Galaxy Surfactants Ltd

The secret of change is to focus all of your energy not on fighting the old, but on building the new.

As we reflect on the financial year 2024-25,

I am pleased to share with you the progress and achievements of Galaxy Surfactants Limited. Progress takes many forms - but the most resilient kind is built on reinforced foundations, even as the terrain shifts beneath. That's the kind of year Galaxy has experienced. Through a concerted effort to strengthen our core competencies and proactively prepare for future growth, we've made meaningful strides toward realising our enduring vision. This year, we have worked on strengthening our foundations while also preparing ourselves for the opportunities ahead, always keeping our long-term vision in sight. Our journey is guided by our core values and strategic pillars, which have enabled us to navigate through challenges and seize opportunities.

Galaxy Vision 2030 is our strategic ambition to become the global leader in performance surfactants and specialty chemicals for the Home & Personal Care and Beauty & Wellness industries.

We aim to delight customers, be the partner of choice, and lead in sustainability. Our commitment to long-term value is driven by innovation, operational excellence, and empowered people. Through this vision, we are shaping a future defined by responsible growth and industry leadership.

Our commitment to innovation has been a cornerstone of our success. We continued investing in innovation, commissioning our product development plant and expanding R&D capacity, accelerating our ability to commercialise ideas and deliver relevant, high-performing solutions. Our innovation funnel continues to drive consistent product development and market readiness. We have 111 approved patents and 32 applied patents, with 6 patents granted in FY25 alone.

Our people are our greatest assets, and we are focussed on creating a workforce that is equipped to drive our future growth. Through focussed learning programmes and a culture that fosters curiosity, collaboration, and continuous growth, we are enabling our teams to lead with confidence. One testament to this is our recent EPC (Engineering, Procurement, and Construction) contract from a major customer, which underscores our ability to deliver high-quality solutions.

We are committed to leveraging digital technologies to enhance our operational efficiency and customer engagement. Our digital transformation initiatives include the implementation of advanced analytics, automation, and data-driven decisionmaking tools. These efforts are aimed at improving our supply chain management, optimising production processes, and enhancing customer service. By building a robust digital backbone, we are better positioned to navigate the complexities of the global market and deliver value to our stakeholders.

Our strategic geographic expansion is a key driver of our growth. We have a global footprint with manufacturing facilities in India, the USA and Egypt. Our state-of-the-art manufacturing facilities in Maharashtra, Gujarat, Egypt and USA, provide us with a competitive edge in addressing both domestic and international markets.

As we progress ahead with a vision of global expansion, we have set up 2 new wholly-owned subsidiaries in Mexico and 1 in Europe. Our global footprint has been - and will continue to be - a strategic advantage, particularly during periods of uncertainty driven by trade tariff wars and geopolitical tensions. Our ability to operate across multiple regions allows us to mitigate risks and capitalise on emerging opportunities, ensuring sustained growth and stability.

FY25 was a challenging year for the Indian market, which remained largely flat with a slight decline in volumes. The first half showed stable performance, but the second half experienced a dip, primarily due to a muted festive season that fell short of expectations. Additionally, raw material prices almost doubled during the year, leading to increased cost pressures that impacted consumer demand.

The AMET region (Africa, Middle East, and Turkey) region also saw a relatively flat performance with a marginal decline in volumes. The first half of the year was affected by ongoing supply chain disruptions, which hindered market activity. However, these challenges began to ease in the second half, allowing for a gradual recovery and stabilisation across key markets in the region.

The Rest of the World (ROW) market was the standout performer in FY25, delivering robust double digit volume growth. This strong performance was fuelled by sustained demand for masstige and prestige specialty products across the Americas, Europe, and APAC.

Looking ahead to FY26, we remain committed to driving growth with focus on our specialty portfolio, leveraging innovation and customer-centric solutions. We strongly believe that growth will be powered by defending and expanding leadership in India and AMET, winning in the Americas, and accelerating our Specialty portfolio in Europe through recent subsidiary setups.

1. Best Ingredient Silver Award - Functional Category, Innovation Zone at in-cosmetics Global

Awarded for Galguard? Prebiotive, this recognition celebrates our commitment to cutting-edge, sustainable innovation in personal care ingredients.

2. Best Supply Chain, Logistics, and Distribution Company of the Year

This award acknowledges our strategic, customer-centric approach to building a resilient and efficient supply chain ecosystem.

3. Top 10 in the Chemical Sector - India's Top 30 Supply Chain Champions

Recognised by the Institute of Supply Chain Management, this honour highlights our excellence in planning, risk management, and sustainable supply chain practices across the chemical industry.

4. Great Place to Work Certified & Ranked Among Top 5 Companies to Work for in the Chemical Industry. This recognition reflects our strong, inclusive workplace culture - one that empowers people, fosters innovation, and drives long-term success.

With great satisfaction, humility, and a deep sense of gratitude, we accept these honours as a reflection of Galaxy's capabilities across diverse domains. These accolades are not just awards, they are affirmations of our purpose-driven journey, our people-first philosophy, and our relentless pursuit of excellence. They inspire us to continue building a future- ready organisation that thrives on innovation, resilience, and shared success.

As we continue to grow and innovate, our responsibility towards the planet, our people, and the communities becomes even more profound. FY25 marked another significant chapter in Galaxy's sustainability journey - one that is deeply rooted in purpose and guided by our Mission 2030.

• Climate Change - Aligning with the 1.5?C reduction pathway by increasing renewable energy use - target of achieving 75% renewable energy use by 2030

• Circular Economy - Designing waste out of our value chains through yield improvement and waste mapping

• Water Stewardship - Becoming water positive by 2 times by 2030

• Diversity & Inclusion - Building a diverse, empowered workforce

• Green Supply Chain - Achieving 100% traceability of palm oil to the mill level

In FY25, with great satisfaction I am pleased to inform that Galaxy made measurable progress across these pillars:

• Avoided 10,376.95 tCO₂e emissions through a 27.76% increase in hybrid (solar and wind) power consumption in India, constituting 20% of group-level energy use

• Achieved greater than 1.4 times water positivity at the corporate level, with 1,18,079 m³ of water recycled and 12,682 m3 harvested through rainwater initiatives

• Procured 25,555 MT of RSPO MB certified raw materials, avoiding 48,299 tCO₂e emissions at the group level

• Reached over 99.6% traceability of palm oil to the mill level

• Achieved waste circularity of 77% at the group level and 96% at standalone level

These milestones are not just numbers - they reflect our deep- rooted commitment to creating a sustainable and inclusive future. With humility and gratitude, we acknowledge the collective effort of our teams, partners, and stakeholders in making this progress possible.

Our journey is guided by an unwavering commitment to safety and sustainability. This year, we continued to embed "Safety First" as a core value across all operations. Our people remain our greatest strength, and ensuring their well-being is central to everything we do.

I am pleased to inform you that our journey under Mission Shunya - Galaxy's flagship initiative aimed at achieving zero harm to people, assets, and the environment - continues to deliver remarkable progress. In the FY25 mid-assessment, we recorded significant improvements across CCPS (Centre for Chemical Process Safety) elements, with zero lost-time incidents at our Indian manufacturing site. This milestone reflects our deep-rooted commitment to safety and operational excellence. With over 61,000 training man-hours and our active participation at the 8^th CCPS Global Safety Conference, we reaffirmed the importance of a skilled and competent workforce in building a disciplined safety culture. Our sites at Tarapur, Taloja, Jhagadia, and Egypt have each contributed through targeted safety initiatives, automation, and infrastructure enhancements. Together with our strategic partner DSS+, we remain steadfast in refining our systems and nurturing a culture of sustainable safety.

As we look ahead, we remain steadfast in our mission - to lead responsibly, act sustainably, and create long-term value for all.

In the past year, our CSR initiatives have made a meaningful difference in over 1,06,000 lives across education, healthcare, community development, environmental sustainability, and women empowerment. Through Gyan Sanjeevani, we enhanced learning environments for over 22,000 students. Aarogya Vardheeni improved health and hygiene for nearly 16,000 individuals. Samajeek Utthaan empowered rural communities, increasing farmer incomes and supporting vulnerable groups. With Paryavaran Suraksha, we planted over 1 lakh trees and promoted clean energy, benefiting nearly 49,000 people and through Stree Unnati, we helped over 1,100 women and girls gain skills, confidence, and financial independence.

Behind every number is a story - a child stepping into a renovated classroom with hope, a mother receiving vital healthcare, a farmer harvesting with pride, a woman discovering her voice, and a tree standing tall for future generations. These stories are the heart of our mission. They remind us that CSR is not just about giving back - it's about standing beside our communities, growing with them, and building a future where progress is shared by all. Together, we are not just changing lives, we are shaping a more compassionate, inclusive, and sustainable world.

At Galaxy, we are accelerating toward a smarter, more agile future through our GIFT (Galaxy Industry 4.0 Transformation) initiative. With a vision to digitise all factories by 2030, we are integrating Operational and Information Technologies to enable autonomous, data-driven operations. Key advancements include eLogbooks, Electronic Batch Manufacturing Records (E-BMR), and IoT-enabled real-time equipment monitoring. Our Abhayatam Automation project is enhancing safety and precision through Distributed Control Systems, while automated batch management and lab systems like LIMS and QMS are boosting consistency and traceability. These efforts are expected to deliver improved safety, and reduced operational workload - laying the foundation for a resilient, future-ready manufacturing ecosystem.

Our journey is not a sprint but a carefully planned ascent, completely aligned with our Vision 2030. By forging forward with intention, we are confident in our ability to achieve extraordinary growth. Our commitment to our core values, the Galaxy 4Cs, and the Galaxy 6 Pillars has enabled us to achieve significant milestones. As we look to the future, we remain dedicated to our Vision 2030 and are confident in our ability to achieve extraordinary growth.

Thank you.

Managing Director Galaxy Surfactants Limited.