Dear Shareholder,
 
 The global economy has withstood the recession though its recovery has
 been rather sluggish. World growth decelerated to nearly 3.8% during
 the second half of 2010 from 5.3% during the first half. The IMF
 forecasts a 4.3% global growth in 2011.  The US economy grew at 3% last
 year.  Growth in the Euro zone was muted at around 2%. In sharp
 contrast emerging economies have grown briskly - in excess of 7%. China
 and India are the clear standouts, peaking at over 10% and 9% growth
 respectively.
 
 With the global economic growth slowing, growth levels in India are
 likely to be impacted. Nevertheless, as we know, the fundamentals of
 the Indian economy remain strong. Over the past few years India''s track
 record has been impressive.  The country recorded almost twice the
 global growth rate. Whilst the country does face roadblocks in the
 short term, the medium to long term growth prospects for India are
 bright. These have a bearing on your Company''s growth and performance.
 
 Your Company has truly excelled. Its consolidated revenue at US $ 15.85
 billion, has been the highest ever. This is a growth of 24%. Its
 adjusted EBITDA stands at US $ 1.93 billion (Rs.8,724 crores). Its
 performance reflects four inherent strengths. First, its low cost
 business model. Second, its operational excellence.
 
 Third, its superior product mix. And fourth, a balanced and de-risked
 portfolio.
 
 Your Company''s Copper production, both in India and Australia, has been
 impressive. One sees a marked improvement in operational efficiencies.
 Your Company''s Copper Smelter in India and Nifty mines in Australia
 have recorded the highest copper production.
 
 Novelis achieved outstanding results as well. A net income of US $ 116
 million, an EBIDTA of .1 billion and a solid free cash flow of US $
 310 million. They reflect a number of ongoing initiatives, geared to
 strengthen the business. Among these are: optimizing the Company''s
 footprint; reducing its cost base by closing underperforming and
 non-core plants, investing in recycling initiatives. Furthermore, the
 expansion of the Company''s Pinda mill in Brazil and global
 debottlenecking projects designed to increase capacity, have been
 growth propellers.
 
 Your Company has embarked on an aspirational growth path. Several
 projects are on the ground. I will touch upon a few, as in the
 Management Discussion and Analysis (MDA), these have been dealt in
 great depth.  The Hirakud Flat Rolled Products project is underway.  As
 perhaps you may be aware, the FRP production from the Novelis Plant at
 Rogerstone in UK is being moved to India. The project will be completed
 by end 2011. It will give your Company an edge in the local and export
 markets.
 
 All of your Company''s Greenfield projects are on course. Of these
 projects, two aluminum smelters and one large alumina refinery viz.
 Mahan Aluminium, Aditya Aluminium and Utkal Alumina are in advance
 stage of execution with a capital outlay of US $ 5 billion. Let me
 reiterate that when these projects, along with those which are
 currently on the drawing board, are commissioned, your Company would be
 a 1.7 million ton aluminum company with a 6 million ton alumina
 refining capacity. There is great going for Hindalco in the coming
 years.
 
 Outlook
 
 I believe, your Company is well poised to emerge as Global Metal
 Business'' comprising India Centric Upstream business and Global Value
 Added Downstream business. As I mentioned earlier, your Company has
 embarked on an ambitious growth path with an announced investment plan
 of over US $ 6.5 billion in India and globally in the next three years.
 In my view, your Company is all set for a quantum growth leap.
 
 To our teams
 
 I would like to say a big thank you to all of our teams for their
 consistent high performance. I take great pride in the performance of
 our people.
 
 The Aditya Birla Group in perspective
 
 Today, we are a multi ethnic, multi dimensional Group with a bench
 strength of 133,000 passionate and committed people, belonging to 42
 nationalities across 6 continents. For the year 2010-11, our
 consolidated revenues stand at US $ 35 billion, compared to US $ 29
 billion in the preceding year, recording a 22% growth. Our leadership,
 regardless of levels, has a penchant for collaborative and innovative
 solutions, for new ways of working that keep our Companies and our
 products on our clients and customers radar all the time. This is what
 drives our performance.
 
 I believe that purposive actions in the people area can be huge
 differentiators to our growth plans. For us, it is very important to
 know what our people think of us. So we recourse to a biannual
 Organizational Health Survey (OHS) conducted by Gallup as the barometer
 of the engagement at work index in our Group. Over 28,000 executives
 spanning 31 countries participated in OHS 7 (2010). The participation
 level at 97%, in Gallup''s opinion, sets a new benchmark. Given its
 objectivity and rigor of its process, there is immense value in its
 findings.
 
 It is a matter of great satisfaction for me that the key strength of
 the Group, as identified in the OHS, continues to be the great sense of
 pride that our employees experience and express in working for the
 Aditya Birla Group. More importantly, this pride stems from our
 employees'' belief and conviction that we are a good corporate citizen.
 Given the decline in ethics we see in business today, that is a huge
 validation of our insistence on value-based leadership. Pride, in turn
 is a great driver of positive energy and performance.
 
 To capitalize on this positivity and to grow and hone the talent
 resident in the Group, we have launched several initiatives that
 further our Employee Value Proposition – a World of Opportunities. We
 have launched the ''Career Management Services'' – a pioneering effort
 which is an integrated end-to-end career service aimed at all
 employees. This is already afoot in the cement business. Over the
 coming years it will be extended across other businesses in the Group.
 
 On the issue of grooming talent, collectively our Business Directors
 and Business Heads, along with me, have invested over 500 man-hours in
 discussing, reviewing and working through the development plans of each
 of our talent pool members at the Group level. Their development plans
 include engagement with special projects, coaching and mentoring by the
 top leadership team, besides attending cutting-edge functional and
 behavioural programmes globally that open the frontiers of their mind
 and goad them to defy limitations. That 60% of the total leadership
 positions were filled in from our existing talent in 2010- 11 validates
 the talent honing processes which have laid a robust leadership
 pipeline within our Group.
 
 Our commitment to employee learning and development at all levels, is
 unrelenting. In 2010-11, there were 30,000 touch points with our
 learners through multiple formats of learning. More than 25,000
 employees enlisted in e-learning programmes at Gyanodaya, our Institute
 of Management Learning.  This year, at Gyanodaya, 200 colleagues at
 very senior levels attended specially designed programmes. They had the
 opportunity to interact with professors from leading Universities and
 B-Schools. They were a great faculty, drawn from Universities such as
 Stanford, RICE, Michigan and Duke at the global level along with
 professors from the IIMs and ISB (Hyderabad).  Our senior managers also
 derived immense value from training and learning sessions conducted by
 leading consultancies such as The Centre for Creativity Leadership
 (CCL), The Hay Group and The Works Partnership (TWP), among others.
 
 Finally, I am delighted to share with you that our employees have given
 a thumping vote of confidence to our Group as the ''Best Employers'' in
 India and in Asia Pacific. Aditya Birla Group, of which your Company is
 an integral member, has been declared as one of the ''Best Employers'' in
 India in the Aon Hewitt Survey conducted recently. We ranked 2nd from
 among 200 other Indian organizations, who participated in the survey.
 In Asia Pacific, we have been ranked among the top companies as well.
 Soon we hope to attain this stature in the rest of the world too -
 wherever we operate.
 
 Our people are our future. With them and the wind in our sails, we feel
 buoyant about achieving our stretch goal of becoming a 65 billion
 dollar Group by 2015.  Your Company will play a important role in
 reaching this destination.
 
                                                Yours sincerely, 
 
                                           Kumar Mangalam Birla