PRESS RELEASE

FALCON SETS NEW RECORD FOR TURNOVER, PROFIT & DIVIDEND

Kolkata, 15 November 2010: Falcon Tyres Ltd, a Ruia Group company engaged in manufacturing tyres and tubes for 2&3 wheeler vehicles, has set new records for turnover, profit and dividend. (Detailed result attached)

For the 12 months ending 30 September 2010, Falcon Tyres has recorded a gross turnover of Rs 844.35 crore against a turnover of Rs 851.45 crore for the 18 months ending 30 September 2009. This is the highest turnover of Falcon Tyres in any given 12 months, which on an annualized basis reflects a growth of 42%.
Net Profit for the 12 months ending 30 September 2010 has been Rs 51.63 crore against a Net Profit of Rs 30.02 crore of the previous 18 months. The highest ever Net Profit recorded by Falcon Tyres in 2009-10 is a gigantic leap of 71 % on an annualized basis.
From 21 May 2010, Monotona Tyres Ltd has become a subsidiary of Falcon Tyres Ltd and the consolidated result for the past 12 months can also be found at the attached document.

The board of directors of Falcon tyres, in a meeting held on 12 November at Kolkata, has recommended the highest ever dividend of 50% for the year 2009-10 as against 40% for the 18 months of the year 2008-09.

Commenting on the annual result Mr Pawan K Ruia, Chairman, Ruia Group said: The results reflect the company’s achievement in four major areas: (i) continuous capacity augmentation since takeover in December 2005, (ii) the benefit from the co-generation plant, (iii) better realisation because of increased presence in the replacement market, and (iv) effective cost control and reduction in wastage. However, the recent rise in input costs remains a concern. On our part we are trying our best to maintain the contribution part.” He added: “From 375,000 tyres and 240,000 tubes per month in 2005-06, Falcon is now selling 10,00,000 tyres and 11,00,000 tubes per month. And, further capacity of 500,000 tyres per month is being added to its Mysore plant, which is expected to be available by mid 2011. The capacity expansion will give Falcon more Tubeless Tyres every month. A new plant in Hardwar, Uttarakhand with a monthly capacity of 500,000 tyres is also expected to be operational next year.”

For any clarifications, please call Mr Dhrubajyoti Nandi at 98310 56023
FALCON TYRES LTD l K R S Road l Metagalli | Mysore 570 016
Issued by Corp Comn Divn of RUIA GROUP
Ruia Centre l 46 Syed Amir Ali Avenue l Kolkata 700 017 l Phone 2289 4747