Dear fellow shareholders,
 
 Its been another wonderful year for our company, with achievements on
 every front - sales of over 125 million cases, expansion of market
 share in the face of international competition, launch of Heineken in
 select markets, packaging innovations, corporate reorganisation, 
 The list goes on!
 
 Our company has clocked its highest ever volume growth of 23% during
 the year under review, driven by a 27% growth in strong beer and a
 healthy 16% in mild beer. In both segments, we have significantly
 outperformed the market.
 
 Kingfsher Ultra continues its run as the preferred premium lager among
 discerning consumers, and has established its superiority over
 competing offerings from leading international brewers.
 
 The highlight of the year, is the success launch of locally brewed
 Heineken in select markets. I am pleased that, through United Breweries
 Limited, India is amongst select countries in the world where this
 world leading premium brand is brewed. Connoisseurs confrm that in both
 taste and packaging, UB''s offering matches the quality of Heineken
 available anywhere in the world.
 
 Many consecutive years of outperforming the market in key large states,
 has enabled UBL to achieve a 54% national market share, the highest
 ever.
 
 Operating, as we do, in a highly regulated environment, control of
 costs is an important element of our business, and considerable
 attention has been paid to this by the management.
 
 A very significant innovation that will have long term benefits for the
 company, is the introduction of patented proprietary bottles. This
 initiative means that UB''s patented bottles cannot be diverted to
 alternate uses and this has had a salutary effect on the price of
 second hand bottles.
 
 Other cost containment initiatives, including use of biomass boilers
 for co-generation of power, have helped to keep our overall costs down
 despite an infationary environment. This has enabled us to achieve a
 growth of over 45% in EBITDA in comparison to what was earned in the
 previous year.
 
 We are committed to a continuous process of improving quality and
 vigorously attacking costs. To achieve this in the backdrop of robust
 growth in volume requires the company to make continuous investments in
 the manufacturing and sourcing end of the business.
 
 With this intent, our company has earmarked investments exceeding
 Rs.1000 crores over the next 3 or 4 years to not merely augment
 capacities but also incorporate the latest technologies to improve even
 further, the quality of our already excellent product range.
 
 The high yield variety of barley patented by the Vittal Mallya
 Scientifc Research Foundation has captured the imagination of the
 farmers in northern India and the same is being sown in increasingly
 larger acreages. The extension of cropping of this vital input bodes
 well for the future availability of this most important raw material
 keeping pace with rising demand. Simultaneously investments are planned
 in malting facilities so as to stay abreast of our requirements.
 
 Our company has a conservative financial position, with very little debt
 in relation to its borrowing capacity. Our Debt to Equity ratio is also
 very healthy and has been recently augmented through the sale of
 Treasury Shares amounting to Rs. 285 crores. This enables us to raise
 the resources required for the investment programme at attractive
 rates.
 
 You will recall that a number of acquisitions over the years had led to
 a complex holding structure. The tie up with Heineken also brought the
 Asia Pacifc Breweries'' two manufacturing facilities into our fold. In
 an effort to simplify the corporate structure, integrate units, and
 enhance both operating and tax synergies, a number of mergers, already
 approved by all of us, have been completed and judicial orders in hand.
 Accordingly, the accounts for the year ended 31st March 2011
 incorporate the numbers for Associated Breweries and Distilleries
 Limited, Millennium Alcobev Private Limited, Empee Breweries Limited,
 Millennium Beer Industires Limited, United Millennium Breweries
 Limited, UB Nizam Breweries Private Limited and Chennai Breweries
 Private Limited.
 
 Even as we focus on our consumers, we have not lost sight of the
 communities in which we operate. We continue to be committed to
 education, health care and water initiatives in each location that we
 operate in. Not only have these won recognition from national &
 international agencies, but most importantly, have helped to make the
 lives of thousands of people better. It is our way of saying thank
 you and giving back more than we take out of our environment.
 
 I look to the future with optimism. Despite the palpable sense of a
 slowing down of the global economy, India and its young population is
 still imbued with anticipation of good times to come. United Breweries
 is well placed to be a part of the good times, and this will translate
 into higher sales with improved profitability.
 
 All stake holders have contributed to the success of our company and I
 look forward to the continuing and enthusiastic participation of all
 our employees, customers, suppliers, bankers, and above all, you, dear
 shareholders.
 
 Thank You!
 
 VIJAY MALLYA
 
 CHAIRMAN