Ladies and Gentlemen,

On behalf of the Adani Group, I extend a warm welcome to all of you at this Annual Meet. Your Company is now Fourteen Years old and while the journey has been challenging, it has also been equally rewarding in many ways. Over the years, your Company has graduated from a transaction driven trader to a value chain enhancer of a diversified commodities portfolio.

Commodities are our specialty and value chain focused trading, is our approach to seek multiple drivers of growth in the global arena.

Our perfected Global trading model continues to deliver growth and value as we remain dominant players in:-
1) Various Energy products like coal, power trading and petroleum / petrochemical based commodities.
2) A range of Agro products like wheat, sugar, meal, castor, castor oil and pulses.
3) The Metals group comprising of iron ore, ferrous /non-ferrous scrap and precious metals like gold, silver and diamonds.

Increased volumes, need based asset building and launch of new products and initiatives make our global trading model highly competitive and sustainable. The business of bunker supply to ships with integrated blending and barging facilities at Mundra SEZ shall be launched this year. We also see substantial volume enhancement in the Iron Ore exports with our own floating cranes and barges being operational at our Belekeri Port.

Our ship dismantling initiative in U.S.A. has lived upto its potential and we are now pursuing additional sites to consolidate this business with huge upsides and replication possibilities in the Indian context also.

During the year ended 31st March, 2006, your Company recorded a marked improvement in its financial performance. Though the turnover was lower at Rs. 9,339 Crores, the EBIDTA increased by 48% to Rs. 272 Crores from Rs. 184 Crores. The PAT grew by 9% from Rs. 108 Crores to Rs. 118 Crores over the previous years.  With the many initiatives stated below, we see the true unfolding of value for your Company.

One of the agenda item for consideration today is the change of name of your company from 'Adani Exports Limited' to 'Adani Enterprises Limited'.  The reason for this change is to emphasize and aggregate the new and existing businesses under a single value chain to reap the benefits of domain expertise and provide comprehensive solutions to customers.  The new name will clearly convey the message of business diversity and scale of operations, that will bring about a transformational change in the prospects of your Company in the coming years, which I will now elaborate here on -

Power sector shall be our dominant focus area and we intend to be present across its value chain in due course. Let me touch upon the power scenario which prompted us to enter in this sector as a long term player.

The Indian economy has achieved the distinction of being one of the fastest growing economies worldwide, and the country will need such sustained high growth rate over another three decades to fully eradicate poverty. One of the factors which will affect India's ability to sustain high growth rates is availability of quality power at reasonable rates. While we are one of the fastest growing economies, fact remains that 55% of Indians still do not have access to power. Unavailability of power is one of the biggest stumbling blocks in development of the country.

Realizing the above, the Government of India has set a mission of Power for All by 2012. Realizing this dream will require a massive investment of Rs. 900,000 crores in the power sector within another 10 - 12 years. This will include capacity addition in generation to the tune of about 100,000 MW, and Rs. 70,000 crores in the country's high voltage transmission sector. Such a huge investment cannot come in without active private sector participation, and hence the otherwise tightly regulated sector is going across a sea change.

The tightly regulated electricity sector of the country featured unfavorable investment climate, high credit risks, high transmission & distribution losses and huge demand / supply gap. The sector witnessed lowest capacity addition in the 8th and 9th plan periods at just 50%. The new breed of reforms kick started by the enactment of the Electricity Act, 2003 has provided a legal and regulatory framework for all round development of the sector across its value chain - Generation, Transmission, Trading and Distribution.

Your company has been at the forefront in taking benefit of these opportunities and established the power trading division, which has emerged as the largest power trader in the private sector.  The Electricity Rules, National Tariff Policy and Competitive Bidding Guidelines are some of the regulations passed under the new Electricity Act, 2003 which aptly indicate that the business environment in the power sector has changed for the better.

As India's largest private coal  and power trader, coupled with the logistic advantages of Mundra Port and the group's expertise and enviable track record of  implementing mega projects bringing immense competitive advantage and synergistic value addition, it became inevitable for us to enter into power generation. Your Company is setting up a 660 MW coal based thermal power project at Mundra in Kutch district of Gujarat state. It is aimed to increase this capacity to 2000 MW in very near future.

Let me elaborate the power scenario of Gujarat and Western region, which will our key market for power. Peak Load in Gujarat is expected to rise to 13,200 MW in the year 2010 - 11. Comparative figure for Western region is 44,500 MW. Gujarat is expected to face deficit of 3500 MW by 2010 - 11, while deficit in the Western region is expected to be 15,000 MW. India, on an overall basis suffers from peak demand deficit of 12.8 % and energy deficit of 9.3 %. Further, the per capita electricity consumption in India at 606 kWh / year is one of the lowest in the world, and is expected to increase substantially over course of time with economic progress and improvement of standard of living of a large mass of people. In fact, the mission "power for all" envisages making available at least 1000 kWh per capita per year by the year 2012.

I would like to highlight that the project has several unique advantages of and the catalytic value creation which arises from this venture is immense.

• The project is being implemented in Mundra Special Economic Zone, which will bring in substantial savings in the implementation cost.
• The power project is already under implementation with expected commissioning by the third quarter of 2008.

The coal trading unit is entering into coal mining in Indonesia and India and actively pursuing other long term sourcing avenues to meet the large volume coal requirements of this venture and its other customers. Coal mining has thus become a very important thrust area for the company.

Apart from the above, your Company, through a consortium arrangement is also bidding for the 4000 MW Ultra Mega Power project at Mundra. Large investments are planned across the value chain and we see this industry in a vibrant phase in the coming decade.

Your Company has been a pioneer in many agri initiatives and built up a diversified portfolio of products and businesses. All the agri business initiatives of the Group have now been consolidated under your Company and its major new initiatives are:

Fruits and Vegetables (F & V) Business

Globally food is a US$4 trillion industry of which India's share is just US$77 billion, but it has the potential to grow rapidly in the near future as is happening in China. India has some of the most fertile lands in the world and with 15 different agro climatic regions and 10 different kinds of soils, we have the ideal conditions to produce a wide variety of fruits and vegetables, India's share of the global food industry is less than 2%.

It is estimated that over 25% of India's fruit and vegetable production is wasted due to absence of proper post harvest management and lack of storage and logistics facilities. This total loss is estimated to be over Rs. 52000 Crores each year. A large number of middlemen operating at different levels also add cost in the form of margins and wastage. Consequently the difference in the prices of produce between farm gate and end-consumer is very high. The main reason for this state of affairs is the lack of appropriate storage and logistics infrastructure integrated into a modern cold chain.

Your Company through its subsidiary company, Adani Agri Fresh Ltd. has forayed into the Agriculture Fruits & Vegetables Sector with a vision to harness the untapped potential and opportunities available in the horticulture sector in India.

The mission is to be a dominant player in the fruits and vegetables industry by developing world class product storage and handling infrastructure and systems and making available fresh products of high quality and consistency to Indian and International consumers.

The Business Doctrine is summarized below :

Start with one of the highest value addition and volume products (off season farm fresh apple); be the first brand in F&V category and always be the first to bring high quality / convenient F&V products for Indian consumers.

Position as the large ambitious global Company bringing about a sea change in the way F&V products are farmed, handled, processed and brought to consumers.

Build friendly close association with farmers providing information/knowledge, services and networked solutions.

Bring world class volumes, efficiencies, yields and practices in our F&V chain.

The entry strategy for Adani Agri Fresh Ltd into the Cold Supply Chain business would be to start by concentrating on products that are produced far from major consumption centers, are seasonal in nature and are amenable to increase in storage life using CA technology.  This would allow the company to leverage on its logistics strength while at the same time take advantage of CA technology to arbitrage on the difference in price between peak season and off season.

The Controlled Atmosphere storage facilities (CASF) have been set up initially in various locations in Himachal Pradesh and in the next two years extended to other places like Jammu and Kashmir and Uttaranchal. Other procurement locations like Maharashtra, Bihar, Karnataka, Tamilnadu shall be covered in a phased manner.

The initial phase launch is scheduled in the third quarter of 2006 post installation of facilities and equipments. All the product procurement and distribution arrangements are in place.

Globally, movement of major food grains like Wheat, for domestic consumption or exports, is done in an integrated fashion in bulk right from farm-gate to port or consumption center. This reduces multiple handlings and associated high wastage and pilferage, typical in developing countries like India. Poor handling and storage infrastructure further aggravates storage losses for commodities like wheat. To develop world class food-grain handling infrastructure, government of India had developed a policy framework. Under this framework, Food Corporation of India, the nodal agency for wheat procurement invited global tenders for developing bulk food-grain handling infrastructure on BOO basis. The tender was won by Adani Agri Logistics Ltd. against stiff competition.

The project, first of its kind in India, envisages setting up large capacity wheat silos in wheat surplus states of Punjab and Haryana with total storage capacity of 0.4 mn. Tons.  The wheat will be brought in bulk in these silos and will be stored to maintain its quality. The wheat will be transported to consumption centers of Mumbai, Chennai, Bangalore, Haldia and Coimbatore in special wagons in bulk form.  The silos at these locations will receive the wheat and dispatch it further for distribution. The project opens up new vistas in Public private partnership for development of world class agri-infrastructure and to imbibe global best practices in agri-logistics.    Once the project is implemented successfully by Adani Group, FCI is expected to replicate the success by announcing a slew of similar projects.

By Outsourcing the logistics of Food-grain movement to private players, FCI can focus more on procurement and at the same time ensure that quality standard are adhered to by the time wheat is delivered at consumption centers.With 17 - 20 mn. Tons of wheat procured by FCI alone each year, the potential for bulk food-grain movement is immense.Add to this the procurement by private players and also wheat imports, the potential of this market is huge and yet to be tapped.

Let me now share our vision into an exciting new area: the organized Indian Real Estate Development, where your Company has recently entered into through its 100% subsidiary, Adani Estates Ltd. We feel the time has come for a disciplined commodity attitude player like us to enter into a highly fragmented, localized and necessity-driven real estate scenario. A growing country like India needs efficient real estate structure - be it in hard core construction and development, facility management or property fund management.

As in all our businesses, we have set up a separate process driven, customer centric estate team to nurture our property development business. Over 25 million square feet is being developed in Mumbai and Ahmedabad over the next 3 to 5 years and we intend to continuously explore new proposals in various cities of India. Our thrust area would be to provide true value to our customer through innovative products and services.

Our "Shantigram" Venture at Ahmedabad, spread over approximately 500 acres shall be one of the model townships covering residential, commercial and retail space. We have already initiated the development of the master plan and intend to commence construction in the last quarter of 2006. Another large initiative of about 2.5 million sq. ft. has already taken concrete shape in the prime area of Mumbai where your Company is developing commercial-cum-retail space. We see a great upside to this real estate business in the years to come.

In this journey, I have built up lasting relationships - be it with lenders, investors, suppliers, customers or my people.

Your Company has one of the lowest rate of attrition and our people understand their responsibilities and take up new challenges and are always eager to learn more. I heavily depend on these relationships for the chalked out growth of your Company.The Board is also thankful to the Government of India, RBI, SEBI, other regulatory authorities, various financial institutions, banks and correspondents in India and abroad for their support and guidance to the Company from time to time.

Your Company is now at a very exciting stage: So much to do and look forward to in the coming years. In the integrated business I outlined above, there is a great story and it is the story of growing India. Through a conscious effort of alignment, we have now ensured value capturing for all our stakeholders. Let me re-emphasis - Your Company will now be "Adani Enterprises Ltd."; the name change truly reflects its depth of businesses, its pool of competencies and its potential to create sustainable value.

Thank you,

Gautam S. Adani	July 29, 2006
Chairman	Ahmedabad