Gujarat Ambuja Exports

 I am pleased to address this communication to you, the esteemed
 shareholder of the company.
 
 I trust this finds you and your family in the best of health and
 spirits.
 
 May I take this opportunity to brief you about the latest developments
 in our company.
 
 You may be already aware that our company is a multi-locational,
 multi-product company focussed in Agro Processing.  It has
 manufacturing plants at Himatnagar (Gujarat), Kadi (Gujarat) and at
 Pithampur (Madhya Pradesh).
 
 The Company has the thrust for exports and in Bulk.
 
 THE COTSPIN PROJECT :
 
 GAEL has set up 100% Export Oriented Unit in Cotton Spinning at
 Himatnagar with the capacity of 55000 spindless for Ring Spinning and
 1080 Rotors for Open end spinning set up in 1994 in record time of less
 than 18 months and with extremely cost-effective Project Outlay of Rs.
 125 crores.
 
 Besides the plant is fully air-conditioned and is supported with a
 housing colony which houses nearly 900 of its employees, nearly the
 whole staff strength.  It also has 2 D.G. sets of 4.5 MW each ensuring
 cheap, uninterrupted & good quality power.  The project of this size in
 present terms would require minimum of three years and a project
 outlay of minimum Rs. 200 crores to just set up.
 
 It has recently imported latest technology Combers and is importing new
 Autoconers to modernise its operations.
 
 The unit is spinning excellent quality yarn which is exported to more
 than 30 countries worldwide.
 
 THE BIO-CHEMICAL PROJECT :
 
 GAEL has set up excellent facilities of manufacturing of Starch, Liquid
 Glucose, Dextrose and other products from crushing of maize with the
 capacity of crushing 200 tons of Maize seed per day.
 
 This is the only project where more than 50% of the product is sold in
 domestic market, unlike the other projects.  The products have built
 their market through excellent quality, Customer relationship and
 widely distributed Market Network.  Starch, Dextrose and other products
 are sought after by even Multi National Companies and reputed
 Pharmaceutical Companies.
 
 The Company is in advanced stage of talks with a European MNC who is
 crushing 3000 Tones of Maize per day as against India's total capacity
 of 2500 T per day and who is producing value added items with values
 upto Rs. 80 per kg against the price of Rs. 5.50 per Kg of the Raw
 Material viz., Maize seed.
 
 The said MNC has expressed willingness to set up JV with our company but
 is insisting on spinning of Bio-Chemical division into separate
 company, where it would invest a sum upto Rs. 30 crores for going into
 all value added items our Company had initially set up this project at
 a total outlay of Rs. 35 crores in the year 1994-95.
 
 THE SOYA PROCESSING PROJECTS :
 
 GAEL has its Soya Processing facilities at Kadi (Gujarat) and Pithampur
 (M.P.) Where it has a combined crushing capacity of 1500 Tons per day,
 which is third largest in India.  The projects are built with most
 modern technology.  The company is in the process of adding facilities
 to manufacture Soya Nuggest and Soya Flour,l which are widely in demand
 in India and abroad.  The two units at Kadi are 100 EOU.
 
 It has received the ISO 9002 recognition for its plant at Kadi, being
 the first Soya Processing Industry in India to receive such
 accredition.  It has recently received the award for being third largest
 manufacturer exporter of Soya Meal for the year 1998-99.
 
 From the company with a Net Worth of Rs. 1 core in 1991, we have
 reached to a net worth of approximately Rs. 200 crores in the year
 2000.  Besides the following is also noteworthy.
 
 (a) All its plants are equipped with imported machineries/latest
 technologies and own Power Generators as also the infrastructure to
 enable the company run its plants for full 365 days in a year.
 
 (b) The outstanding debt in the form of Term Loan from the bank or any
 Financial Institutions as on 31.03.2000 is hardly Rs. 1 crore as
 against Fixed Assets of more than Rs. 230 crores.
 
 (c) The book value of shares is more than Rs. 81/- per share.
 
 YEAR 1999-2000 :
 
 The company has achieved total turnover of R s. 319 crores and Cash
 profit of Rs. 11 crores against all odds as against turnover of Rs. 315
 crores and Cash profit of Rs. 8 crores in the earlier year.
 
 YEAR 2000-2001 AND BEYOND :
 
 The Company is poised to enter excellent phase, where all its projects
 are doing exceedingly well.  The realisation in Cotton Yarn and Soya
 Deoiled cakes are improving as the markets worldwide are improving.
 
 The Company has targeted to achieve a total turnover of Rs. 400 Crores
 in the financial year 2000-2001 and with the increasing Values land
 Controls on costs, the bottom line is sure to improve substantially.
 
 I am also pleased to announce that the Board has recently declared
 interim dividends @ 5% each for the year 1999-2000 and 2000-2001.  The
 dividend warrants shall be posted shortly.
 
 NEW VENTURES :
 
 INFORMATION TECHNOLOGY :
 
 You may have heard recently that the group has entered into Information
 Technology business by promoting Jupiter Infosoft Limited.  JIL has
 built up excellent professional team. JIL has already identified its
 focus area on the Internet Technologies.  It has targeted on development
 of Portals. JIL has also started acquiring requisite infrastructures
 and has launched its first e-commerce site, gugarateshop.com.  In a
 short time in the year 1999-2000 it has achieved business of Software
 Development as well as exports of some ASP modules. It also has a STPI
 registered 100% EOU.
 
 ENTERTAINMENT SECTOR :
 
 The group has promoted a new company at Mumbai to venture in the
 Entertainment business.  It is targeting to set up its own channel in
 English and Hindi to be named as GTN in a very short time.
 
 BIO-TECHNOLOGY SECTOR :
 
 The Company is currently negotiation with a few MNCs having expertise
 on developing genetically modified seeds and one of them will be roped
 in as our strategic partner in short time.
 
 According to recent government concessions extended to the biotech
 sectors, a 10 Year tax holiday and increased weighted deduction ranging
 from 125% to 150% for the expenses incurred is granted.  We have plants
 to invest about Rs. 4 crores in the Genetic Research in the next three
 yeas.
 
 The Company is in negotiation with a foreign company to set up a
 Bio-technology project in Joint Venture in Gujarat.
 
 Thus, the group is on fast track and is targeting substantial growth in
 the times to come. With GAEL's strength in international market through
 its 500 satisfied clients all over the world in around 30 countries,
 these ventures are bound to be a grand success.
 
 I am sure, you would be delighted to see the growth and achievements of
 the company. with kind regards,