overview

Dear shareholders

I am writing to you during very challenging times and I hope you and your loved onesare in the best of health. Since March 2020 we have been battling an invisible enemy theCOVID-19. This global pandemic and the subsequent lockdown have been a wake-up call forall of us impacting the socioeconomic fabric of society.

In this regard I also want to update you all that Gabriel India has taken varioussteps to safeguard the interests of employees support the customers hand-hold suppliersand help the communities in our vicinity. We have also implemented all the internationalstandard measures including the Government guidelines.

Our Business Sustainability platform

Few years ago Gabriel India embarked on an ambitious vision: 'To be amongst the Top 5shock absorber manufacturers in the world'. To achieve this goal it embedded in its DNA akey attribute - Business Sustainability which includes the five main drivers of PEOPLEPRODUCT PROCESS PROFIT and PLANET. Business Sustainability covers every aspect ofGabriel India's existence and the focus on drivers has given sustained growth over theyears. This has made Gabriel India resilient in the face of adversities and provides theimpetus to emerge stronger from any eventuality.

The outcome of our sustainability commitment was evident during a

challenging FY 2019-20. The revenues declined on account of a sectoral slowdown marketsluggishness and the imposition of a lockdown towards the end of the financial year.Despite this the Company reported EBITDA margins of 7.4% a H27.3 cr. increase in netcash from operations and Return on Capital Employed (RoCE) of 17.8% in FY 2019-20.

At Gabriel India the initial trigger of its sustainability initiative was the need foran investment in PEOPLE.

The Company recruited fresh talent and empowered them to drive improvement projects.Young achievers were identified and promoted to critical positions. Emphasis was given totraining and development as competencies became specialised. The result is the recognitionby Great Place to Work Institute for five consecutive years.

The focus shifted towards manufacturing PRODUCTS of the highest standards with asubstantial increase in y-o-y spending on Research and Development to around 1.06% of netsales in FY 2019-20. Gabriel India strengthened end-to-end product development along witha broad-based product portfolio from the auto sector to railways. This resulted in GabrielIndia being synonymous with Ride Control products.

It responded to the growing need for improved manufacturing PROCESSES. The Companyfocused on continuous improvements in Quality Cost and Delivery. It invested in processinnovation translating into better products at lower costs.

The natural extension of the sustainability drive translated into a greater respect forthe PLANET.

The Company invested in the 4 'R's of recycling reuse renewable and reduction. Byintegrating 'green' as a way of life it invested in environment- friendly processes andrenewable energy that moderated its carbon footprint.

The convergence of these initiatives translated into superior and sustainablePROFITABILITY. Over the years the Company reported a sustained growth in revenues anddeeper OEM relationships resulting in zero long-term debt and a substantial cash corpus.As a validation of the increased financial sustainability

CRISIL maintained the long-term rating at AA/Stable for bank loan facilities.

Our performance in FY 2019-20

The global economy weakened nearly 130 bps to 2.3% during 2019. The Indian economydeclined from 6.1% to 4.2% in FY 2019-20 with muted consumer spending.

The slowdown was aggravated by a decline in liquidity increased insurance premiarun-up to general elections and finally the onslaught of COVID-19. The Indian automobileindustry sales de- grew at around 17.96% during FY 2019-20 compared to a growth of around5.14% in FY 2018-19.

In the backdrop of a severe slowdown Gabriel India was able to sustain with marginalsales decline across Business Units. It reported a 22.50% decline in EBITDA from H177.80cr. in FY 2018-19 to H137.80 cr. in FY 2019-20. The Profit Before Tax declined by 29.91%from H143.05 cr. in FY 2018-19 to H100.27 cr. in FY 2019-20.

In FY 2019-20 the Business Units supported OEMs in BSVI transition.

The 2 & 3-Wheelers Business Unit set up a manufacturing facility in Sanand tosupport Honda Motorcycle and Scooter India. The Passenger Vehicle Business Unit supportedthe launch of Maruti Suzuki S Presso. The Commercial Vehicle Business Unit receivednomination to supply parts to DAF Netherlands and developed high damping force technologyproducts for Ashok Leyland's new platform. It was heartening to see the Railways BusinessUnit perform exceptionally well with a growth rate of more than 50% on the back of strongvolumes. Finally the Aftermarket Business Unit also performed relatively well byexpanding its range with new SKUs and launching new product lines and de- grew by only 1%in FY 2019-20.

I believe that the Company's sustained margins overall customer centricity andintroduction of new products on the back of a very volatile and tepid industryperformance represents a creditable achievement.

Our Awards and Recognitions

At Gabriel India we enjoy longstanding relationships with a number of marquee OEMs.During FY 201920 the Company received 'Best Support' Award from Maruti Suzuki 'CostReduction' Award from Suzuki Motorcycles Outstanding Contribution Award for achieving'Zero Defect

The principal message that I wish to send out to our stakeholders is that in the lastfew years Gabriel India has deepened its sustainability roots and strengthened yourCompany through process and product improvement.

Supplies' to Toyota Kirloskar Motors and 'Delivery' Award from Honda Motorcycle andScooter India.

Besides it also won multiple awards at Federation of Indian Chambers of Commerce &Industry (FICCI) Automotive Component Manufacturers Association of India (ACMA)

Quality Circle Forum of India (QCFI) Confederation of Indian Industry (CII) and Kaizencompetitions.

Our outlook

I am cautiously optimistic of our future prospects. I believe that the battle againstCOVID-19 will be a long-drawn-out one and will require sustained and concerted efforts toovercome. On the business front in the long run I foresee a positive trend throughsustained increase in the need for personal mobility. This could generate a demand reboundfor automotive vehicles and translate into traction for our products. The outlook for FY2020-21 appears uncertain and depends on the effectiveness with

which the pandemic can be controlled.

The principal message that I wish to send out to our stakeholders is that in the lastfew years Gabriel India has deepened its sustainability roots and strengthened yourCompany through process and product improvement.

I am confident that our resilience will empower us to protect our fundamentals. Toweather the storm and safeguard long-term interests the Company has taken variousmeasures like controlling operating costs optimising manufacturing efficiency and cuttingdown capital expenditure.

Globally there is scope to increase exports. The Company will strategically exploreopportunities in the overseas markets by leveraging relationships with global OEMs inIndia.

Through a convergence of these initiatives and priorities we shall steadily continueto pursue our vision 'To be amongst the Top 5 shock absorber manufacturers in the world'by 2025.

Acknowledgements

I am grateful for the support extended by all our stakeholders particularly theshareholders. I would like to thank all our customers for reposing their trust in us andwe will further strive to provide them with ultimate customer delight.

The wealth of experience and strategic guidance provided by our Board members hashelped us during these tough times. I also acknowledge the immense contribution of ANANDGroup and the supporting corporate teams. This overview will not be complete without amention of our employees who stand by us to counter the prevailing challenges.

We will continue to progress towards building a world-class organisation that enhancesvalue for all its stakeholders in a sustainable way for years to come.

With my best wishes