Dear Shareholders

The Indian economy which is now the 6th largest and fastest growing economy in theworld is being universally recognized as a bright spot of the global economy. The lastfew years have witnessed a wave of next generation structural reforms setting the stagefor high growth in future years. RBI's efforts on increasing overall demand by reducingthe cost of lending is continuing. It is expected that in the coming years the growth ofthe Indian economy will further accelerate on account of the overall increase in demandand investment in infrastructure and industry.

The profits of the Company have grown remarkably during 2018-19 on the back ofcontinued better performance of the Pulp and Paper Division and reduction in interestcosts. Various initiatives have been undertaken by our Company for cost optimization andincreasing efficiency. The recent business restructuring exercise undertaken by theCompany is almost complete with the process of the scheme of demerger of the cementbusiness expected to be closed in the first quarter of 2019-20. With the outlook on thetextile business being neutral and that of paper being positive the overall performanceof the Company is expected to improve in the coming years for these businesses puttogether. The Company will now be focusing all its resources in growing its Real Estatebusiness rapidly.

I extend my sincere thanks to all our stakeholders including lending banksshareholders customers and our loyal hardworking and committed employees for theirunstinted support in shaping and improving the performance of the Company.

B. K. Birla

Chairman