At JSW, change is the only constant, accelerating the value- creation
 momentum.
 
 Sajjan Jindal,
 
 Vice Chairman and Managing Director, JSW Steel, highlights the JSW
 strategy
 
 A new chapter was written in the history of Indian Steel Industry when
 your company acquired 45.53% majority stake in Ispat Industries.  The
 new entity that has a capacity of 3.3 mtpa and is scalable to 5 mtpa
 with relatively less investment.
 
 Dear Shareholders,
 
 The year 2010-11 marks an important milestone in JSWs journey. The year
 2010-11 was fully packed with events like acguisition of Coking coal
 assets in USA, Technological Collaboration Agreement with eguity
 participation by Japanese Steelmaker JFE and the acguisition of Ispat
 Industries.
 
 Strategic Collaboration with JFE - The Game Changer
 
 JSW recognizes that the company needs to grow faster than peers in
 skill, expertise and technology. In orderto shorten the learning curve
 JSW entered into Strategic collaboration with JFE Steel corporation,
 from Japan to produce high-end value added steel products for
 Automotive and construction Industry, energy reduction technology and
 environmental technology.
 
 This collaboration entails execution of several definitive agreements
 which are consistent with your companys long term vision forfuture
 growth. The collaboration between JSW and JFE involves following:
 
 - A general technology assistance agreement, which encompasses all
 facets of steel making and processing from
 
 raw material handling to rolling mills including energy control and
 savings.
 
 - A technical assistance agreement encompassing our newly announced
 cold rolling mill (CRM 2).
 
 - A foreign collaboration agreement focusing on the manufacture of
 high- end auto-grade steel presently being imported into India.
 
 The definitive agreement with JFE represents a game-changing milestone
 in JSWs journey to emerge as one of the best global steel manufacturing
 company.
 
 The Company also entered into a subscription agreement with JFE
 following which they invested Rs. 4,947 crores in the eguity of the
 Company, holding 14.78% of Eguity Share Capital and Rs. 463 crores
 towards Global Depository Receipts.
 
 Backward Integration - Strengthening Sustainability
 
 There is a global debate on the importance of increasing downstream
 production capacities or acquiring natural resources.  JSW continues to
 focus on both: the creation of additional capacities on the one hand
 and investing in enhancing resource linkages.
 
 US Coking coal Mines: We acquired coking coal mines in West Virginia,
 USA. The acquisition covers seven blocks. We expect to commence
 production in 2011-12 and ramped up to 3 million tonnes in 3 years.
 
 Chile Iron ore: Our iron ore mines in Chile are ready to supply output
 to international customers. The Bella Vista project is expected to ship
 1 million tonne perannum.  We have planned to enhance mining in Chile
 to 3 mtpa over three years.
 
 Changing the dynamics of the Indian Steel Industry - Ispat Acquisition
 
 A new chapter was written in the history of Indian Steel Industry when
 yourcompany acquired 45.53% majority stake in Ispat Industries. The new
 entity that has a capacity of 3.3 mtpa and is scalable to 5 mtpa with
 relatively less investment.
 
 The geographical location of the plant in the west coast of India along
 with a captive jetty has huge strategic advantages due to proximity to
 growing western India market and raw material access. With our leading
 presence in south India we realized that we can develop healthy
 synergies with ispat Industries.
 
 Ispat is a company with strong technical fundamentals and cutting edge
 technology.  The Thin Slab casting facility and the compact strip mill
 give its product a cutting egde in the competitive market.
 
 JSW will complement these realities with additional investment in coke
 oven, pelletising plant and power plant, resulting in complete
 integration that will graduate it to a profitable steel company.
 
 Another Step in Forward Integration - JV for Building Structure
 
 In another landmark event forthe steel and construction industries in
 India , JSW Severfield Structures (JSSL) , a 50:50 joint venture
 between JSW Steel and UK based severfield Reeve structures, inaugurated
 its speciality steel plant at Vijaynagar having a capacity of 35000
 tonnes per annum on November 17, 2010. The plant will address the fast
 growing needs of the Indian construction market. The output is
 completely booked for 2011 -12.
 
 JSW also widened its coverage to cutting- edge flooring technology viz
 Composite Metal Decking through another joint venture with Structural
 Metal Decks Limited, UK.  This profiled sheeting is used with in-situ
 concrete and relatively light reinforcement leading to structurally
 effective and economic floor solutions. This pioneering technology will
 reduce concrete volumes by about 30% and overall weight, translating
 into a pioneering solution for high-rise buildings in India.
 
 Growth Strategy- Fine Tuned
 
 As you are aware that we have been pursuing the Strategy of Vertical
 Integration (Forward and Backward integration) and Horizontal expansion
 (Growth in Volumes) for the last few years, we have further fine tuned
 it in the face of new economic realty in the developed world. We have
 moved from the erstwhile approach of manufacturing value-added steel in
 the developed economies to manufacturing them in India.
 
 Priorto the meltdown in 2008-09, special steel demand and realizations
 were robust in developed economies, justifying the acguisitions of
 processing mills in these geographies. However, the prolonged delay in
 post-meltdown recovery has now made these developed economies expensive
 as processing destinations.
 
 On the other hand, India has rebounded from the global crisis with
 speed, largely due to countrys consumption-driven economy. These
 trends are further expected to sustain over the decade due to
 increasing disposable income, income distribution, growing urbanization
 and rising working population.
 
 In view of the above, the company closed its UK service centre
 facility, relocated the production assets to the companys service
 centre in India as part of its overarching strategy to commission more
 service centers proximate to steel consuming markets and automotive
 hubs in India.
 
 Horizontal Expansion
 
 West Bengal Project: We have commenced work on our proposed West Bengal
 project for the first phase for 3.0 million tonnes steel plant and 300
 MW captive power plant.  We expect to complete the first phase in three
 years. The work on the boundary wall is on the verge of completion and
 soon we will begin the construction of the plant in the next financial
 year.
 
 Capacity expansion up to 12 million tonnes at Vijaynagar works: The
 Company has made assessment of the existing facilities at vijayanagar
 works and based on findings, we have decided to increase the capacity
 by additional 2 mtpa.
 
 Investment in Technology - Towards Lowest Cost Steel producer
 
 We are in the process of implementing a strategy to achieve significant
 cost reduction by investing in new technologies.  We commissioned
 beneficiation plant at Vijayanagar works to utilize the low grade iron
 ore fines. We also commissioned our new sinter plant to enhance the
 sinter % in the feed which will further increase the productivity of
 our blast furnaces and reduce the fuel consumption. In orderto further
 increase the energy efficiency of steel plant we are implementing
 various project like coke dry guenching, Coal briguetting, waste heat
 recovery boilers, 100% waste utilization, micro peptization etc.
 
 Speed and stability - hand in hand
 
 I take the opportunity to mention that while we move ahead with
 unprecedented speed, the Company is very stable. We deleveraged our
 Balance sheet with additional infusion of eguity and pre-payment of
 debt. We are financially strong, healthy and stable to pursue our
 growth plans.
 
 With the world getting increasingly dynamic turbulence will be the
 order of the day; volatility will only increase. But I would like to
 assure shareholders that as a policy, we undertake projects where we
 continue to be among the lowest cost steel producers in the world.
 
 Your company is committed to improving the quality of life of all
 stakeholders through continuous and purposeful engagement in economic
 progress, social responsibility an environmental concern.
 
 Our Gratitude
 
 I would like to convey my sincere gratitude and appreciation to our
 shareholders, debenture holders, Customers, Business partners, Vendors,
 both International and domestic, Bankers, Financial Institutions and
 all other stake holders for their consistent support and trust.
 
 A compulsive dreamer, I continue to scan the horizon with optimism and
 conviction.  The second fastest growing economy in the world will take
 its rightful place as an economic superpower. This will create huge
 opportunities for growth over the next decade. I would like to assure
 shareholders your company will play an important role in this India
 growth story and we will continue to invest in projects, products and
 markets that reinforce our position as one of the lowest cost steel
 producers in the world leading to a projected 40 mtpa capacity by 2020.
 
 Warm regards,
 
 Sajjan Jindal