Chairman''s insight
Dear Shareholders,
As the leading beverage alcohol company with an outstanding portfolio of brands, I am pleased with the
progress we made in growing our business and our brands this year. After a challenging FY18, our improved
performance in FY19 is a validation of the strategy executed by the Company and its management. Furthermore,
it is a testimony to the robust growth platforms and good governance practices we have established. I am
especially delighted that we have achieved this despite the complex regulatory challenges, a norm for our
industry.
The recently concluded general elections, that brought the ruling party back to power with an
overwhelming mandate, promises stability and accelerated economic reforms for the world''s fastest growing
economy.
This augurs well for our long-term business prospects, as we believe strong economic fundamentals along
with higher purchasing power will collectively drive consumption growth. However, frequent and non-harmonised
policy changes faced by India''s beverage alcohol industry along with limitations on pricing freedom, remains
challenging.
While we will continue to work with states to enable a stable policy framework, one that is fair to all
stakeholders, we look to the new government at the Centre to progress policies aimed at enhancing ease of
doing business for our sector. After all, making Indian manufacturing industry more competitive is an
important part of the ''Make in India''initiative.
One direct way the Central Government can help the beverage alcohol industry is by reducing basic customs
duties on Scotch, that are currently very high. Importing Scotch is a necessity to manufacture and blend
premium whiskies.
CELEBRATING LIFE, EVERY DAY, EVERYWHERE
Our purpose - Celebrating Life, Every Day, Everywhere - is the credo that keeps us engaged with our
consumers, customers, partners as well as the community and society in which we operate. We are passionate
about the role our brands play in celebrating life.
We remain committed to serving the Indian consumer''s growing appetite for premium products across all
categories and are pleased that scotch is growing in popularity. We strive to bring people together,
enriching lives in myriad ways and in doing so, our effort is also to continue to build economic value for
state governments across the country, by contributing to revenues.
We are committed to doing business the right way and are actively helping shape perceptions for the
sector with a strong compliance focus. The CGR2 rating by ICRA reflects our rigorous adherence to strong
corporate governance and financial management practices.
Furthermore, as a responsible Company, we made significant investments in various social development and
livelihood programmes, including in our flagship Diageo Road to Safety initiative.
During the past few years, we were able to attract and develop top notch talent, enhance inclusion and
diversity, and build a high-performance culture. It is a matter of pride to see Indian talent exported to the
Diageo world across functions and geographies.
On behalf of the Board of Directors, I thank the Central Government, the diverse State Governments for
their help and support, our trading partners for their valued contribution, the leadership team and every
member of the Diageo India family for their hard work and commitment to delivering another good year. Last
but not the least, on behalf of the Board, I thank all our valued shareholders for their continued support
and confidence in the Company.
We remain committed to creating meaningful experiences for our consumers and building enduring value for
our entire stakeholder fraternity.
Yours sincerely,
Mahendra Kumar Sharma,
Chairman
6.8 (1.16%)