**

Analyst Presentation

Quarter 3 2011-12

*Agenda Financial highlights Macro Environment Operating performance Financial review

*Financial Highlights for the QuarterGroup income up 12% against prior period at Rs 1802 crores.

Profit before exceptional items at Rs 157 crores higher than previous year due to saving in interest costs. Improved operating performance is most segments keep EBIT flat to PY despite increased competitive intensity and firm commodity costs.

PBT at Rs 141 crores impacted due to exceptional items. PAT marginally ahead of prior year due to savings in tax.

*Macro Environment Volatile exchange market USD strengthens against most currenciesResultant favourable translation impact

Commodity costs continues to hardenTea prices remains firm in most marketsCoffee prices reduce from an earlier high but still higher than prior year

Interest rate softness continues Company gains by restructuring high cost debts

Continuing competitive intensity

*Operating Performance HighlightsStrong performance in India continues volume and profitability growth. Continue volume and value market leadership.US coffee performance impacted by higher trade spends (to secure volume growth) and significantly higher green coffee costs. Canada continues market leadership New product launched in prior quarters gain distribution. UK topline growth achieved, signifying reversal of earlier trend. Higher A&P spend due to competitive intensity and phasing of promotions impacts profitability. Market leadership in Redbush / Decaf teasGood coffee performance continues in RussiaImproved performance in Instant Coffee Units in India

*Operating Performance HighlightsSouth Asia11% Top line growth for the quarter over previous year, with portfolio growth. Maintained MAT market value and volume leadership with 21.3%1 and 19.5%1 , respectively Restage of Tata Tea Premium in the quarterSoch Badlo campaign launched in November to celebrate 25 years of the brand

1 AC Nielsen MAT Dec11

*Operating Performance HighlightsCanada, America and Australia (CAA)CanadaTetley continues to be volume and value leader for Black and specialty teas in the Canada, driven by aggressive innovation.New blends/products launched in earlier months (dark chocolate vanilla bean Perk and Green Pomegranate 80s). gaining distribution. USTop line growth for coffee business - price increases taken in earlier quarters improves performance. Higher commodity cost and increased merchandising costs erode margins. AustraliaNew lines (Fruit and Herbal. Decaff green) accepted for listing in major retailers. Strong performances in Extra Strong, Green and New Chai range

*Operating Performance HighlightsUK, Europe, Middle East & Africa (EMEA)

Top line growth achieved during the quarter. Strong performance leads to market leadership as no:1 brand for Tetley Decaff and Tetley Redbush. Green tea volume growth year on year Teapigs brand of super premium teas continues to grow with distribution gains.South Africa performance improves over prior year.Improved coffee performance in Russia. Continued focus on distribution with increased listing in key accounts. Recovery in Tetley brand in Poland continues. Tetley has gained 0.4ppts in volume share and is now at 3.4% 1 AC Nielsen MAT Dec11

*Operating Performance Highlights Non Branded Operations

Higher realisations in coffee plantations and extractions drive better results in Tata Coffee Limited.

India and US instant tea operations stable. China JV has commenced operations.

*Financial Review

*Group Financial ReviewRs Crores

Q3 ending DecemberParticularsYTD ending DecemberActualPYVarianceActualPYVariance18021606196Total Operating Income48984437461157160(3)EBIT363376(13)431Investment Income29281(4)(15)11Interest Expense (Net)(8)(41)331571489Profit Before Exceptional Items38436421(16)-(16)Exceptional Items62(46)108141147(6)Profit Before Tax447317129(59)(68)8Tax(113)(138)2682802Profit After Tax334179155118(17)Share of Profit from Associates531(26)(18)(26)7Minority Interest in consolidated profit(36)(41)56472(8)Consolidated Group Profit302169134

*Region wise Operating Income

Q3 Ending Dec 31Particulars(In Rs Crores)YTD Ending Dec 31ActualPYVarianceActualPYVarianceBRANDS37133932USA1017925921411356Canada ,South America & Australia342348(6)51247438CAA 135912738640735453GB & Africa10409548523720235Europe & Middle East5735215164455688EMEA1612147613649644650South Asia Brands14451281165862Other Beverages1917316601481178Total Brands4436404639013911228Total Non Branded Operations42535768313(10)Other and Eliminations3734(3)18021606196TOTAL OPERATING INCOME48984437455

*Exceptional Items

Rs. CrsQ32011Rs. CrsQ32010ItemRs. CrsYTD DEC2011Rs. CrsYTD DEC2010-7Un-realised Exchange Variance on $ deposits/options-(3)--Profit on sale of Non Core Investments137-(16)(7)Other Costs(75)(43)(16)-Exceptional Items62(46)

Other Cost(2)(2)Redundancy Costs relating to business restructure(20)(11)-(5)Other costs/Restructure(7)(12)--Future payment under contractual obligation(20)---Provision for settlement of claims(6)---Estimated Loss on discard of assets(4)-(14)-Costs relating to long term initiatives and new projects(18)---Employee Separation Costs(20)(16)(7)Total(75)(43)

*Thank You

*Currency MovementsSource : ReutersReturnGBP/USDUSD/INR vs USD/RUB

*Commodity Cost Trends - Tea

*Commodity Cost Trends - TeaReturn

*Commodity Costs Trends - CoffeeReturnICE C

THANK YOU

Investment behind brands in CanadaReturn

Investment behind brands in UK Tetley Extra Strong

Investment behind brands in UK Green TeaReturn

GBP Avg current year Rs 73.21, Prior year Rs 67.78. Closing rate current year Rs 71.59; Previous year Rs 69.67. Budgeted rate at Rs 70.01 USD Avg current year Rs 44.61, Prior year Rs 45.21. Closing rate current year Rs 44.69; Previous year Rs 46.43. Budgeted rate at Rs 43.62

Tea Costs India blend costs Rs / kg Budget Rs 131.71, Actuals 128.58 and PY 118.27 UK 071 blend $/kg Budget $ 2.65 , Actuals $ 2.69 and prior year $ 2.77071 blend /kg budget 1.71, Actuals 1.74 and prior year 1.82

Coffee Costs - Coffee costs - USD/lbs increased from $1.71 last quarter (2010/11) to $2.76 in the current quarter (2011/12) and CY budget are at $2.60 (2011/12)South Asia volumes Tea B 21730t A 23302t PY 20949t. Sales B - Rs 450 cr A Rs 479cr and PY 426 crUSA coffee volume B 9931k lbs A 8300k lbs and PY 10660l lbs Sales was B316 cr A 285cr and PY 309crCanada Market share volume 2011 40.3% (-0.9%) and value 34.8% (-1.3%)/ Unilever at volume 27.7% (+0.7%) and value 19.8% (-0.1%)UK Sales expected to recover excepting for the lost volumes of the Asda netto merger. EBIT improves aided by adv cuts. UK only volumes B 30041t A28958t and PY29790tCoffee volumes in Russia Coffee - B2022k lbs A2070k lbs PY 1865l lbs Tata Tea Volume share 18.6% (-0.2%) and value share 20.4% (-0.5%) HUL share volume 16.8% (-0.2%) value share 20.8% (-0.6%) Goodearth distribution gains UNFI and safeway. Improved performace against budget B 98 t A 113 t Py 78 t. New distribution on green decaf and new shelf sets in safeways. Lower velocities in Walmart.

Canada Market share volume 2011 40.3% (-0.9%) and value 34.8% (-1.3%)/ Unilever at volume 27.7% (+0.7%) and value 19.8% (-0.1%)Canada Specialty tea bags Market share volume 2011 27.1% (-0.1%) and value 23.9% (-0.9%)/ Unilever at volume 11.6% (+0.6%) and value 8.5% (+0.2%)

GB market share volume 25% (-2.1%) value 22.7 (-1.2%) Uniliver at volume 28.5% (+1.3) value 27.2 ( 1.2%)Redbush market share in UK volume 30.8% (+1.8) value 28.5% (+0.5%) Wisbray Volume 29.0% (-1.9%) value 33.8% (-1.0%)Total everyday decaff in UK volume 35.3% (-0.7%) value 35.2% (-0.4%) Unilever Volume 23.1% (+3.4%) value 23.8% (+2.5%) Total Green in UK volume 24.9% (+2.1%) value 20.7% (+3.2%) Twining Volume 36.6% (-0.4%) value 42.3% (-0.2%) Coffee volumes in Russia Coffee - B2022k lbs A2070k lbs PY 1865l lbsTetley brand grows by 23% in polandNon Branded Operations Instant CoffeesdcFdcBudgets Actualspy Budgets ActualspyVolume t11891247867240269185Sales (Rs cr)39422710117Realisation/kg332335314427392383

Plantation CoffeeArabicaRobustaBudgets ActualspyBudgets ActualspyVolume t699733902143914651172Sales(Rs cr)161614151610Realisation/kg22822115610510990