I am delighted to address you on what has been another successful and
 eventful year for your Company. Fiscal year 2011 has been a
 transformative year for GCPL on many fronts. In May 2010 we acquired
 the remaining 51 % share in Godrej Sara Lee Limited and with the merger
 of the two businesses, GCPL is now the largest Indian Household and
 Personal Care company. We believe that this merger provides us a unique
 opportunity to significantly change the trajectory of our FMCG business
 as we leverage the complementary strengths of the two companies to
 create one GCPL. The potential for value creation, simply put, is huge.
 
 Along with becoming the largest Indian Household and Personal Care
 company in fiscal year 2011, we also continued our evolution from an
 Indian FMCG company to a leading emerging markets FMCG company. Through
 our numerous acquisitions outside of South Asia, GCPL now has
 operations in Indonesia, South Africa, Nigeria, Argentina, Uruguay, UK
 and the Middle East. Our products are now available in 55 countries
 around the globe and about a third of our revenues in fiscal year 2011
 came from our international operations.
 
 I believe that the lagging impact of the economic crisis is reversing
 and barring unforeseen developments, especially on the political front,
 the global environment is returning to normalcy. India, along with the
 other emerging market economies, has demonstrated encouragingly strong
 growth and continues to show resilience to external market fluctuations
 such as high inflation and interest rates. Indeed, for the next fiscal
 year, the Government has predicted healthy growth rates, a testament to
 Indias remarkable growth story. The increased focus on developing
 infrastructure, particularly in roads and rail, is expected to boost
 the consumption story of India, supplementing both the country and your
 Companys growth in the years ahead.
 
 In line with this growth story, your Company has continued to develop
 expansion into the rural space, while at the same time reaching outward
 to different regions across the world and consolidating our
 international business.  Simultaneously, implementation of new
 initiatives and
 
 innovations for additions in our brand categories has improved
 efficiency, productivity and profitability through the year. The
 macroeconomic environment has faced some roadblocks in the last year,
 but we are confident that Indias overall growth story will continue
 and that your Company is well positioned to build growth drivers,
 capitalize on global opportunities and create sustained value for all
 its shareholders.
 
 FMCG Sector
 
 Most concerns about the FMCG sector revolve around increasing commodity
 prices, which has led to limited purchasing power. Due to high
 inflation during the year, low income households have tightened their
 belts.  However, improved irrigation techniques and agricultural
 infrastructure have to some extent freed agricultural production from
 its dependency on the monsoons and this should lower food prices going
 forward.
 
 Despite this, the FMCG sector has demonstrated a strong picture of
 growth, performing encouragingly through the year. The expansion in
 volumes in most of our businesses has been indicative of increasing
 consumer demand and consumption, as also our enhanced marketing and
 distribution efforts. While increasing competition, high inflation, and
 inflated input cost prices may temporarily impact margins, I believe
 that the viability of the sector will hold and we will continue to
 foresee significant prospects in this sector.
 
 Perspectives on our Performance
 
 The Godrej Sara Lee acquisition has tremendous game changing potential
 and as a result of it, we now have a broader category portfolio. Home
 Care now comprises 43% of our portfolio and Personal Wash is 32% of our
 portfolio, as opposed to 65% of the portfolio resting on Personal Wash
 in fiscal year 2009. Apart from a broader category portfolio, our
 domestic scale has increased significantly. Over the last year, our
 domestic business reported a growth of 89% to reach ? 2395 crores.
 This increased scale enables GCPL to further expand distribution in
 India and improve penetration in channels such as chemists, modern
 trade and rural markets. It will allow us to compete more effectively
 in terms of investing in creating new platforms to develop innovative
 solutions to meet customer needs. The merger also provides the ability 
 to drive significant synergies in our operations. Finally, we believe 
 that we now have a strengthened ability to attract and retain top notch 
 talent for future business growth. The integration process is well on 
 track. Over 100 of our team members have been working very hard in cross
 functional teams to cross pollinate ideas, to share learnings and to
 chart the path of a bigger and better GCPL. This intensive effort has
 been code-named Project Neo.
 
 We have been following a very disciplined and focused globalization
 approach which we call our 3 by 3 strategy – presence in 3 continents –
 Asia, Africa and Latin America through 3 core categories - home care,
 hair care and personal wash. Our 3 by 3 strategy starts with the
 premise that apart from tremendous opportunities available for growth
 in India, there are attractive opportunities available in other
 emerging markets as well.These emerging markets have characteristics
 and consumer demographics similar to India. With the economies of
 Indonesia, Africa and Latin America all expected to grow at more than
 5%, we expect healthy organic growth in our international businesses,
 both in top line and even more on the bottom line.
 
 We believe that we can very effectively leverage GCPLs fundamental
 value proposition of superior quality affordable products and our
 understanding of consumers to our international markets. We can also
 add tremendous value to these acquisitions through the rigor of the
 Godrej processes, operational discipline, manufacturing, technology and
 sourcing strengths.Our acquisitions have been very value accretive for
 us.
 
 Apart from expanding our geographic presence, our other key priority is
 to continue driving leadership in our core categories. We are the
 leaders in hair colour, home insecticides and liquid detergents and the
 number two player in soaps in the Indian market. We are also the market
 leaders in air fresheners and wet tissues in Indonesia, in hair colours
 in many countries in Africa and Latin America.  We are also the number
 two player in home insecticides in Indonesia and hair extensions in
 South Africa.
 
 To capitalize on the growth potential in our categories, innovation is
 a key area of focus. We are actively building our innovation platforms
 of the future. We will be investing heavily in these platforms and the
 projects undertaken will guide the future trajectories of our
 categories. The recent relaunch of Godrej Expert, one of our heritage
 brands, in an exciting new avatar with multiple benefits, is an example
 of this.
 
 All of this would not have been possible without the exemplary
 commitment shown by the GCPL team. Under the leadership of Mr.
 Mahendran, we have a strong team in place ably driving our ambitious
 growth plans. GCPL today provides tremendous growth and development
 opportunities for its employees. In recognition of its strong people
 proposition, AON Hewitt ranked GCPL as the #4 best employer in India,
 moving 7 notches up from the #11 rank we held previously.
 
 Outlook
 
 As a company, we have always been committed to strong and sustained
 value creation. Over the last 10 years, we have achieved sales growth
 at a compounded annual growth of 23% and profit after taxes at a
 compounded annual growth of 28%. The market has also rewarded us well
 for our strong performance, with our share price delivering a
 compounded annual growth of 37% during this 10-year period - making
 GCPL the best performing FMCG stock during this period. This is against
 the backdrop of the FMCG index which grew by a compounded annual growth
 rate of 15% over the same period.
 
 Going forward, we will continue to emphasize driving inorganic and
 organic growth. As we continue to expand our product portfolio and
 expose our customers to our broad range of quality products, we will
 also focus on enhancing our presence in target geographies, both
 domestically and internationally. On the inorganic front, we will
 continue to analyze personal wash, hair care and home care sectors and
 capitalize on available growth opportunities.
 
 Your Company today is intimately linked with both the Indian growth
 story and the increasing opportunities in developing markets and enjoys
 a position as a trusted brand leader and household name. We will
 continue to build our reputation as a domestic leader by positioning
 ourselves strategically and operationally to consolidate and build for
 a bright future.
 
 I would like to take this opportunity to thank our employees, whose
 consistently admirable work helps deliver strong performance. I would
 also like to thank our business partners, our vendors, and our other
 business associates.  Finally, I would like to thank all our
 stakeholders for their continued interest, support, trust and
 encouragement.
 
 Yours Sincerely,
 
 Adi Godrej
 
 Chairman