IPO Note 24 January 2018

Galaxy Surfactants Limited

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Background & Operations:

Galaxy Surfactant Ltd (GSL) is one of India’s leading manufacturers of surfactants and other speciality ingredients for the personal care and home care industries. Its products find application in a host of consumer-centric personal care and home care products, including, inter alia, skin care, oral care, hair care, cosmetics, toiletries and detergent products. Since incorporation in 1986, it has significantly expanded and diversified its product profile, client base and geographical footprint. Its customers include some of the leading multinational, regional and local players in the home and personal care industries. Currently, its product portfolio comprises over 200 product grades, which are marketed to more than 1,700 customers in over 70 countries.

GSL’s products are organized into the following product groups:

Performance Surfactants: Its portfolio of performance surfactants comprises over 45 product grades, and includes anionic surfactants and non-ionic surfactants; and

Speciality Care Products: Speciality Care Products group comprises over 155 product grades, and includes amphoteric surfactants, cationic surfactants, UV filters, preservatives, preservative blends and surfactant blends, speciality ingredients such as mild surfactants, syndet and transparent bathing bars and proteins, fatty alkanolamides and fatty acid esters, and other care products.

While GSL commenced operations as a local supplier to FMCG companies in India, it has significantly expanded and diversified scale and scope of operations over the years so as to become a global supplier to FMCG companies across major geographies, such as Africa Middle East Turkey (AMET), Asia Pacific (APAC), Americas (North and South) and Europe. Its diversified customer base currently comprises multinational, regional and local FMCG companies, including, inter alia, Cavinkare Private Limited, Colgate-Palmolive (India) Limited, Dabur India Limited, Henkel, Himalaya, L’ORÉAL, Procter & Gamble Home Products Private Limited, Reckitt Benckiser and Unilever.

At present, GSL has 7 (seven) strategically-located manufacturing facilities, out of which 5 (five) are located in India and 2 (two) are located overseas. It also has set-up 1 (one) pilot plant at Tarapur, Maharashtra, for the scaling up of new products and processes from lab-scale to plant-scale. Out of 5 (five) manufacturing facilities in India, 3 (three) are located at Tarapur, Maharashtra, 1 (one) is located at Taloja, Maharashtra, and 1 (one) is located at Jhagadia, Gujarat. Many of its key customers has audited and approved manufacturing facilities and processes, which has helped the company to establish its reputation and reliability as a supplier of high-quality products and customized solutions, and also enabled to receive recurring business as well as attract new customers

Objects of Issue:

The objects of the Offer are to achieve the benefits of listing the Equity Shares on the Stock Exchanges and the sale of Equity Shares by the Selling Shareholders. Further, GSL expects that listing of the Equity Shares will enhance its visibility and brand image and provide liquidity to its existing Shareholders. The listing of the Equity Shares will also provide a public market for the Equity Shares in India. GSL will not directly receive any proceeds of the Offer and all the proceeds of the Offer will go to the Selling Shareholders in the proportion of the Equity Shares offered by them.

Competitive Strengths Established Global Supplier to Major FMCG Brands with Demonstrated Track Record: Over the years, GSL has evolved from being a local supplier to FMCG companies in India to being a global supplier to FMCG companies across major geographies, such as India, AMET, Asia

Issue Snapshot:

Issue Open: Jan 29 – Jan 31, 2018

Price Band: Rs. 1470 – 1480 Issue Size: 6,331,674 Equity Shares (Entirely Offer for sale)

Offer Size: Rs.930.76 cr – 937.09 cr

QIB Upto 3,165,836 eq sh Non Institutional atleast 949,752 eq sh Retail atleast 2,216,086 eq sh

Face Value: Rs 10

Book value: Rs 179.11 (Sept 30, 2017) Bid size: - 10 equity shares and in multiples thereof

100% Book built Issue

Capital Structure: Pre Issue Equity: Rs. 35.45 cr Post issue Equity: Rs 35.45 cr Listing: BSE & NSE Book Running Lead Manager: ICICI Securities Limited, Edelweiss Financial Services Limited and JM Financial Institutional Securities Limited Registrar to issue: Link Intime India Private Limited

Shareholding Pattern

Shareholding Pattern

Pre

issue %

*Post

issue %

Promoter and

Promoter Group

76.98 70.92

Public & Others 23.02 29.08

Total 100.0 100.0

Source for this Note: RHP

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Pacific (APAC), Americas (North and South) and Europe. Its robust product portfolio and expanded geographical footprint enables it to provide integrated solutions to a wide array of customers, whether they be established multinationals or emerging players in local markets. A number of its products enjoy a strong position in the ingredients value chain. Its products provide some of the key functional characteristics to a host of consumer centric personal care and home care products, including, inter alia, shampoos, conditioners, body wash formulations, soap bars, liquid soaps, toothpastes, laundry detergents and dishwashing products. GSL’s customer base currently comprises a host of multinational, regional and local FMCG companies, including, inter alia, Cavinkare Private Limited, Colgate-Palmolive (India) Limited, Dabur India Limited, Henkel, Himalaya, L’ORÉAL, Procter & Gamble Home Products Private Limited, Reckitt Benckiser and Unilever. By working closely with customers, the company is able to innovate and develop technologies that can be applied effectively in its customers’ processes and products, increasing their operational efficiency and improving end-product performance. This type of strategic relationship with customers enhances the stability of revenue base and facilitates the development of new product applications and markets. Robust Product Portfolio Addressing Diverse Customer Needs: GSL has continuously diversified its product profile to address the needs of a diverse range of customers and applications. Its Performance Surfactants range includes anionic surfactants and non-ionic surfactants, and comprises over 45 product grades. Its Speciality Care Products range comprises over 155 product grades, and includes amphoteric surfactants, cationic surfactants, UV filters, preservatives, preservative blends and surfactant blends, speciality ingredients such as mild surfactants, syndet and transparent bathing bars and proteins, fatty alkanolamides and fatty acid esters, and other care products. In aggregate, its product portfolio currently comprises over 200 product grades. Both of its product ranges, namely Performance Surfactants and Speciality Care Products, find application in the personal care and home care industries. The diversity in product portfolio enables GSL to provide customized solutions to multinational FMCGs that market a host of products across diverse geographies. On the other hand, a large number of its Speciality Care Products find applications in end-products designed for the ‘prestige’ socio-economic segment, where purchasing decisions are often driven by the functionality of the end-product. As a result of the relatively higher value that they add to customers’ end-products, GSL’s Speciality Care Products has typically offered a scope for higher margins vis-à-vis its Performance Surfactants. Proven R&D Capabilities with Dedicated Focus on Innovation: GSL’s emphasis on R&D has been a catalyst for the growth of the businesses and contributes significantly to its ability to meet customer needs in a competitive market. Its dedicated and experienced in-house R&D team, which comprised 63 employees as of September 30, 2017, focuses on the development of high-performance products and formulations for the consumer-centric personal care and home care segments. Its R&D Centre and pilot-plant are both recognized by the Department of Science and Technology, Government of India. It has also set-up a product applications centre for proteins at Denville, USA, which is operated by Tri-K Industries Inc. As part of GSL’s ‘Consumer to Chemistry’ motto, it undertake collaborative product development with its customers, which helps customers in choosing the ‘right technology with the right application’. As part of GSL’s Consumer to Chemistry’ motto, it undertake collaborative product development with customers, which helps customers in choosing the ‘right technology with the right application’. GSL has adopted an innovation funnel model of product development, which enables to customize products in line with customer expectations and consumer preferences, whilst simultaneously ensuring shorter lead-times. Global Footprint Supporting Local Reach: Over the years, GSL has successfully diversified both its product profile and geographical footprint by way of organic growth and inorganic expansion. Its acquisition of Tri-K Industries Inc. in USA in Fiscal 2010, significantly enhanced its product portfolio of Speciality Care Products and its technological capabilities whilst also extending reach in the developed markets of USA. Further, its manufacturing facility in Suez, Egypt, with an aggregate installed capacity of 82,600 MTPA as of September 30, 2017 has enabled to service the demands of a number of its existing multinational FMCG customers in the emerging AMET region. Currently, GSL market its products to more than 1,700 customers in over 70 countries. It has set-up sales offices in India, Egypt and USA, and representative offices in Netherlands and Turkey. Its diversified footprint, in both mature and emerging geographies, enables to observe, analyse and adapt to evolving consumer preferences. Its global network of manufacturing, sales and representative facilities helps in reducing dependence on any single product or geography. GSL’s limited dependency on any single geography helps in mitigating the effect of economic and industry-specific cycles. Strong Presence in High Growth Markets of India and AMET Region: The market for personal care products in India was USD 11.36 Billion in Fiscal 2015, and is expected to grow at a CAGR of 7.9%, to touch USD 22.52 Billion by 2024. Further, the market for home care products in India was USD 2.31 Billion in Fiscal 2015, and is expected to grow at a CAGR of 7.2%, to touch USD 4.32 Billion by 2024. The growth in India’s GDP, coupled with increase in per capita income in India, will drive the consumption of personal care and home care products in India. It is well positioned to capitalize on the opportunity offered by the expected growth in the Indian market on account of strong manufacturing capabilities, long-standing customer relationships, ability to monitor and anticipate changes in end user preferences and continued focus on R&D. Between Fiscals 2014 and 2017, the total revenues of Galaxy Chemicals (Egypt) S.A.E. has grown at a CAGR of 22.31%, which reflects the growth in GSL’s market presence in the AMET region. Further, as the facility is located in the Attaqa Public Free Zone, it benefits from a concessional tax regime, and is exempt from all direct and indirect taxes. Its established manufacturing facility and growing reputation for

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quality will enable to leverage the expected growth in the AMET region in the years to come, and consequently, enhance returns to its shareholders. Professional and Experienced Management Team: GSL is a professionally managed organization that is driven by a qualified and dedicated management team, which is led by Board of Directors. Its Promoters has an average experience of over 35 years, out of which an average of over 30 years has been with the company. Moreover, GSL’s senior management consists of experienced and qualified professionals with experience across various sectors. Its management team’s collective experience and capabilities enables GSL to understand and anticipate market trends, manage business operations and growth, leverage customer relationships and respond to changes in customer preferences. GSL’s ability to ensure a congenial work environment and competitive compensation packages has resulted in relatively low attrition rates in the past. Track Record of Robust Financial Performance: GSL’s focus on functional excellence has contributed to track record of robust financial performance. For the Fiscals 2015, 2016 and 2017, and the six-month period ended September 30, 2017, GSL’s EBITDA was Rs.1,917.55 million, Rs.2,395.91 million, Rs.2,780.48 million and Rs.1,451.33 million, respectively. Its robust financial performance reflects the efficacy of the manufacturing and supply-chain management protocols that it has implemented. Its steady operating cash flows enables it to meet the present and future needs of its customers while its strong balance sheet and financial performance instil confidence in them. Over the years, GSL has strategically invested significantly in capacity expansion and de-bottle necking at its manufacturing facilities as well as in its R&D endeavours. GSL’s ability to make these investments helps strengthen trust and engagement with its customers, which enhances its ability to retain these customers and extend engagement across products and geographies. Business Strategy: Increasing the Share of Speciality Care Products in Sales Mix: GSL’s Speciality Care Products has historically offered higher margins vis-à-vis its Performance Surfactants. However, the development and manufacture of Speciality Care Products requires multi-stage processing and unique technical competencies. Its continued R&D efforts at the applications laboratories set up at its R&D Centres in Navi Mumbai, India, and in Denville, USA, has helped GSL to develop a number of patents for Speciality Care Products and their manufacturing processes. Going forth, it intends to focus on increasing the share of Speciality Care Products in overall sales mix. It intends to leverage the long-standing relationships that it has with its existing multinational, regional and local customers for Performance Surfactants in emerging markets and address their imminent requirements by cross selling its diverse portfolio of Speciality Care Products. Further, it intends to increase its share of sales of Speciality Care Products in mature markets by continuing to monitor evolving consumer preferences and undertaking product innovation so as to address such needs. Continue to Focus on R&D and Product Innovation as part of ‘Consumer to Chemistry’ Approach: GSL’s focus on product innovation through continuous R&D has been critical to the growth of its business. With a view to customize products in line with customer expectations and end-user preferences, whilst simultaneously ensuring shorter lead-times, it has adopted an innovation funnel model. GSL’s ‘Consumer to Chemistry’ approach is designed to ensure that its products continue to remain relevant in evolving markets and help its customers enhance their brand value. It strives to continuously monitor, analyse and adapt to changing consumer preferences across diverse geographies. It helps its customers address evolving market demands by undertaking collaborative product development, which enables it to offer customized and integrated solutions that cater to the unique demands of its diversified customer base. GSL possess the necessary skills, technology, know-how, in-house R&D capabilities and intellectual property competence to develop products and customised formulations, which can be manufactured and marketed in both domestic and international markets. In the years to come, GSL intends to continue invest in, and undertake, product innovation with its characteristic ‘Consumer to Chemistry’ approach, and specifically focus on certain Speciality Care Products such as mild surfactants, rheology modifiers, pearlizing agents, UV filters, syndets and transparent bathing bars, surfactant blends and proteins. This focus will enable GSL to introduce products and formulations, increase its productivity and operating efficiency, deepen penetration in existing markets and serve as the cornerstone to its success in new markets. Increase Wallet Share with Existing Customers and Continued Focus to Expand Customer Base: GSL’s customer base currently comprises a host of multinational, regional and local FMCG companies, including, inter alia, Cavinkare Private Limited, Colgate-Palmolive (India) Limited, Dabur India Limited, Henkel, Himalaya, L’ORÉAL, Procter & Gamble Home Products Private Limited, Reckitt Benckiser and Unilever. The awards and certifications that GSL has received from its customers over the years are an indicator of its position as a preferred supplier to leading FMCG companies in the consumer-centric personal care and home care segments. GSL’s continuing R&D endeavours and its reputation for quality will help increase overall market share for both of its Performance Surfactants and Speciality Care Products categories, it intends to focus on increasing wallet share with existing customers in the years to come. It has built long-standing relationships with its customers through various strategic endeavours, which it intends to leverage by capitalizing on the significant cross-selling opportunities that its diversified product portfolio offers. Further, GSL plans on utilizing expanded geographical footprint to address the sourcing requirements of its existing multinational FMCG customers as and when they enter new markets, thereby consolidating its position as a preferred supplier across geographies. GSL also regularly takes part in trade shows, road shows and exhibitions, and its employees has been

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invited as speakers at various industry fora. Going forth, it intends to continue to leverage its sales and marketing network, diversified product portfolio and its industry standing to establish relationships with new multinational, regional and local customers and expand its customer base. Mutually Complimentary Two-pronged Strategy to Drive Growth in both Emerging and Mature Markets: While emerging markets has historically been important to GSL from a perspective of Performance Surfactants sales, it anticipates an increased demand for its Speciality Care Products as these markets begin to mature. GSL’s strong manufacturing capabilities, established customer relationships and robust product portfolio leave it uniquely positioned to exploit the opportunities offered by the expected growth in the personal care and home care segments in India and the AMET region. GSL intends to focus on leveraging such opportunities to increase sales and cross-sales of its Performance Surfactants and Speciality Care Products in the years to come. On the other hand, growth in mature markets such as USA and Europe will come from range of Speciality Care Products. The development and manufacture of Speciality Care Products requires multi-stage processing and unique technical competencies, which serve as effective entry barriers to new entrants. It intends to capitalize on the significant investments that it has made in enhancing manufacturing capabilities and portfolio of Speciality Care Products, and cater to the demands of these mature markets. GSL will continue to monitor evolving consumer preferences and undertaking product innovation so as to address the needs of mature markets, which will also help anticipate and address future needs of emerging markets. Continue Improving Financial Performance through Focus on Operational Efficiencies and Functional Excellence: GSL’s focus on functional excellence and providing integrated solutions has contributed to its financial strength and performance whilst also strengthening the trust and engagement that it share with its customers. the various strategic initiatives that it has implemented, including the continued investment in its manufacturing facilities, developing and enhancing in-house capabilities, and supply-chain management protocols will continue to play a critical role in its future success. Accordingly, GSL intends to build on its existing strategic initiatives to achieve operational excellence that translates into financial strength and performance. Currently, it has access to additional land at its existing manufacturing facilities at Jhagadia, Gujarat, and Suez, Egypt, which provides significant headroom for future growth. Moving forward, it will continue to rely on the in-house expertise of NPT Group to periodically review the functioning of its manufacturing facilities, identify scope for expansion or de-bottle necking and undertake projects to increase production capabilities. As part of GSL’s customer-relationship management endeavours, it classify its customers based on certain key characteristics, including scale of operations, geographical footprint, technical demands and propensity for growth. The aforesaid classification is key to its effective supply-chain management, and also helps it monitor exposure to risks that may arise from customer or geographical concentration. Going forth, it intend to continue to refine supply-chain management protocols to, inter alia, help it address the commodity and foreign exchange risks that its operations may be subject to as GSL’s business grows. Industry: Global Personal and Home Care Markets Market Size and Segmentation Global personal care and cosmetics market is a large and lucrative consumer market, with the market size approaching USD 215 Billion in 2015. With its CAGR expected to remain 5.8 percent, it is also a market demonstrating fast growth. It is forecast to approach USD 301 Billion by 2021 and reach USD 358 Billion by 2024. The body/hand cleaning products market was valued at approximately USD 30.14 Billion in 2015. It is expected to grow by 4.3 percent in the next years to reach USD 38.88 Billion by 2021 and to increase to USD 44.12 Billion by 2024. Shampoo and hair care make up around 21 percent of this sector. It is estimated at roughly USD 45.2 Billion in 2015 and expected to grow at a rate of 4.6 percent annually. It is forecasted to grow to USD 59.34 Billion by 2021 and approach USD 67.91 Billion by 2024. Valued at approximately USD 58.12 Billion in 2015, skincare products account for roughly 27 percent of the personal care and cosmetics market. It is considered the fastest growing sector driven by the strong demand on the anti-aging products and skincare for men products, with CAGR projected to be around 6.7 percent over the next years. The market demand on skin care product is forecasted to exceed USD 86.15 Billion by 2021 and increase to USD 104.77 Billion by 2024. The market of cosmetics and make-ups was valued at approximately USD 45.2 Billion in 2015. The global cosmetics market is expected to reach USD 66.26 Billion by 2021 and USD 80.12 Billion by 2024. The market of other personal care products such as toiletry products combined was valued at around USD 36.59 Billion in 2015. It is believed to see moderate growth in the future years. (Source: “Global Surfactant Market – 4th Edition” by Acmite Market Intelligence).

Global Household Cleaning Market The market of household cleaning agents was valued at USD 43.40 Billion in 2015. As a mature market, it is expected to report a moderate growth of around 3.3 percent in the coming years. It is predicted to reach USD 52.73 Billion by 2021 and achieve USD 58.13 Billion by 2024. Dishwashing detergents are the largest market segment, followed by Laundry detergents, which include laundry power and laundry liquid.

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Dishwashing detergents make up around 32 percent of the total household cleaning agents market. It is estimated at roughly USD 13.89 Billion in 2015. It is expected to grow to USD 16.91 Billion by 2021 and reach USD 18.65 Billion by 2024. Valued at approximately USD 13.02 Billion in 2015, laundry detergents account for roughly 30 percent of the household cleaning agents. It is projected to grow by 3.2 percent over the next years to reach USD 15.76 Billion by 2021 and to increase to USD 17.34 Billion by 2024. Soaps have lost its historical importance, particularly in the developed regions, where market growth comes from high-value added soaps. Global market of soaps was estimated at USD 3.05 Billion in 2015 and is predicted to grow by 1.6 percent in the future. The market will reach USD 3.35 Billion by 2021 and increase to USD 3.51 Billion by 2024. The markets of all-purpose detergents and specific cleaning agents are the relatively fast growing market, with projected CAGR of 3.6 percent over the next years. All-purpose detergents market was valued at USD 7.16 Billion in 2015, and is expected to increase to USD 8.87 Billion by 2021 and to reach USD 9.87 Billion by 2024. North America remains the largest market of household cleaning agents, accounting for 29 percent of the global demand, followed by the Western Europe with 26 percent. These two regions are forecast to present similar growth strength in the future years. Asia Pacific (excluding Japan) is considered to be the fastest growing market accounting for nearly 23 percent of the market and is expected to grow by 5.3 percent annually to touch USD 13.59 Billion by 2021 and exceed 15.82 Billion by 2024, thus becoming the largest market by 2024.

The Global Home and Personal Care Application and Ingredients Market

Home and Personal Care Ingredients Market Personal Care is one of the most attractive sectors for the chemical industry. The market continues on a positive expansion track, demonstrating that unlike other markets, cosmetics and toiletries escaped any major hit from economic recession. Growing awareness for new formulations is also creating new opportunities for specialty personal care ingredient suppliers. Increased consumer awareness of sun exposure side effects, the use of UV absorbers has extended to an increasing number of skin care products, ranking them among the rapidly growing markets.

The Ingredients market is a USD 14 Billion to USD 18 Billion market with 25 percent made up by commodities, 35 percent by fine chemicals and 40 percent by differentiated specialties. Specialty ingredients hold the largest growth potential within the personal care ingredients business. The Personal Care ingredients market covers morethan 130 ingredients within the eight main groups of which are surfactants, conditional polymers, emollients, rheology control agents, emulsifiers, antimicrobials, UV absorbers and hair fixative polymers. (Source: “Global Beauty Ingredients: New Strategic Segments for Growth” by Kline & Company). The Personal Care Ingredients market has a total value of USD 9.2 Billion. Hair care and skin care are the two largest applications and, as a result, ingredients used in them have a larger share in the market. Surfactant is a surface-active substance or agent. The word “surfactant” is a shortened form of “surface-active agent”. Surfactants can be broadly defined as compounds which concentrate at surfaces (interfaces) such as water-air or water-oil when dissolved in water. Soaps and detergents are classic examples of surfactants due to their dual (amphipathic) character. Surfactants reduce the surface tension of water by adsorbing at the liquid-gas interface and reduce the interfacial tension between two liquids by adsorbing at the liquid-liquid interface. Because water and oil do not dissolve in each other, a surfactant has to be added to the mixture to keep it from separating into layers. By reducing surface tension, surfactant stabilizes mixtures of oil and water or any other two liquids. In a two-phase system, for example, liquid-liquid or solid-liquid, a surfactant tends to locate at the interface of the two phases, where it introduces a degree of continuity between the

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two different materials. Surfactants are employed to increase the contact of two materials, sometimes known as wettability. Surfactants and surface activity are controlling features in many important systems, including emulsification, detergency, foaming, wetting, lubrication, water repellence, waterproofing, spreading and dispersion, and colloid stability. Used in small quantity, surfactants are able to markedly affect the surface characteristics of a system. (Source: “Global Surfactant Market – 4th Edition” by Acmite Market Intelligence) In terms of raw materials, surfactants are prepared from various feedstocks which are either petrochemicals or oleochemicals. Petrochemicals are derived from either crude oil, natural gas or coal. Oleochemicals used in surfactant production are derived from either palm oil, palm kernel oil or coconut oil. The use of oleochemicals in the surfactants sector is rising as the advantages and opportunities offered by natural oil and fat-based products are further explored and promoted. Presently, nearly 50 percent of the surfactants are produced from oleochemicals, while only one-fourth were produced from oleochemicals in the 1970s. The share of oleochemicals used surfactants increased by around 100 percent during the last forty years. (Source: “Global Surfactant Market – 4th Edition” by Acmite Market Intelligence) The Global Surfactants Market

The Global Surfactants market was a USD 30.65 Billion Market (2015) which is projected to grow at a CAGR of 4.4 percent till 2024 to touch USD 45.16 Billion. In terms of volumes, the surfactant market is a 16.35 million tonnes market (2015) which is expected to grow at a CAGR of 3.9 percent till 2024 to touch 22.97 million tonnes. Surfactants can be classified into Anionics (largely cleaning applications), Non Ionics (cosmetics and personal care applications), Cationics (conditioning, softening aids), Amphoteric Surfactants (Mild Surfactants), Surface active preparations (pre-formulated blends of surfactants)(Source: “Global Surfactant Market – 4th Edition” by Acmite Market Intelligence) In terms of revenue, the Surfactants market is expected to touch USD 39.69 Billion by 2021 and USD 45.16 Billion by 2024 growing at 4.4 percent per annum. This growth will be primarily driven by the Amphoteric and Cationic Surfactants which are expected to grow at 6.9 percent and 6.6 percent till 2024. Among the four segments, anionic and non-ionic surfactants are the dominating ones, accounting for two thirds of the total surfactant market in value. The Indian Surfactants Market

The Indian Surfactants market is a USD 1.35 Billion market (2015) which is expected to grow at a CAGR of 6 percent to touch USD 2.28 Billion by 2024. In terms of volumes, it is a 778 KT market growing at a CAGR of 5.8 percent and the same is expected to touch 1221 KT by 2024. In terms of application, household cleaning and personal care together made up for 49 percent of the total surfactants market. Also in line with the application market, personal care surfactants market is expected to be the fastest growing market growing at a CAGR of 7.6 percent till 2024: Anionics have the largest volume, but in terms of growth, Cationics are expected to grow the fastest, at a CAGR of 8.2 percent (value terms) till 2024. (Source: “Global Surfactant Market – Custom Research for Galaxy Surfactants Limited” by Acmite Market Intelligence) The Global Preservatives and Preservatives Blends Market Phenoxyethanol Preservatives

Phenoxyethanol preservatives are largely used in the home and personal care industry as preservatives in finished products. For instance, phenoxyethanol, along with other preservatives such as potassium sorbate, benzisothiazolinone, and methylisothiazolinone, is a key ingredient for preventing bacterial attack in the aqueous cleaning and stain removing homecare products. Furthermore, personal care is another significant application segment, which comprises color cosmetics, wipes, perfumes, fragrances, and skin and hair care products. Phenoxyethanol possesses mild preservative properties and, hence, the cosmetic industry is currently focusing on developing innovative blends of phenoxyethanol for personal care preservation. In terms of volume, the global demand for phenoxyethanol preservatives stood at 39.2 kilo tons in 2013 and is expected to reach 51.2 kilo tons by 2020, increasing at a CAGR of 3.9% between 2014 and 2020. In terms of revenue, the phenoxyethanol preservatives market was valued at USD 95.8 Million in 2013 and is anticipated to reach USD 143.2 Million by 2020, expanding at a CAGR of 5.9% between 2014 and 2020. The global phenoxyethanol preservatives market is driven by strong growth in cosmetic products coupled with shift towards phenoxyethanol-based blends in the cosmetic industry. In terms of volume and revenue, Asia Pacific dominated the global phenoxyethanol preservatives market, accounting for 41.9% share in 2013. Asia Pacific was followed by North America in terms of demand in 2013. The market for phenoxyethanol preservatives in Asia Pacific is anticipated to expand at a comparatively faster rate during the next few years. Demand for phenoxyethanol preservatives in Europe is likely to rise at a sluggish rate during the forecast period. RoW is projected to be second-fastest region in the phenoxyethanol preservatives market in next few years. (Source: “Phenoxyethanol Preservatives Market: Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2014 – 2020” by Transparency Market Research) Preservative Blends Market

The global preservatives blends market size was USD 133.5 million in 2015, and is expected to grow to a size of USD 215.9 million by 2024, at a CAGR of 5.6%. Asia Pacific region held the major share of preservative blends market in 2015 as demand for beauty and personal care segment is rising at a speedy rate. The market for preservative and preservative blends is largely hampered by the growing demand for natural and organic preservatives. Rising levels of awareness and the various diseases caused by synthetic preservatives are the causes

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behind this shift. Demand for alcohol-based preservative blends is rising, with manufacturers of personal care, homecare, and beauty products shifting toward them. Parabens are commonly used preservative blends, holding a share of more than 35% in the market in 2015. This trend is expected to continue by 2024, albeit at a sluggish growth rate owing to the various side effects and diseases such as cancer caused by parabens, which have therefore been banned in many countries. Companies are now focusing on manufacturing paraben-free products. Similar is the case with formaldehyde preservative blends. Companies are manufacturing products consisting of formaldehyde-free preservatives, as they cause itching, burning, and irritation to the skin. Their usage is banned in Japan and Sweden and has also been proven to be dangerous for animals and wildlife. This is projected to lead to a decline in demand for formaldehyde in the near future. After parabens, alcohols held a significant share of more than 20% in the preservative blends market in 2015 and are anticipated to be a rapidly expanding segment during the forecast period because of their limited toxicity. Their pricing is close to that of formaldehyde. (Source: “Preservatives Blends Market: Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2016 – 2024” by Transparency Market Research) Surfactants Market by Application Industry (Figures as in 2015) Surfactants are mainly used in household cleaning, industrial and institutional cleaning, personal care and various industrial applications such as textile processing, food industry, paints and coatings, oil fields etc. Household cleaning today accounts for largest application field for surfactants and accounts for 35 percent of the global surfactants consumption in terms of value. Making up for 20 percent, personal care is the most lucrative application field and is believed to be the fastest growing one for surfactant suppliers. Other various industries account for 32 percent of the global surfactant consumption.

Sales* 2015 (In USD

Billions) 2018 (In USD

Billions) 2024 (in USD

Billions) CAGR (%)

Household Cleaning 10.73 11.87 14.49 3.4

I & I Cleaning 1.99 2.22 2.74 3.6

Personal Care 6.13 7.29 10.27 5.9

Industrial Application 9.81 11.23 14.7 4.6

Others 1.99 2.28 2.96 4.5

Total 30.65 34.88 45.16 4.4 *Figures as in 2015 (Source: “Global Surfactant Market – 4th Edition” by Acmite Market Intelligence)

The Indian Surfactants Market The Indian Surfactants market is a USD 1.35 Billion market (2015) which is expected to grow at a CAGR of 6 percent to touch USD 2.28 Billion by 2024. In terms of volumes, it is a 778 KT market growing at a CAGR of 5.8 percent and the same is expected to touch 1221 KT by 2024. In terms of application, household cleaning and personal care together made up for 49 percent of the total surfactants market. Also in line with the application market, personal care surfactants market is expected to be the fastest growing market growing at a CAGR of 7.6 percent till 2024:

Sales* 2015 (In USD

Billions) 2018 (In USD

Billions) 2024 (in USD

Billions) CAGR (%)

Household Cleaning 0.42 0.49 0.65 5.1

I & I Cleaning 0.11 0.13 0.17 5.4

Personal Care 0.24 0.3 0.47 7.6

Industrial Application 0.45 0.54 0.78 6.2

Others 0.13 0.15 0.21 5.8

Total 1.35 1.61 2.28 6.0 (Source: “Global Surfactant Market – Custom Research for Galaxy Surfactants Limited” by Acmite Market Intelligence) Key Concerns Business is dependent on manufacturing facilities and is subject to certain risks in manufacturing process: As of September 30, 2017, GSL conducted its operations through seven manufacturing facilities and one pilot plant. Its business is dependent upon its ability to manage manufacturing facilities, which are subject to various operating risks, including those beyond control, such as the breakdown and failure of equipment or industrial accidents and severe weather conditions and natural disasters. Any significant malfunction or breakdown of its machinery may entail significant repair and maintenance costs and cause delays in its operations. If GSL is unable to repair malfunctioning machinery in a timely manner or at all, its operations may need to be suspended until it procure machinery to replace the same. Although it has not experienced any significant disruptions at its manufacturing facilities in the past, it cannot be assured that there will not be any disruptions in its operations in the future. GSL’s inability to effectively respond to such events and rectify any disruption, in a timely manner and at an acceptable cost, could lead to the slowdown or shut-down of operations or the under-utilization of manufacturing facilities, which in turn may have an adverse effect on the business, results of operations and financial condition.

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GSL does not have long-term agreements with suppliers for raw materials and an increase in the cost of, or a shortfall in the availability or quality of such

raw materials could have an adverse effect on business and results of operations: GSL’s business depends on the availability of reasonably priced, high quality raw materials in the quantities required by it. Its Performance Products group depends primarily on lauryl alcohol, which is primarily purchased from South East Asia. For its Speciality Care Products group, GSL require fatty acids, phenols, DMAPA and PAA, which primarily source from India, South East Asia, USA and Europe. The price and availability of such raw materials depend on several factors beyond its control, including overall economic conditions, production levels, market demand and competition for such materials, production and transportation cost, duties and taxes and trade and regulatory restrictions. Raw materials, including packaging materials, are subject to supply disruptions and price volatility caused by various factors such as commodity market fluctuations, the quality and availability of raw materials, currency fluctuations, consumer demand, changes in government policies and regulatory sanctions. Further, GSL typically rely on third-party transportation providers to supply most of the raw materials and to deliver products to its customers. If, for any reason, primary suppliers of raw materials should curtail or discontinue their delivery of such materials or products to it in the quantities GSL needs, or on commercially acceptable terms, production schedules could be disrupted and its business and results of operations could be adversely affected. GSL’s inability to accurately forecast demand or price for the products and manage inventory may have an adverse effect on the business, results of

operations and financial condition: GSL’s business depends on its estimate of the demand for its products from customers and on the basis of purchase orders that are placed from time to time. Almost all of its customers operate within the personal care and home care segments, and its products find application in a host of consumer-centric personal care and home care products, including, inter alia, skin care, oral care, hair care, cosmetic, toiletries and detergent products. The demand for the products manufactured by customers is linked to a variety of factors, including customers’ ability to identify and adapt to evolving consumer preferences. If GSL underestimate demand or have inadequate capacity due to which it is unable to meet the demand for products, it may manufacture fewer quantities of products than required, which could result in the loss of business. At times when GSL has overestimated demand, it may have incurred costs to build capacity or purchased more raw materials and manufactured more products than required. Its inability to accurately forecast demand for its products and manage inventory may have an adverse effect on the business, results of operations and financial condition. GSL’s operations are hazardous and could expose to the risk of liabilities, loss of revenue and increased expenses: GSL’s operations are subject to various hazards associated with the production of chemical and other products, such as the use, handling, processing, storage and transportation of hazardous materials, as well as accidents such as leakage or spillages of chemicals. Any mishandling of hazardous chemicals and poisonous substances could also lead to fatal accidents. In addition, its employees operates heavy machinery at its manufacturing facilities and accidents may occur while operating such machinery. These hazards can cause personal injury and loss of life, severe damage to and destruction of property and equipment, environmental damage and may result in the suspension of operations and the imposition of civil and criminal liabilities. As a result of past or future operations, claims for damages from customers along with claims of injury by employees or members of the public due to exposure, or alleged exposure, to the hazardous materials involved in GSL’s business may arise. While it maintain general insurance against these liabilities, insurance proceeds may not cover or may not be adequate to fully cover the substantial liabilities, lost revenues, loss of reputation or increased expenses that it might incur. Derives a significant portion of revenue from a few major customers: GSL currently generates a significant portion of its revenues from limited number of major customers. Further, it currently do not have long-term contractual arrangements with most of its significant customers, and conduct business with them on the basis of purchase orders that are placed from time to time. Its reliance on a select group of customers may constrain its ability to negotiate arrangements, which may have an impact on profit margins and financial performance. Any loss of one or more of such customer or a reduction in the demand for products or any adverse impact on the business of GSL’s customers could adversely impact its revenues. It cannot be assured that it will be able to maintain historic levels of business from significant customers, or that it will be able to significantly reduce customer concentration in the future. GSL is subject to extensive government regulation: GSL’s operations are subject to extensive government regulation and is required to obtain and maintain a number of statutory and regulatory permits and approvals under central, state and local government rules in the geographies in which it operates, generally for carrying out its business and for each of its manufacturing facilities in India, Egypt and USA. A majority of these approvals are granted for a limited duration. Some of these approvals has expired and it has either made or are in the process of making an application for obtaining the approval or its renewal. Further, while GSL has applied for some of these approvals, it cannot be assured that such approvals will be issued or granted to it in a timely manner, or at all. If GSL do not receive such approvals or are not able to renew the approvals in a timely manner, its business and operations may be adversely affected. Inability to implement business strategy or effectively sustain and manage growth could have an adverse effect on business, results of operations and

financial condition: In recent years, GSL has experienced considerable growth and has significantly expanded its operations and product portfolio. It cannot be assured that its growth strategies will be successful or that it will be able to continue to expand further or diversify

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product portfolio. GSL’s inability to manage its expansion of product grades effectively and execute growth strategy in a timely manner, or within budget estimates or its inability to meet the expectations or track the changing preferences of its customers and other stakeholders could have an adverse effect on its business, results of operations and financial condition. It cannot be assured that its existing or future management, operational and financial systems, procedures and controls will be adequate to support future operations, or establish or develop business relationships beneficial to future operations. Failure to manage growth effectively could have an adverse effect on its business and results of operations. Inability to manage diversified operations may have an adverse effect on business, results of operations and financial condition: At present, GSL has 7 (seven) strategically-located manufacturing facilities, out of which 5 (five) are located in India and 2 (two) are located overseas. It also has set-up 1 (one) pilot plant at Tarapur, Maharashtra. Out of its 5 (five) manufacturing facilities in India, 3 (three) are located at Tarapur, Maharashtra, 1 (one) is located at Taloja, Maharashtra, and 1 (one) is located at Jhagadia, Gujarat. It has set-up sales offices in India, Egypt and USA, and representative offices in Netherlands and Turkey. Currently, its product portfolio comprises over 200 product grades, which are marketed to more than 1700 customers in over 70 countries. Its management requires considerable expertise and skill to manage and allocate an appropriate amount of time and attention to its diverse business. Operating such a geographically diverse business also makes forecasting future revenue and operating results difficult, which may impair GSL’s operations and ability to assess its prospects. If GSL is unable to manage diversified operations, its business, results of operations and financial condition may be adversely affected. Dependent on a single supplier for one of the key raw materials: GSL is dependent on a single supplier for ethylene oxide, which is one of its key raw materials. Its dependence on a single supplier may constrain its ability to negotiate sourcing arrangements, which may have an impact on its profitability and financial performance. It cannot be assured that it will be able to identify other suppliers or find suitable substitutes for ethylene oxide in the future. Any disruption in the supply of the aforesaid raw material may disrupt manufacturing operations, which may have a material adverse effect on its business, results of operations and financial condition. If GSL is unable to introduce new products and respond to changing consumer preferences in a timely and effective manner, the demand for products

may decline: The success of GSL’s business depends upon its ability to anticipate and identify changes in consumer preferences and offer products that consumers require. It constantly seeks to develop research and development capabilities to distinguish itself from its competitors to enable to introduce new products and different variant of its existing products, based on consumer preferences and demand. Although GSL seeks to identify such trends and introduce new products, it cannot be assured that its products would gain consumer acceptance or that it will be able to successfully compete in such new product segments. The development and commercialization process of a new product would require GSL to spend considerable time and money. Its ongoing investments in research and development for new products and processes may result in higher costs without a proportionate increase in revenues. Delays in any part of the process, its inability to obtain necessary regulatory approvals for products or failure of a product to be successful at any stage could adversely affect business. Consequently, any failure on GSL’s part to successfully introduce new products and processes may have an adverse effect on its business, results of operations and financial condition. Exposed to foreign currency exchange rate fluctuations, which may harm results of operations and cause results to fluctuate: GSL’s financial statements are presented in Indian Rupees. However, its expenses to some extent are influenced by the currencies of those countries from where it procure some of its raw materials. It is importing major raw material, lauryl alcohol from South East Asia. Further, it generates a significant portion of its sales internationally through export and sales outside of India. These sales, together with a portion of raw materials expenditure, are denominated in foreign currencies, primarily in U.S. dollars and Euros. Moreover, GSL overseas Subsidiaries and Step-down Subsidiaries prepare their financial statements in foreign currencies. The exchange rate between the Indian Rupee and these currencies has fluctuated in the past and its results of operations has been impacted by such fluctuations and may be impacted by such fluctuations in the future as well. There is no guarantee that GSL may be able to manage its foreign currency risk effectively or mitigate exchange exposures, at all times and its inability may harm its results of operations and cause its results to fluctuate and/or decline. If any of the products of customers cause, or are perceived to cause, severe side effects, GSL’s reputation, revenues and profitability could be adversely

affected: GSL develop, manufacture and market a diverse range of chemical products and formulations, which are primarily used as raw materials for host of products in the consumer-centric personal care and home care segments, including, inter alia, skin care, oral care, hair care, cosmetic and toiletries. If its customers’ products cause, or are perceived to cause, severe side effects to their end-users, it may face a number of consequences, including, a severe decrease in the demand for, and sales of, the relevant products; the recall or withdrawal of the relevant products; withdrawal or cancellation of regulatory approvals for the relevant production facility; damage to its reputation and brand name; and exposure to lawsuits and regulatory investigation relating to the relevant products that result in liabilities, fines or sanctions. As a result of these consequences, GSL’s reputation, revenues and profitability may be adversely affected. Currently avail benefits under certain export promotion schemes: GSL currently avail benefits under certain export promotion schemes, including in respect of one of its manufacturing facility at Jhagadia, Gujarat, which is an Export Oriented Unit (EOU). As per the licensing requirement

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under the said schemes, it is required to export goods of a defined amount, failing which, it may have to pay the Government, a sum equivalent to the duty benefit enjoyed by it under the said schemes along with interest. Any reduction or withdrawal of benefits or inability to meet any of the conditions prescribed under any of the schemes would adversely affect GSL’s business, results of operations and financial condition. Operates in a competitive business environment: The surfactants and speciality chemicals industry is highly competitive. GSL expects that competition will continue to intensify both through the entry of new players and consolidation of existing players. Its competitors may succeed in developing products that are more effective, more popular or cheaper than any it may develop, which may render its products obsolete or uncompetitive and adversely affect its business and financial results. Further, GSL’s customers operate within the highly competitive personal care and home care industries, where they are constantly required to adapt to factors such as changing consumer preferences, consolidation and the entry of new regional and local players, and constantly exert downward pricing pressure. It may be adversely affected in case GSL customers are unable to effectively respond to any factors that adversely impact the competitive landscape of the personal care and home care industries. A shortage or non-availability of electricity, fuel or water may adversely affect manufacturing operations and have an adverse effect on the business,

results of operations and financial condition: GSL’s manufacturing operations require a significant amount and continuous supply of electricity, fuel and water and any shortage or non-availability may adversely affect its operations. The production process of certain products, as well as the storage of certain raw materials and products in temperature controlled environments requires significant power. Although GSL has diesel/furnace oil generators to meet exigencies at certain of its facilities, it cannot be assured that its facilities will be operational during power failures. Any failure on its part to obtain alternate sources of electricity, fuel or water, in a timely fashion, and at an acceptable cost, may have an adverse effect on the business, results of operations and financial condition. A significant disruption to distribution network or any disruption of civil infrastructure, transport or logistic services, may create delays in deliveries of

products distributed by GSL: GSL rely on various forms of transportation, such as waterways, roadways and railways to receive raw materials required for its products and to deliver its finished products to its customers. Unexpected delays in those deliveries, including due to delays in obtaining customs clearance for raw materials imported by it, or increases in transportation costs, could significantly decrease the ability to make sales and earn profits. Manufacturing delays or unexpected demand for GSL’s products may also require it to use faster, but more expensive, transportation methods, which could adversely affect its gross margins. In addition, labour shortages or labour disagreements in the transportation or logistics industries or long-term disruptions to the national and international transportation infrastructure that lead to delays or interruptions of deliveries could materially adversely affect GSL’s business. Any delays and/or defaults in payments from customers could result in increase of working capital investment and/or reduction of profits, thereby

affecting operation and financial condition: GSL is exposed to payment delays and/or defaults in payments by its customers and its financial position and financial performance are dependent on the creditworthiness of its customers. Any delays in payments may require GSL to make a working capital investment. Further, it cannot be assured that payments from all or any of its customers will be received in a timely manner or to that extent will be received at all. If a customer defaults in making its payments on an order on which it has devoted significant resources, or if an order in which it has invested significant resources is delayed, cancelled or does not proceed to completion, it could have a material adverse effect on GSL’s results of operations and financial condition.

GSL is subject to risks associated with expansion into new geographic regions: GSL has significantly increased its geographical footprint in recent years by focusing on certain high growth international clusters such as AMET and Latin America. Its Step-down Subsidiaries, coupled with manufacturing facilities in Suez, Egypt, and New Hampshire, USA, enables it to service the international demand for some of its products. Expansion into new geographic regions subjects GSL to various challenges, including those relating to its lack of familiarity with the culture, legal regulations and economic conditions of these new regions, language barriers, difficulties in staffing and managing such operations, and the lack of brand recognition and reputation in such regions. The risks involved in entering new geographic markets and expanding operations, may be higher than expected, and it may face significant competition in such markets. By expanding into new geographical regions, GSL could be subject to additional risks associated with establishing and conducting operations. By expanding into new geographical regions, it may be exposed to significant liability and could lose some or all of its investment in such regions, as a result of which its business, financial condition and results of operations could be adversely affected. GSL rely on contract labour for carrying out certain of its operations and it may be held responsible for paying the wages of such workers, if the independent contractors through whom such workers are hired default on their obligations, and such obligations could have an adverse effect on results

of operations and financial condition: In order to retain flexibility and control costs, GSL appoint independent contractors who in turn engage onsite contract labour/staff for performance of certain of its operations. Although it do not engage these labourers directly, it may be held responsible for any wage payments to be made to such labourers in the event of default by such independent contractor. Any requirement to fund their wage requirements may have an adverse impact on GSL’s results of operations and financial condition. In the event of any non-

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compliance by contractors with statutory requirements, legal proceedings may be initiated against it. Thus, any such order from a regulatory body or court may have an adverse effect on GSL’s business, results of operations and financial condition. A slowdown in economic growth in India could adversely affect the business, results of operations, financial condition and cash flows: GSL is dependent on domestic, regional and global economic and market conditions. Its performance, growth and market price of its Equity Shares are and will be dependent to a large extent on the health of the economy in which it operated. There has been periods of slowdown in the economic growth of India. Also, a change in the government or a change in the economic and deregulation policies could adversely affect economic conditions prevalent in the areas in which it operates in general and its business in particular and high rates of inflation in India could increase costs without proportionately increasing its revenues, and as such decrease its operating margins. Inflation in India could have an adverse effect on profitability and if significant, on financial Condition: Inflation is typically impacted by factors such as governmental policies, regulations, commodity prices, liquidity and global economic environment. Any change in the government or a change in the economic and deregulation policies could adversely affect the inflation rates. Continued high rates of inflation may increase GSL’s costs such as salaries, travel costs and related allowances, which are typically linked to general price levels. Accordingly, high rates of inflation in India could have an adverse effect on its profitability and, if significant, on its financial condition. If GSL pursue strategic acquisitions or joint ventures, it may not be able to successfully consummate favourable transactions or successfully integrate

acquired businesses: From time to time, GSL may evaluate potential acquisitions or joint ventures that would further its strategic objectives. For example, Tri-K Industries Inc. became a subsidiary of GSL with effect from Fiscal 2010. However, it may not be able to identify suitable companies, consummate a transaction on terms that are favourable to it, or achieve expected returns and other benefits as a result of integration challenges or anti-monopoly regulations. GSL’s corporate development activities may entail financial and operational risks, including diversion of management attention from its existing core businesses, difficulty in integrating or separating personnel and financial and other systems, and negative impacts on existing business relationships with suppliers and customers. Future acquisitions, if at all, could also result in potentially dilutive issuances of equity securities; the incurrence of debt, contingent liabilities and increased operating expenses, all of which could adversely affect the business, financial condition, results of operations and prospects. Profit & Loss Rs in millions

Particulars H1FY18 FY17 FY16 FY15

Revenue from Operations 11924.8 21613.4 18019.1 18739.4

Other Income 48.0 103.6 68.4 20.9

Total Income 11972.8 21717.0 18087.6 18760.3

Total Expenditure 10521.4 18936.5 15691.6 16842.7

Cost of raw material Consumed 7977.0 15144.9 11153.7 12533.0

Purchase of Stock -in-trade 336.6 525.5 702.8 751.0

Changes in inventories of finished goods and workin- progress 317.7 -417.7 143.9 -50.2

Employee benefits expense 751.4 1435.6 1446.2 1284.1

Other expenses 1138.8 2248.3 2245.1 2324.8

PBIDT 1451.3 2780.5 2395.9 1917.6

Interest 147.9 254.2 308.8 343.9

PBDT 1303.5 2526.3 2087.1 1573.7

Depreciation 246.5 483.5 452.3 450.8

PBT 1057.0 2042.9 1634.9 1122.9

Tax (incl. DT & FBT) 305.4 579.8 607.7 448.3

Tax 333.6 562.4 606.0 472.4

Deferred Tax -13.7 24.4 1.7 -24.4

Short/(excess) provision for tax relating to prior year -14.5 -6.9 0.0 0.4

Adj. Profit 751.6 1463.1 1027.2 674.6

EPS (Rs.) 21.20 41.3 29.0 19.0

Equity 354.6 354.6 354.6 354.6

Face Value 10.0 10.0 10.0 10.0

OPM (%) 11.8 12.4 12.9 10.1

PATM (%) 6.3 6.8 5.7 3.6

Balance Sheet: Rs in millions

Particulars H1FY18 FY17 FY16 FY15

Equity & Liabilities Shareholders Funds 6350.4 5726.1 4477.7 3778.9

Share Capital 354.6 354.6 354.6 354.6

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Reserves and surplus 5995.9 5371.6 4123.2 3424.3

Non-Current Liabilities 1380.6 1633.5 2266.8 1707.4

Long-term borrowings 1014.4 1294.1 1958.0 1410.7

Deferred tax liabilities 236.6 244.4 206.9 207.6

Other long-term liabilities 7.4 6.8 25.2 13.2

Long-term provisions 122.2 88.2 76.7 75.9

Current Liabilities 5421.7 5494.2 4347.8 5115.9

Short-term borrowings 2119.5 2041.4 1423.5 2331.4

Trade payables Micro & Small Enterprises 20.2 23.6 28.4 8.3

Other Than Micro & Small Enterprises 2284.1 2508.3 1905.6 1770.3

Other current liabilities 877.3 864.4 925.0 933.1

Short term provisions 120.6 56.6 65.4 72.8

Total Equity & Liabilities 13152.7 12853.8 11092.3 10602.2

Assets Fixed Assets 5188.5 5289.8 5238.3 4945.0

Property, plant and equipment 4,538.58 4647.4 4249.4 4461.9

Intangible assets 69.6 78.1 108.2 132.3

Capital work in progress 161.2 103.3 507.6 65.1

Non-current investments 0.1 0.1 0.1 0.1

Deferred tax assets (net) 32.2 26.1 13.7 15.2

Long-term loans and advances 386.6 434.6 359.2 270.2

Other non-current assets 0.2 0.2 0.2 0.2

Current Assets 7964.3 7564.0 5854.0 5657.2

Inventories 2721.5 3174.2 2357.7 2459.9

Trade receivables 3826.7 3462.8 2501.9 2212.7

Cash and bank balances 318.6 254.0 159.8 188.0

Short-term loans and advances 810.7 449.7 576.0 733.4

Other current assets 286.8 223.3 258.6 63.3

Total Assets 13152.7 12853.8 11092.3 10602.2

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HDFC securities Limited, I Think Techno Campus, Building - B, "Alpha", Office Floor 8, Near Kanjurmarg Station, Opp. Crompton Greaves, Kanjurmarg (East), Mumbai 400 042 Phone: (022) 3075 3400 Fax: (022) 2496 5066 Compliance Officer: Binkle R. Oza Email: complianceofficer@hdfcsec.com Phone: (022) 3045 3600 HDFC Securities Limited (HSL) is a SEBI Registered Research Analyst having registration no. INH000002475. Disclaimer: This report has been prepared by HDFC Securities Ltd and is meant for sole use by the recipient and not for circulation. The information and opinions contained herein have been compiled or arrived at, based upon information obtained in good faith from sources believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. 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