Nestle India

The steady growth in sales and profits in recent years, even in a
 rather depressed economic environment, is an outstanding achievement.
 It reflects the strength of our brands and of our products, which we
 continuously improve to ensure the quality expected by the consumer and
 to fulfill their needs that we identify by our efforts in Consumer
 Insight.
 
 I expect that market trends in the future will not be much different
 from the recent past but competition will become more and more
 aggressive for the limited disposable income in the hands of consumers.
 Demand for products that provide nutrition, wellness and convenience in
 todays changing lifestyle will increase and we will be successful
 provided we are able to offer value-for-money to the very discerning
 Indian consumer. However, with our track record and with our General
 Licence Agreement facility that gives us access to the most advanced
 technology and know-how in the food industry, I am confident we can
 achieve these future objectives.
 
 But above all I am confident of the future because we have very
 committed personnel with a high performance track record, which coupled
 with their level of loyalty and determination, gives Nestle India the
 required competitive edge to fight in the marketplace.
 
                                                        Carlo M. Donati
                                         Chairman and Managing Director