2008 has been a very good year for the business, resulting in four
 consecutive years of strong double digit growth. Your companys net
 sales value grew at 23% over 2007, with profit before tax growing at 41
 %, enabling us to exceed our targets. More importantly Cadbury India
 was acknowledged as a star performer within the Cadbury world.
 
 The strategy of driving growth through product Innovation as well as
 sustained investments behind core brands helped maintain momentum in
 the top line and enabled progression of operating margin.  In 2008 we
 launched a premium range of dark chocolates, BOURNVILLE which was very
 well accepted in the market. At the same time our new chocolate
 offering, CADBURY DAIRY MILK SHOTS at Rs 2/-, aims to expand the market
 and bring in new consumers. The relaunch of HALLS and BOURNVITA++
 enriched with vitamins and minerals, have also helped to support
 additional growth. Bubbaloo, a superior centre filled gum gained market
 share in the gums category through introduction of exciting new
 flavours. While 2008 has seen strong growths, 2009 has seen an
 unprecedented economic downturn and hence, we have proactively raised
 the focus on costs, so that we can sustain investment behind our core
 brands and innovations.
 
 Externally, the highpoint of the year was our rank as the 7th Great
 Place to Work and the No.1 FMCG company in India. This recognition is a
 powerful endorsement of our belief that work and fun can co- exist
 seamlessly. Cadbury Dairy Milk integrated campaign 08-09 won the Media
 Abby Silver Award.  The prestigious ABBY awards are held every year to
 recognize creative excellence in India Advertising.
 
 On the Corporate Social Responsibility (CSR) front we continue to
 support The Sri Aurobindo Rural Village Action Movement (SARVAM)
 community project in the coastal region of Pondicherry, India; we also
 partner with Vatsalya Foundation, an NGO working with underprivileged
 street children in Mumbai. To encourage employees commitment to grow
 community value and make a difference to the community, we launched
 Touch a Life, a payroll giving program enabled by Givelndia. To
 promote cocoa research in India, we have undertaken an extensive Cocoa
 research project with the Tamil Nadu Agricultural University (TNAU).
 You will also be pleased to know that as part of the cocoa outreach we
 planted 50 lakh seedlings in the cocoa growing areas of Kerala, Andhra
 Pradesh and Tamil Nadu.
 
 I would like to end by thanking all the employees and all other
 stakeholders for their continued valued support, which has helped the
 Company achieve its success in 2008. I would also like to thank you,
 our shareholders for your trust and confidence in the company.
 
 With very best wishes,
 
                                                            C Y Pal
 Mumbai: April 6,                                     2009 Chairman