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CHAIRMAN’S SPEECH FOR THE FIFTY SIXTH ANNUAL GENERAL MEETING

Ladies and Gentlemen:

Welcome to the Fifty Sixth Annual General meeting of your Company.

It has been a great year. You have much to be proud of the achievements of your Company. Let me begin with sharing some important developments.

As you are aware, in March 2015, GlaxoSmithKline plc announced completion of the three-part transaction with Novartis. As a part of this transaction, GSK has created a new global Consumer Healthcare joint venture with Novartis in which GSK will have majority control and an equity interest of 63.5%.

To support this new development there have been some organisation changes - creation of the AMA region which includes over 100 countries. I am delighted that your earlier Managing Director has been elevated to head this AMA region of which India is a priority market. As a true testimony to India’s role as the talent pipeline, Zubair will now head the Asia Pacific, Middle East and Africa region for the new entity. My personal congratulations to him. We have deeply valued his leadership and direction in accelerating growth & driving stellar performance for GSK Consumer Healthcare; having taken the organisation to where it is today!

Two other outstanding performers have also been elevated to the regional leadership roles - Mr R Subramanian and Mr Arun Sehgal now head respectively the Finance and the HR function of GSK’s Asia Pacific, Middle East and Africa region. On behalf of all, I extend my thanks for their commendable contribution to the Company.

The values and the high performance culture of the company continues to attract great talent from the industry. I take pleasure in welcoming the new members of the India leadership team - Managing Director Mr Manoj Kumar, Director Finance Mr Vivek Anand and Director Human Resources Ms Ongmu Gombu... My good wishes to the new members of GSK India Leadership Team for your journey ahead.

India expects the tide to turn on the back of structural reforms, combined impact of a strong Government mandate and RBI's inflation focus reflected in improving consumer confidence. There is a lot of scope for growth in the FMCG sector from rural India. In the recent past, we have seen public debate on food safety with consequent withdrawal of product. In coming years we expect tighter norms on products like processed foods and personal care. However, with rising per capita income the FMCG industry continues to and is also anticipated to witness major growth.

I am happy to state that Your Company continues to be on a positive growth trajectory. While topline performance was driven by market penetration, greater access to products and cost efficiency; Science and innovation are the differentiating pillars driving company’s progress.

As a result, your Company recorded yet another year of resilient performance, with each quarter during the current financial year recording profitable growth. Sales and PAT for the period ending March 31, 2015 were Rs. 4136.4 crores and Rs. 583.6 crores respectively.

Your Company’s stock value has remained positive and was traded around Rs 6289 at the beginning of the Financial Year 2014.

Based on annual performance, the Directors of your Company have recommended a dividend at the rate of Rs. 55 per equity share of Rs. 10 each for the year ended March 31, 2015.

At present, we stand at market share of approx. 66%, strongly steering ahead of our competitors. Two of GSK products are among the top 3 brands in HFD segment. Horlicks remains the market leader and Boost joint category leader which demonstrates customer faith and trust in our brands. Key product launches too have enabled in building meaningful consumer connect.

Your Company’s R&D team continued to develop relevant product pipeline based on consumer insights which backed by Science , new manufacturing technologies and packaging innovations have resulted in delivering value to end consumer. Seamless collaboration with Experts & Digital marketing helped in enhancing insights to feed the future Innovation funnel. I would like to thank each one of them for their valued commitment and effort!

I am happy that Company’s rural business backed by in-market execution, sachet strategy and further strengthening our community based programs is growing at a healthy rate to reach close to 20, 000 villages. Horlicks Swasthiya Abhiyan continues to raise awareness of nutrition and hygiene through activation at village schools, aanganwadi centres and through interaction with the rural medical practitioners.

Village Level Entrepreneur program provides livelihood to under privileged women while enhancing access of our products directly to homes in small villages.

The company is expanding its reach and presence in the retail market and consumer mind space. The ‘More Stores’ programme increased its urban coverage and establishes new Go To Market levers for urban emerging consumer class.

Our people continue to remain our biggest asset and we take pride in the diversity of talent we have across gender, culture, demography & geographies. I thank each one of you for your aspiration, focus, hard work, commitment, collaboration and teamwork.

Your Company's social responsibility extends well beyond business and financial targets. We continue to make meaningful difference to society and the environment while supporting causes like poverty, malnutrition, education, health, etc. Our key initiative- Horlicks Ahaar Abhiyan has now got the support of more than half a million people. The PULSE programme has also made a difference with 4 volunteers from India last year.

These efforts prove to be the real differentiator that makes your Company committed to not just its own people, but community and society as a whole, thereby living its vision of more, feel, live longer.

Conclusion

I compliment and thank all our stakeholders - shareholders and business partners for their constant support and contribution.

I would like to thank all employees for their hard work, prominently aiding towards growth of the Company and appreciate Mr. Zubair Ahmed and the Team for an exceptional business performance in 2014-15.

Thank you and best wishes.