The year 2010-11 has been an eventful and satisfying year for the
 business.  We managed to grow in volumes and strengthen our position in
 a tough and competitive environment. We ended March 2011 with five
 consecutive quarters of double-digit volume growth, a feat not achieved
 in the last 10 years. While we are pleased with our achievements, the
 business is not complacent. It remains focused on the road ahead –
 simultaneously addressing the challenges of today while investing in
 the opportunities of tomorrow.
 
 The current environment presents a host of challenges. Commodity and
 food inflation appear sticky and GDP growth may moderate in the near
 term.  Competitive pressures will be on the rise as newer entrants seek
 a slice of Indias long term growth potential. None of these challenges
 are new; they have stayed with us in some form through the last year.
 Our ability to steer through these conditions and lead the market is
 reflected in the numbers we delivered.
 
 During the year, the domestic consumer business grew 10.9 per cent
 driven by a strong 13 per cent volume growth. PBIT margins declined by
 190 basis points on account of higher input cost inflation and 60 basis
 points increase in brand investment. Net Profit increased by 4.7 per
 cent to Rs. 2306 crore for the full year.
 
 The business saw growth across all segments. The Home and Personal Care
 business grew by 9.8 per cent with competitive growth in both Laundry
 and Personal Wash. Personal Products business grew strongly at 15.7 per
 cent.  Growth was broad based across categories with Skin Care
 delivering a particularly strong performance. The Foods business grew
 13.4 per cent. Red Label tea was re-launched and continued to deliver
 double-digit growth. Our water purifier brand, Pureit, grew strongly
 and continued to expand its franchise with product offerings across
 multiple price points. Pureit now protects 4.5 million homes.
 
 Your Company has a strong portfolio of brands straddling the entire
 consumer pyramid. We are well placed to maximise on the opportunity in
 a growing market like India. We will continue to strengthen this
 advantage with excellence in execution, a sharp focus on the needs of
 our consumers and continuous improvement in our distribution reach.
 
 During 2010-11, we significantly increased our direct retail coverage
 by adding over 600,000 outlets. This meant tripling our direct coverage
 in rural India, contributing to 50 per cent of our rural growth.
 Project Shaktimaan, the second phase of Project Shakti was launched and
 was a key enabler for this rural expansion.
 
 In addition to expansion of outlets, we also improved the quality of
 our visibility and the availability of our products. This was called
 the Perfect Stores programme and we kick-started it with Mission
 Bushfire, which saw all our employees go out into the market in a
 focused five-day programme that transformed 14,000 kirana stores across
 India into Perfect Stores.
 
 At a time when input costs remain high and price volatility brings
 added challenges, we will continue to focus on the best value for our
 consumers and customers through innovations and strong cost efficiency
 programmes. We see these as key drivers of value creation for our
 business.
 
 While we manage our business dynamically to deliver consistent and
 profitable growth, we also recognise that responsible growth is as
 important. In 2010, Unilever launched the Unilever Sustainable Living
 Plan globally. The Unilever Sustainable Living Plan seeks to double the
 size of the Company while reducing its environmental impact. In an
 increasingly resource-constrained world, this decoupling of growth from
 the impact on the planet is the model that consumers will ultimately
 demand.
 
 In addition to halving the overall environmental impact, the Unilever
 Sustainable Living Plan commits to helping more than a billion people
 to improve their health and well-being and sourcing 100% of the
 agriculture- based materials sustainably. We aim to achieve this across
 the whole value chain, with specific, time-bound commitments and with
 the active participation of our partners. The Unilever Sustainable
 Living Plan will help us deliver growth while ensuring security of
 resources, reducing costs, building sustainability into our brand
 proposition and will keep us the preferred choice of consumers and
 customers. Our vision for responsible growth builds on our firm belief
 that we do well when our interests are aligned with the needs of the
 society we serve.
 
 People are at the heart of our business. Our deep commitment to people
 and our ability to offer them exciting opportunities enables us to
 attract the best talent that gives us the competitive edge. Throughout
 2010-11, we strengthened our Employer Brand and continued to retain our
 number one position with the top business schools we visit. We can hire
 and retain the best talent because of the value systems we uphold; it
 is the foundation on which we have built this business.
 
 And as we reach out for the next phase of growth, I look forward to
 your continued support.
 
 With warm regards,
 
 Harish Manwani