It gives me immense pleasure to welcome you to the Fifty Second Annual General meeting of your Company.

We also strengthened our corporate reputation through participating in several community partnership programs and adhering to impeccable corporate governance practices throughout the year.

In the year 2010, your Company recorded Net sales at Rs 2306 Crores, a fabulous increase of 20.0% and a PAT of Rs. 300 Crores, which was 28.8% over the previous year. This profitable growth was made possible by a judicious mix of product innovation and expansion into new categories, strengthening of the distribution network, continued investment in brand building, strategic cost management and working capital management.

The year 2010 witnessed robust performance of your Company’s key brands – Horlicks and Boost, with both achieving strong double digit growth. Horlicks registered an 18.6% growth during the year 2010 with all variants of Horlicks registering double digit growth. The year also saw a re-launch of the Horlicks brand with a changed brand identity and re-designed packaging aimed to bring about a unified new look in all the products under the Horlicks portfolio. You would have noticed that the new packaging is quite contemporary and has been designed keeping in mind the changing needs of the consumer. Your Company also continued to make significant advertising & promotion spends for the brand and there were several successful campaigns during the year including one to increase consumption during examinations. The year also saw the launches of Junior Horlicks 4, 5 & 6 and Badam Masti, which were well-received by the consumer.

Another key brand of your Company, Boost, witnessed one of it’s best years in terms of sales growth as well as distribution growing by 24.3% in the year. Backed by a clinically proven claim, Boost saw an improvement in its market share in 2010. Your Company also launched a new variant of Boost in the Northern and Western parts of India with the intent of delivering a great new taste based on the preference of consumers.

The biscuits category also did exceedingly well in 2010 with a double digit growth in the existing portfolio and successful new product launches. Horlicks Cream Biscuits were launched in 3 flavours and Horlicks Cookies were also launched during the year. The initial response to these launches has been very encouraging.

Foodles, which was first launched in South India, was extended to East in March 2010 and North and West in July. Foodles recorded sales of Rs. 32 Crores during the year gaining a share of aproximately 4 %.

Your Company launched Lucozade Sport – Isotonic Sports Drink in 2010, to mark its entry into the Rs 1.5 billion energy drink market in India. Lucozade is a scientifically formulated drink that is backed by years of research and enjoys the approval of several independent authorities. Through the launch of Lucozade, your Company has made strong inroads into a nascent and fast-growing category in India.

Besides launching products and product variants, your company took initiatives to reduce operating costs and maintain efficient working capital levels. This has helped your Company increase its EBIT by 22% during 2010 in spite of the inflationary pressures on the commodity front, and higher advertising & promotion spends towards brand building.

In the year 2010, your Company launched a project to enhance capacity at Sonepat plant by 16–18 thousand tones p.a. in order to service the increased demand for your Company’s products. This project entails the introduction of new technology, which involves extensive automation and control systems.

Even as we surpass milestones of performance, your company is aware of its commitments to the community. In the year 2010, your company continued its focus on its Community Investment programmes.

The year started with Nabha donating clothes at Goonj’s Jalandhar Centre, and followed this up with medical checkup camps for students who were given free medicines and information on communicable diseases. Nabha also donated several educational and classroom teaching aids to a school for physically and mentally challenged children.

The Sonepat site helped in spreading awareness about tuberculosis and its adverse impact through a programme delivered to students from a Government School. The site organized a ‘Know Tuberculosis’ awareness session and quiz and distributed nutritional food among TB patients. The Sonepat team also kicked off an initiative titled ‘Protect Tomorrow—Towards a Safe & Green Future’, which included interactive sessions on Environment Management, Safety and Energy Conservation. The site also sponsored education programmes for girls.

The Rajahmundry team partnered with nursing college students to participate in a rally to create awareness on World TB Day. The team distributed cooked food, Horlicks, Horlicks biscuits and supplementary medication for TB patients at the Government Primary Health Centre. The team also supported a medical camp for the residents of the Industrial Estate in Dowlaiswaram and the renovation of an Old Age Home. Other programmes included scholarships for students at various stages of education, nutritional support to PLHIV/AIDS affected patients, Little Hearts programme and Basic Life Support Classes on International Guidelines for Public and Health Workers.

Your Company also supported numerous Community Partnership Projects in the sphere of children’s education and healthcare, support to the homeless, education and empowerment of tribal children, sustaining healthcare and the livelihood of the tribal community across the country.

Your Company recognises that the success of any organisation depends on its people. The management of your Company therefore, continues to give utmost importance to leadership development and talent management.

During the year harmonious industrial relations continued at all the units throughout the Company.

Your Company is committed to following best corporate governance practices in all its pursuits, operating with transparency in all its operations and communicating truthfully with all its stakeholders. Your Company operates with the ultimate objective of creating wealth and to enhance shareholder value in the long term.

As I indicated at the beginning of my speech, the year 2010 has been a fabulous year in the history of your Company. The growth story reflected in the achievement of Sales and Profitability targets was also visible in the share price of your Company. Your Company’s shares have been performing very well over the last couple of years. The shares of your Company were traded at around Rs. 1300 at the beginning of year 2010 and the price touched more than Rs. 2300 at the close of the year in December 2010, an increase of 77 % in little over a year. The share is being traded now at Rs. 2100 approx.

As I indicated at the beginning of my speech, the year 2010 has been a fabulous year in the history of your Company. The growth story reflected in the achievement of Sales and Profitability targets was also visible in the share price of your Company. Your Company’s shares have been performing very well over the last couple of years. The shares of your Company were traded at around Rs. 1300 at the beginning of year 2010 and the price touched more than Rs. 2300 at the close of the year in December 2010, an increase of 77 % in little over a year. The share is being traded now at Rs. 2100 approx.

In line with the outstanding performance of your Company during 2010, the Directors of your Company have recommend a dividend of Rs. 50, including a special dividend of Rs. 25 per equity share of Rs. 10 each, for the financial year ended 31 December 2010, to celebrate the Golden Jubilee of your Company.

While on the subject of shares, Karvy Computershare Pvt. Ltd., who were appointed as the Share Transfer Agents in September 2007 have been performing well. Although Karvy are the Share Transfer Agents, I would remind you that the Shares and Secretarial Department are there to deal with your queries and concerns and they will be more than happy to help you.

YDuring the year, Mr. Ashok Dayal ceased to be a Director of the Company upon conclusion of the Annual General Meeting held on April 23, 2010. I would like to place on record our sincere appreciation for the valuable contributions made by Mr. Dayal during his tenure as Director.

In conclusion, on behalf of my fellow board members, I would like to extend our appreciation to everyone, particularly our Business Partners, who were with us every step of the way to make 2010 such a proud year for our company.

Thank you.