Major initiatives undertaken by Galaxy Surfactants during FY 24-25 to drive growth and innovation? How have these influenced your business operations and market positioning? 

In FY 24-25, Galaxy Surfactants continued to drive growth and innovation through strategic investments in sustainability, digital transformation, and product innovation. Our focus on green chemistry and eco-friendly formulations led to the development of next-generation biodegradable specialty such as Galseer DermaGreen, Galseer Tresscon, and Galseer Flexcon, addressing the rising global demand for greener, milder and beauty care solutions. Galaxy also worked on developing sustainable technologies and has come up with products like GalEcosafe (the first one to produce in India & AMET). In Home Care solutions, we have invented technologies in the field of encapsulation of enzymes and green process for fabric softener. These innovations not only strengthened our market presence but also reinforced our commitment to regulatory compliance and environmental responsibility, making us a preferred partner for leading brands worldwide.

We also accelerated our digital transformation journey, integrating automation, AI-driven analytics, and ERP enhancements across our operations. These efforts have optimized supply chain management, improved operational efficiencies, and enabled better data-driven decision-making. Additionally, our continued investment in R&D and advanced manufacturing capabilities has allowed us to remain agile and responsive to evolving market needs, ensuring the timely delivery of high-performance specialty ingredients.

Beyond business expansion, our sustainability and talent development initiatives have played a pivotal role in reinforcing our market leadership. This year, Galaxy entered the Top 5 Club in ‘Great Place to Work’ in the chemical industry. This has strengthened our employer’s brand, helping us attract and retain top talent. Meanwhile, our enhanced ESG commitments, including waste circularity and responsible sourcing, have positioned us as a trusted and sustainable industry leader. These collective efforts have propelled the Galaxy towards long-term growth, resilience, and continued market leadership.

How did Galaxy Surfactants' revenue in FY 24-25 compare to previous years? Were there specific product lines or markets that significantly contributed to this performance?  

India, which constitutes a significant portion of our business, recorded flat performance this quarter and for the full fiscal year. This was primarily due to the lingering impact of the previous quarter’s slowdown, compounded by a more than 40 per cent rise in fatty alcohol prices from Q2 onwards, leading to a slower-than-expected recovery in the performance segment. However, we remain optimistic about growth in the coming quarters, supported by improving economic indicators and gradual market normalization.

The AMET region also experienced flat performance. While macroeconomic challenges persist, early signs of demand recovery and easing supply chain disruptions make us cautiously optimistic. We are taking proactive steps to strengthen our market presence and capture emerging opportunities as the region stabilizes.

In contrast, the Rest of the World (ROW) has been a bright spot, delivering double-digit growth this quarter and for the full fiscal year. This strong performance reflects our strategic focus on global expansion and the rising demand for premium specialties. Growth in ROW has been driven by continued momentum in Europe, APAC, and North & Latin America. This quarter, we achieved 9 per cent volume growth in ROW, with YTD volume growth at 17 per cent, led by mass specialties.

On a YTD consolidated basis, revenue has grown by 11 per cent from Rs. 3,830 crore to Rs 4,250 crore and EBITDA has grown from 498 crore to Rs. 510 crore, which is a 2.5 per cent growth. On EBITDA /MT, it is broadly in line with the performance of Rs. 19,868 vs PY 20,019/MT. 

These results reflect our continued focus on operational excellence, cost efficiency, and strategic agility, positioning us well for sustained and profitable growth. 

What percentage of revenue was allocated to R&D in FY 24-25 and how does this investment reflect your commitment to innovation? 

Galaxy remains one of the leading companies in India in the specialty chemicals space, consistently investing in R&D talent and infrastructure. Our innovation team comprises many PhDs, postgraduates, engineers, and technologists. Galaxy has recently developed a state-of-the-art BioScience Innovation capability equipped with molecular biology expertise. The Galaxy group has invested more than Rs. 150 crore in various innovation capability-building initiatives in recent years.

As a result, we are one of the leading Indian companies in our industry, with 111 approved patents and 32 patents applied for—6 of which were granted in FY 25 alone. For two consecutive years, we have won the ‘Best Innovative Ingredient’ award at the in-cosmetics global show, making Galaxy the only Indian company to achieve this accomplishment.

With such commitment, we have introduced new innovative products in areas such as mild cleansing, natural and modern preservation, DermaCare for sensitive skin, ultra-low dioxane sulfates, green chemistry-based amino acid surfactants, fabric softeners, and encapsulated enzymes. This diverse range of innovative products enables us to be the only Indian company serving various global brands in the Home Care, Personal Care, and Beauty segments. 

What were the primary areas of focus for your capital expenditures in FY 24-25? How have these investments enhanced your production capabilities or operational efficiency? 

In FY 24-25, Galaxy Surfactants strategically directed its capital expenditures towards enhancing production capabilities, expanding its global footprint, and strengthening sustainability initiatives. A significant milestone was the company’s recent strategic partnership with a global customer for Engineering, Procurement, and Construction (EPC) services. This initiative is expected to facilitate the establishment of performance surfactants and specialty ingredients plants overseas, reinforcing Galaxy’s global presence and contributing to long-term growth.

Additionally, the company continued investing in capacity expansion, particularly in specialty care ingredients catering to premium personal care and beauty formulations. These investments align with the increasing demand for superior-performance and sustainable products, enabling Galaxy to better serve its customers and meet growing market demand. Strengthening production capabilities in this segment not only drives revenue growth but also solidifies Galaxy’s position as a key player in the personal care, beauty & home care industry.

What strategies has Galaxy Surfactants employed to expand its global footprint and penetrate new markets? How have these strategies contributed to the company's growth and diversification? 

Galaxy Surfactants has actively pursued global expansion through a combination of strategic partnerships, capacity enhancements, and a customer-centric approach. One of the key initiatives in FY 24-25 was the company’s collaboration with a global customer for Engineering, Procurement, and Construction (EPC) services, which is expected to facilitate the establishment of performance surfactants and specialty ingredients plants in international markets. This move aligns with Galaxy’s vision to strengthen its global presence and cater to the growing demand for sustainable and high-performance personal care ingredients in developed markets. 

In addition to partnerships, the company has focused on market-specific product innovation to meet regional consumer preferences. Expanding its specialty care ingredient portfolio to cater to premium personal care brands has been a key differentiator, allowing Galaxy to penetrate high-growth markets in Europe, North America, and Southeast Asia. By leveraging its research and development capabilities, the company has introduced tailor-made solutions that comply with stringent global regulatory standards, ensuring relevance and competitiveness in new geographies. Galaxy has demonstrated revenue of CAGR of 9 per cent in the last 10 years and 10 per cent CAGR in Specialty Product Revenues.  

Galaxy Surfactants has been recognized for its sustainability efforts, including achieving water positivity by restoring more water to the environment than it withdraws. Could you elaborate on the strategies and projects that led to this accomplishment? 

The company’s approach is rooted in optimizing water usage, increasing recycling and reuse, and supporting large-scale water harvesting initiatives. A major milestone was its achievement of becoming net water positive, where more water is restored to the environment than withdrawn for operations. This was accomplished through improved water efficiency across manufacturing sites, investments in advanced water treatment technologies, and process innovations that minimize water consumption.

One of the key initiatives driving this achievement is the company’s focus on rainwater harvesting and groundwater recharge projects in water-stressed regions. Galaxy has partnered with local communities and NGOs to develop watershed management programs, ensuring long-term water availability for both industrial and agricultural use. Additionally, it has implemented closed-loop water recycling systems within its production facilities, significantly reducing freshwater dependency. By adopting circular water management principles, Galaxy has not only enhanced operational sustainability but also contributed to local water security.

This effort has resulted in Galaxy being 1.4X water positive consistently for the past three years. In addition, Galaxy is actively working towards transitioning all its operations to run on renewable energy sources. We have achieved 27.76 per cent renewable energy usage in India, and 20.10 per cent across our global operations. Our goal is to reach 75 per cent renewable energy usage by 2030.

Your company received the Gold Innovation Award at HPCI India for the ingredient Galseer Flexcon. Can you share the development process and the unique benefits this product offers to consumers? 

The ingredient was developed through extensive R&D efforts aimed at addressing key challenges in the personal care industry, such as achieving high-performance conditioning while maintaining environmental sustainability. Galaxy’s innovation team worked rigorously to formulate a solution that offers enhanced sensory benefits, superior conditioning, and improved formulation stability—all while aligning with the global shift towards eco-friendly and biodegradable ingredients.

Galseer Flexcon stands out due to its multifunctionality, catering to both hair and skin care applications. It provides deep conditioning, reduces frizz, and enhances softness without the use of traditional silicones, which are often criticized for their environmental impact. The product has been designed to seamlessly integrate into various formulations, offering formulators flexibility while meeting evolving consumer demands for cleaner, more responsible beauty solutions.

Key focus areas of Galaxy Surfactants' CSR policy, specifically regarding projects related to water conservation, women's empowerment, education, and healthcare? 

Galaxy Surfactants' CSR policy focuses on six key areas: health and hygiene, women's empowerment, education, environmental protection, community development, and disaster relief. Under Aarogya Vardheeni, the company distributed maternal and child health kits, organized blood donation camps, and provided medical support for underprivileged children. The Stree Unnati initiative promoted menstrual hygiene awareness and skill development for women, while Gyan Sanjeevani supported education in underprivileged areas in Maharashtra and Gujarat through study material distribution, vocational training, and building school infrastructure.

On the environmental front, the Paryavaran Suraksha initiative includes waste management support, tree plantation drives, and cattle feed assistance. Galaxy is proud to have planted and maintained 2, 09,000 trees as of March 2025 and is working with a vision to plant an additional 3, 00,000 trees by 2030, taking the cumulative plantation target to 5, 00,000 trees. 

Rural development efforts under Samajeek Utthaan included building water storage facilities and school infrastructure, benefiting communities in Gujarat and Maharashtra. Additionally, Aapda Rahat focused on disaster relief, aiding flood-affected families in Ankleshwar and Bharuch. These initiatives reinforce Galaxys’ commitment to sustainable and inclusive growth

How does the company plan to advance its sustainability agenda across various operations?

Galaxy remains committed to driving sustainable growth through continuous innovation, operational excellence, and responsible environmental practices. Looking ahead, the company aims to enhance its green chemistry, bioscience-based portfolio by increasing the share of biodegradable and bio-based ingredients. Strengthening its ESG commitments, Galaxy plans to achieve net water positivity, further reduce carbon emissions, and expand its renewable energy usage.  

The specialty chemicals industry is witnessing strong growth, driven by increasing demand for sustainable and high-performance ingredients across personal care, home care, and beauty applications. With regulatory bodies tightening environmental norms, the shift towards green surfactants and specialty care ingredients is accelerating. Companies like Galaxy are well-positioned to capitalise on this trend by leveraging advanced research, digitally advanced supply chain capabilities, and a strong commitment to sustainability.