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Annual General Meeting2010-11

Percy Siganporia MD Tata Global Beverages Limited

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Sharply escalating coffee and tea commodity costaggravate a challenging marketing environment. Wehave delivered a strong top-line performance withhealthier brand metrics despite an erosion of theoperating profit.

Brand investment continues as promotional spendsare enhanced.

Investment in new growth areas through alliances andnew product development continues duringchallenging year.

2010-2011 highlights

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Top-line Performance Highlights

Total operating Income +6% at constant Fx rates

5 year Top-line CAGR at 14%

Rs Crores

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In most geographies outside India weak consumer confidence impactsFMCG and beverage category. In India the pace of growth slows down

Sharp cost increases in commodities impacts Gross Margin. Price increases in major markets enabled by strong brands. Multiples in US, UK, Canada and other western markets trade for

margin and share. Maintaining market share become key focus ofbrand activity.

In India improved performance in the 2nd half improves brand volumeand value shares.

Adverse Exchange rates reduce Top-line by 3% Lower global interest rates impact interest earnings. Our recent alliances set the stage to ensure long term shift in business

focus

Key Operating Dynamics for 2010-11

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Operating Performance Highlights

South Asia

Maintained Volume leadership and resume challenge for valueleadership in India

Jaagore.com A first of its kind website in India centered on

social awakening won awards and appreciation

from media/public/NGOs

Refreshed consumer proposition forTata Tea Premium upswing in share of mind/share of purchase reversal of declining volume and market share trend

Chakra Gold New campaign strengthens the open up your mind

proposition, popular among consumers

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Operating Performance Highlights

UK, Europe and Africa (EMEA)

Investment behind Tetley brand in UK lead to enhanced brandhealth measures

Return of the legendary Tetley Tea Folk in the UK after nearly adecade

Strong position in Specialty category in UK. Achieved brand leadership in Decaf, Redbush Fastest growing Green tea brand in UK

New products launched UK : T4Kids, Tetley Soya, Tetley Handy Pack, Tetley Green

Blueberry, Lemongrass and Honey

Africa : Laager Rooibos Cappuchino and Milkshakes 4 Kidz. Europe : Poland Tetley Black & Green, Plantation Fresh

Distribution gains are recorded in Europe -Ukraine, Belarus, Moldova, Middle East - UAE, Kuwait, Qatar and Oman. UK- new channels of distribution in Holland and Barrett and WH

Smith

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Operating Performance Highlights

Canada, America and Australia (CAA)

Strong consumer communication for Tetley Infusions in Canada, well receivedby consumers.

Achieved a No 1 position in Herbal Tea category in Canada New product launches

Canada

Infusions - White tea with Cherry and Orange Blossom and Red tea with strawberryand Raspberry

Herbal Tea - Tetley MojitoUSA Enhanced Real Brew, Real Brew Pour & Stir in EmpiricalAustralia

Tetley for Soy, Billy Campfire and Kitchen Brew variants. Distribution gains

Canada in the foodservice business. USA : Coffee Kroger, Meijer, Wegmans, Sprouts, BJs and

CVS and increased points of distribution in WalmartTea Points of distribution increased in Walmart, Target,

Kroger, Raley, Safeway and Natural Food Stores

Selling price increases in coffee to counter commodity cost increases Manufacturing restructuring in USA to drive synergies.

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Non Branded Operations

Entry into new export marketsimproves Instant coffee performance.

Improved realisations in Coffeeplantations in India aided by thecommodity boom

Operating Performance Highlights

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Sales Trend over 3 years

+10%

+34%

+31%

+19%

Sales Improvement attributable strong brand performance, acquisition in

Russia and improved performance by coffee extraction business.

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Strategic alliances to fuel further growth

Acquired 31%* on a fully diluted basisof Rising Beverages LLC whichmanufactures and markets a range ofvitamin and flavour enhanced waterusing unique powder dispensingtechnology, under the Activate brand

Signed JV with Pepsi-Co in the area ofnon-carbonated, RTDs focused onhealth and enhanced wellness. NamedNourishCo Beverages

Tata Global Beverages Ltd & KeralaAyurveda Limited sign MOU to formJV for Product Development

* Subsequent investments, post year end, has increased the stake in Rising Beverage LLC to 43%

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Market Capitalisation TGBL

July 2011 Rs

6567 Crores

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Significant Increase in Dividend Payout

Rs Crores

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Commodity Costs - Tea

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Commodity Costs - Tea

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Commodity Costs - Coffee

ICE C

Return

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