Dear Shareholders,

You will recall that in my last annual communication to you, I had outlined ITC's vision of enlarging its contribution to the Indian economy. ITC's aspiration to create enduring value for the nation provides its employees the inspirational motive force to sustain growing shareholder value. I had called this compelling vision "A commitment beyond the market". ITC practices this philosophy by not only driving each of its businesses towards international competitiveness, but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part.

     I had also shared with you my belief that it is this aspiration that sets apart ITC as a premier ‘Indian’ enterprise. ITC, as a truly ‘Indian’ company, whilst recognising the need to create a fair reward for shareholders, goes the extra mile, in partnership with other participants in the economy, to create conducive conditions for international competitiveness towards maximising value for the Indian society.

     The depth of ITC's commitment to the Indian economy is manifest in the way its diverse businesses contribute to strengthening their related value chains – through R&D, extension services, IT-enablement and the social and economic empowerment of the marginalised. The most telling example of this commitment is ITC's pathbreaking initiative in building sustainable rural partnerships, which carry the potential to transform the landscape of rural India and the lives of our rural population.

     ITC's "commitment beyond the market" encompasses the larger social canvas to include the preservation of India's cultural heritage. ITC is particularly proud of its pioneering contribution in the area of Hindustani classical music.

     As a concerned corporate citizen, ITC is committed to the highest standards in the key areas of Environment, Occupational Health and Safety (EHS). ITC strives to sustain and continuously improve its EHS standards to match the finest international benchmarks.

     The special feature that follows captures ITC's inspired commitment to create and sustain a model that harmonises service to society with enhancing shareholder value. I am sure you share my sense of pride in ITC's exemplary efforts.

     ITC is truly proud to be citizen first.

Chairman