Dear Shareholders,
 
 It gives me great pleasure to write to you at the end of another
 memorable year for your company.
 
 The fiscal year ended March 2011 had its set of challenges. Persistent
 double digit domestic inflation, disturbances in our markets in the
 Middle East and in North Africa, the increase and volatility of crude
 oil prices, all added to pressures on the revenues and on the profits
 of the company.  However, the intrinsic growths in the markets where we
 operate, remain strong and the consumer confidence in these markets is
 enduring.
 
 External pressures notwithstanding, the Indian Economy has exhibited a
 strong momentum, growing at 8.6%, and the consumer goods industry has
 correspondingly performed well. I am pleased to inform you that Dabur
 has ended the year with good growth in both revenues and profitability.
 On a consolidated basis,
 
 the revenues grew by 20.3% to end the year at Rs. 4109.9 crores and the
 Net Profit rose 13.4% to Rs. 568.6 crores. The steady growth achieved
 by your company has been enabled by sustained investments in marketing
 and brand building, distribution, production, supply chain management
 and by driving operational efficiencies across all functions.
 
 During the year, your Company saw robust volume-led growth across key
 categories like hair oils, toothpaste, skin care, health supplements,
 home care and foods. The year also saw Dabur complete two overseas
 acquisitions within a span of just four months. In October 2010, Dabur
 completed the acquisition of Turkey-based Hobi Group, giving it access
 to a new market as well as to a wide range of personal care products
 that will further expand its portfolio in the overseas markets,
 especially the Middle East and North Africa. This was followed in quick
 succession by the acquisition of Namasté Laboratories LLC, giving Dabur
 an entry
 
 into global African hair care market. On the domestic side, in
 continuation with our strategy to expand our presence in the OTC
 healthcare space, we have recently acquired ‘Thirty-Plus’, India’s
 first energizer and nutritional supplement brand.
 
 Going forward, we would look at more such opportunities to gain market
 entry and consolidate our competitive positioning while remaining
 focused on current market
 
 segments in which we operate today.  Acquisitions would, therefore,
 continue to be integral to our growth strategy as we move ahead.
 
 The growth strategies and your Company’s achievement through 2010-11
 have been elaborated in detail in the Management Discussion & Analysis
 section of this report. In this letter, I would like to highlight some
 of the key opportunities and challenges that your Company faces today
 and the factors that would help us move ahead firmly on the growth
 trajectory in days to come.
 
 The consumer goods sector has performed encouragingly in 2010-11.  What
 is more heartening is the fact that significant amount of growth is
 volume- driven. Higher raw material prices, rising food inflation and
 disruptive competition has impacted margin profiles of a few categories
 in the sector. However I do believe that the structural consumption
 growth story is still intact with real per capita disposable incomes
 continuing to rise and the Indian middle class emerging as a
 significant market. In the current inflationary scenario, companies
 with pricing power at the back of strong brands and efficient capital
 structure will emerge stronger by managing costs efficiently, expanding
 their presence through smart innovations and putting into play relevant
 consumer insights. Dabur is a nimble- footed organization that takes
 cognizance of these opportunities and changes in market dynamics to
 stay ahead and
 
 continue to invest behind its brands and businesses.
 
 Overall the Company is well positioned to participate in the quantum
 growth that is happening and is expected to happen in the future in the
 consumer goods industry. The industry is expected to more than triple
 in size from the current level of about  billion in the next 10
 years. Various demographic and economic indicators are pointing towards
 a period of sustained growth and robust demand conditions in the coming
 years. Growing middle class and rural households represent an
 opportunity that may well be ahead of estimates in the future. We
 believe that steady demand conditions should ensure strong double digit
 growth in the industry going forward. The challenges in terms of cost
 pressures will have to be met through
 
 enhancing efficiencies and building strong and powerful brands.
 
 I would like to take this opportunity to thank all our consumers,
 business partners, shareholders and employees for continued commitment
 and support. Our employees are our greatest assets and it is entirely
 due to their hard work, perseverance, commitment and dedication that
 the company has been able to deliver superior growth and value creation
 with every passing year. I sincerely thank each and everyone of our
 stakeholders for their trust, encouragement, support and passion that
 inspires us to strive higher and higher with each passing year. We
 remain true to our motto - “Dedicated to the health and wellbeing of
 every household”.
 
 
 
 Yours sincerely,
 
 Dr. Anand C Burman
 Chairman 
 Dabur India Ltd