The implementation of the projects and initiatives as per the existing
 Strategic Plan, 2007-2012 is moving as envisaged. With the execution of
 on- going cross-country gas pipeline projects, your Company will
 augment its pan-India presence with a total pipeline network of about
 14,500 kms.  The doubling of capacity of gas-based Petrochemical Plant
 at Pata, at an investment of Rs 8,140 crore, is also on fast-track.
 
 Going forward, in order to accelerate your Company''s growth in the next
 decade, Strategy 2020 has been drawn-up by the Board. One of the key
 targets that your Company has set for itself under this strategic plan
 is to reach a turnover of Rs 1 lakh Crore by 2016-17.
 
 The key strategic directions that have emerged for your Company from
 this strategic plan include, strengthening its core business areas in
 natural gas value chain through LNG sourcing, securing equity gas
 through Mergers & Acquisitions, an aggressive push to
 
 Exploration & Production efforts, continued expansion of pipeline
 networks, and increasing capacities in petrochemicals. Besides all of
 this, city gas projects will continue to remain at the heart of our
 initiatives to take clean energy to the common man. Strategy 2020 also
 aims to tap emerging potential in gas-based power, renewable power from
 wind and solar, unconventional energy sources like Shale Gas and Coal
 Gasification. Thrust would also be given to seeding investment in
 emerging technologies like Fuel cells and Hydrogen.This will enable
 your Company to play an important role in developing the share of
 cleaner energy in India''s overall energy mix.
 
 At the organizational level, major emphasis is being given to
 capability building and continuous re- engineering of work processes in
 order to develop robust enterprise architecture and to enhance the
 quality of decision making with reduced cycle-times. Your Company will
 continue to strengthen the knowledge management system in the
 organization through greater emphasis on IT and technology.
 
 Continuing with its value of ''business-beyond-profits'', your Company
 remains committed to the vision of achieving sustainable growth for the
 nation. With increased allocation and well-structured CSR activities,
 your Company continues to make a meaningful difference in the lives of
 many people in the areas of its operations and beyond.
 
 To conclude, your support is a great motivator for Team GAIL and it is
 our constant endeavour to drive your Company ahead in a faster and
 responsible manner. I am confident that your Company will cross many
 new milestones in the years to come by leveraging its strengths and
 tapping in on new opportunities. Your continued trust in the Company
 and our unstinting efforts to excel will continue to take your Company
 onto more rewarding journeys ahead.
 
                                                    (B.C. Tripathi) 
 
                                     Chairman and Managing Director