Veedol Corporation Ltd

Dear Shareholders,

It is with optimism that I present to you the Annual Report for the financial year 2024-25. This past year has been one of resilience, strategic evolution and commitment to our core values. As we reflect on our journey, we also look forward with excitement to the opportunities that lie ahead for Veedol Corporation Limited.

Our employees are the backbone of our organisation. We firmly believe that empowering our workforce and fostering a culture of continuous learning is pivotal to our success.

Durgesh S. Chandavarkar

For over a century, Veedol has been a trusted name in the lubricants industry, a legacy we cherish and strive to build upon every day. In an era of rapid technological advancement and shifting market dynamics, our vision is clear: to shape the future of our industry. We are witnessing a significant shift in the personal mobility segment towards value and premiumisation. Our strategy is to meet this demand by harnessing the power of advanced research and development to create high-performance lubricants that not only enhance efficiency and extend the life of equipment but also minimise environmental impact. By remaining agile and deeply focused on our customers' needs, we are confident that Veedol will continue to be synonymous with forward-thinking solutions.

The Indian lubricants market is vibrant and ever-changing, with the rise of electric vehicles (EVs) presenting both new challenges and exciting opportunities. We see the growth of the EV industry as a significant development and with our strong R&D foundation, Veedol is well-positioned to contribute to this sustainable transportation future. Our focus is not just on adapting to change but on anticipating it. We are committed to developing a new generation of products that will cater to the evolving needs of the automotive landscape, ensuring that Veedol remains a future-ready organisation.

We have made significant investments in revitalising the Veedol brand and the results have been very encouraging. Engaging Sourav Ganguly as our Brand Ambassador and partnering with the Kolkata Knight Riders has significantly enhanced our brand awareness, particularly among the younger generation that values premium quality. These initiatives are instrumental in our strategy to expand our distribution network and penetrate new market segments that were previously untapped. We believe a strong brand is the cornerstone of sustainable growth.

Our expansion is not limited to brand perception alone. We are pursuing a "white spot" strategy to ensure our presence across the nation. This involves establishing distributorships in new geographies and broadening our product offerings in existing markets. Internationally, through Veedol International Limited and our subsidiaries in the UK and Dubai, we are present in around 70 countries and continue to explore opportunities for further growth.

At Veedol, we believe that our responsibility extends beyond our business operations. Our commitment to Environmental, Social and Governance (ESG) principles is deeply ingrained in our corporate philosophy. We have undertaken numerous initiatives to promote sustainability, from participating in the initiative of using recycled plastic in our packaging materials and waste management partnerships to transforming our facilities with solar energy and electrifying our logistics. We are also dedicated to educating mechanics on sustainable practices, thereby extending our environmental commitment to the wider community. Our Corporate Social Responsibility (CSR) initiatives are a testament to our philosophy of "purpose over profit." We strategically select projects that have a tangible and positive impact on people's lives. Shining examples of this are the Veedol Auto Mechanic Academy and Karigari Projects, where we train and empower individuals from underprivileged backgrounds, providing them with the skills to secure employment and even start their own businesses. This not only uplifts communities but also enhances employability on a pan India basis. We are pleased to have received Reasonable Assurance Certification for our ESG initiatives and have also undertaken a comprehensive

Sustainability Study, underscoring our commitment to transparency and accountability in our sustainability efforts.

Our employees are the backbone of our organisation. We firmly believe that empowering our workforce and fostering a culture of continuous learning is pivotal to our success. Through a blend of e-learning programmes and hands-on training sessions, we ensure that our team remains agile, updated with the latest industry developments and equipped to navigate any challenges that may arise. This investment in our people is what will enable us to build a robust and resilient organisation for the years to come.

Ethics, transparency and accountability are the bedrock upon which Veedol is built. We are steadfast in our commitment to conducting business in the most ethical manner possible. This is reflected in the comprehensive codes and policies that we have implemented across the organisation. Regular monitoring and periodic certifications ensure strict adherence to these principles, allowing us to build and maintain the trust of all our stakeholders, including our shareholders, employees and partners.

The past year was not without its challenges, from geopolitical tensions to supply chain disruptions. However, our strategic foresight and guidance have enabled us to navigate these complexities efficiently, ensuring minimal impact on our financial and operational performance. We have adopted long-term procurement startegies to mitigate the risks of raw material price volatility and supply chain uncertainties. While we did face a sporadic event like a fire at one of our depots, however it was managed effectively. These experiences have made us a more adaptable and resilient organisation, ready to face the future with confidence.

Looking ahead, our ambition is to continue our upward trajectory and solidify our position as a leader in the lubricants industry. We are on the cusp of launching an entire range of synthetic lubricants based on a technology that is new to the Indian market. This will further strengthen our position in the premium segment. Furthermore, we are embracing digitalisation to enhance our service delivery. Our app, ‘Dosti', is already empowering our mechanics and ‘MyVeedol' is making transactions more convenient and instantaneous for our retailers.

Our vision for the next five years is to achieve significant growth, with a focus on value realisation over mere volume. We aim to grow profitably, staying ahead of the industry growth curve.

In closing, I would like to extend my sincere gratitude to all our valued shareholders, members of the Board, executives, employees and all members of the union for their dedicated support. I also wish to express my heartfelt gratitude and million thanks to all our Indian as well as International customers, distributors, dealers and channel partners for being a part of this journey and express my appreciation for their unstinted support towards endorsing our brand and products for its quality and service to our shareholders, customers, partners and employees for their support and dedication. Together, we will continue to build on our rich legacy and steer Veedol towards a future of sustained growth and success.

Warm regards,

Durgesh S. Chandavarkar