It is my privilege to present to you the 50th Annual Report of SKF
 India. The total income stood at Rs. 20,684 million registering a
 growth of 32% & profit after tax stood at Rs. 1,770 million, an
 increase of 88% over the corresponding period of previous year.
 
 It is my privilege to present to you the 50th Annual Report of SKF
 India. The total income for the year ended 31st December 2010 stood at
 Rs. 20,684 million registering a growth of 32% & profit after tax stood
 at Rs. 1,770 million, an increase of 88% over the corresponding period
 of the previous year.
 
 SKF India was incorporated in the country 50 years ago and the journey
 so far is made possible due to the unflinching support we have received
 from all our stakeholders. On this momentous occasion of the Golden
 Jubilee, I thank all our customers, shareholders, suppliers &
 distributors for the trust and faith reposed in SKF India through these
 evolving years. I also express a deep sense of gratitude to all the
 employees, present and past for their valuable contribution in building
 SKF India.
 
 At the core of our successful journey are our customers. Our commitment
 to offer value-added products and services to our customers supported
 by our power of knowledge engineering has played an important role in
 building the contours of our success.  Let me explain what we mean by
 power of knowledge engineering.  Our teams are trained to study,
 analyse and comprehend the needs of our customers while understanding
 the demands and challenges faced by them. The solutions we offer are
 formulated by drawing upon the rich knowledge bank of SKF Group which
 has over 100 years of rich experience to share. This multi-dimensional
 combination of rich experience, deep understanding of customer
 requirements coupled with our ability to create a unique solution is
 what we call Power of knowledge engineering. This approach has
 enabled us to deliver significant bene its to customers and has
 
 earned us the leadership position in the industry.
 
 The growth and pace of Indias economy along with the positive outlook
 for the automobiles and industrial sector provides our industry a new
 opportunity horizon. Despite the near term challenges faced by the
 Indian economy in terms of higher commodity prices, rising interest
 rate, rising inflation and global political unrest - which could impact
 demand and profitability - the long-term economic growth momentum
 driven by strong internal consumption, favourable demographics and
 expanding infrastructure base is expected to be positive. The expected
 momentum of market growth has spurred the industry to announce
 significant investment plans and the market is beginning to attract new
 players.
 
 We started understanding this dynamics over a year ago and have already
 invested in a completely new plant at Haridwar to address the emerging
 demand. I am happy to share that we commenced commercial production at
 Haridwar in March 2010. This facility will serve the fast growing two
 wheeler market and the expanding after vehicle service market.
 Additionally, we expanded our capacity at Bengaluru unit to serve the
 automotive and industrial segment demands. As we embark on the next
 phase of our journey, our business portfolio of five technology
 platforms, namely Bearings, Seals, Lubrication Systems, Services and
 Mechantronics will significantly strengthen our endeavour to offer
 integrated solutions.
 
 The growth and development of the Indian economy in the past few years
 has helped the country emerge as an important market. For
 
 SKF Group, India has always been important and this commitment was
 further reiterated by the visit of the entire AB SKF board in September
 2010.
 
 The problem of environmental degradation and fast depleting natural
 resources threaten the future of mankind. The challenge of managing
 economic growth in a sustainable way has assumed a newfound
 significance. Our philosophy of SKF Care, comprising of Customer Care,
 Employee Care, Environmental Care and Community Care helps us address
 our growth demands in a sustainable way while enhancing our engagement
 with all our stakeholders.
 
 Energy Efficiency has acquired significance on the agenda of Government
 and Industry alike. As a responsible corporate, at SKF India, we have
 constantly pursued and promoted sustainability in our business
 practises. In our ongoing endeavour to develop products and services
 that increase energy efficiency, we have introduced energy-efficient
 bearings. These bearings can reduce friction loss by 30-50%. It is our
 commitment to use SKFs expertise to create products so efficient that
 over their operating lives they will save more energy than was consumed
 to manufacture them. We remain committed to reducing our existing
 carbon footprints through our `BeyondZero program.
 
 Our CSR initiatives are aimed at making a meaningful difference in the
 lives of our neighbouring community members. I am happy to state that
 our employees continued to voluntarily participate and drive the
 companys CSR initiatives during the year.
 
 After guiding the companys fortune for several years, two senior
 members of our board - Mr. Giuseppe Donato and Mr. Narendra Jhaveri
 have decided to step down from the Board
 
 of the company. On behalf of the Board, I wish to place on record our
 gratitude for the invaluable contribution and guidance received.  At
 the same time, we are joined by Mr. Tore Bertilsson & Mr. Prasad Menon,
 both of whom will bring wealth of industry knowledge and experience. I
 am sure we will benefit immensely from the inputs provided by them.
 
 A key to success is having the right people with the right capabilities
 who know how to win in a competitive marketplace. To match the pace of
 growth and development at SKF India, we will continue to build our
 leadership pipeline from within and will not shy away from importing
 skill sets from outside, should the need arise. I am sure that we will
 continue to receive co-operation, commitment and passion from all
 employees - together we have crossed a significant milestone and we are
 poised to cross many more.
 
 I would like to take this opportunity to thank all of you for your
 support and the trust reposed in me, in my first year of operations
 with SKF India. As our business evolves, sustainable & profitable
 growth will remain a fundamental target and we will pursue it
 aggressively while remaining true to our values. We will balance
 business priorities with our commitment to grow responsibly in harmony
 with the environment and the society at large.
 
 Shishir Joshipura 
 Managing Director