Goodyear India Ltd Management Discussions

1. Industry Structure & Developments

The Indian farm tire industry faced a series of challenges, including rising raw material costs, supply chain disruptions, and external pressures such as fuel price volatility and weak agricultural income. These factors contributed to slower growth and reduced demand for farm tires in certain segments of the market. However, despite these challenges, the industry showed resilience and registered growth of 3.8% in the Financial Year 2024-25 on Y-O-Y basis.

Few notable changes in the Consumer segment Industry are

Dominance of Utility Vehicles (UVs) and SUVs: This segment continues to be the primary growth driver and accounts for more than 60% of total passenger vehicle sales. Consumers increasingly prefer the spaciousness, comfort, safety features, and higher ground clearance offered by SUVs and compact SUVs which is driving growth in this segment and hence growing demand for tyres in this segment

Increasing Demand for Premium Vehicles: A notable trend is the rising interest in premium models and high-end variants. considering Significant premium options, fueled by rising disposable incomes and a desire for better features and status. This is resulting into migration of tyre demand from lower rim segments to higher rim segments

Growing Traction for Electric Vehicles (EVs): While still a smaller segment compared to petrol and diesel vehicles, the EV market is experiencing a surge in interest and sales. Government incentives, rising fuel prices, and increasing environmental awareness are driving this consumer shift towards luxury, SUV, and demand. This segment is also gaining momentum with new model launches.

Hybrid Vehicles as a Bridge: Theres a growing preference for hybrid vehicles as consumers explore sustainable options while awaiting more robust EV infrastructure and incentives. Hybrids are seen as a bridge technology, offering a balance between traditional power trains and full electrification.

Online Sales and Digital Influence: Digital platforms and online tyre and channels are playing a more significant car buying journey. Consumers are increasingly using online resources for research, comparing features and prices, although final purchases often still occur offline.

In summary, the Indian passenger vehicle market is tilting towards SUVs and premium vehicles, with a strong undercurrent of growing interest in EVs and hybrids. Safety, technology, and the digital experience are becoming increasingly important for consumers, while traditional segments like hatchbacks and sedans are losing ground.

In FY24-25, the Company focused on boosting volume by expanding its retail presence and intensifying extraction efforts. Moreover, the brands positioning was further reinforced through the introduction of a new premium product lineup, supported by the application of technology and analytics to boost both customer engagement and productivity.

2. Strength, Weakness, Opportunities and Threats

Indian tyre Industry is dominated by the Commercial category (Truck & Bus) which contributes more than 50% of the tyre industry revenue. However, the Company has limited presence in the Commercial tyre category which limits its ability for portfolio selling and ability to mitigate risk of the Farm category. Despite these constraints, the outlook of the Company remains positive. As Indias population, the largest globally at 18% (World Population Review), continues to rise, the need for agricultural products intensifies. Recognizing this, the Government has prioritized agriculture sector, accounting for 18% of the countrys GDP. Additionally, more than 50% of Indias population is dependent on agricultural products which is further fueling the growth of this sector. This growth has prompted the farmers to adopt newer and more advanced technologies to deliver higher productivity. The Farm industry outlook for mid to long-term (3 to 5 years) continues to remain positive. The Company maintained/ preserved its leadership position in the Farm business category by its efficient and competitive operations. vehicles Asignificant is set to fuel growth in the replacement tyre industry. This preference for larger rim sizes will shape future market demands. Recognizing this, the Company is strategically prioritizing growth in premium segments to enhance profitability. By leveraging its technological, and superior products to differentiate itself, the Company aims to gain market share. Despite strong competition, the Company remains committed to growth through expanding its channels and improving service via technology. Furthermore, it is launching innovative products tailored to the evolving demands of the luxury SUV and EV markets.

3. Segment-wise/ Product-wise Performance

The Company manufactures and sells automotive tyres viz. farm tyres and commercial truck tyres at its Ballabgarh plant. The Company also markets and sells passenger car tyres which are manufactured by Goodyear South Asia Tyres Private Limited

(‘GSATPL), Aurangabad, in the replacement market. Other products which the Company markets and sells include tubes and flaps.

The sales performance during the year is as follows:

Tyres	246,161
Tubes	11,658
Flaps	66

4. Outlook

A positive outlook is emerging for the Financial Year 2025-26, fueled by forecasts of a normal monsoon, positive prospects for the rabi crop, increased wheat output compared to last year, and government support through higher Minimum Support Price (MSP) & multiple DBT schemes, However erratic monsoon rainfall, water reservoir levels, inflationary pressure, and geopolitical conflicts concern areas for the sector The Company maintained/ preserved its leadership tion. position in the Farm business category by its operations. The Farm OE business will continue to focus on delivering excellence in customer service and key account management. In the Farm Replacement business, the Company shall look at prioritizing channel expansion, channel engagement and operational excellence by delivering the right tyre, to the right place, at the right time and cost. portion Both the channels will be supported through new product launches in emerging segment to support growing consumer demand The increasing adoption of larger rim sizes in vehicles is expected to drive robust sales volume in the Consumer cial Replacement business. This shift is part of a broader change in consumer preference, with SUVs, EVs, and luxury vehicles gaining considerable popularity due to their spaciousness, comfort, safety features, environmental benefits, with rising disposable incomes.

Company will Recognizing this significant continue its unwavering commitment to introduce new consumer centric innovative products, improve service through technological advancements, and streamline its distribution network.

5. Risks and Concerns

• Slower Than Expected Growth: While India is still a fast-growing economy, forecasts for FY25 have been revised downwards by some institutions, reflecting a potential slowdown in urban demand and the impact of global uncertainties.

• Persistent Core Inflation: Although headline inflation has eased, core inflation remains sticky, indicating underlying price pressures that could necessitate careful monetary management by the Reserve Bank of India

• Unemployment and Underemployment: Creating quality jobs for Indias large and growing workforce remains a significant challenge.

• Fiscal Constraints: While the government is focused on infrastructure spending, high levels of government debt and potential impacts on revenue from tax exemptions could limit future fiscal space.

• Global Economic Uncertainty: Factors like geopolitical tensions, potential shifts in US trade policy, and volatile commodity prices (especially oil, of which India is a major importer) pose external risks.

• Trade and Tariff Issues: Rising trade tensions and potential reciprocal tariffs from major trading partners like the US could negatively impact Indias export growth.

Climate Impact on Agriculture: Adverse weather conditions remain key and heat waves could affect agricultural output, impacting rural incomes and potentially fueling food

• Financial Sector Vulnerabilities: While the situation has stabilized, potential for renewed stress in the financial sector, including the risk of rising interest rates impacting borrowers, remains a concern.

• Raw Material Price Volatility: Natural rubber and crude of tyre oil derivatives constitute a significant production costs. Fluctuations in these prices can severely impact profitability.

6. Internal Control Systems and Adequacy

The Company has a proper and adequate system of internal finan. The Company has control including internal an Audit Committee headed by a Non-Executive Independent

Director, inter-alia, to oversee the Companys financial reporting process, disclosure of financial information, and reviewing the performance of statutory and internal auditors with management. The internal control system, including internal financial controls of the Company, is monitored by an independent internal audit team, which encompasses examination/periodic reviews to ascertain adequacy of internal controls and compliance to the Companys policies. Weaknesses noted, if any, along with agreed upon action plans are shared with the Audit Committee, which is designed to ensure orderly and efficient conduct of the business and effectiveness of the internal control system. The audit function also looks into preventive controls, investigations, as well as other areas requiring mandatory review as per applicable laws. The powers of the Audit Committee, inter-alia, include seeking information from any employee, obtaining outside legal or other professional advice, and investigating any activity of the Company within the

Committees term of reference. changes in key financial ratios The internal audit department shares regular updates regarding the work that is done, coverage, weaknesses noted and other relevant issues with appropriate management levels including Audit Committee. Observations/ weaknesses noted from time to time are suitably acted upon and followed up at different levels of management. The internal control is supplemented by an extensive program of audits and periodic review by the management.

7. Discussion on Financial Performance with respect to Operational Performance

The details of the financial performance of the Company are reflected in the Balance Sheet, Statement of Profit & Loss and other Financial Statements, appearing separately. Highlights are provided below:

Particulars	March 31, 2025	March 31, 2024
Total Income	262,557	256,868
Profit Before Tax	7,468	12,803

The financial performance of the Company has been further explained in the Boards Report of the Company for the Financial Year 2024-25 appearing separately.

The financial statements have been prepared in accordance with the requirement of the Act, and applicable accounting standards issued by the Institute of Chartered Accountant of India.

8. Human Resources

Industrial Relations

During the year, industrial harmony was effectively sustained through constructive and cordial employee relations. The successful conclusion of the Collective Bargaining Agreement

(CBA) negotiations with the union reflected a collaborative and solution-oriented approach to workforce engagement. As part of the organizations ongoing commitment to employee development, a series of structured training programs were conducted. These sessions focused on key areas such as ethics and compliance, workplace discipline, employee safety, and environmental awareness, thereby enhancing the competencies and awareness of the workforce.

In addition to skill development, Goodyear India Ltd. implemented a variety of employee engagement initiatives aimed at strengthening organizational culture and employee morale. Initiatives such as skip-level interactions, career milestones assessment centers, and celebrations of significant and cultural festivals were organized to foster inclusivity and maintain high levels of employee engagement. Various activities are conducted as part of the Womens Network to promote a culture of safety, empowerment, and respect. In 2025, the Company also distributed safety kits to all women employees towards its effort to strengthen woman empowerment & safety.

9. Details of significant along with detailed explanations thereof, include:

S. No. Particulars	Financial Year	Financial Year
	2024-25	2023-24
1 Debtors Turnover	9.36	8.53
2 Inventory Turnover	8.74	8.51
3 Interest Coverage Ratio*	16.96	31.20
FT>4 Current Ratio	1.35	1.27
5 Debt Equity Ratio	0.05	0.01
6 Operating Profit Margin in percentage	2.4%	4.6%
7 Net profit margin in Percentage	2.1%	3.8%
8 Details of any change in Return on Net worth as compared to the immediately previous Financial Year along with a detailed explanation thereof**	9.3%	16.0%

*Primarily due to lease of new Head Office which has increased the debt consisting of lease liabilities in current year.

10. Cautionary Statement

Certain statements in the Management Discussion and Analysis report may constitute forward-looking statements within the meaning of applicable laws and regulations. These statements reflect the Companys current views regarding the industry, future expectations, objectives, and forecasts. However, actual results may differ materially from those expressed or implied due to various risks and uncertainties.

Factors that may cause such differences include, but are not limited to, disruptions in supply and demand arising from geopolitical tensions or other unforeseen events, input prices and availability, persistent fuel inflation, changes in

Government policies, tax laws, judicial or regulatory decisions, industrial relations issues, global economic conditions, and potential restrictions in certain geographies.

ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITIY (‘CSR) ACTIVITIES

1. Brief outline on CSR Policy of the Company:

The Company has continuously strived to be a socially, ethically and environmentally responsible corporate entity. In Financial Year 2024-25, the Company invested in CSR projects on Environment Sustainability and Women Empowerment. Implementation of these projects were carried out through various implementation partners having expertise in Environment and Women Empowerment and related projects being carried out in the communities of Faridabad, Haryana and Barnala, Punjab where the Companys manufacturing facilities and business operations are located.

To ensure effective implementation of the projects, the Company instituted an extensive monitoring and evaluation framework which facilitated successful achievement of the projects goals.

2. Composition of CSR Committee:

As on the date of this report, composition of CSR Committee is as follows:

S. No Name of Director	Designation/ Nature of Directorship	Number of meetings of CSR Committee held during the year	Number of meetings of CSR Committee attended during the year
1 Mr. Sandeep Mahajan(1)	Chairman / (Chairman & Managing Director)	2	2
2 Mr. Arvind Bhandari(2)	Chairman / (Chairman & Managing Director)	2	0
3 Mr. Rajeev Kher(3)	Member / (Independent Non- Executive Director)	2	2
4 Mr. Manish Mundra(4)	Member / (Whole Time Director & Chief Financial Officer)	2	1
5 Mr. Nitesh Kumar Jain(5)	Chairman / (Non-Executive Director)	2	0
6 Ms. Varsha Chaudhary Jain(6)	Chairman / (Whole Time Director)	2	0
7 Mr. Sumit Dutta Chowdhury(7)	Member / (Independent Non- Executive Director)	2	0
8 Ms. Uma Ratnam Krishnan(8)	Member / (Independent Non- Executive Director)	2	1

(1) The tenure of Mr. Sandeep Mahajan (08627456), on attaining his superannuation, as Chairman and Managing Director of the Company has Completed from the close of business hours on October 31, 2024.

(2) Mr. Arvind Bhandari (DIN: 10864817), appointed as the Managing Director of the Company w.e.f. January 02, 2025.

(3) Mr. Rajeev Kher (DIN: 01192524) has completed his tenure as the Independent Non-Executive Director of the Company from the closure of business hours of March 05, 2025.

(4) Mr. Manish Mundra, Whole Time Director and Chief Financial Officer office with effect from the close of business hours of June the Company has resigned from his 30, 2024.

(5) Mr. Nitesh Kumar Jain (DIN: 10615116) was appointed as an Additional Director and Non-Executive Director of the Company w.e.f. June 01, 2024. He was appointed as Chairman of the CSR Committee w.e.f. November 01, 2024. Further, Mr. Nitesh Kumar Jain has resigned from the position of Non-Executive Non-Independent Director of the Company with effect from the close of business hours of November 11, 2024.

(6) Ms. Varsha Chaudhary Jain (DIN: 08388940) was appointed as an Additional Director & Whole-Time Director of the Company w.e.f. November 12, 2024, and Chairperson of the Board w.e.f. November 12, 2024. However, the Board at its meeting held on December 30, 2024, appointed Mr. Arvind Bhandari as the Chairman of the Board in place of Ms. Varsha Chaudhary Jain. (7) Mr. Sumit Dutta Chowdhury (DIN: 02117586) has been appointed as an Independent Non-Executive Director of the Company w.e.f. March 06, 2025 (8) Ms. Uma Ratnam Krishnan (DIN: 00370425) was appointed as an Independent Non-Executive Director of the Company w.e.f. June 07, 2024.

3. Provide the web-link(s) where Composition of CSR Committee, CSR Policy and CSR Projects approved by the board are disclosed on the website of the company.

The Composition of the CSR Committee, CSR Policy and CSR projects may be accessed on the Companys website at: https://www.goodyear.co.in/investor-relations

4. Provide the executive summary along with web-link(s) of Impact Assessment of CSR Projects carried out in pursuance of sub-rule (3) of rule 8, if applicable.

No impact assessment of CSR projects was carried out as the same is not applicable to the Company.

5. a. Average net profit of the company as per sub-section (5) of section 135: Rs. 14,707.53 Lakhs b. Two percent of average net profit of the company as per sub-section (5) of section 135: Rs. 294.15 Lakhs c. Surplus arising out of the CSR Projects or programmes or activities of the previous financial years: Not Applicable d. Amount required to be set-off for the financial year, if any:NIL e. Total CSR obligation for the financial year [(b)+(c)-(d)]:Rs. 294.15 Lakhs 6. a. Amount spent on CSR Projects (both Ongoing Project and other than Ongoing Project). Rs. 288.22 lakhs b. Amount spent in Administrative Overheads: Rs 5.94 Lakhs c. Amount spent on Impact Assessment, if applicable: NIL d. Total amount spent for the Financial Year [(a)+(b)+(c)]: Rs. 294.15 Lakhs e. CSR amount spent or unspent for the Financial Year: NIL

Total Amount		Amount Unspent (in Rs.)
Spent for the Financial Year.	Total Amount transferred to Unspent CSR Account as per sub- section (6) of section 135.		Amount transferred to any fund specified under Schedule VII as per second proviso to sub-section (5) of section 135.
(Rs. In Lakhs)	Amount.	Date of transfer.	Name of the Fund	Amount.	Date of transfer.
294.15			Not Applicable

f. Excess amount for set-off, if any: Nil

Sl. No. Particular	Amount
	(Rs. In Lakhs)
(1) (2)	(3)
(i) Two percent of average net profit of the company as per sub-section (5) of section 135	294.15
(ii) Total amount spent for the Financial Year	294.15
(iii) Excess amount spent for the Financial Year [(ii)-(i)]	Nil
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous Financial Years, if any	Nil
(v) Amount available for set off in succeeding Financial Years [(iii)-(iv)]	Nil

7. Details of Unspent Corporate Social Responsibility amount for the preceding three Financial Years:

1	2	3	4	5	6		7	8
Sl. No.	Preceding Financial Year(s)	Amount transferred to Unspent CSR Account under sub- section (6) of section 135 (in Rs.)	Balance Amount in Unspent CSR Account under sub- section (6) of section 135 (in Rs.)	Amount Spent in the Financial Year (in Rs)	Amount transferred to a Fund as specified under Schedule VII as per second proviso to sub- section (5) of section 135, if any		Amount remaining to be spent in succeeding Financial Years (in Rs)	Deficiency, if any
					Amount (in Rs)	Date of Transfer
				Not Applicable

8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the Financial Year: No

If Yes, enter the number of Capital assets created/ acquired :

Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent in the Financial Year:

Sl. No.	Short particulars of the property or asset(s) [including complete address and location of the property]	Pincode of the property or asset(s)	Date of creation	Amount of CSR amount spent	Details of entity/ Authority/ beneficiary of the registered owner
(1)	(2)	(3)	(4)	(5)	(6)
					CSR Registration Number, if applicable	Name	Registered address
		Not Applicable

(All the fields should be captured as appearing in the revenue record, flat no, house no, Municipal Office/Municipal Corporation/ Gram panchayat are to be specified and the area of the immovable property as well as boundaries)

9. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per sub- section (5) of section 135: Not Applicable