Ladies and gentlemen,

It gives me great pleasure to welcome you to the 76th Annual General Meeting of your Company.

As we gather today, I am sure you share my sense of satisfaction as your Company has witnessed yet another year of robust performance, thanks to our capability to sustain superior performance over the years and emerge as a competitive player in the industry. The focus on nurturing strategic capability is rapidly positioning each business to garner a growing share of the exciting market opportunities unfolding in India and the world.

Indian economy:

India’s fastest growing economy after China — at around 9.4% — represents an attractive potential for business growth, emerging as an exciting global investment destination. Supported by the liberalized economic policies and robust fiscal initiatives by the government, encouraging private sector investment and foreign capital, the country is all set to transform from a developing to a developed nation. The manufacturing sector remains the principal growth driver and would continue to remain so across the foreseeable future. The Indian corporate sector is well equipped to grab the emerging opportunities, through rapid expansions facilitated by favourable government policies.

Performance review:

Your Company performed commendably in 2006-07.

• Turnover for 2006-07 grew by 32.69% to Rs.1212.80 crores, driven by impressive growth across all business verticals of your Company.

• Pre-tax profit increased by 41.32% to 161.53 crores and post-tax profit grew to Rs.130.58 crores, registering a growth of 41.91%.

• Basic earning per share and diluted earning per share stands at Rs.12.15 and Rs.11.97 respectively.

• Proposed dividend for the year has also surged to 48% (Rs. 0.96 per share) compared to 44% (Rs. 0.88 per share) in the previous year.

The financial strength, resulting from sustained superior performance and the capability of Sintex’s human capital, constitute the foundations to scale even greater heights in the years to come.

Plastic division:

Over the last two decades, plastic consumption grew exponentially across India. During the last decade, the total consumption of plastics grew by approximately 12% per annum. The Indian market potential has motivated entrepreneurs to acquire technical expertise, achieve high quality standards and build capacities across various facets of the booming plastic industry. Phenomenal developments in the plastic sector, coupled with the growing economy, have facilitated the plastic processors to build capacities to service both the domestic and overseas markets. Moreover, joint ventures, foreign investments, easier access to technology from developed countries have opened up new vistas to further facilitate the growth of this industry.

Sintex’s plastic division is attractively placed to capitalize on this growing demand as it addresses the broad-based growth coming out of the infrastructure, housing, health, education, energy and environment industries and the company has even forayed into emerging businesses in line with the national priorities. The Company’s focus remains the innovation of mass utility products across the industrial and household segments. In line with the strategy, your Company has consciously introduced improved variants of its existing products, servicing the requirement of large number of income profiles and requirements. These initiatives helped your company to grow the market and strengthen its recall as a pioneer.

Your Company’s plastic business posted yet another impressive financial performance during the year with segment revenues growing by 32.67% to touch Rs.804.91 crores, driven by the rising demand of the Company’s products; and PBIT stands at Rs.121.11 crores, growing by 53.95% over the previous year.

Robust strategies, backed by strong operational excellence, enabled your Company to exploit the growth opportunities in the plastic industry.

Textile Division:

The textile industry occupies a unique place in our country. Enjoying an age-old tradition, it accounts for 14% of the total industrial production and contributes nearly 30% of the total exports and is the second largest employment generator after agriculture.

Moreover, foreign investment and collaboration in India’s textile and apparel industry has increased significantly in recent years. The increase can be partly attributed to the liberalized foreign direct investment (FDI) policy of the government of India and partly to the fact that domestic demand for textiles and apparel in India is large and buoyant.

The industry expects investment of Rs.1,40,000 crore in this sector in the post-MFA phase (Multi Fibre Agreement). A Vision 2010 for textiles was formulated by the government after intensive interaction with the industry and Export Promotion Councils to capitalise on the upbeat mood in the textiles industry and aims to enhance India's share in world's textile trade from the current 4% to 8% by 2010, achieving export value of US$ 50 billion by 2010. Vision 2010 for textiles envisages growth in the Indian textile economy from the current US $37 billion to $85 billion by 2010; creation of 12 million new jobs in the textile sector; and modernisation and consolidation for creating a globally competitive textile industry.

To take advantage of the favourable economic and industry environment, your Company focuses on niche offerings and enhanced realizations. Your Company’s products are marketed to leading brands like Louis Philippe, Van Heusen, Arrow, Zodiac, Wills life style, Pentaloons etc. in India and Marks & Spencer, Tommy Hilfiger, Gap etc. abroad. The business prospects are protected by long term relationship with these large and growing brands. Moreover, the company has enhanced its footprint across high-end European markets and enjoys access to international designs, thanks to the alliances with various European Design Houses The above factors contributed to the strong financial performance of the textile division during the year both in terms of sales and operating profits. Segment revenue of the textile division grew by 27.53% to Rs.318.02 crores and Segment profit (PBIT) increased by 67.23% to Rs.65.36 crores.

Significant developments

Acquisition of US based Wausaukee Composites Inc.:

I am very pleased to inform you all that your Company has successfully acquired US based Wausaukee Composites Inc. (WCI), located in Wisconsin, USA, in an all cash transaction through US based down stream subsidiary, Sintex Holding US, Inc. on 1st June, 2007. The total enterprise value of Wausaukee is US$ 20.5 million. Your Company has acquired 81% stake in Wausaukee in the first tranche and the balance shall be acquired subsequently.

Wausaukee is a leading manufacturer of highly engineered composite plastic components for OEMs with 50% of its customer base being fortune 500 companies. The Company enjoys a presence across diverse sectors such as medical imaging, mass transportation, electrical components, auto-components and engineering plastics. ‘Composites’ have a large and growing market globally. It offers better strength-to-weight ratio, non-corrosive, weather ability, design flexibility and moulding ability, heat and chemically resistant and also offers electrical insulation properties.
This acquisition will enable Sintex to expand its product portfolio as well as widen and deepen its presence in the fast growing auto-components business both in India and in the US market.

Acquisition at Domestic Front – Zeppelin Mobile Systems India Limited

I am very proud to inform you that your Company has acquired Zeppelin Mobile Systems India Limited, the erstwhile subsidiary of Zeppelin Mobile Systeme GmbH, Germany on 4th May, 2006 at Rs. 390/- per share. Your Company has acquired 74% stake in Zeppelin.

Zeppelin is one of the top two telecom shelter manufacturing companies in India today with a market share of 25%. Zeppelin which manufactures value added & high end BT shelter products gives Sintex a high end niche presence. Zeppelin’s current range extends to products such as Radar Shelters, Green Shelters, Mobile Maintenance Shelters, Mobile Hospitals & ambulances a s well as Refrigerated Vehicles.

The above acquisitions will result projected 19.72% CAGR in revenue over coming four years while 17.18% CAGR in EBITDA over next four years.

Monolithic prefab

During the year, your Company has entered into an agreement with the Government of Gujarat, represented by the Gujarat Urban Development Company (GUDA) for the construction of 50,000 EWS quarters with Monolithic Construction Technology in Ahmedabad, Baroda, Rajkot and Surat for Rs.750 crores. Monolithic Constructions are housing solutions designed by your Company to address mass and low-cost housing needs.

Agreement with UK based design and marketing firm:

An agreement with UK based firm allows Sintex to supply fabrics to 27 high-end brands which include New & Lingwood, Budd, Michael Kors, Henry Jacobsen and Dunhill, among others. Moreover, it will also provide Sintex an access to 9,000 designs per quarter and it will also train our people to work with these fabrics and train marketing staff for promoting several leading brands.

Launch of 3000 plus designs for Spring/ Summer Collection 2008 in Europe:

The Company has launched its spring – summer 2008/9 Dobby and Jacquard collection across Europe during March, 2007. This collection comprises over 3000 designs in the men’s formals, evening wear, and ladies wear range.

Commissioning Gas Based Power Plant:

Your Company has successfully commissioned its gas based power plant in its Kalol manufacturing facility at a total cost of Rs.45 crores which will translate to a saving of Rs.14.4 crores per annuam.

Excellence Award to Sintex and Udyog Rattan Award to Mr. Amit Patel, MD

I am very pleased to inform you that The Institute of Economics Studies, New Delhi has honored Sintex Industries Limited with an “Excellence Award” for excellence in productivity, quality, innovation & management and has conferred Mr. Amit Patel, MD with the “Udyog Rattan award”

Expansion Plans:

Textile Division:

The textile division currently has an annual capacity of 21 million metres and is to be expanded to 24 million metres by FY’08 at a cost of Rs.70 crores in Phase I and the further increase in capacity by 5 million metres, touching 29 million metres by 2008-09 at a cost of Rs.80 crores in Phase II by FY 09.

Plastic Division:

Sintex’s electrical accessory manufacturing operations are presently running at 100% capacity. Your Company has planned to increase the capacity by 12,000 MT by December, 2007 at a cost of Rs. 70 crores, considering its rising demand.

In addition, your Company has also planned to invest Rs.110 crores towards increasing its prefabricated structure capacity.

New projects:

Your Company has planned to foray into high-end women’s wear and started setting up of a new garmenting facility near Kalol, with a capacity of manufacturing 10,000 garments per day, scalable to 15,000 units per day at a cost of Rs.35 crores. It is expected to be commissioned by September 2008.

Your Company has also announced its first quarter result (April-June 2007) for the financial year 2007-08. The turnover of the company increased by 34 % to Rs.299.98 crores compared to Rs. 223.84 crores for the corresponding period in the previous year.

Appreciation

Finally, I believe few organizations can take righteous pride in the quality of competence, passion and commitment that we find in Sintex. We have the organizational will, discipline and people power to achieve our stretched ambition. I am grateful to all the shareholders for their continued trust and support.

I am also thankful to all stakeholders of the Company — employees, bankers, financial institutions, suppliers, customers and social institutions — for their consistent and resolute support which has greatly contributed towards our achieving such robust growth.

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