My dear fellow stakeholders''
 
 At the onset'' I am happy to announce that despite challenging
 macro-economic environment'' our textiles business demonstrated strong
 performance'' further strengthening our position as one of the leading
 players in the home textile segment. Recently we have been ranked 2nd
 among the Home Textile Suppliers (Source: Home Textile Today (HTT) Top
 15 Supplier Giants'' 2nd Jan 2012) in the US. Not only this'' we were
 also rated as the largest supplier of bath towels and second largest
 supplierofTopof Bed productsin US.
 
 Over the last several years'' we have achieved global manufacturing
 scale with integrated facilities and a diversified product portfolio
 making us a one stop shop for Home Textiles. The extensive product mix
 has enabled us to reach out to a larger consumer base. The
 technological superiority along with full fledged Design Studio has
 enabled WIL to deliver a wide range of world class quality products to
 meet rising consumer needs.
 
 With our sheer determination and Dare to Commit motto'' we have been
 able to build an enviable list of clientele like Bed Bath & Beyond''
 Macy''s'' Wal Mart''J C Penney'' Target'' IKEA to name a few. We offer our
 customers the advantages of economies of scale'' thus enabling them to
 offer consistent quality at competitive prices at their stores. Our
 focus on superior performance and product quality at affordable prices
 makes us a leader in innovative product offerings in the market''
 accounting for almost 20% ofWIL''s turnover in FY11'' and approximately
 33% in FY12'' with an overall target to reach 35% in the current year. I
 am happy to mention here in 2011'' we were ranked a 2nd highest (in
 terms of Sales) in the US market with a CAGR of 14.7%'' a healthy growth
 rate at a time when most of the companies have shown negative growth
 numbers.
 
 With our expertise'' global manufacturing'' diversified products and an
 international presence'' we are well poised to carry on this sustainable
 performance. In the current scenario'' the global textile market is on
 an uptrend with opportunities in developing economies. Closer home'' the
 Indian Market is growing in importance as a result of the increasing
 demand for textile products in the country. There is also a favorable
 shift in manufacturing conditions from China to India mainly because of
 surplus cotton'' cheap labour & demographics and lastly favourable
 Government policies in India.
 
 The FY12 has been a transitional year for Welspun''s textile business.
 The most significant step was the consolidation of textile business
 under a single umbrella'' which has re-created a unified stronger
 entity. This simplified structure provides WIL and its stakeholder''s
 better control on all manufacturing and branding activities and
 presents an opportunity for the company to increase its market share
 globally. We have now an increased presence in newer markets like
 Canada'' South Africa'' Kenya'' Australia'' Japan'' China'' Korea and Russia.
 This entry into newer markets has helped us in diversifying the
 geographical risks.  The company also exited all the non-performing
 international manufacturing and marketing entities'' thereby ensuring
 stronger and sustainable business growth and financial performance. The
 closure costs are appearing as one-time losses in the financial
 numbersof FY12.
 
 Additionally'' we have also taken steps to pare down the retail network
 in India by reducing Welhome chain of stores. Going forward'' preference
 will be given to shop-in-shop concept rather than setting up our own
 retail outlets. We are confident that all the above steps will have
 positive impact in the financial performance for FY13.
 
 Further'' seeing the tremendous potential in the Advanced Textiles
 market'' we forayed into this segment starting with the Non- Woven
 category. The company has put up a new plant which has started
 production in October 2012. In a short span of time we are already
 certified with J&J'' Covadian'' Rocklin and Reckitt Benckiser. Some of
 the specialised products that we are currently manufacturing in
 Advanced Textiles are top end baby care wipes'' hygiene wipes''
 filtration cloth and automotive nonwovens. WIL is well placed with high
 end global scale capacity'' skilled workforce'' product knowledge
 expertise and coordinated marketing approach to capitalise on the
 technical textile growth. We are thus'' well placed to strengthen our
 position as a global player.
 
 In FY12'' we also received quite a few accolades from our customers and
 industry bodies. It is a matter of great pride that we won the Golden
 Peacock Eco-lnnovation Award for our Eco Dry Towels. The award is a
 testimony and recognition to our special thrust on CSR and environment.
 We also won six trophies (four gold and two silver) from TEXPROCIL (The
 Cotton Textiles Export Promotional Council of India) thus extending our
 winning streak
 
 Finally'' on behalf of my colleagues on the Board of Management'' I would
 like to personally thank our employees throughout the world for making
 this success possible. It is their dedication and contribution that is
 bringing us closer to ourgoals.
 
 Your Sincerely''
 
 k-L.
 
 B. K. Goenka