Following two years of the global economic downturn, the world seems to
 be regaining economic stability. In the developed world, there are
 definite signs of a recovery. By contrast, in the developing world,
 China, India and other Asian countries are registering strong growth
 with robust domestic markets. The Indian economy grew at 10.4% in the
 calendar year 2010 as reported in IMFs World Economic Outlook.
 Household income has increased significantly resulting in higher
 consumption and demand. Manufacturing and other core sectors registered
 good growth which led to an overall buoyancy in the market.  The
 infrastructure sector however, although performing better than the
 previous year, is yet to achieve its 2007-08 performance level.
 
 The financial period 2010-11 was a year of opportunities particularly
 for the auto industry. This resulted in our Automotive Division
 reporting excellent performance. Against this backdrop, Greaves Cotton
 was able to achieve good growth in both top and bottom lines, reporting
 a Profit after Tax of Rs. 127.28 crores for financial period of nine
 months ended March 31, 2011.  This PAT for the nine month Financial
 Year is higher than the PAT for the 12 month FY 2009-10. The Companys
 Balance Sheet is quite healthy with practically no debt. Our
 relationship with customers remains strong on account of our proven
 products, evolved in-house with contemporary technology and backed by a
 wide sales and service network.
 
 Going forward, there are many challenges before the Government as it
 combats high inflation. RBI has already effected several increases in
 interest rates. Rising crude and other commodity prices are also a
 matter of serious concern which will certainly have an impact on
 corporates profitable business growth. However, overall demand is
 strong, and therefore, I am cautiously optimistic about FY 2012 with
 respect to the potential of growth in markets and the business
 environment as a whole.
 
 Corporate sustainability has become an important agenda for the
 Industry. Your Company also clearly sees a trend of business
 sustainability. Consequently, our emphasis for the future is on
 continued sustainability and capital efficient growth. In order to meet
 the growing demand from the auto sector, we have started the process to
 set up a new manufacturing facility at Shendra, Aurangabad, which will
 be operational in July this year. In addition, the Company also plans
 to invest significantly in building engineering and R&D capabilities
 across all its businesses.
 
 Recognising that our employees are our core strength, we are focusing
 on developing their capabilities. In addition to the ongoing
 programmes, our Human Resources Team has undertaken various development
 initiatives to enhance the skill - sets of high potential employees.
 
 To accelerate the pace of sustainable growth, Greaves Cotton has
 chalked out its strategic moves for the next three years.  I am
 confident that the Management Team with the invaluable guidance of the
 Board will achieve its Goals & Objectives.
 
 
 
 
 
 Warm regards, 
 
 Yours truly,