My dear fellow Stakeholders,
 
 The Textile Industry in India was severely impacted by the global slow
 down and recession during the period under review. However, lately
 internationally there has been a gradual recovery. The demand in export
 markets like USA and Europe are improving. At the retail level too,
 there has been an increase in demand, both domestically and
 internationally and we expect it to continue at an upward pace across
 geographies.
 
 Back home, indication are that the disposable income will continue to
 increase significantly over the next decade. This will provide impetus
 to the textile industry which is on the threshold of higher consumer
 demand and on growth path due to such increased demand. Welspun being
 an integrated Home Textiles supplier for all consumer requirements is
 well poised to take advantage of this situation.
 
 Cotton Scenario
 
 The textile industry went through a tough year struggling with the
 surging and fluctuating prices of raw materials. Since 2010, the prices
 of raw materials, especially cotton, have been surging to an
 uncontrollable level. Steep rise in cotton prices, which is the key
 input for manufacturing textiles, is impacting profitability of
 manufacturers. The Cotlook Index in March 2011 reached a high of
 243.6, which was a rise of 182% as compared to March 2010. Cotton
 accounts for 70% of the total cost of textile as compared to 40-50% a
 year ago. In view of these developments, we are taking steps to drive
 growth through innovative products at competitive prices to our
 customers.
 
 New Dimension
 
 The key opportunity lies in tapping the huge market by leveraging the
 brand and our extensive presence across the globe. Having a distinction
 of being one of the Top 3 Home Textiles Manufacturers in the World, and
 with our products sold across 32 countries; we have added yet another
 feather in our cap by acquiring the assets of KOJO Worldwide - the most
 recognized name in the Hospitality Industry- for soft goods in the US,
 Mexico, Canada and Latin America. Along with KOJO, we are in a position
 within the hospitality industry to provide a Total Soft Goods
 Solution from linens and towels to decorative beddings to window
 treatments of all types.
 
 We will now provide our current and future customers with a single
 manufacturing source which will streamline their design, purchasing and
 ordering needs coupled with a state-of-the- art real time B2B
 purchasing system. The benefits to the customer will also accrue, from
 the innovative hospitality soft goods design capabilities acquired from
 KOJO Worldwide. Together with KOJO we will provide the first-ever
 vertical of total soft goods solution for the hospitality industry, by
 controlling the growing of cotton to product designs, to lab testing,
 to forecasting, to purchasing and delivering, these quality soft goods
 products to the customers'' doorstep through an established global
 logistics network.
 
 Moreover, we also launched the catalogue business in UK which is
 getting good response from the customers. To leverage the proximity of
 scale we recently shifted our bedding facility from Ciudad de Juarez to
 Rosarito in Mexico.  With its proximity to San Diego, the facility is
 geographically closer to the US market, which is one of the largest
 markets for our fashion bedding and basic bedding product categories.
 With this move we will be able to save on transportation costs and will
 be able to delivery our products faster to the end customers in the US.
 Additionally, we will also benefit from the import duty exemption in
 the US under NAFTA (North American Free Trade Agreement).
 
 Product Development and Innovation
 
 We believe that product development and innovation are the two key
 areas to create a sustainable competitive advantage. With the cotton
 prices sky rocketing alternate fibers and blends are being looked at as
 an option to counter the extreme proportions that cotton prices have
 attained. Being the pioneers in textile industry, extra emphasis is
 given on product innovation and technological excellence. Using inputs
 from consumer research and through tracking the new developments, we
 have added new towel products like nanospun, eco-lite (quick dry),
 cotton bamboo, eucalyptus and texture towels to our product base.
 
 On the Bed Linen front, we have added products like Ever Smooth MXL
 Wrinkle Free, Quick Dry Sheets, Flexifit Sheets and the Perfect Sheet
 incorporating all the qualities mentioned earlier. Altogether, we have
 one registered product patent and seven trademarks under our name.
 
 Corporate Social Responsibility
 
 With our commitments firmly rooted into Corporate Sustainability and
 Social Responsibility, we as an organisation, constantly commit
 ourselves towards the betterment of the society where we resides in.
 
 It was yet another golden moment for Welspun when we were honoured for
 India Shining CSR Award – Outstanding CSR in Textile Sector at the
 CSR Thought Leadership Conclave hosted by Wockhardt – a pharmaceutical
 giant. The award ceremony was graced by many notable personalities such
 as Noble Peace Laureate - His Holiness Dalai Lama, Noble Peace Laureate
 - Prof. Muhammad Yunus and Cabinet Minister for Minority Affairs and
 Water Resources, Government of India, Dr. Salman Khurshid. This award
 is a testimony to the good work that we as a company are trying to do
 for the community and I hope that we continue with this noble cause.
 
 In conclusion, I would like to heartily thank our investors, the Board,
 the management, our dedicated employees and the community at large for
 their consistent support and commitment to Welspun; as well as our
 esteemed customers for their confidence on us.
 
 
 B. K. Goenka 
 Executive Chairman