VESUVIUS INDIA LIMITED ANNUAL REPORT 2011 CHAIRMAN'S REPORT Message from Chairman Dear Shareholders During this year Sales has increased by over Rs 100 crores, Rs 38 crores have been invested in fixed assets and Capital Work-in-Progress and about 15 acres of land is being acquired in Visakhapatnam for setting up the fifth plant of your Company. Improvements in the Mehsana plant and Kolkata plant have increased installed capacity by about 48%. The Kolkata plant expansion for doubling its capacity is nearing completion. Large investments have been made in asset creation for future value addition while continuing to maintain its 'Debt free' status. Share prices had reached an all-time high. Vesuvius India retained its leadership in the Indian refractory industry and continues its aggressive growth path, which, I am confident will provide improved prospects in the coming years. The Vesuvius Group continues to support your Company with latest technical and technological developments and export opportunities and it is with their support that the Kolkata plant expansion and venture with the new plant at Visakhapatnam has been possible. I thank you for your continued support to your Company. With my best wishes to all of you. Dr S K Gupta Chairman