We are fully committed to growing the Annapurna Brand

We wish to clarify that the story is without basis and is factually incorrect in making the claim that Hindustan Lever is considering sale of its Annapurna brand. The story also speculates that there is a plan to restructure the foods products portfolio. This is frivolous speculation that unfortunately misleads the publication's own readers.

Commenting on the news report, Mr Sanjiv Kakkar, Executive Director, Foods Business, Hindustan Lever Limited said, "We believe that the Foods business presents our company with an exciting, long term and sustainable business growth opportunity. We are fully committed to exploiting the full potential of our brands and the business."

Sanjiv added, "Annapurna is today a trusted staples brand in India and reaches to 25% of Indian households* through the existing products in Salt and Atta. Annapurna is a large and integral part of HLL's foods portfolio and we are committed to accelerating the growth momentum of the brand. Our aim is to position Annapurna as the Indian Consumers first choice for nutritious main meals for their family. We are committed to strengthening the brand with exciting new product offerings."

As part of our commitment in growing the brand, Annapurna was relaunched in 2005 with best-in-class product offering and packaging. Annapurna introduced "Annapurna Farm Fresh Atta." Made from high quality wheat grains, it provides consumers softer roties while retaining the goodness of Vitamins and Minerals. Annapurna also introduced the "Annapurna Iodised Powder Salt " offering consumers the right level of iodine essential for mental development of growing children.

The response has been extremely encouraging from the consumers to the relaunch. Since the re-launch, the salt business has grown by 25%. The Atta business, which is focused on the markets in South and West has also registered growth and in key Modern Trade chains, we have already gained market leadership.

Note: * Annapurna Salt and Atta penetration in 2005 as per internal estimates.

About HLL:

HLL is India's largest Fast Moving Consumer Goods company, touching the lives of two out of three Indians. HLL's mission is to "add vitality to life" through its presence in over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. The company meets everyday needs for nutrition, hygiene, and personal care, with brands that help people feel good, look good and get more out of life. For more information visit www.hll.com