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Chairman's Message

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Dear Shareholders,

Another eventful year has passed by and I am happy to share my thoughts on the Company’s performance and prospects through this annual letter.

I truly believe that a Company’s long term success is attributable towards its focused vision and executing by staying true to its core values. AIS is an apt example of the above. Through some of the most difficult years in the recent past, AIS stayed focused on its vision of “See More” and executed through its core values i.e. its guiding principles in the best interest of its customers and other stakeholders.This has resulted in keeping AIS’s momentum accelerating with every passing day and helped it tide over several difficulties.AIS's readiness for the future with equal zest and enthusiasm defines its accelerated momentum.

Macro environment always has a key role in a company’s performance.Volatilities,complexities and uncertainties in the macro environment has become the new order of today’s times.Everything is now interconnected and sensitive leading to difficulties in predicting the macro environment.Last year,the global economy was influenced by several political and economic events.The decelerating growth of China kept everyone guessing of the future.Developments in the US relating to interest rates, dollar movement across currencies and of course, election of the US President had varied effects on global economy and business sentiments. Escalation of tensions in the Middle East and Brexit also added to regional uncertainties affecting capital flows and demand patterns across developing countries like India. Growth in the emerging economies maintained a muted momentum.

Amidst subdued global backdrop, India continued its robust performance driven by domestic demand.There has been a positive momentum across the key growth sectors of the Indian economy combined with moderate inflation, lower oil prices and reduced fiscal deficit. Demonetization did have a temporary slowdown and dent in growth sentiments, but India has managed to sharply recover from that shock. With GST implementation, a complete transparency in the taxation system can be expected leading to a better business environment.

On the back of the positive macro-economic sentiment, your Company reported a healthy performance in FY 2016-17. The net sales increased by 7.5% from `2,207.37 crores to `2372.99 crores, while EBIDTA increased by 11.08% from `397.64 crores to ` 441.71 crores during the year. The Company further reported increase in PAT by 51.05% from ` 86.95 crores to `131.33 crores during the year. The strong performance is an indication of the accelerated turnaround that the Company has been witnessing over the past 3 years.

During the year,AIS continued its value-added proposition to introduce breakthrough innovations across the auto glass and architectural glass business units. The Company further strengthened its technical foundation to develop high performance, energy efficient and highly reliable products with customer requirements as the center stage. Both the main business segments of AIS – Auto and Architectural – witnessed healthy demand and robust growth. AIS’s operations were smooth through the year and we were able to successfully add further brownfield capacities in Auto.

I am glad to report that AIS has recently announced yet another major greenfield expansion for its 5th automotive plant in Gujarat.This greenfield project, with investments of up to Rs.500 crores,is being set up mainly to meet the requirements of Maruti Suzuki in Gujarat.This is really a proud moment for all of us at AIS. Our Gujarat plant shall be a state-of-the-art fully automated plant with latest technologies and ability to produce highly complex automotive glass of global quality standards.

Our Taloja plant refurbishment is already underway and shall be operational by Q3 of FY 2017-18. This plant shall have enhanced capabilities to produce superior quality value added float glass of complex varieties, including raw glass for automotive applications and will add to the Company’s ability to cater to diverse geographical regions as well as exports.

I am glad that the Company’s continuous focus and investments in building a diverse talent pool across all locations,through progressive HR policies, adds to its unique strength. AIS's culture of ownership, empowerment and meritocracy encourages all employees to be bold, creative, specialists in PDCA execution. With expanding operations, AIS remains equally committed to the society through its AIS Integrated Community Development Programme. We are particularly proud to have selflessly contributed so positively in the lives of thousands of people across the vicinity of AIS plants.

Your Company has established a strong track record of value creation over the years. It has earned the trust of its customers over 30 years through impeccable SEQCDDM and ethical business practices. Today, the Company has around 77% market share in the passenger car segment, which is a testimony of its symbiotic relationships and trust with the customers.With the improving macro environment, AIS is more confidently placed to continue to reap the benefits of its focused vision and core values to generate shareholder value.

During the year, Mr.T.Hasuike, Nominee Director of Maruti Suzuki India Limited(MSIL) and Mr.M.Sakakida resigned from the Board and Dr.S.Ishizuka and Mr.E.Shiozaki joined the AIS Board.I am sure their rich experience & expertise will add immense value to our Company.

Your Board remains confident that all the building blocks are in place for the next round of accelerated growth and continued improvement in shareholder returns. On behalf of the Board, I would like to thank all our stakeholders including customers, employees, partners, vendors and shareholders for their continued support over the past twelve months. We look forward to your support in the next phase of our growth.

With best regards,

B. M. labroo

Chairman