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Enviornment and Safety:

1. Asian Paints approaches the environment issue from the perspective of waste minimisation and conservation ofresources. Thus, the continued attempt is to reuse, recycle and eliminate waste, which results in less and less waste

being generated. Accordingly, our material losses in manufacturing have been reduced substantially over the last few

years.

2. Further, the company's four paint plants and the two chemical plants have the ISO 14001 certification for environmentmanagement standards. The company's latest manufacturing facility which is situated at Sriperumbudur near Chennai

will be certified for ISO 14001 in this financial year 2006-07.

3. All our paint plants have achieved 'zero industrial discharge' capability. This has been achieved by the installation ofupgraded effluent treatment facilities and installation of reverse osmosis plants in conjunction with appropriate

recycling and reuses schemes. Our emulsion manufacturing facility has also achieved 'zero waste' status. We have

adopted the principles of "green productivity".

4. Some of our innovative schemes which enhance green productivity are dealer tinting systems which has resulted inlarge batch sizes ; bulk storage facility for monomers which reduces wastage; Use of natural gas which is a cleaner

fuel ; solvent recovery plants have been set up which has resulted in zero reduction of solvent disposal ; Improved

incinerating systems and reverse osmosis.

Safety at its best

1. The company has made significant investments in the area of safety over the past several years. Its steadfastcommitment to safety is reinforced by the fact that four of Asian Paints plants were conferred with the 'Sword of

Honour' by the British Safety Council for the second time in quick succession. The British Safety Council is the world's

leading occupational health, safety and environmental organizations, working closely with the world's leading

companies in developing safe systems for work. The "Sword of Honour", instituted by the BSC, is recognized the world

over as the pinnacle of achievement in safety management systems.

CII national conservation awards

1. Another recognition received in FY 2006 was the CII (Confederation of Indian Industries) Award for National EnergyConservation received by the Ankleshwar and Patancheru plants. The award function was held at Vigyan Bhavan, New

Delhi, where the Ankleshwar facility in the state of Gujarat was honored with the second prize, while the Patancheru

plant in Andhra Pradesh received a certificate of merit. The awards were presented by His Excellency, the President of

India, Dr. A P J Abdul Kalam. The CII Award for National Energy Conservation is yet another testimony of Asian Paints

commitment towards the continual improvement in our work process to help the environment through the

manufacturing excellence programme.

Total Water Management

1. Fresh water is a l imited and scarce resource that's often taken for granted. Consider this, according to an MMRDAreport, Mumbai's present water demand, 3026 MLD (Million Litres Daily) is expected to rise to 7950 MLD by 2011,

today the water supply being only 2500 MLD

2.

We propagate some methods to help you conserve water Asian Paints has built a Total Water Management (TWM)Centre, at its Bhandup manufacturing facility, which is the first of its kind in the entire country.

3. The TWM centre showcases live working models on water conservation and rainwater harvesting. Asian Paintsprovides expertise to citizens free of charge to implement rainwater harvesting and total water management solutions.

4. The water management schemes could be designed in phases, so investments are not significant. Also a paybackperiod can be determined for investments.

Success stories

1. For piloting the concept of total water management, Asian Paints chose one of the housing societies, a high risebuilding viz., Glen Croft Co-operative Housing Society at Hiranandani Gardens, Powai. Sh. Vikram Jaisinghani,

Chairman and Sh. Farhan Thakur Secretary, Glen Croft Co-operative Housing Society welcomed the suggestion and

accepted to collaborate with Asian paints to implement a pilot scheme in Glen Croft.

2. An innovative and highly cost effective rainwater harvesting scheme was developed taking into consideration theexisting infrastructure of the building. A number of options were worked upon and presentation was made by Sh. Amit

Doshi (Factory Manager) and Dr Rajan Sharma (Executive - Environment) of Asian Paints to the society. The scheme

was finalised and has been successfully implemented at Glen Croft at Hiranandani Gardens, Powai. The project was

conceived by Asian Paints, proposed and accepted by Glen Croft Co-operative Housing Society and executed by M/s

Azad Barish.

3. In this scheme, the dome structure and terrace of the building have been used as catchment areas. The dome is thehighest part of the high rise building (27 floors) and stands above the over head water supply tanks. This dome

structure has been used to an advantage by making arrangement to collect rain water from the dome and connecting

it directly to the overhead tanks (Flush and Domestic Water Tanks). Since this scheme delivers water directly from

dome to the over head water supply tanks, there is absolutely no requirement to pump water. This is the innovative

part of scheme and gives a tremendous added benefit of saving electrical power along with water. The cost benefit

analysis for saving water and electrical power makes sure that the investment return rate is just one monsoon season

and free water is available from rains for rest of the life.

4. In addition, rest of the terrace is used to collect rainwater and is taken through the existing down spouts to theunderground flush water tank. The existing down spouts which were earlier just left on the ground to join the storm

water drains are now extended using PVC water lines to under ground flush water tank.

5. The scheme is already in place and the Glen Croft Housing Society has benefited from the scheme in this monsoon andnot only has it reduced fresh water intake from BMC but it has also eliminated the tanker water requirement during

monsoon. This will reduce major health hazards to the society members from the contaminated tank water duringmonsoons.

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Other Initiatives

1. Improving infrastructure and healthcare at local schools-Besides water management and age care, the company alsoinvests time and energy in providing infrastructure support to primary schools. In Ankleshwar - Gujarat, the company

continues to support the "Shree Gattu Vidyalaya" school which was established along with the Ankleshwar Industrial

Development Society in 1983. The school today boasts of around 2,500 students in primary as well as secondary

sections and the plant has sustained its commitment of providing infrastructure support to this school, be it through

donations of computers, tables and chairs, or through assistance in other maintenance work for the school.

2. In addition, the Ankleshwar plant has also taken up the cause of improving the health and hygiene situation of schoolsin nearby villages. Understanding that prevention is better than cure, the plant conducts Vaccination and Health

camps. Not only students, but teachers are also briefed on hygiene aspects in such camps.

3. In Sriperumbudur (South India) also, the plant is treading on similar lines and has taken up the task of improvingfacilities in the neighbourhood primary schools. It presented the Pondur primary school with desks, tables, a PA

system and even school bags for the students.

4. India is a land where age and wisdom have been traditionally respected. Hence, it is amatter of irony that care for theelderly citizens is fast emerging as a critical element ofpublic and private concern. I am glad that our manufacturing

facilities in Kasna (UttarPradesh), Patancheru (Andhra Pradesh), Sriperumbudur (Tamil Nadu) and

Ankleshwar(Gujarat) have taken up the cause of providing healthcare facilities to the disadvantagedelderly sections of

the society in their localities.

5. The Mobile Medicare Units (MMUs)which the Kasna, Patancheru and Sriperumbudur facilities operate is really a noveleffort of bringing healthcare to the doorsteps of the lesser fortunate senior citizens. Its really heartening to learn that

we have reached out to more than 2,00,000 senior citizens through our various age care initiatives. I am sure this will

only strengthen our resolve to keep doing good work in this regard.

Tsunami relief: Helping community in need of time

1. The massive disaster Tsunami hit the coastal areas of South India and South East Asia on Dec 26, 2004 and leftbehind a trail of devastation. As a socially responsible company, Asian Paints rose to the occasion and decided to play

its rightful role in extending support and relief to the affected. All the employees contributed in cash and kind to the

best of their capacity. These contributions were supplemented with a contribution from the company. A total amount

of Rs. 4.7 million was generated as relief aid and handed over to the Tsunami victims. Besides India, all the units

across the world also contributed to the best of their capacities towards Tsunami relief