Dear Partners in Growth,
 
 It gives me immense pleasure to share with you, another year of
 impressive performance by Dabur.
 
 The year has been a landmark year in more ways than one. During the
 year, Dabur surpassed the Rs. 5,000 crore or the US$ 1 billion mark in
 revenues and is now one of the few companies in India which have
 achieved this distinction. Our Foods division achieved a new milestone
 surpassing the Rs. 500 crore revenue mark.  Odonil, one of our Home
 Care brands has now become a Billion Rupee brand, taking our count of
 Billion Rupee brands to twelve.
 
 These are trying times, with the industry and the world witnessing fair
 bit of challenges, given the deepening debt crisis in Europe, political
 upheavals in parts of Middle East and rising tensions between Iran and
 the West. India too witnessed its share of challenges during the
 2011-12 fiscal, led by a deceleration in Industrial production and GDP
 growth rates. Steep inflation and the resultant high input costs
 coupled with adverse currency movements and disruptive competition were
 some of the other challenges in the Indian market.
 
 The external headwinds notwithstanding, the consumer goods industry has
 performed well. I am pleased to inform you that Dabur has ended the
 year with strong growth in both revenues and profits. On a consolidated
 basis, the revenues grew by 29.6% to end the year at Rs. 5,283.2
 crores, and the Net Profit rose 13.4% to Rs. 644.9 crores. The steady
 growth achieved by Dabur has been enabled by sustained investments in
 marketing and brand building, distribution, production, supply chain
 management, and by driving operational efficiencies across functions.
 
 Our new launches such as Dabur Almond Hair Oil, mixed fruit flavoured
 variant of our flagship health supplement brand Dabur Chyawanprash,
 premium face masks and scrub under Dabur Uveda and a range of
 professional facial products and body bleach under the brand Fem during
 the year have been well accepted in the market. The pace of innovation
 in the International Business has been fairly robust as evidenced by
 launch of products such as skin serums, skin creams, skin lotions, wet
 wipes, new variants in hair oils, shampoos etc. In addition, we
 leveraged Hobi Group''s expertise in hair gels and launched the Vatika
 Hair Gel range in our international markets. Going ahead too, Dabur
 will accelerate its innovation initiatives and introduce a host of new
 products and variants to consolidate our competitive positioning while
 remaining focused on current market segments in which we operate today.
 
 The growth strategies and your Company''s achievements through 2010-11
 have been elaborated in detail in the Management Discussion & Analysis
 section of this report.
 
 During the year, we undertook two major distribution related
 initiatives in our domestic business. The rationale behind our first
 initiative was to enhance the quality of our distribution by leveraging
 scale of a unified business, since the earlier distribution structure
 for the Consumer Health Division comprising OTC and Ethicals was
 subscale. We integrated the entire portfolio of Dabur and created
 specialized networks to meet different service needs of categories and
 channels.  The sales structure has now been aligned along three
 distinct categories - Home & Personal Care, Health Care and Foods.  The
 second distribution initiative, which is still work in progress, is
 focussed on significantly increasing the reach of our brands in rural
 India since rural markets offer significant potential, driven by
 increasing disposable incomes and rising aspirational levels.  We
 conducted a pilot in UP and Maharashtra which yielded positive results.
 Consequently, we are rolling out the initiative in other states like
 Punjab, Rajasthan, Bihar, West Bengal, Assam, Orissa, Madhya Pradesh
 and Karnataka. These ten states together represent around 70% of the
 rural FMCG potential.
 
 The year gone by witnessed some significant developments, in our
 International Business which I would like to highlight in this letter.
 Your Company is in the process of establishing a Greenfield
 manufacturing unit in Sri Lanka, which would become operational by the
 second half of the current fiscal. This unit will initially produce our
 packaged fruit juices under the brand Real and would later be expanded
 to cover more products.  In addition, we are contemplating local
 manufacturing in Africa for Namaste''s range of hair care products which
 in turn would help us enhance our product offering and presence in
 Africa.
 
 Our business is committed not just towards profitable growth, but also
 towards leaving a deeper imprint on the society as a whole. We, at
 Dabur, believe that financial performance and sustainability go hand in
 hand and can never be separated. Dabur continues to place a strong
 emphasis on societal needs, while addressing environmental and climate
 change issues with increased significance. Small yet significant steps
 are being taken to not only reduce our carbon footprint but also
 continuously monitoring waste generation and establish effluent waste
 treatment plants across all our manufacturing units.  As we expand our
 global footprint, we are also matching our business growth while
 addressing environmental and societal needs wherever we operate.
 
 I would like to take this opportunity to thank all our consumers,
 business partners, shareholders and employees for continued commitment
 and support. I gratefully acknowledge the confidence and faith reposed
 by the shareholders in the Board and the Management team which has, in
 my view, spurred the Company to take on more challenges. Finally, I
 must applaud the tireless efforts, dedication and commitment of our
 employees who have helped us reach where we are now and look forward to
 their continued support in the journey forward.
 
 Yours sincerely
 
 Dr. Anand C. Burman
 
 Chairman
 
 Dabur India Ltd.