Welspun India

Since our last communication, our company received a number of awards
 and recognitions. I wish to start my message to you with these
 achievements. JC Penny, one of the largest retailers in the world
 bestowed us with the Supplier of the Year Award in Quality at a
 glittering ceremony held at New York. This award for Quality further
 endorses the quality parameters of Welspun and reinstates our special
 effort to supply all our products with virtually zero-defect.
 
 In continuation with this award, Dun & Bradstreet (D&B), Worlds largest
 and most recognized corporate information services Company in
 association with ECGC (Export Credit Guarantee Corporation of India)
 awarded us with the Indian Exporter Excellence Award and the
 Emerging exporter of the year Award.  This recognition from D&B
 signifies Welspuns credibility in the international market.
 
 Appreciating Welspuns commitment towards environmental protection,
 waste disposal and effluent treatment, the Times of India, the
 most-read newspaper in India, together with JSW, Indias leading steel
 company bestowed The Earth Care Award to Welspun. This award is the
 icing in cake to the Sustainability Award we bagged last year from
 Wal Mart - Worlds largest retailer.
 
 These awards and recognitions certainly give us a lot of motivation and
 momentum in todays challenging environment which I would like to
 elaborate further.
 
 Today, the global textile industry is at cross-roads where on one hand,
 there is tremendous pressure on all retailers due to acute economic
 slow-down happening in US and parts of Europe. The recent financial
 sub-prime crisis has also led to considerable deflation and some
 retailers are even fighting to remain solvent. At the same time,
 pressure on raw material prices and production are squeezing the
 margins. You all must be aware that the recent boom in the community
 cycle has not left cotton unscathed. Cotton is almost trading at its
 many-year high increasing raw material costs across segments
 significantly. Along with it, the ascending oil prices at its
 all-time-high have affected energy costs dearly. Similarly the recent
 increase in labor costs is also affecting conversion costs making the
 environment much more challenging.
 
 In this scenario, fully integrated companies with special skill-sets
 (be it retailers or vendors) are the only ones who can make a mark.
 Within Welspun, for many years in a row, we have been trying to develop
 a culture of competitiveness, highest end of service, continuous
 innovation, seamless execution, multiple product offerings, and
 investment in people and finally, making sustainability the way of
 life. Let me elaborate concrete efforts being taken in all these
 directions.
 
 On cost competitiveness, Welspun has been increasing its capacities to
 reach the global scale, while becoming as vertically integrated as
 possible. We make sure that our global locations get us closer to our
 customers. Our initiative in Mexico is a strategic step in this
 direction. We have developed special skill-sets for increasing
 efficiency at all stages of production.
 
 On the service front, effective product development, new designs,
 efficient product pricing, product placement and inventory efficiency
 have been the hallmark of Welspuns highest levels of service. This
 clubbed with flawless execution involving on-time availability,
 enviable quality, matchless consistency and faster reaction time / lead
 time is leading to an extremely strong business proposition.
 
 While all the above mentioned points were important for improving our
 performance, the same would not have been achieved without our strong
 reserves of talented work force. Welspun has commissioned Project
 Parivartan (Meaning Change) with HAY Group, Worlds largest
 consultants on human resouce.  Under this project covering all
 employees, redefining the roles and responsibilities and improving
 efficacy and efficiency enabling them to meet all global challenges,
 Welspun is preparing for year 2010.
 
 Last but not the least Welspun has taken sustainability to be a way of
 life. With complete focus on energy efficiency, usage of eco-friendly
 material, effective waste recycling, emphasis on waste reduction the
 Company is eventually putting its best foot forward for preserving our
 eco-system in all possible ways.
 
 Appreciation
 
 Finally, I would like to put on record my sincere appreciation towards
 all my stake-holders be it the Banks, Financial Institutions, Private
 equity partners and each Welspunite for their overwhelming support. My
 friends, lets get together in our journey to make our company a truly
 sustainable and international one.
 
 Yours sincerely,
 
 B. K. Goenka
 Vice Chairman & Managing Director