Castrol India Ltd

Advancing together, embracing the future

Letter from the Chairman

My Dear Shareholders,

Having assumed the Castrol India Chairmanship a few months ago, it is a pleasure to have the opportunity to share my thoughts on our company and the way forward. First, my sincere thanks to my predecessor, Mr. R. Gopalakrishnan, for his strong leadership and counsel during his tenure.

As you may have noticed, our Board has seen significant changes recently. We bid farewell to Uday Khanna, our Audit Committee Chair; Sandeep Sangwan, our former MD; and Sashi Mukundan, who played a key role in helping build a robust link to the broader bp Group.

At the same time, we welcome our new members: Kedar Lele, our MD, who brings a wealth of experience from Hindustan Unilever; Satyavati Behera, our new Independent Director and Chair of the Audit Committee; and Kartikeya Dube, who joins us as a bp Nominee Director. I consider myself fortunate to have an extremely talented and experienced Board that will steer Castrol India towards its next stage of growth and leadership.

Castrol India has been a leader in the Indian lubricants market, earning customers' trust through our high- quality products, extensive distribution network, and continuous innovation. But in a rapidly evolving marketplace, we cannot rest on our laurels.

Customer expectations are shifting; they seek better solutions to counter the effects of global warming. In addition, technology is transforming how we operate — speeding up response times, enhancing efficiency, and enabling faster product development. To stay relevant and further accelerate our leadership, we must ensure that our products and services are available across the length and breadth of the country alongside the hinterlands, where market opportunities and demands are growing exponentially.

A landscape of change and opportunity

Globally, economies are stabilising after three years of volatility. Inflation is easing, yet high interest rates and geopolitical tensions continue to pose challenges. Closer to home, India stands resilient with a strong economic outlook. Rising consumption and sustained industrial growth present exciting opportunities, particularly in

the automotive sector. Notably, rural India's increasing vehicle penetration signals promising growth for the lubricants market.

Where we innovated and grew

Innovation remains our cornerstone. This year, we expanded our portfolio with nearly a dozen new products, including industrial rust-preventive products under the Castrol Rustilo DW brand, Castrol EDGE variants, Castrol CRB TURBOMAX Plus CK-4, and new additions to our auto care range.

Our efforts in distribution and accessibility are equally notable.

Castrol products are now available across over 1,43,000 outlets nationwide, including 36,000 workshops and retail outlets in rural India. With our vast service network, we continue to penetrate new markets and cater to diverse customer needs.

Where we see ourselves in the long-term

The world is rapidly moving towards carbon-efficient applications - EVs being one such example. The pace of these innovations will only accelerate, and Castrol will lead by example in providing state-of-the-art solutions for a better and cleaner world. As India moves forward, both economically and technologically, we will ensure that our solutions support our customers at every stage for superior performance and efficiency.

Where our numbers speak

I am very pleased to report our strong financial performance in 2024. Our revenues and profit both grew by 6% y-o-y, reaching ?5,365 Crore and ?1,258 Crore, respectively. This growth : reflects our disciplined operations,

balanced margins, and increasing volumes - giving us the confidence to sustain and accelerate our momentum.

To celebrate Castrol's 125-year global journey, the Board has approved a special dividend of ?4.50 per share. This translates to ?13 a share for the full year, reflecting the company's commitment to its shareholders for their continued support over the past four decades.

Where impact truly matters

Beyond financial performance, we remain committed to creating a positive social and environmental impact. Our efforts to include 50% recycled content in our high-density polyethene (HDPE) bottles marks a step forward in sustainability. Our CSR initiatives, such as Sarathi Mitra and Eklavya, have empowered and trained around 30,000 truckers and 15,000 mechanics during 2024. To date, our programmes have impacted the lives of over five lakh individuals, reflecting our commitment to community development.

Looking ahead

As I step into this role, I am filled with optimism about our journey ahead. We will continue to focus on innovation, value creation, and forging stronger connections with our stakeholders. Together, we will build on Castrol's legacy to achieve even greater heights. I want to thank our employees for their commitment and hard work, which has brought Castrol India to its current level of growth and leadership.

Finally, my heartfelt thanks to all our shareholders, customers and consumers for your trust and support. This is the beginning of an exciting chapter for Castrol India, and I am privileged to have your partnership in this journey forward.

Reflecting with gratitude on a year of resilience and excellence

Letter from the Managing Director

I Dear Shareholders,

Writing this letter is truly special for me. It is my first as the Managing Director of Castrol India, and it happens to be a time when we have delivered one of our strongest performances in recent years.

Stepping into this role has been both an honour and a privilege. I take over from Sandeep Sangwan, who led Castrol India through the challenges of COVID-19 and helped build a solid foundation for the future. Bolstered by his leadership, Castrol India has set the stage for consistent performance, and I am excited to carry that momentum forward.

At Castrol India, our core values of safety, care, and performance keep us grounded and focused, shaping the way we do business and ensuring we stay strong, trusted, and competitive. Our Onward, Upward, and Forward strategy is the foundation of our growth journey. We are committed to

empowering mobility and industrial

performance through our products and services while meeting our customers' diverse needs. We will stay attuned to these guiding principles as we continue participating in and supporting India's growth journey.

2024: A year of big moves

The year 2024 will be remembered for three pivotal decisions that strengthened our brand and expanded our market presence:

0 Bringing Shah Rukh Khan on

board as our brand ambassador to relaunch and reposition Castrol EDGE, our premium range of car lubricants.

0 Introducing Castrol CRB ESSENTIAL for commercial vehicles aimed at capturing a wider customer base with affordable offerings while driving volume growth.

0 Scaling up Castrol Auto Care nationally expands our portfolio beyond core lubricants and builds adjacencies that reinforce our brand's leadership in mobility solutions.

Building strengths across businesses

We have doubled our growth trajectory in our industrial and B2B segments thanks to new customer acquisitions and innovative product launches. These two segments are key to our long- term growth. B2B associations bring us closer to OEMs, making Castrol their preferred partner for cutting- edge technological advancements.

On the other hand, industrial lubricants offer significant growth potential, allowing us to support

India's expanding manufacturing and infrastructure sectors with a diverse product portfolio.

Our core values remain intact

Being a socially responsible corporation remains a core value for us at Castrol India. Growth is holistic and sustainable when it is rooted in the communities we serve. Our CSR initiatives reflect this code of conduct. Our flagship Sarathi Mitra programme has rejuvenated truck drivers' lives since 2017. Whereas initiatives like Castrol Eklavya, which has been running for over 15 years targeting mechanics across the country as well as alongside our manufacturing hubs, extend upskilling and education programmes to facilitate sustainable livelihoods for the communities.

Going forward: 2025 and beyond

As we enter 2025, driving innovations and affordability remain central to our market expansion strategy. We are strengthening our foothold in India's thriving automotive landscape across urban and rural areas. Our objective is clear: deliver value, consistently outperform the market, and cement Castrol India's reputation as a powerful and trusted brand. The results speak for themselves—our marketing excellence has garnered over 60 ^_national and international awards, including EFFIE, SMARTIES, Indian

Digital Marketing Awards, EMVIES, etc., for our innovative and insightful brand campaigns.

As we ascend the current uncertain but dynamic landscape, our eyes are locked on delivering sustainable profitability, a competitive edge, and volume-led growth. Our confidence in Castrol India's sustained performance stems from our teams, partners, and stakeholders.

In closing

Overall, I am exceptionally proud of our achievements and fiercely driven by the zeal of our teams and partners. We will continue to work hard to create lasting value for our stakeholders and leverage the best opportunities that the market has to offer. For now, be assured that we are leading the way and shaping a resilient future as we navigate the road ahead with possibilities.

As I conclude this message, I want to express my heartfelt gratitude to our employees, stakeholders, and partners. Together, we shall chronicle a journey of more ups and successes for Castrol India in the coming years.