PIDILITE INDUSTRIES LIMITED

                        CHAIRMAN’S SPEECH

Ladies and Gentlemen,

It gives me great pleasure to welcome you all at this Extra Ordinary
General Meeting of our Company.

As you are aware, the current financial year 2009-2010 is the Golden
Jubilee year for the Company and recognizing its significance it was
appropriate for the Board to consider issue of Bonus Equity Shares to
the members. The last Bonus issue was made in the year 2000 in the
ratio of one bonus equity share for every one equity share held.
Considering the existing Equity paid-up capital of Rs.253 million and
the Reserves and Surplus of Rs.7083/- million as on 31.3.2009, the
book value of One Equity Share of Re.1/- of the company is Rs.28.99.
This will be further augmented by the profits of the company for the
year 2009-2010 which so far has been good. Therefore, the Board of
Directors of our Company at its meeting held on 28.1.2010 has
recommended subject to the approval of the members, issue of Bonus
Equity Shares in the ratio of 1:1 i.e. One new fully paid Equity Share of
Re.1/- each for every One fully paid Equity Share of Re.1/- each held in
the Company. The Bonus Shares will be pari passu in all respects with
the existing equity shares of the company.

The FCCB holders who exercise their right till record date shall be
eligible for the Bonus Shares at par with other shareholders and who
opt for conversion after the Record Date will be entitled to
proportionately higher no. of equity shares as if the conversion has
taken place prior to the Record Date.

Considering the present and future requirement of funds for the
business activities of the Company and the proposal for issue of bonus
shares, it is necessary to increase the Authorised Share Capital of the
Company from Rs.46,50,33,999/- to Rs.70,00,00,000/- comprising of
70 Crore Equity Shares of Re.1 each with consequential amendments
in the Capital Clause of the Memorandum of Association and Articles of
Association. Members approval is required for the same. I now
recommend the Members to accord their approval to the Resolutions as
per the Notice dated 28.1.2010, convening this meeting.
I thank all the Shareholders of the company for their co-operation,
support and for being present here.


4th March, 2010

This does not purport to be a record of the proceedings of the Extra
Ordinary General Meeting.

                     PIDILITE INDUSTRIES LTD.
              Regd.Office: Regent Chambers, 7th Floor
              Jamnalal Bajaj Marg, 208 Nariman Point
                         Mumbai 400 021

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