2010-11 was undoubtedly a year of hardship. During the year, we
 reported volume de-growth on account of the Gujjar agitation, which
 resulted in production loss of about 20 days. Besides, wagon
 non-availability too impacted volumes. Consequently, we reported Rs.
 51,712.46 lacs total revenue, compared to Rs. 68,183.82 lacs in
 2009-10, Rs. 7,107.79 lacs EBIDTA against Rs. 21,145.35 lacs in 2009-10
 and Rs. 3824.14 lacs net profit vis-a-vis Rs. 11,881.03 lacs in
 2009-10.
 
 During the year, subject to requisite approvals, we decided to merge
 Mangalam Timber Products Limited with Mangalam Cement Limited in a swap
 ratio of 1:10. Mangalam Timber is engaged in the manufacture and sale
 of medium density fibre boards (MDF); moreover it is the market leader
 in plain and pre-laminated MDF. Mangalam Timber’s DURATUFF MDF is the
 market’s most preferred brand. The merger will facilitate integration
 of activities, along with pooling of efficient resource, reduction of
 overheads and improvement in various other operating parameters. This
 merger will create a larger and stronger entity.
 
 In February 2011, we commissioned our 17.5 MW captive power plant,
 which has been subsequently operationalised in March 2011, taking our
 cumulative captive power base to 35 MW. Our captive power capacity
 would fulfill 100% of our power requirements even after current
 expansion of 1.25 MTPA and the surplus would be available for merchant
 sale.
 
 We also started operation of new wind mills of 7.50 MW in Jaisalmer,
 Rajasthan in addition to the existing capacity of 6.15 MW, taking total
 capacity to 13.65 MW. This will entail significant cost savings in
 power.
 
 We have decided to set up a clinker grinding unit (1.25 MTPA) at
 Aligarh, Uttar Pradesh. The plant is likely to be commissioned during
 the last quarter of 2012-13, taking the total cement capacity to 3.2
 MTPA. We also plan to increase clinker production by 0.5 million tons
 annually at the existing site. This capacity will facilitate proximity
 to key markets in the northern region. However, we have decided to
 defer our 1.75 MTPA brownfield cement plant following cement price
 volatility impacting free cash flow.
 
 We will continue to explore new frontiers of growth through enhanced
 acquisition of knowledge, technologies and integration across each
 aspect of the business. I am sure we will receive your wholehearted
 support in our future endeavours.
 
 K.C. Jain
 Managing Director