Dear Shareholders,
 
 There were challenges galore in 2010-11.
 
 These included slower-than-expected demand growth and pricing pressures
 in the cement business, increase in major input costs in all businesses
 and the extended shutdown of our paper plant owing to water scarcity.
 
 Yet, we not only achieved most of our financial and business targets
 for the year but also proactively invested in enterprise-wide actions
 to expand our capacities, add to our product offerings and improve our
 competitiveness.
 
 We believe that these initiatives will further strengthen our Company
 and enable it to grow rapidly in the years to come.
 
 Sincerely,
 
 C. K. Birla
 
 Chairman