Dear Shareholders,
 
 I am extremely pleased to share with you the events and developments of
 your Company during the course of 2011-12. Strong operating results
 have been achieved across all our core businesses despite a challenging
 macro-economic environment. The year gone by is representative of the
 value that Godrej Industries has and would endeavor to create for all
 the stakeholders. Though the economic slow-down and uncertainty
 particularly in the developed countries can impact emerging nations, we
 are confident of navigating this turbulent environment through
 well-defined strategies adapted to match the dynamics of a changing
 environment.
 
 As a multi-business group with diverse business interests, growth at
 the consolidated level is pursued through competitively growing our
 core businesses, building an environment to enable transformation while
 also nurturing and investing in emergent businesses of the future.
 This approach is captured in our approach called CREATE which stands
 for:
 
 Let me summarize the year at GIL for each dimension of our CREATE
 approach:
 
 C – Consumer and Chemicals
 
 Consumer (GCPL)
 
 Godrej Consumer Products, in FY2012, has not only maintained leadership
 position in India in the three core categories – Home Care, Hair Care
 and Personal Wash, but has also recorded significant traction on the
 international front. As we focus on integrating the acquisitions made
 during the year, we have witnessed meaningful growth in the emerging
 geographies in Asia, Africa and Latin America.  While we recognize the
 challenges posed by an uncertain global market environment, we are
 confident that consistent efforts at innovating to cater to the
 changing consumer needs and strengthening our brands, will translate
 into improved performance in the future as in the past.
 
 Chemicals
 
 During the year, our Chemicals business enhanced the top-line and
 stable margins with increasing contribution from exports and specialty
 chemicals. Our strong distribution network and differentiated
 manufacturing process make us the preferred supplier to key players
 across industries we cater to, enabling us to capture value from
 healthy demand in the domestic and international markets. Our
 diversified end-user industries and concerted efforts at moving towards
 specialty chemicals give us confidence in maintaining our performance
 in the future as well.
 
 RE – Real Estate (GPL)
 
 Despite a challenging environment for the real estate sector, Godrej
 Properties recorded the highest number of Joint Development Agreements
 in its history, thereby significantly augmenting its development
 portfolio. In a significant development during the year, Godrej
 Properties entered into a landmark deal with Godrej and Boyce for all
 future development on the Vikhroli land parcel. This will prove to be a
 highly value accretive deal, and is expected to generate significant
 risk free cash flow for Godrej Properties. With a pan-India presence
 and a business model that provides down-side protection while enabling
 capture of upside potential, we firmly believe that in the coming years
 we will be able to achieve bigger milestones to take GPL to the next
 level.
 
 I would like to take this opportunity to discuss the change in
 leadership at Godrej Properties. The Board has appointed Pirojsha
 Godrej as the Managing Director and Chief Executive Officer of GPL with
 effect from April 1, 2012. Pirojsha has played an integral part in the
 growth of GPL since he first joined the Company in 2004 and the Board
 is very confident that he will successfully lead the Company through
 its next phase of growth. In addition, the Board has appointed Mr. V.
 Srinivasan as an Executive Director at GPL with effect from April 1st,
 2012. Mr. Srinivasan has played several leadership roles across various
 Godrej companies and the Board believes that he will add tremendous
 value to GPL.
 
 I am also glad to share with you that in March 2012, GPL successfully
 concluded the first IPP in India and raised ~ Rs. 4.71 billion in the
 midst of a capital scarce market environment.
 
 A – Agri Business (GAVL)
 
 We have come a long way since we started operations with the animal
 feed segment and have progressed to a diversified agri-business Company
 with interests in animal feed, oil palm plantations, agri-inputs and
 poultry. The Company concluded the year on a strong note with robust
 performance delivered across verticals. Further, the outlook for
 oil-palm and agri-input segments remains extremely optimistic. During
 the year, we successfully launched Godrej Seeds and Genetics Limited
 (GSGL) to give shape to our plans of venturing into the seeds business.
 Given encouraging business prospects and a solid execution framework,
 we believe that our endeavor will contribute significantly to both the
 top-line and bottom-line in the years to come.
 
 T - Transformation
 
 As a group we believe in inclusive growth that aims at enhancing the
 competitiveness of our businesses while simultaneously advancing the
 economic and social conditions of the communities in which we operate.
 This focus is implemented Group wide through the shared value
 initiative called ''Godrej Good and Green''. As part of Good & Green, the
 Group aspires by 2020, to create a more employable Indian workforce, a
 greener India and innovate for products that are greener or cater to
 the bottom of the income pyramid. I am pleased to tell you that we have
 as a Group made good progress on this vision in the last fiscal year.
 
 Building on our human capital has always been a priority and during the
 year we undertook various activities that assisted in enhancing
 leadership capabilities through specially designed programs. To help us
 objectively understand the progress made, in FY2012, we conducted a
 survey across both domestic and international businesses in association
 with Aon Hewitt, a leading HR consultancy firm.  I am delighted to
 share with you that GILAC India (including the Consumer Product, Real
 Estate, Agrovet and Chemicals businesses of the group) employee
 engagement level is high (68%) and falls within the Aon Hewitt Best
 Employer Range.
 
 E - Emergent Businesses
 
 Through the years, we have incubated businesses successfully. Godrej
 Agrovet is one such example which today is contributing meaningfully to
 the consolidated performance and has tremendous future potential.
 Natures Basket, our gourmet food retailing business, has been ramping
 up very well with a spread of 20 stores across 5 key metros in India. I
 am pleased to share with you that a select portfolio is now available
 for online sale as well.
 
 Before I conclude, I would like to say that as we enter into the next
 fiscal year, we stay committed to improving operational efficiencies,
 building and strengthening alliances, deriving value from group
 synergies and continuing to reward stakeholders with a shared
 commitment towards profitability and sustainability.
 
 Finally, I would like to express my appreciation to all our employees,
 for their contributions towards the performance of Godrej Industries. I
 would also like to extend my gratitude towards our business partners
 and associates, vendors, and also the Central and the State governments
 for their continued support. And to all of our shareholders, I would
 like to express my sincere appreciation for their continued faith,
 trust, encouragement and support.
 
 Yours sincerely, 
 
 Adi Godrej 
 
 Chairman