Sahyadri Industries Ltd

Dear Shareholders,

A NEW GOVERNMENT: NEW HOPES & ASPIRATIONS

In the best traditions of democracy, a new Government was elected this year with a resounding mandate. This is potentially a turning point in history and an opportunity to collectively script a new destiny for our nation. As a company deeply rooted in India's soil, Sahyadri Industries Ltd. (SIL) is committed to realizing the vision of a dynamic, prosperous and self-reliant India. It is your Company's avowed mission to be a global Indian enterprise serving national priorities. This is manifest in your Company’s determination to go beyond the confines of business to create enduring value for the larger Indian society. It is with this strength of conviction in your Company's values and vitality that we once again pledge SIL's fullest support to the new vision for fulfilling our shared goal of a new India of our dreams and the 'We Make in India' concept.

SAHYADRI INDUSTRIES LTD.: PERFORMANCE

As in earlier years, let us first share some of the highlights of your Company's bottom line performance. Amidst a challenging economic context, your Company recorded yet another year of strong performance. Gross Income registered a new high at Rs.43764.96 lakhs, while Net Profit increased by 218% to Rs.711.61 lakhs. The segment net revenue has grown 17.38%.

This year, the building material industry in India witnessed a marked slowdown. Notwithstanding such an adverse operating environment, your Company's export business recorded a robust growth of 152%. Your Company's relentless effort to build world-class Indian brands, backed by cutting-edge Research & Development and innovation, will continue to drive performance in the years ahead.

WE MAKE IN INDIA: BUILDING WORLD-CLASS BRANDS FOR A DEVELOPED INDIA

The Honorable Prime Minister has articulated the Government's resolve to revive Brand India on the strength of 5 Ts - Tradition, Talent, Tourism, Trade and Technology. A successful global brand is a badge of honour for the country it belongs to, and a sustained source of wealth creation. When a country's institutions build world-class brands, they enrich their economies, enabling sustainable growth and higher-income livelihood opportunities.

Indian enterprises truly have the mettle to create world-class brands. Building winning brands is not an easy task. Successful global brands have been steadfast in nourishing their consumer franchise through ongoing innovation and remaining well ahead of the learning curve. Therefore, the challenge of building brands in competition with such established players is no mean task. The countries that have accomplished this seemingly impossible mission have done so through close collaboration between the governments and their companies over the long haul.

Sahyadri Industries Ltd. achieved a new milestone - Export House Status to Sahyadri: SIL has been conferred the status of 'Export House' in its foreign trade wing this year. It is the certificate of recognition given by the Ministry of Commerce & Industry, Govt, of India. The certification, which acknowledges the performers and encourages exports from the country, is based on the track record of the company's exports. The company has achieved this status by accelerating growth in export and creating a unique 'We Make in India' brand.

Sahyadri's vision is to operate as a highly professional and futuristic company and act as an important instrument of export growth and contribute towards growth of the nation.

INNOVATION & SOCIO-ECONOMIC INITIATIVE:

SIL's commitment to socio-economic contribution is manifest in its nationally acknowledged initiatives that create impactful societal value. SIL has created sustainable business models to support livelihoods across the country.

Sahyadri wishes to extend a supporting hand to the Nation & Honorable Prime Minister In their commitment to the Swachh Bharat Abhiyan with it’s Innovation Swachalay.

Swachalay is the ideal green toilet for the Swachh Bharat Abhiyan: These modular toilet blocks can be installed and ready to use in less than 1 hour. A revolutionary initiative that offers a sustainable toilet block, catering to critical needs, addresses sanitation requirements and helps develop the habit of hygiene among the populace at large.

SIL was awarded the prestigious India CSR Community Initiative Awards for its Novel, Green and Innovative Technology Cemply Swachalay toilets by Delhi based India CSR Group. Mr. Matteo Rizzi - Global Expertise & Authority, WASH Household Care, Unilever UK, handed over the award to the MD of Sahyadri Industries Ltd., Mr. Satyen Patel, in New Delhi on Feb 6,2015 at the India Sanitation Summit.

Swachalay is a user-friendly and cost-effective innovation. We have clear vision to keep innovating and implementing these initiatives in focused areas.

Acknowledgement:

Your Company is privileged to be able to pursue a path less traveled to create multiple drivers of growth supported by winning brands and an abiding vision to put country before corporation. It is our collective aspiration that your Company should be a National Champion in the service of the Nation. In this journey, we draw strength from Team SIL and from their dedication and commitment.

As we conclude, may we on behalf of the Board of Directors and the employees of your Company once again thank you, our valued shareholders, for your continued support and encouragement.

Truly yours,