We are working on leveraging the benefits of digital technology particularly inmanufacturing supply chain and other key business processes.

While global growth has seen a gradual revival post the economic recession therecovery has been slow and there have been continuing macroeconomic adjustments throughoutFY 2014-15.

The global automobile sector whose fortunes are closely linked with the performance ofthe global economy remained muted having a domino effect on demand in the tyre industry.

The situation in India was mixed with the auto sector showing moderate demandparticularly in commercial and farm segments as well as exports. Sectors like IT pharmaand financial services continued to perform well. The well-laid macro foundations by thenew government together with the latest trends of revival in capital expenditure augurwell for a turnaround in the economy.

At CEAT we continue with our strategic initiatives focussing on market share expansionin profitable segments and creation of a strong brand both locally and globally. We havealso embarked on an expansion in our capacities which should be completed during FY2015-16. Our emphasis has been on building tyres which are not just world-class but alsothe safest on the road and the most environment-friendly. We are also working onleveraging the benefits of digital technology particularly in manufacturing supply chainand other key business processes. The volatility in commodity prices especially rubberremains a challenge.

On the people front CEAT continues its efforts to create an exciting workplaceadopting pioneering practices. CEAT has also embarked on several social initiativesincluding education employability and environment protection.

CEAT’s transformational journey has yielded success leading to visible valuecreation for customers and shareholders alike.

Regards

Harsh Vardhan Goenka

Chairman Non-Executive Director