Dear Friends,

Let us all share the fantastic achievement of United Spirits Limited [USL] having become the world's largest spirits Company during the course of the last financial year. With sales exceeding over 114 million cases, your Company has overtaken the long standing global leader in volume terms.

This achievement is not only credit to the entire Team who made it happen, but also testimony to the increasing consumerism which underpins India's growth story. Many years ago, I had directed USL to remodel itself on the lines of an FMCG major rather than retain its historical narrow focus of being an alcoholic beverage company. USL has responded to this call in full measure. Despite the various constraints surrounding the Industry not least, the multiplicity of regulatory regimes, excessive taxation and need for constant engagement with State Authorities, the Company has risen to become one of the most respected entities in the Indian consumer space.

USL is a responsible corporate citizen. It is one of the largest contributors to the exchequer in India; it has adopted "green" practices to minimize energy consumption, reduce its carbon foot print and conserve water. It has also been in the forefront of innovations covering both product and packaging.

As the Company sets aggressive growth targets on an already large base, our focus is on ensuring that the back end of our business i.e. sourcing and logistics, keeps pace. Consequently, the Company has set about investing in both primary distillation as well as glass bottle manufacture. These initiatives, which will see fruition over the next 2-3 years, will not only give USL the strategic control of core areas of business but also lead to sustainable cost advantages which will stand the Company in good stead in the years to come.