Gulf Oil Lubricants India Ltd Management Discussions

The Company is being recognised as a leading brand and ranking among the top three in India. The operations of the Company are supported by the robust manufacturing and R&D capabilities in Silvassa and Ennore, Chennai, which facilitate continuous innovation and the integration of advanced lubrication technologies. The Company has established a robust pan-India distribution network, encompassing 90,000+ retail outlets and 320+ auto distributors, ensuring strong market penetration, including a significant presence in rural markets. It directly supplies products to over 40 OEMs, over 1,000 industrial and infrastructure clients in the B2B segment, and exports to more than 25 countries worldwide. In addition to this, GOLIL is also a leading manufacturer and marketer of the environment friendly Diesel Exhaust Fluid (DEF) AdBlue^? product range, trusted among large number

of automotive OEMs and Consumers. Moreover, the brand embraces a forward-looking approach in mobility solutions with strategic investments in Tirex Chargers (a DC fast charger manufacturer, Indra Technologies (a UK-based slow AC charger/manufacturer), and TechPerspect- brand Electreefi (an EV SaaS provider).The brands identity is strengthened through its association with renowned brand ambassadors like Mahendra Singh Dhoni, Hardik Pandya, and Smriti Mandhana, along with the decade long partnerships with IPL team Chennai Super Kings and its global alliance with Williams Racing and MotoGP Team. The Companys growth and success is majorly attributed to its focussed approach and the consistent trust established by its stakeholders. Additionally, a strong workforce and the implementation of relevant strategies have also contributed to its consistent growth.

Ravi Chawla

Managing Director and Chief Executive Officer

FY 2024-25 has been a landmark year for GOLIL, as the Company surpassed the revenue milestone of Rs3,500 Crores, achieving record-high volume, revenue, and EBITDA. This robust performance was supported by the implementation of effective strategies, consistently strengthening the market presence and expanding the product portfolio across B2B, B2C and OEM segments. Moreover, the Company increased its market share across all key segments delivering volume growth twice the industry rate. The year also marked the launch of two impactful customer-centric campaigns. It started the year with The Unstoppables, a mega campaign featuring all three brand ambassadors followed by the recent launch of a 360- degree campaign for its flagship two wheeler engine oil, Gulf Pride. Additionally, its EV charger subsidiary, Tirex, exhibited strong performance during the reported year and continues to align well with its long-term vision going forward.

The Companys robust and resilient business model powered by a focused segment-wise strategy, technological prowess and brand equity has enabled it to consistently deliver 2-3x market growth over the past 15 years. This momentum continues as it unlocks industry potential through Unlock 2.0 and accelerate its growth engines with SPARK.

GOLILs Strategic Inroads into Mobility

As part of the transformation journey, GOLIL has made strategic acquisitions into mobility. It acquired 51% stake in Tirex Transmission in October 2023. Tirex is a manufacturer of DC Fast Chargers for EVs in India, deploying over 3,000 high-capacity EV fast chargers across the country with marquee customer base. Revenue for Tirex increased over 300% in FY 2024-25 and is on track to achieve the targeted revenue of C 400-500 Crores in 3-4 years.

GOLIL has also made strategic investments in Indra Renewables, a UK-based company specialising in slow AC chargers for EVs, and in Techperspect (brand-ElectreeFi), the e-mobility SaaS provider company. These initiatives reflect GOLILs commitment to becoming a significant player in the EV charging ecosystem by offering a comprehensive and integrated portfolio.

Macroeconomic Review

Although the global economy faced geopolitical tensions, supply chain disruptions, as well as volatile crude oil prices, the global GDP remained stable at 3.3% in the reported year. The Emerging Markets and Developing Economies (EMDEs) outpaced developed nations, registering a growth rate of 4.3%, while advanced economies grew at 1.8%.¹

The Indian economy continued to demonstrate robust growth in FY 2024-25 and emerged as one of the fastest-growing major economies globally, with a GDP growth rate of 6.5%.² This growth in the Indian GDP was obtained, despite a slowdown in the economy due to general and state elections. Moreover, the China+1 strategy, which gained significant traction worldwide, shifted the focus of the global players towards India as an alternate manufacturing hub. This fuelled substantial foreign investments. India is closely monitoring the global tariff scenario and is actively crafting a calibrated response to safeguard its economic interests.

The global economic outlook for the year 2025 is anticipated to remain modest with a GDP growth of 2.8% and further increase to 3.0% in CY 2026 driven by a decline in the global inflation levels. The EMDEs and advanced economies are anticipated

to rise by 4.2% and 1.9% in the year 2025, respectively. Further to this, in the coming years, the Indian economy is anticipated to exhibit strong growth supported by sustained infrastructure development and favourable macroeconomic environment. In addition to this, it is anticipated that the Indian GDP will experience a stable growth at 6.5% in FY 2025-26.³ A decline in inflation and favourable tax reforms, is expected to fuel higher consumption, thereby supporting the growth in the economy . Manufacturing in India is emerging as a crucial driver of economic growth, owing to strong performance in industries such as automotive, engineering, chemicals, pharmaceuticals, and consumer durables. At the same time, agriculture continues to offer opportunities for food security, economic advancement, and sustainability. Rural demand is projected to continue high, aided by favorable monsoons and improved sowing data. Indias expanding middle class is also changing consumer behavior and playing a significant role in the countrys economic growth with more disposable income in hand due to reduced tax. Further to this, India is closely observing the evolving global tariff scenario while crafting a calibrated response such that it doesnt impact the economic growth in the coming years.

Together, these sectors are expected to drive the countrys growth going forward.

Business Review Automotive Industry Indian Automotive Industry

The annual sales volumes of Indian automotive industry exceeded 26 million units demonstrated resilient growth of over 7% from FY 2023-24, fuelled by healthy demand, supportive government policies, and a continued focus on sustainable mobility. India ranks among the top two manufacturers of two-wheelers globally, and is also positioned among the top four in passenger vehicles and top five in commercial vehicle manufacturing worldwide⁴. Passenger vehicles experienced moderate growth, however, posting its highest ever sale with largely driven by strong demand in SUVs. Two-Wheelers and Three-Wheelers saw healthy growth of over 9% and 6% respectively supported by rising rural demand and improving consumer sentiment. However, Commercial Vehicles faced a slight decline in sales in FY 2024-25 owing to the general election and delay in construction projects.

The Indian automotive industry is on a robust growth trajectory supported by rising income levels, growing urbanisation and increasing vehicle penetration across rural and semi-urban areas and the integration of advanced technologies within the industry. This development will unlock new growth avenues and enhance Indias competitiveness in the automotive space. Further to this, the industry is anticipated to be benefited by the backdrop of stable policy environment, along with recent measures such as reforms in personal income tax and RBIs rate cuts and this will help in supporting consumer confidence and demand across segments. The sectors transition to becoming technologically advanced and self-reliant aligns with the nations vision of ‘Atmanirbhar Bharat.

Passenger Vehicles

During the reported year, the passenger vehicles demonstrated the highest sales of 4.3 million units, highlighting a growth of 2% in comparison to FY 2023-24. Within the passenger vehicles, the Utility Vehicles (UV) contribution to the total private vehicles grew from 60% in FY 2023-24 to 65% in FY 2024-25.The growth in the private vehicle industry can be attributed to various factors, including the introduction of new models with advanced features and attractive discounts and promotional offers. Further to this, passenger vehicles also registered the highest ever exports in FY 2024-25 of 0.77 million units, highlighting a growth of 14.6% as compared to FY 2023-24, driven by demand for global models being manufactured from India.

Two-wheelers

The two-wheeler industry demonstrated a strong growth of 9.1% during FY 2024-25 in comparison to the previous year, with 19.6 million units being sold in the reported year. Along with this, the export grew by 21.4%, with a total of 4.2 million units being exported in FY 2024-25. This growth in the two-wheeler industry can be attributed to improved rural demand and a resurgence in consumer confidence. The scooters segment grew due to improved rural and semi- urban connectivity and availability of newer models with advanced features.

Commercial Vehicles

The commercial vehicle experienced a slight degrowth by (1.2)% in FY 2024-25. The first half of the fiscal saw notable headwinds, including project delays due to the general elections and muted construction and infrastructure activities. However, the pickup in manufacturing activities post- election and the bus segment for inter-city travels offered some relief towards the end of the fiscal with the growth of 1.5%. The export of commercial vehicles grew by 23% in FY 2024-25 in comparison to the previous year. Additionally, the tractor industry registered an increase of over 7% in FY 2024-25 driven by improved rural sentiment following a strong monsoon and government support measures.

Industrial & Infrastructure, Mining and Fleet (IMF)

Indian Industrial Development

Indias Industrial activity showed positive momentum as reflected in the Index of Industrial Production that grew by 4% annually, with sectoral contributions led by electricity (6.2%), manufacturing (3.0%), basic metals (6.9%) and mining (2.6%).⁵ The industrial sector remained resilient characterised by less volatility in comparison to other sectors. The Indian Construction Equipment (CE) industry recorded 3% growth in FY 2024-25, despite headwinds during the election period that impacted domestic demand, reinforcing Indias position as the worlds third-largest construction equipment market.⁶ Moreover, relevant Government policies and schemes such as the Production Linked Incentive (PLI) scheme and repositioning of global supply chains under the China+1 strategy have further boosted the growth of the Indian manufacturing sector.

The capital allocation by the Indian Government in the Union Budget of Rs 11.21 Lakhs Crores aimed at boosting infrastructure development across sectors is anticipated to drive the industrial development in the coming years. Also, improving IIP indicates Indias Industrial production is on the rise, leading to improved demand for industrial lubricants. Further to this, the economic activities in India are anticipated to rise, and this will create demand for infrastructure development, ultimately leading to industrial development within the economy.

Infrastructure, Mining & Fleet (IMF)

Indias infrastructure sector is witnessing robust growth, underpinned by a significant surge in both public and private investment. It is a foundational pillar of Indias long-term economic development that enhances connectivity, enables trade and ensures the efficient flow of economic activities across the country. India, currently, has the worlds second-largest road network, with its national highways (1,46,145 km) serving as the primary arterial network. Indias fleet management industry is a critical enabler of efficiency, safety and cost-effectiveness. The sector has witnessed significant growth in recent years, driven by several factors such as escalating demand for efficient and cost-effective transportation solutions, the integration of advanced technologies. Increasing pressure on logistics providers to deliver timely and sustainable transport solutions has driven the adoption of integrated fleet management platforms. The fleet management industry is expected to attain a market size of USD 3.0 billion by 2033, growing at a CAGR growth of 10.21% between 2025 to 2033 supported by widespread adoption of telematics, Internet of Things (IoT) technologies. The mining sector plays an integral role in driving economic growth by promoting industrial activity, and the supply of essential raw materials. The Indian port sector witnessed robust growth in FY 2024-25, fuelled by the countrys economic momentum. Overall, the sector is undergoing a transformation, with increased emphasis on environmental stewardship. As India advances towards its goal of becoming a USD 5 trillion economy, the mining sector is anticipated to play an integral role in industrial expansion.

Lubricant Industry Indian Lubricant Industry

Indias lubricants industry is experiencing steady growth, positioning itself as the third-largest lubricant consumer globally, following China and the USA. According to Kline & Co., the domestic lubricant market is expected to continue to grow at a volume CAGR of 3-4% and a value CAGR of 6-8% atleast until 2033. The value growth is projected to outpace volume growth across both consumer and industrial segments as a gradual shift happens towards high-end and synthetic/semi-synthetic lubricants.

The Indian lubricant industry is broadly categorised into automotive lubricants and industrial lubricants, excluding process oils.The growth in automotive lubricants is fuelled by rising vehicle ownership, and a growing preference for high-performance oils. Industries like mining, manufacturing, infra and power generation also require specialised lubricants like hydraulic oils, metalworking fluids, and process oils for efficient operations and reduced maintenance costs.

The expanding automobile production activities and growth in industrial landscape continue to spur demand for advanced, energy-efficient lubrication solutions. Additionally, The industrial lubricants segment is set to grow faster than the automotive sector due to rising infrastructure development, including roads, railways, and smart cities, driving demand for heavy machinery.

Growth Drivers

• Automotive Growth- Indias total vehicle sales reached a significant milestone in FY 2024-25, with overall sales surpassing previous records registering a growth of 7.4% over FY 2023-24. Passenger vehicle sales alone hit an all-time high of 4.3 million units, marking a 2% year- on-year increase. Alongside this, sales in other vehicle segments, including two-wheelers, three-wheelers, also showed growth, contributing to a robust automotive market. This sustained increase in vehicle ownership, especially in the SUV segment, continues to drive strong demand for automotive lubricants across all categories.

• Electric Vehicles (EV) - As Indian automakers target a gradual increase in EV penetration across different vehicle segments at varied levels, Hybrid vehicles, in particular, will require advanced lubricants for optimal performance. Except fully electric battery vehicles, all other energy forms and vehicle types like CNG, LNG, ICE, hydrogen, etc will consume similar volumes of lubricants creating a positive impact on the Indian lubricant industry.

• Increase in Disposable Income and Vehicle Ownership- As the Indian Government introduces the tax relief measures to boost consumption among the middle-class population, a corresponding increase in vehicle demand is anticipated, which in turn is expected to drive growth in the lubricant market

• Shift in Consumer Requirement - The lubricants industrys growth is influenced by changing consumer preferences, such as the shift towards synthetic oils and lighter viscosity formulations and a preference for cleaner, more fuel-efficient engines. These factors continue to be a key growth driver for the lubricant sector, along with improvements in engine technologies.

• Growth in Manufacturing Activities - Relevant government policies such as the PLI scheme and Make in India, along with strong economic activity will support the growth of the Indian manufacturing industry. This growth will further drive the demand for lubricants across various industrial applications.

• Growth in Infrastructure Development - The Indian governments continued focus on infrastructure development is expected to have a positive spillover effect on the lubricant industry by increasing its demand

Business Review

GOLIL is one of the leading players in the Indian lubricant industry, catering to both industrial and automotive lubricants. The Company delivered volume growth of more than 2x the industry across segments during the reporting period demonstrating its competitive edge. Leveraging its strong brand position in the industry and deep-rooted industry-expertise, innovation and services, the Company witnessed solid financial performance, recording a 8.2% Y-o-Y growth in revenue. In addition to the strategic partnerships with leading OEMs, Industrial and Infra customers, the Company has enhanced its product portfolio, increased distribution and strengthened its position in an evolving market.

Performance in FY 2024-25

Automotive

Personal Mobility

In FY 2024-25, GOLIL recorded steady growth in the personal mobility segment, navigating market challenges with focused efforts and continued customer engagement. This was supported by its 360-degree mega campaign, The Unstoppables, rolled out in multiple media platforms and was also backed up by trade launches, on-ground at retail displays in its touch points delivering excellent reach, engagement and overall impact. The campaign was a customer-focused initiative showcasing all its three brand ambassadors promoting its range of lubricants for the complete personal mobility segment, including cars, bikes, and scooters. The expansion of the distribution network further supported this growth, enhancing market reach, improving product availability, and strengthening the brands presence across key regions. Strong BTL activities were initiated to increase the reach and touchpoints targeted to car segment.

The Motorcycle Oil (MCO) business segment of the Company showed strong growth in FY 2024-25. During the year, it renewed its exclusive partnership with Piaggio India until 2032, continuing to deliver high-quality lubricants across the 2-wheeler range, including high-performance sports bikes and superbikes. Positive traction in agri segment also supported the growth. The Company relaunched its flagship two-wheeler engine oil, Gulf Pride with latest upgraded API SP specifications. For the second year in a row, it continued its partnership with India Bike Week (IBW), the countrys largest biking event with premium biking community, which gathered over 25,000 motorcycle enthusiasts in Goa.

Commercial Vehicle Oil (CVO)

The Company achieved growth despite slowdown in demand from infrastructure activities, delay in projects and reduced commercial vehicles production impacting the demand for lubricants. The Company launched Gulf Superfleet Supreme to further strengthen its share in the commercial vehicle segment. This BS-6 range includes products for MHCVs, micro-LCVs, and CNG-powered trucks, featuring industry-first offerings like multi-fuel suitability and the optimised oil-drain interval. The Company has extended its strategic long-term partnership with Piaggio India until 2030 for the marketing of high-performance lubricant solutions for the commercial vehicles segment.

OEM

The OEM business segment of the Company demonstrated strong growth in the reported year, supported by new customer acquisitions. The Companys focus has been on ensuring that long-standing relationships are reinforced through renewal agreements and extended business engagements. Robust relationships with more than 40 OEMs across automotive, construction, industrial, AdBlue?, and EV fluids have significantly contributed to the growth. There was a dip in factory fill volumes during the year, resulting from a slowdown in commercial vehicle production amid softer demand and challenges in the construction and infrastructure sectors. The Company introduced multiple new products this year, including an exclusive lower viscosity engine oil for Ford India, synthetic-grade lubricants for Bajaj Auto, and new packaging innovations for Piaggio. Also, the Company has invested in digital tools to enhance sales tracking, demand forecasting, and overall business intelligence. This further helps the Company to optimise replenishment cycles, reduce stock shortages, and enhance the efficiency in supply chain management.

AdBlue?

GOLIL has established itself as a leading AdBlue?,a Diesel Exhaust Fluid (DEF) supplier for both OEMs and aftermarkets. In FY 2025, the AdBlue? segment attained a base of around 1,40,000 kL supported by improved service offerings, strategic expansions and strong partnership with OEMs. AdBlue? picked up mostly during the second half of the year as demand improved after a slight dip during first half of FY 2024-25. The Company also relaunched AdBlue? with new packaging featuring encryption-based security to prevent counterfeiting and ensure product authenticity. There was a significant increase in the bulk pack sales in the reported year, highlighting a major shift in workshop serviceability and cost efficiency. Stricter BS6 and BS4 norms have increased AdBlue? demand, vital for SCR technology to reduce NOx emissions. Its growing use in diesel vehicles has created a need for reliable supply and availability. Into this, Gulf has emerged as one of the leading and trusted supplier for AdBlue?. Government regulations and environmental concerns continue to drive its adoption, leading to expanded product offerings and distribution.

Performance of Industrial and IMF Business Segment Industrial Business Segment

The Company maintained its focus on ahead-of-market growth in the Industrial segment by emphasising on premium products, actively participating in industry events to showcase its products and services and acquiring new marquee customers. It strengthened its presence in high-growth sectors by offering customised lubrication solutions, leveraging technological advancements to address evolving industry needs and help customers reduce costs. Further to this, the business segment was positively impacted by new business development initiatives undertaken, strengthening customer engagements and adapting to premiumisation agenda.

Infrastructure, Mining and Fleet (IMF)

In FY 2024-25, the Companys IMF segment recorded good growth, supported by a vast marquee customer base across India. Focused initiatives such as tailored product solutions, enhanced customer support, and strategic partnerships have played a vital role in broadening its market reach. Investments in distribution networks and technology adoption have further strengthened its ability to meet the evolving needs of this segment effectively.

Operational Highlights Sustainability and Environmental Impact

Sustainability continues to be a key priority for the Company. As one of the leading providers of lubricants, the Company remains committed to reducing its environmental footprint and address the impacts of its activities. Focused efforts are being made to improve resource efficiency, lower emissions and adopt clear practices, promoting sustainable development.

Read more at page 54 of the Annual Report

Corporate Social Responsibility (CSR)

Guided by the founding philosophy of Shri Parmanand Deepchand Hinduja, ‘My dharma (duty) is to work so that I can give, the Companys CSR activities focus on long- term community impact. The Company prioritises initiatives that promote inclusive development through targeted interventions, systemic change and strategic collaborations.