Dear Shareholders,

The Indian economy continues to grow strongly and remains a bright spot in the global landscape. While the global GDP growth slipped to 31% in 2016, shedding 30 basis points over 2015; the Indian economy grew by 7.1% in the fiscal year 2016-17, in spite of demonetization.

It''''s a matter of great pride and privilege for all of us to be a part of a promising ''''India story'''' unfolding. Your Company has delivered yet another successful year in 2016-17 in terms of both financial and operational performance. With volumes reaching 84,000 KL in FY17, your Company is on course to be amongst the top three private sector lubricant players in India. During the year, your Company increased its market share across segments with a healthy improvement in product mix aiding a strong top-line and bottom-line growth. In FY17 the net revenue stood at Rs, 1,131 Crore, growing by 11.8% as compared to the previous year. The net profit reached Rs, 121 Crore, increasing by 20.7% as compared to FY16. The Company also continued to strengthen its balance sheet and financial position.

During the year, your Company disbursed an interim dividend of Rs, 3.50 per equity share (175% on face value of Rs, 2 per equity share) to reward the shareholders. Additionally, the Board has recommended a final dividend of Rs, 5 per equity share (250% on face value of Rs, 2 per equity share) aggregating to Rs, 8.50 per equity share (425% on face value of Rs, 2 per equity share) subject to your approval at the Annual General Meeting.

With the combined might of Gulf Oil''''s global and Indian assets and initiatives, brand ''''Gulf'''' continues to raise its equity and acceptance across the length and breadth of the country, as evident from its steadily improving brand recall in the minds of Indian consumer. Your Company has successfully leveraged its global partnerships and associations in India.

Be it the successful partnership with Manchester United or sponsorship of the World Superbike Championship Teams Aprilia Milwaukee and Alethea BMW, all the associations have enhanced Gulf Oil''''s brand visibility and consumer engagements in India. In addition, your Company''''s India centric brand initiatives and campaigns featuring its brand ambassador M. S. Dhoni and sponsorship of IPL Team Rising Pune Supergiant further supported the brand enormously in last year.

Your Company worked closely with our OEM partners - Ashok Leyland, Mahindra and others to achieve significant growth in volumes and product usages. We also expanded our customer base in the Industrial, Infrastructure, Mining, Fleet and Marine segments and won many new marquee customers. Our Strategic OEM tie-up with Bajaj Auto Limited as announced last year, for the two wheeler segment was an important milestone for your Company. The growing number of OEM tie-ups reflect these companies'''' confidence in not only the Gulf brand, product technology and distribution prowess but also in your Company''''s ability to support their longer term growth journey in India and export markets. The thrust on R&D and innovation further helps your Company to offer differentiated value propositions and forge strategic partnerships with leading OEMs and technology providers.

Looking ahead, your Company, with a strong business model, is well placed to capture healthy growth in a market that is poised to witness steady growth. Stimulus from the Indian economy through Infrastructure growth projects, with activities like expansion, construction and modernization of roadways, metro networks and ports through the Bharat Mala & Sagar Mala programmes, demonstrate confidence and positive sentiment towards the Indian economy. Huge focus on systematic growth in manufacturing through initiatives like ''''Make in India'''', transition towards an organized, tax compliant, transparent and less cash dependent economy, smooth roll out of GST, implementation of BS IV emission norms and the resolve to adopt BS VI emission norms by 2020 amongst other things, augurs well for your Company''''s future growth in both Automotive and Industrial lubricant segments.

Your Company stands committed and well prepared to consistently deliver all round growth. Gulf Oil is well set to leverage the strong platform of superior product portfolio and mix, efficient and growing distribution reach, strengthening brand appeal and enhanced manufacturing base in India.

Happy to share, your Company''''s new Greenfield plant in south India, near Chennai, shall commence operations in the next few months. Additional capacity of about 40,000-50,000 MTPA from the new plant, with its ability to roll out value-added premium lubricants, positions your Company to meet its immediate and near term growth needs.

The management team and all employees of Gulf Oil India are fully geared up to achieve the next levels of performance.

I congratulate and thank them for a commendable performance in FY17. In addition, I would like to thank all our distribution partners, OEM and B2B customers, our suppliers, financial institutions and bankers for their continued trust in us. Above all, I would like to, most sincerely, thank all you shareholders for your belief and confidence in our ability to create value.

Yours Sincerely,

Sanjay G Hinduja

Chairman (DIN: 00291692)

CIN: U67190WB2003PTC096617. Trading in Commodities is done through our Group Company Dynamic Commodities Pvt. Ltd. The company is also engaged in Proprietory Trading apart from Client Business.

Disclaimer: There is no guarantee of profits or no exceptions from losses. The investment advice provided are solely the personal views of the research team. You are advised to rely on your own judgment while making investment / Trading decisions. Past performance is not an indicator of future returns. Investment is subject to market risks. You should read and understand the Risk Disclosure Documents before trading/Investing.

Disclosure: We, Dynamic Equities Private Limited are also engaged in Proprietory Trading apart from Client Business. In case of any complaints/grievances, clients may write to us at

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