Chairman’s speech delivered at the Annual General Meeting held on Monday, the 18th June, 2007

Ladies and Gentlemen,

I have great pleasure in welcoming you all to this 18th Annual General Meeting of the Company.

Temptation Foods Ltd has achieved solid progress and growth and we are pleased to report our performance for FY 2008. It has been an eventful year where we implemented various new initiatives, which are already showing early signs of success. Our continuing operations gained further strength and delivered strong performance that is reflected in our numbers, which look robust even after including the expenses that we are making on recent initiatives. During the year, the Company acquired key new customers and current customers continued to gain traction.

Our financial performance is the final measure of the success of our strategies and initiatives. FY2008 was a year when our endeavours to turn the Company around in the previous years, finally showed signs of success. Revenues increased to Rs 329.7 crore, our operating profits improved to Rs 32 crore and our post tax earnings were higher at Rs 23.8 crore, a significant leap over previous years figures. Our results would have been even better, if not for the investments that we are making in new businesses, which are essential to creating incremental growth and value on a sustained basis. India’s fastest growing economy after China, represents an attractive potential for business growth, emerging as an exciting global investment destination. The Government has realized the vital role played by the food sector and the continued implementation of the Food Safety Bill, the increased allocation to agriculture and the planned doubling of marine exports are all signs of the boom times ahead for this industry. Supported by the liberalized economic policies and robust fiscal initiatives by the government, increasing private sector investment and foreign capital, the country is all set to transform from a developing to a developed nation. The Indian corporate sector is well equipped to grab these emerging opportunities, through rapid expansions and acquisitions.

Your Company has categorically stated in the past that it is committed to strengthening its position as a leading player in the processed foods sector with extensive intrasegmental presence. To this end, we implemented multiple initiatives that are creating successful market opportunities. We have acquired three businesses, including two brands during the year and envisage growth in the future coming through the inorganic route. Your Company has also invested around Rs 30 crore on its plans to augment its processing capacity and increase its product mix. This decision was taken keeping in mind TFL’s long term strategic views as well as distributor and customer preferences. Your Company acquired the ‘Everfresh’ brand from Chambal Fertilisers in November, 2007. This strategic step enables TFL to market its own products under the brand as well as utilise its wide sales and distribution network to its advantage as well as giving it a pan India presence. This deal was concluded at an attractive below net asset value, adding to Capital Reserves and thus creating further value for shareholders. Your Company has acquired a 100% stake in Karen’s Gourmet Kitchen Pvt. Ltd. (KGK). KGK is engaged in high-end processed items such as Conserves, Sauces, Mayonnaise, Marmalades, etc.

During the year, we also entered into process outsourcing agreements with six companies based in Visakhapatnam, Kochi and Chennai to establish our presence in the Marine Foods business, including a business purchase agreement with a Marine Food Company. These deals were concluded at attractive values with TFL acquiring the intangible customer base of the Companies. This step gave the Company a sustentative presence in this sector as well as access to markets in Japan and the US.

It is particularly encouraging to have a strong outlook after posting a growth-led performance. It is our belief that our future holds even greater promise given the conducive macro economic environment, attractive sector dynamics, our target image as an ‘Owner of Brands’, and more specifically, serial implementation of new initiatives and ventures to help us reach that goal. Further, it is always on our mind to explore new opportunities which we will target provided they present a profitable business venture or bring compelling strategic advantages for your Company.

Overall, we remain both excited and confident about our future and the business’ ability to maintain value momentum for all our stakeholders.

Vote of thanks

We are a peoples business and we would like to place on record our gratitude towards our professional management team and all our employees for their contribution during the year. We would also like to place a record of appreciation to all our partners, investors, vendors, suppliers and business associates without whom, growth would not have been possible. And finally, and most importantly, we would like to thank our shareholders for their motivation and support that has enabled us to create value for all shareholders of Temptation Foods Ltd.