Ladies & Gentlemen
It is both a pleasure and a privilege to welcome you to the 61st Annual General meeting of our company.

As I had observed in my address to you last year, India was poised to take pole position globally as the India story continued to unfold. Since then significant changes have taken place in the global macro-economic scenario. Even though India continues to remain a fast growing emerging economy, inflation at a historic high nearing 12% poses a major challenge. Along with this, the outflow of FII funds has unsettled the stock market, taking valuations down to levels unthinkable six months ago. The current political situation also seems to be somewhat stable, after undergoing some turmoil in the last few weeks.

There are exciting opportunities which can underpin our growth. We need to emphasize that Exide’s market share in the infrastructural segment, is growing apace and the company continues to command a large share in the automotive battery market.

It is evident that India is in the throes of a retail revolution. This, we feel, will open up significant opportunities in the unexplored smaller towns and urban agglomerations where demand for small cars is emerging. As in the developed countries, over a period of time, automotive batteries will probably be sold from the rapidly expanding malls, which are coming up all over the country. India has every opportunity to emerge as the hub for manufacture of small cars.

Critics would caution some slowdown in the kind of volume growth witnessed over the last three years, due to the soaring oil prices. However, your company has recognized this possible slow-down in the economy and has put together a strategy to continue to grow at a rate higher than the industry average. The unveiling of Tata Motors Nano car was an event accorded a high degree of visibility to India in the global arena. It is a matter of satisfaction that at least 50% of all Nano cars will carry your company’s batteries. Additionally, your company continues to ensure that most new offerings from Honda, Maruti, Hyundai, Toyota, General Motors and Mahindra have Exide batteries powering them.

The new Traction factory at Haldia, commenced production in March 08. This will undoubtedly give a fillip to the export initiatives of your company, which already crossed the Rs 100 crore mark in the last financial year.

As you would have observed, Caldyne Automatics a 100% subsidiary company of Exide, has shown phenomenal growth during the past year. We hope to be able to sustain this growth over the years. While battery chargers will continue to remain the mainstay for Caldyne. Caldyne will make new forays in the areas of power electronics and Renewable Energy.

In November 2007, your company acquired a 100% shareholding in Tandon Metals Limited. This is a Lead smelting unit where secondary Lead and Lead alloys are obtained for use after recycling in Exide’s plants. Exide has undertaken an expansion of capacity and upgradation of technology at this unit, in order to obtain efficient and cost effective products, which would to some extent insulate your Company from the volatile price fluctuations of lead in the international market.

In mid-June 2008, your company acquired a 51% shareholding in yet another Lead smelter located near Bangalore – Leadage Alloys India Limited. This acquisition gives Exide the necessary strength to be able to reduce our dependence on imported Lead and Lead alloys in the years to come. Additionally, all scrap batteries which would be collected by Exide, would be sent to these two smelters, for securing the recycled Lead.

I am pleased to announce that at the meeting of the Board of Directors held last evening, the quarterly results for the period ended 30th June,
2008, were approved and the highlights are:-

Gross Sales at Rs 1135 crores reflects a YOY growth of 34%.
Profit before tax at Rs 125 crores reflects a rise of 17%.
Profit after tax also reflects a growth of 17%.

The profit growth for the Quarter was affected by the depreciation of the Rupee vis-à-vis all major currencies.

Your company continued its focus on the two wheeler industry, even though growth rates have substantially gone down in this segment. The demand for passenger vehicles, also has been far less buoyant as compared to the earlier year. However, there is growth in most of the market segments catered by your Company albeit at a slower rate. Further for your company, the Telecom and Power sectors, where industrial batteries are consumed, remains a story of strong and sustained growth.

Submarine batteries continue to engage the attention of your company. During the current year, the submarine battery supplied by your company to the Admiralty Yard in Russia, will represent the first Indian high tech battery, fitted in a Russian submarine, being delivered to a third country. It is expected that, more such opportunities will recur in the future.

At no point of time, has technology been as important as it is today. We have upgraded our Research & Development facilities by building an additional block to undertake research for further enhancing the capability of Lead Acid Storage batteries. As the automotive industry moves onto hybrid cars, which are far more environmentally sensitive, there will be need for a new product mix. This is one of key focus areas for the R&D Centre of your company.

As climate change continues to give leaders sleepless nights, around the globe, we at Exide, recognize our obligation to society to supply more environmentally friendly products, in order to help curb the phenomena of global warming and become carbon positive. Certain actions have been initiated in this direction.

I am extremely grateful to my colleagues on Board and the extended Exide family for all the support during these challenging times. I will continue to draw upon your support and goodwill as further challenges emerge in the business environment around us and together we are determined to become a more efficient and quality-oriented organization.

Thank you

Rajesh Kapadia
Chairman Exide Industries