Gabriel India Ltd Management Discussions

Gabriel India Limited (also referred to as Gabriel India, GIL or The Company), the flagship of the ANAND Group, has been shaping the future of ride control and comfort for over six decades. Since 1961, the Company has steadily grown into a trusted name in Indias automotive components industry, known for its technology, innovation and engineering strength, as well as its commitment to quality, and deep-rooted partnerships with leading Original Equipment Manufacturers (OEMs).

The Company provides a wide portfolio of ride control products such as shock absorbers, struts, front forks as well as sunroofs. The Company caters to Two- and Three- Wheelers, Passenger Vehicles, Commercial Vehicles, Railways, and the Aftermarket. Prioritising innovation and technology, Gabriel India continues to deliver smart, lightweight solutions that improve safety, comfort, and performance.

In FY 2024-25, the Company expanded its manufacturing base and suspension products portfolio by acquiring assets from Marelli Motherson Auto Suspension Parts Private Limited (MMAS), a joint venture between the Motherson Group and Marelli Suspension Systems, Italy. This strategic move not only marked Gabriel Indias foray into the gas spring segment but also enabled access to advanced suspension technologies through a Technical Assistance Agreement with Marelli, significantly enhancing the Companys product capabilities and competitiveness.

Gabriel India is actively developing next-generation suspension technologies focused on enhancing ride comfort, vehicle handling, and adaptability to electric and new-age mobility platforms. Over the next two to three years, the Company plans to introduce advanced products such as electronically controlled damping systems and lightweight suspension components tailored for Electric Vehicles (EVs) and premium vehicles. These innovations aim to deliver smoother, more responsive rides across varying terrains, setting new benchmarks in performance and reinforcing Gabriel Indias leadership in future-ready mobility solutions.

Strengthening its innovation-led growth strategy, Gabriel India recently forayed into the European electric bicycle market with advanced suspension systems designed for city, cargo, and mountain bikes. Drawing on its decades of experience in high-performance automotive suspensions, the Company aims to meet the evolving needs of global bicycle manufacturers by offering products that are

durable, lightweight, and sustainable. This move marks a pivotal step forward in the Companys global journey and opens doors to a promising new segment.

Further strengthening its sustainability focus, Gabriel India is also introducing solar dampers-precision motion control components designed to enhance the efficiency of solar tracking systems. With confirmed orders already secured and production set to begin in FY 2025-26, this new vertical opens a high-growth adjacency aligned with the global clean energy transition.

In FY 2024-25, the global economy expanded at a moderate pace, supported by easing inflation, improving financial conditions, and robust consumer demand. Despite earlier challenges such as supply chain disruptions and geopolitical tensions, economies adapted with remarkable agility. As central banks gradually moved towards policy normalisation, businesses and investors aligned with shifting global trends, reinforcing overall economic stability. Global GDP growth held firm at 3.3% in 2024, driven by moderating inflation, renewed private sector confidence, and the recovery in trade. Global headline inflation is expected to decline more slowly than earlier anticipated. It is now projected to ease to 4.3% in 2025 and further to 3.2% in 2026. The revision reflects higher inflation estimates for advanced economies, partially offset by marginal downward adjustments in emerging markets and developing economies.

Advanced economies maintained a modest growth of

1.8% in 2024, led by the US, which helped balance weaker momentum in Europe and Japan. Global GDP output is projected to reach 2.8% in 2025 and 3.0% in 2026, though it remains below pre-pandemic levels. With most central banks ending their rate hike cycles, a shift towards accommodative policies is underway, creating a more supportive environment for investment and consumption.

Growth across Emerging Markets and Developing Economies (EMDEs) is showing signs of moderation, with the impact particularly pronounced in countries such as Mexico, South Africa, and Argentina. High debt levels and depreciating currencies in these markets are intensifying inflationary pressures and constraining policy flexibility. Simultaneously, many developing nations are grappling with tighter financing conditions and declining investor interest, further deepening economic vulnerabilities.

The US is expected to lead advanced economies for a third consecutive year. However, risks to global trade persist, particularly with the possibility of new tariffs under a re-elected US administration. Europes recovery remains fragile, while Chinas slowdown continues to be influenced by property sector adjustments and evolving consumption patterns. Nevertheless, EMDEs such as India are anticipated to anchor global growth, bolstered by stronger fundamentals and sustained investment across key sectors.

India continues to witness an upward economic trajectory, with GDP expected to rise by 6.4% in FY 2024-25, reflecting the countrys resilience amid global uncertainties. Solid domestic fundamentals, steady government capital investment, and consistent policy support are driving this growth. Furthermore, structural reforms, rising technology integration, and stable consumption trends have strengthened Indias standing among the worlds fastest-growing major economies. The Interim Union Budget for FY 2024-25 earmarked 11.1 Lac Cr. for capital expenditure. This accounts for 3.4% of GDP and marks a 16.9% rise over the previous year, highlighting the governments ongoing push towards infrastructure-led growth. The economy remains underpinned by solid gains in agriculture and services, alongside a strong labour market and stable macroeconomic environment. Targeted policy initiatives and welfare schemes continue to support domestic demand, while ongoing reforms aim to enhance productivity and competitiveness across sectors.

The manufacturing sector, a vital pillar of Indias growth, is projected to grow by 6.2% in FY 2024-25, supported by continued momentum in construction and utilities. Compared to the 9.5% growth in FY 2023-24, this deceleration stems from weaker global demand, seasonal domestic influences, and trade-linked constraints. Factors such as subdued exports, shifting festival schedules, and monsoon-linked disruptions also contributed to this temporary slowdown. Despite these pressures, core industrial activity remains on a firm footing.

Indias automotive industry, which contributes 7.1% to GDP and nearly 49% of manufacturing GDP, remains a major growth catalyst. The sector continues to benefit from rising investments and strong domestic consumption.

In FY 2024-25, the automotive industry saw a 7.3% growth in domestic sales and a 19.2% increase in exports. Passenger vehicles posted their highest-ever sales of 4.3 million units, with utility vehicles driving growth. Two- Wheelers also registered significant growth, with sales of 19.6 million units.

Looking ahead, the economic outlook for FY 2025-26 remains constructive but tempered by external risks such as geopolitical uncertainties, trade disruptions, and commodity price volatility. Domestically, sustaining

private sector investment, strengthening rural demand, and improving wage growth will be critical to maintaining momentum. Moreover, a favourable monsoon, stabilising food inflation, and macro-economic discipline are likely to aid rural consumption recovery.

To enhance medium-term resilience, India must focus on deepening structural reforms, accelerating deregulation, and fostering a business-friendly ecosystem. These measures will be essential for strengthening Indias global competitiveness and mitigating external vulnerabilities.

The global automotive industry is undergoing rapid transformation, driven by technological advancements, evolving consumer preferences, regulatory pressures, and innovative business models. Valued at approximately US$ 4,359.98 billion in 2024, it is projected to expand at a compound annual growth rate (CAGR) of 5.66%, reaching US$6,678.28 billion by 2032.

At the core of this transformation is the convergence of four major forces: electrification, autonomous mobility, connectivity, and modern mobility solutions. These trends are advancing in parallel, redefining industry norms and setting the stage for reinvention. Automakers are diversifying portfolios to include electric, hybrid, and digitally connected vehicles, while scaling investments in software, battery technology, and autonomous driving.

Emerging markets, particularly in the Asia-Pacific region, remain vital to growth. China led with over 31.3 million vehicles manufactured in 2024, while Indian and African economies are gaining traction, supported by demographics, policies, and rising vehicle penetration. Electrification is accelerating, backed by declining battery prices and investments in plants and charging networks, enabling smoother EV adoption.

Simultaneously, Hybrid Electric Vehicles (HEVs) are projected to grow strongly globally, including in India, as they are serving as a transition while infrastructure matures. Global semiconductor content per vehicle is also expected to double by 2030, driven by rising demand for ADAS, infotainment, and telematics.

Despite strong potential, the industry faces challenges such as supply chain disruptions, chip shortages, and rising environmental expectations. In response, automakers are investing in sustainability-focused R&D, efficient manufacturing, and resilient sourcing strategies.

The rise of shared mobility platforms, telematics, and over-the-air updates is redefining user experience, opening new revenue models and shaping product development. As the industry evolves, long-term value creation will be driven by agility, digitalisation, and a focus on innovation-led, sustainable mobility.

Indias automotive industry is entering a high-growth phase, driven by rising domestic demand, localisation, policy support, improved infrastructure, and the accelerating shift towards electric mobility. This momentum is underpinned by a growing middle class, low production costs, and expanding transport needs across rural and urban regions. From FY 2014-15 to FY 2024-25, India witnessed a sharp rise in vehicle production and exports reaching 5.3 million units, solidifying its global position. The sector now contributes nearly 7.1% to GDP and has attracted US$36 billion in FDI over the past four years.

Electrification is reshaping the market, particularly in three-wheelers and small passenger vehicles. Falling battery prices, expanding infrastructure, and rising investments are accelerating EV and hybrid adoption.

Key drivers include policy incentives, reduced GST on EVs, and targeted schemes such as the Production- Linked Incentives for Advanced Chemistry Cells and auto components.

The PM e-DRIVE scheme, with 10,900 Cr. outlay, aims to support 25 Lakh electric two-wheelers, 3.2 Lakh three- wheelers, 14,000 e-buses, and 2,000 Cr. for charging infrastructure. The Automotive Mission Plan 2047 envisions India as a global manufacturing and R&D hub, while the Vehicle Scrappage Policy aims to modernise fleets and drive replacement demand.

The 2025 Union Budget introduced further enablers including customs duty exemptions on EV batteries,

MSME support, and infrastructure investments to boost EV supply chains and market reach. Meanwhile, HEVs are gaining ground as a key transition technology.

However, the industry continues to face challenges including supply chain volatility, raw material costs, and the dominance of Internal Combustion Engine (ICE) vehicles. Addressing these issues requires sustained investments in advanced manufacturing, skilling, and capability-building in key precision component areas such as engine systems, transmission assemblies, and EV-focussed electronics-where India still trails global peers.

Indias auto component industry is expanding strongly and sustainably, driven by strong domestic demand, robust exports, and increased localisation in emerging technologies. Despite ongoing global headwinds, the sector continues to display sound fundamentals that paint a positive future picture.

According to ICRA, the industry is projected to grow by 8-10% in FY 2025-26, maintaining its momentum after a 9.6% year-on-year (YoY) growth in FY 2024-25 as per Automotive Components Manufacturers Association of India (ACMA). Although this marks a moderation from the sharp 14% growth seen in FY 2023-24, profitability remains steady with operating margins expected to hold firm at 11-12%. Exports touched US$ 21.2 billion in FY 2023-24, marking a significant turnaround from a US$ 2.5 billion deficit in FY 2018-19 to a US$ 300 million surplus. This figure will be supported by operating leverage, premiumisation trends, and an increasing share of value-added components.

The recently published NITI Aayog and CRISIL report outlines a bold growth path, projecting component production to reach US$ 145 billion by 2030. Exports are expected to touch US$ 60 billion, leading to a trade surplus of US$ 25 billion. However, the recent hike in US tariffs on Chinese EVs and auto components may shift global sourcing patterns, presenting both opportunities and competitive challenges for Indian exporters in the coming years.

As the industry adapts to the evolving mobility landscape, companies are ramping up investments in capacity expansion, technology upgradation, and product localisation. An estimated 250-300 billion is expected to be deployed in FY 2025-26, with a growing share focused on EV components.

While localisation in the EV value chain currently stands at 30-40%, notable strides have been made in areas such as traction motors, battery management systems, and power electronics. Battery cell manufacturing, however, remains a critical white space. Further, government initiatives, including fiscal incentives, R&D-linked subsidies, cluster infrastructure, and IP support, aim to fast-track development in high-value precision components.

Demand from the OEM segment, which drives over half the industrys revenue, is expected to grow by 10% in FY 2024-25 and 8-10% the following year. This trajectory will be fuelled by platform renewals, higher content per vehicle, and enhanced consumer expectations. Meanwhile, the replacement market continues to expand, supported by a larger active on-road vehicle population, increasing average vehicle age, and a shift towards preventive maintenance and lifecycle-based servicing.

Cost competitiveness continues to drive Indias edge. In the US market, Indian suppliers offer 15% savings over German peers and up to 25% over Chinese counterparts.

In parallel, India is fast emerging as a trusted partner in the global value chain for critical systems such as suspension modules, braking assemblies, and thermal solutions. These are areas where its automation maturity and quality benchmarks are steadily advancing.

The next wave of export potential lies in localising complex, software-integrated components. These include instrument clusters, telematics systems, electronic control units, and ABS modules. As global supply chains continue to rebalance, OEMs are shifting towards de- risked, multi-region sourcing strategies. In this context, Indias engineering depth, cost advantage, and expanding supplier base offer a strong alternative. Strong linkages with Indias electronics, IT, and steel sectors are further enabling this transition, while sustained R&D investment is enhancing the industrys ability to innovate.

The growing shift towards connected, intelligent vehicles is redefining the role of auto components. As Advanced Driver Assistance Systems (ADAS), connected mobility, and data-rich platforms gain traction, demand for integrated sensors, embedded software, and advanced control systems is accelerating across all segments.

Contributing 2.3% to Indias GDP and employing over 1.5 million people directly, the auto component sector holds a vital position in the countrys industrial and employment framework. With strong policy backing, faster reform implementation, and sharper focus on next-generation manufacturing, India is set to increase its global component trade share from 3% to 8% by the end of the decade. This will mark Indias shift from being a volume- driven supplier to a high-value strategic partner for global OEMs.

Gabriel India, with deep engineering expertise, strong OEM ties, and a firm focus on innovation and localisation, is well placed to seize the opportunities created by this industry transformation.

The Company continues to maintain strong leadership in the Two- and Three-Wheeler (2W/3W) segment, including the rapidly growing EV category. In FY 2024-25, the segment recorded a 12.2% YoY growth, with revenues reaching 2,269 Cr., compared to 2,022.4 Cr. in the previous year. It contributed around 63% to the Companys overall revenue.

Gabriel India supplies a broad portfolio of front forks and rear shock absorbers to leading OEMs. Key customers include TVS Motor, Suzuki Motorcycle India, Honda Motorcycle & Scooter India, Bajaj Auto, Yamaha India as well as EV customers such as Ather Energy and Ola Electric. Gabriel Indias strong performance is anchored in its sharp focus on quality, cost efficiency, and continuous innovation aligned with evolving mobility trends.

Gabriel India continued to improve its hold in the Passenger Vehicle (PV) segment, with strong gains in Utility Vehicles (UVs). The Company retained a significant 27% market share in the UV segment, well above its overall 24% share in the broader passenger vehicle market. This performance was supported by the rising demand for SUVs and the successful launch of new models by key OEM partners.

Key customers such as Maruti Suzuki drove volume growth through several successful programme launches during the year. The Companys top three customers in this category - Maruti Suzuki, Skoda Volkswagen, and Mahindra, underscore its deep-rooted relationships with leading OEMs. In addition, Gabriel India continues to build strong traction with other key players such as Tata Motors, Toyota Kirloskar Motor Private Limited (TKM), and Stellantis, reinforcing its reputation as a trusted and innovative partner in the evolving PV space.

market share is attributed to strong partnerships with key OEMs, including Tata Motors, Mahindra, Ashok Leyland, Volvo Eicher Commercial Vehicles and Daimler India Commercial Vehicles as well as successful programme launches such as Mahindras UPP-G1, E Jeeto, and TMLs Coral.

Capitalising on its strong domestic presence, Gabriel India is extending its reach into global markets. Its international expansion began with ISUZU Motors and DAF Trucks, with further collaborations underway, including other global customers. These strides highlight the Companys focus on innovation and its readiness to scale globally.

The Company has taken significant strides towards expanding its product portfolio in the railways sector by becoming the only qualified Indian supplier for the prestigious Vande Bharat Express. In addition, the Company has developed shock absorbers for both the Vande Bharat Express and electric locomotives, marking a key milestone in its diversification journey. Moreover, Gabriel India has supplied over 13,000 LHB coach dampers and more than 20,000 EMU/MEMU coach dampers, demonstrating its significant presence in the railways segment.

Over the past six decades, the Company has built a strong aftermarket presence and an enduring brand across vehicle categories. It caters to Two- and Three-Wheelers, Passenger Vehicles, and Commercial Vehicles. With 40% market share, the Company retained its market leadership in FY 2024-25, delivering sales growth of 7.3%.

A key driver of this performance has been the consistent launch of new products, with over 1,300 SKUs introduced in the last five years. Gabriel India stands out as the only company with a presence across all market segments. In FY 2023-24, it also executed four IT enablement projects to improve operational efficiency.

The Companys progress is underpinned by a robust distribution network that spans six continents, supported by 9 Carrying and Forwarding Agents (CFAs), over 700 dealers, 26,000+ retail outlets, and a highly efficient sales force, ensuring strong market penetration and customer reach.

Gabriel India has entered the high-growth sunroof systems market, capitalising on rising consumer demand, particularly in the SUV segment. To strengthen its presence in this space, the Company has partnered with Netherlands-based Inalfa Roof Systems, the worlds second-largest sunroof manufacturer. This collaboration operates under the name of Inalfa Gabriel Sunroof Systems (IGSS) Private Limited.

To support this new business vertical, the Company set up a dedicated manufacturing facility near Chennai. The plant has an initial capacity of 200,000 units per year, with built-in scalability to meet future growth. In FY 2024-25, IGSS recorded revenue of 420 Cr., reflecting a strong early market response.

Advanced discussions with OEMs, are underway with new RFQs expected soon. To meet rising demand, a second production line at the Companys Sriperumbudur facility will go live in H1, CY 2025-26, doubling the capacity. This foray not only strengthens the Companys portfolio, but also aligns with evolving consumer preferences and OEM trends in Indias automotive sector.

Financial Overview ( Cr., unless otherwise indicated)

J 1 Rising per Capita

Income and Urbanisation

Indias rising per capita income, which reached 1,06,744 in FY 2023-24, is increasing vehicle affordability and broadening consumer access across automotive segments. This trend is leading to a steady upgrade cycle from two-wheelers to entry-level cars and compact SUVs. Demand for premium and luxury vehicles is also rising. Rapid urbanisation, with over 500 million people expected to reside in cities by 2030, is further fuelling the need for personal mobility. These demand patterns are aligned with the objectives of the Automotive Mission Plan 2047, reinforcing Indias emergence as a global automotive hub.

J 2 Demographic

Tailwinds

India, with a population exceeding 1.4 billion and a median age of 29.8 years, is rapidly emerging as one of the worlds most dynamic automotive markets. A fast-expanding consumer class, expected to add 60 million households by 2025, is driving greater affordability for compact and midsize vehicles. The younger demographic shows a strong preference for tech-enabled, connected, and electric vehicles, which is accelerating innovation across product categories. At the same time, demand hubs such as Delhi and other major metros are experiencing a surge in premium and feature-rich vehicle purchases.

r 3 Government Policy Support

The Union Budget for FY 2025-26 marks a bold move towards accelerating electric mobility in India. It includes a 713% increase in PLI allocations for auto components and batteries, alongside customs duty exemptions on EV batteries. The PM E-Drive scheme has received a 114% budget hike, reflecting the governments strong commitment to clean transportation. Complemented by tax and credit reforms for MSMEs, these initiatives are boosting research, innovation, and local manufacturing across the value chain. Clean mobility, public transport electrification, and infrastructure investments further support Indias transition to a globally competitive and self-reliant automotive sector.

Soaring Sunroof Demand

The global automotive sunroof market is projected to grow from US$ 15.68 billion in 2025 to US$ 35.65 billion by 2032, supported by rising consumer preference for premium features in mass-market segments. Once reserved for luxury vehicles, sunroofs, especially panoramic designs, are now increasingly available in compact and mid-size SUVs. Moreover, innovations such as self-tinting glass, UV protection, and noise- reduction technology are boosting appeal among Gen Z and urban consumers, making this feature a key differentiator in vehicle purchase decisions.

^[5 Export

Potential

Indias automotive exports remain a key contributor to economic growth. The auto component sector posted a net export surplus of US$ 21.2 billion in FY 2023-24. Over the next decade, total industry exports are expected to grow fivefold. Competitive costs, consistent quality, and supportive policies have made India a preferred hub for global OEMs. As per recent projections, component exports will reach US$ 60 billion by 2030. This growth will be underpinned by innovations in ADAS, zonal architecture, and sustainability. Driven by these developments, nearly 80% of global OEM sourcing heads are keen to raise procurement from India, reflecting the sectors rising importance.

6 Technological

Advancements

The automotive industry is undergoing rapid transformation, driven by advancements in ride control technologies, lightweight materials, and the growing shift towards electric mobility. Semi-active and adaptive damping systems, digital simulation tools, and AI-led automation are reshaping how products are designed, validated, and brought to market. These innovations are enabling faster development cycles, improved vehicle dynamics, and greater alignment with evolving safety, comfort, and environmental expectations-particularly as EV platforms demand new approaches to suspension design.

f 7 Shifts in Customer

Expectations

Customers in 2025 are redefining value by prioritising feature-rich, tech-enabled, and customisable vehicles over traditional brand loyalty. With a growing appetite for hybrid powertrains, connected systems, and digital integration, the line between personal vehicles and tech ecosystems is becoming less defined. The rise of Mobility-as-a-Service (MaaS) is also transforming vehicle access preferences, particularly among younger demographics. These shifts demand adaptive strategies from automakers, who must adopt flexible, innovation-led strategies to remain competitive.

^(8 Sustainability

and Regulatory Momentum

Stringent emission regulations and growing environmental consciousness are reshaping the automotive space. OEMs are under increasing pressure to align with global sustainability goals by investing in eco-friendly technologies, including EVs, hybrids, and clean manufacturing. Companies that fail to act may risk falling behind as consumer values and policy frameworks continue to evolve.

A strong risk management framework forms a core part of the Companys business strategy. Like other players in the automotive sector, the Company faces a spectrum of operational, strategic, and external risks. It actively tracks these risks and implements timely measures to reduce their impact.

Gabriel India has a dedicated Enterprise Risk Management (ERM) system, which operates independently to identify, evaluate, and manage emerging risks across functions. The ERM framework enables a structured approach to risk assessment, helping the Company anticipate potential challenges and take preventive actions.

The Company follows an integrated, forward-looking risk strategy, embedding risk controls into critical business decisions. It carries out regular risk reviews to ensure alignment between day-to-day operations and long-term growth plans. By balancing risk control with opportunity realisation, Gabriel India drives sustainable growth and protects stakeholder interests.

Gabriel India attributes its success to dedicated employees, whose commitment and contributions have been pivotal in driving the Companys growth and achievements. Recognising their critical role, the Company has continuously enhanced its HR-related processes, practices, and systems to align more closely

with its strategic objectives. In FY 2024-25, Gabriel India made a significant investment of 2.2 Cr. in training and development. This investment resulted in 91% of employees being covered under structured learning programmes, a steady increase from 87% the previous year. Through a combination of on-the-job training, skill enhancement workshops, and digital learning modules, Gabriel India ensures its people are equipped to thrive in a rapidly evolving industry.

The Companys commitment to employee development is evident in its comprehensive approach to training.

By offering diverse learning opportunities, Gabriel India empowers its employees to continuously improve their skills and adapt to new challenges. This focus on professional growth not only enhances individual capabilities but also drives the Companys overall success.

Gabriel Indias strategic investment in its people underscores the importance of a skilled and motivated workforce in achieving long-term business goals. As the Company continues to innovate and expand, its employees remain at the heart of its journey, contributing to sustained growth and excellence.

The ability to attract and retain top-tier talent has been a key driver of business continuity and growth for Gabriel India. The Company maintained an average employee experience level of eight years, ensuring a stable and experienced workforce. Acknowledging this, Gabriel India has been recognised as a Workplace of Winners (WOW) - Best Place to Work in the Manufacturing category at the prestigious WOW Workplace Awards 2025 by Jombay.

A culture of collaboration and trust thrives within the Company, backed by strong industrial relations and support from the ANAND Group. Employee well-being, engagement, and empowerment remain central to its HR

approach. Key initiatives included investments in technical upskilling, digital learning, and leadership development through ANAND U, and external and internal trainers, delivering over 26,418 learning hours in FY 2024-25. A strong focus was placed on AI-based projects, inclusion-led hiring, and enhanced shop floor training. These efforts reflect the Companys commitment to building a safe, inclusive, and future- ready organisation.

Gabriel Indias approach to human capital extends beyond conventional HR functions. It takes a holistic view of employee development, encompassing career guidance, skill development, and meaningful engagement throughout an individuals professional journey. The Companys workforce comprises seasoned professionals with deep industry knowledge, whose contributions continue to drive Gabriel Indias operational excellence and continued innovation.

For Gabriel India, sustainability is an aspect that drives every facet of its operations. The Company remains committed to conducting its business in a way that supports inclusive economic growth, safeguards environmental balance, and promotes long-term social progress. This conviction is reflected in its proactive adoption of Environment, Social, and Governance (ESG) principles, which are now fully integrated into its strategy, decision-making, and everyday practices.

All Gabriel India manufacturing facilities uphold ISO 45001 certification, reflecting the Companys strong focus on workplace health and safety. Each plant is supported by dedicated Environment, Health, and Safety (EHS) officers, ensuring strict compliance with regulatory standards and the implementation of industry-leading practices.

Employees across all levels undergo continuous EHS training in line with ISO 14001 and ISO 45001 standards. These training programmes, which include shop floor sessions and structured EHS inductions for new recruits, are closely monitored through periodic reviews and business meetings to ensure accountability and consistent reinforcement.

The Company was honoured at the Honda Motorcycle and Scooter India Supplier Sustainability Meet, the Maruti Suzuki Green Vendor Conference, and received commendations for its leadership in Zero Liquid Discharge (ZLD) implementation and biodiversity stewardship.

During the year, Gabriel India advanced its sustainability agenda further by conducting and publishing its first Biodiversity Assessment Report for the Chakan and Dewas plants, aligned with the GRI 2016 framework. This initiative reflects Gabriel Indias focus on environmental stewardship and its effort to assess and reduce its

ecological footprint. Additionally, the Company recognised its suppliers who demonstrated 90% compliance with the Companys EHS guidelines, reinforcing its commitment to responsible supply chain management.

The Company was honoured at the Honda Motorcycle & Scooter India Supplier Sustainability Meet, the Maruti Suzuki Green Vendor Conference, and received commendations for its leadership in Zero Liquid Discharge (ZLD) implementation and biodiversity stewardship.

Through these continued efforts, Gabriel India upholds high standards of responsible business conduct.

The Company also ensures a safe, inclusive, and environmentally conscious workplace, contributing meaningfully to a more sustainable future.

Gabriel India holds steady in its commitment to environmental stewardship, aiming to become a leading producer of eco-friendly automotive components in India. The Company has implemented a range of sustainable practices across its operations, emphasising efficiency, resource conservation, and the adoption of renewable energy sources.

A significant milestone in this journey is the establishment of ZLD effluent treatment facilities at its Hosur, Chakan, Nashik, and Dewas plants, ensuring responsible water management. In recognition of its green initiatives, Gabriel Indias Pune Tech Centre and Sanand Facility have been awarded the ‘Green Factory Building Certification by the Indian Green Building Council (IGBC), with Platinum and Silver ratings, respectively.

To reduce its carbon footprint, Gabriel India has invested in renewable energy projects, including:

/ A 3.6 million units per annum group captive wind power plant at Hosur

/ Solar installations at Hosur and Chakan produce 2.14 million and 3.58 million units per year, respectively / Expanded renewable portfolio with a 2.3 million units group captive solar plant at Nashik and a 1.1 million units annual capacity addition at the Chakan facility

Renewable Energy at the end of FY 2024-25 is 32% of electricity consumption, up from 0% in FY 2013-14. Additionally, the implementation of IoT-based software across plants provides real-time insights into energy consumption, facilitating prompt actions to reduce manufacturing losses, save energy and cut down on its the carbon footprint.

Through such concerted efforts, Gabriel India continues to integrate sustainability into its core operations, aligning with its ambition of achieving carbon and water neutrality by 2025.

The Company conducted a detailed materiality assessment to strengthen stakeholder engagement and refine its sustainability approach. This involved structured discussions with senior leadership and a survey capturing views from employees, vendors, investors, customers, and community representatives.

The assessment helped the Company identify and prioritise key Environmental, Social, and Governance (ESG) issues critical to its long-term sustainability and value creation. These material themes now form the foundation of Gabriel Indias ESG strategy, guiding its action plans, measurable targets, and short- and longterm commitments.

To ensure accountability and relevance, Gabriel India has embedded these priorities into its operational and governance frameworks through improvement roadmaps, performance indicators, and supportive policies. The Company remains committed to regularly updating the assessment in line with evolving stakeholder expectations and global sustainability standards.

Gabriel India manages operational risks through continuous monitoring and timely corrective measures. The Company has established strong internal control systems that are specifically designed to match the scale and nature of its operations. These systems ensure the protection of assets and ensure proper authorisation, recording, and reporting of transactions.

The internal control mechanisms are meticulously structured to guarantee the accuracy and reliability of financial and operational records, reflecting the true nature of the Companys activities. The Audit Committee meets quarterly to review Internal Audit reports, track the resolution of action items, and ensure compliance with audit plans. This rigorous approach ensures that Gabriel India adheres to regulatory requirements and conducts its operations with transparency and accountability.

Furthermore, Gabriel India continuously improves its internal control systems by implementing appropriate policies and processes based on Enterprise Risk Management, Internal Financial Controls, and Internal Audits. This proactive stance helps the Company maintain high standards of governance and operational excellence, reinforcing its commitment to ethical business practices and sustainable growth.

As Indias leading shock absorber manufacturer, Gabriel India has firmly established itself as a trusted and innovative industry leader. Building on this foundation, the Company aspires to be among the ‘Worlds Top Five Shock Absorber Manufacturers by 2025. Gabriel India is advancing this aim through strategic investments, cutting-edge technology, and customer-led growth. While its core expertise in ride control solutions remains central, Gabriel India is actively diversifying into high-growth areas such as sunroof systems, solar dampers, and e-bike suspension. Inalfa Gabriel Sunroof Systems Private Limited intends to expand its operations beyond South India to meet the growing nationwide demand for sunroof systems.

With its strategic investments, advanced technology, and customer-led growth, Gabriel India is set to achieve its ambitious goals and strengthen its global presence across product categories and geographies. The Companys forward momentum is further supported by its global expansion strategy, with new partnerships underway in international markets. Gabriel India is diversifying its portfolio by venturing into new domains and leveraging its strong relations with OEMs. On the innovation front, the Company continues to invest through its Tech Centres in India (Pune and Hosur) and the Gabriel Europe Engineering Centre (GEEC), Belgium. These centres are focused on developing next-generation ride control technologies, both passive and active suspensions.

With sustainability embedded in its long-term strategy, Gabriel India is making measurable progress towards its ambition of carbon and water neutrality by 2027.

The Company aims to implement Zero Liquid Discharge systems across two remaining facilities. These initiatives are part of Gabriel Indias commitment to responsible corporate citizenship and environmental stewardship. Supported by strong financials, operational excellence, and a forward-looking approach, Gabriel India is ready to navigate the evolving mobility space and deliver longterm stakeholder value.

Looking ahead, Gabriel India remains firmly focused on scaling new frontiers-technologically, geographically, and strategically. As mobility evolves towards electrification, sustainability, and intelligent systems, the Company is future-proofing its portfolio with advanced, modular, and clean-tech solutions. By staying true to its purpose and embracing change with agility, Gabriel India is well positioned to lead the next era of ride control innovation and deliver sustained value to all its stakeholders.

Statements made in the Management Discussion and Analysis describing Gabriel Indias objectives, projections, estimates, and expectations may be ‘forward-looking within the meaning of applicable securities laws and regulations. Actual results could differ from those expressed or implied. Key factors that could make a difference to the Companys operations include economic conditions affecting demand, supply, and price conditions in the domestic and overseas markets in which the Company operates, changes in Government regulations, tax laws and other statutes, and other incidental factors.