New Year Message

from CEO

The year 2007 has been a historic one for our company. The company was acquired from the

Sterling group by one of the European coffee giants, M/S. LavAzza  of Italy. The transition  happened

on the 19th April 2007 along with the leading player in coffee parlour business,Barista coffee company,

and FHCL became a wholly owned subsidiary of M/S. LavAzza.

M/S. LavAzza has not only been respected throughout the world for

the expertise in coffee, but also for sound and ethical business philosophy.

Most of the proven business practices and systems of M/S. LavAzza  are

being tailor made to Indian culture and market so as to make FHCL a truly

great coffee company with clear visions and goals.

The business in the fiscal year 2007-2008 has been looking good and the

productivity and efficiency from the most of the functions have been all

R.SHIVASHANKAR

in by one and all in the year 2007, will pay rich dividends and create a

strong base for us to grow rapidly in the years to come.

We realise that we have to be an absolutely people centric company and several HR initiatives have

been taken to build a strong  and committed   pool of employees apart from taking steps  to identify,

and nurture talent to take on higher responsibility in the years to come.

The year 2008 looks to be a very exciting year  for FHCL, as coffee drinking culture is spreading

rapidly in the country. With our strong presence in vending segment particularly in hotels, and with

the platform we have built in the retail business, we are poised to be a very large and powerful

company in the years to come.

New machines, new products and new marketing  strategies, will be the cornerstones of our business

strategy in the year 2008.  We are closely monitoring the market dynamics of our business and

several new products are ready for launch in the years to come.

I would also like to stress that every function, be it marketing, sales, technical support & field

engineering, finance,  production, supply chain & logistics, quality, HR & IT have an equally

important role  to meet ambitious business goals.The success of the company will be based purely

on teamwork & if there is no teamwork, even the soundest business strategy will fail.The year 2008

will see more stress laid on this aspect and all of us must demonstrate an ability to work as a unified

team.

I solicit your cooperation in ensuring highest level of commitment, passion and therefore as a team

we are equipped to handle a quantum leap in business in 2008 & beyond.

Finally, we will continue to take steps to bring in a wonderful working culture so that every one is

proud of being a part of a great company.

I take this opportunity in wishing all colleagues and their families a happy and prosperous 2008.

With warm regards to all of you,

R.Shivashankar

C.E.O