Dear Shareholders,
 
 Greetings of the Season!
 
 I take pleasure in presenting you with a brief review of the
 performance of Venky''s (India) Limited in 2011 -12 and a general
 scenario of the poultry sector in India.
 
 During the financial year ended 31* March, 2012, Venky''s continued to
 grow in terms of sales turnover. However, the overall profitability of
 the Company was lower - the reasons were that the cost of poultry feed
 was very high in the last 4 to 5 years. Poultry feed cost has more than
 doubled. Also, the realisations from the sale of day old chicks and
 grown up birds were lower.  The Animal Health Products and Oilseed
 Segments have performed satisfactorily.
 
 During the year 2011-12, Venky''s has undertaken
 expansion-cum-modernisation programme at an estimated cost of Rs. 107
 crores, to augment the capacities in Poultry and Poultry Products and
 Animal Health Products Segments, modernisation in Oilseed Segment and
 for setting up of ''Venky''s Xprs'' outlets. The expansion-cum-
 modernisation programme is funded by internal accruals and long term
 loans, due to which the borrowings of the Company have gone up.
 Benefits of the expanded capacities will start accruing to the Company
 from the second half of the current financial year.
 
 Not withstanding the temporary drop in profitability witnessed during
 the last financial year, I am confident that the Indian poultry
 industry in general and your Company in particular, will continue to
 maintain a healthy rate of growth in the years ahead.
 
 My confidence stems from the fact that thanks to the far sighted
 vision, planning and dedicated efforts of our Founder Chairman, Late
 Padmashri Dr. B.V. Rao, we have a strong R&D and production-
 infrastructure base: we are part of an essential food production
 sector, wherein the demand for our products, with an established
 reputation for quality, can only move upwards.  I am also confident
 that the Indian economy, which went through a phase of slow growth
 during the past two years, will bounce back, resulting in higher
 disposable income among the middle and lower middle classes and
 consequently, greater demand for protein-rich food products.
 
 My best wishes to you and your families.
 
 Anuradha J. Desai
 
 Chairperson