Annual General Meeting 25th July’ 2008

Chairman's Speech

I have great pleasure in welcoming you all to the 52^nd Annual General Meeting of your company

GENERAL ECONOMIC SCENARIO

India’s real GDP grew by about 9% in the year 2007-08 largely helped by            agricultural growth. Given the strong fundamentals of the Indian economy, it was believed that the economy would maintain the growth rate of 9% in 2008-09 also. However, steep increase in prices of oil and key metals has been fuelling inflation in the last three months. Thus, the growth in 2008-09 may be affected. The interest rates have also started hardening up. For the first time in several years Indian economy is showing signs of external trade deficits. Under the influence of all these factors, prognosis for the year 2008-09 for the entire economy seems to be one of moderate growth.

FINANCIAL YEAR 2007-08

The Annual Report for the year has already been circulated. I will just cover the salient points.

a. Sales grew by around 16% from Rs.293 Crs to Rs.340 Crs.

2. All product categories namely pressure cookers, non-stick cookware, Kitchen Electric Appliances and Gas Stoves established impressive growths ranging from 12 to 24%.
3. Profit before extra ordinary items increased by 27% from Rs.16.6 Crs to Rs.21 Crs.
4. Net Profit after tax grew by 75.6%

5. Earnings per share rose to Rs.18.21 from Rs.10.31.
6. Return on Capital employed increased from 20% to 27.2%.
7. Borrowings reduced by Rs.27 Crores.
8. Uttarakhand unit commenced commercial production in June 2007.
9. Your company introduced 5 new categories with 45 SKUs. In all 86 SKUs were introduced. Your company consolidated its Prestige Smart Kitchen network. The network now covers 15 cities and 116 towns with strength of 180 Prestige Smart Kitchens.
10. Your company opened 2 Prestige Kitchen Boutiques offering a wide range of Modular Kitchens.
11. There was all-round productivity improvement covering all areas of operation.
12. Your company is now live on the enterprise wide SAP.

BRAND SALIENCE

You are aware that your Company’s Prestige brand has been recognized as “Super brand’ in the Kitchen segment. Now your company’s brand ‘Prestige’ has been declared as India’s most preferred brand in the pressure cooker category and won the credential “Mera brand” award by the 5^th Consumer World Awards

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