ACC Ltd Management Discussions

and reduce CO2

leveraging 17,761 MT of fly-ash, conserving 2,52,348 MT of topsoil. Using an innovative franchise model, ACC has established 51 GBCs across India, including four new centres in FY 2024-25, empowering local communities and supporting livelihoods. With a focus on sustainability, ACC plans to expand its GBC initiative to take further steps towards its Net Zero 2050 goals.

During FY 2024-25, ACC implemented several cost management strategies, including:

During the reporting period, raw material costs rose by 3.9% per tonne of cement year-on-year. To drive cost efficiencies, ACC has undertaken several strategic initiatives, including long-term tie-ups for critical raw materials, which will contribute to cost reductions. Additionally, the Company continues to optimise its clinker factor as part of its broader cost management strategy. Increased utilisation of wet fly ash across its manufacturing units has further enhanced cost savings while reinforcing its commitment to sustainability.

The decline in coal prices and increased share of green power usage, has contributed to reducing ACCs power and fuel costs throughout the year. The Company continues to optimise its energy mix and sourcing strategies to drive further efficiencies. The green power mix increased by 4.9 pp at 18%. Additionally, the Company has successfully reduced its kiln fuel cost from D 1.94 to D 1.61 per thousand kilocalories over the same period.

To further streamline fuel costs, ACC is maximising the use of captive and alternative fuels, reinforcing its commitment to sustainable and cost-effective operations.

During the year, ACC successfully implemented a series of strategic cost-reduction initiatives, achieving a 12.2% annual decline in freight and forwarding expenses. These efforts encompassed multiple optimisation measures, including enhancing overall efficiency, rationalising wheeling operations, maximising direct dispatches, streamlining warehouse footprints, negotiating favourable freight rates, and reducing lead distances. Additionally, a shift towards multimodal logistics — leveraging sea and railway transport—alongside increased volumes under the Master Supply Agreement (MSA), contributed significantly to cost savings. Looking ahead, ACC remains committed to further integrating its supply chain by adopting advanced technologies and network optimisation tools, ensuring greater efficiency and long-term sustainability.

ACC Limited has a Master Supply Agreement (MSA) with its parent company, Ambuja Cements Limited (ACL), and fellow subsidiaries Sanghi Industries Limited (SIL), Asian Fine Cement Private Limited, and Penna Cement Industries Limited. It also has an MSA with one of the Groups cement companies, Adani Cement Industries Limited (ACIL). During FY 2024-25, the Company sold 9 million tonnes of Cement and Clinker (CLC) under the agreement. This arrangement delivered several benefits, including synergies and economies of scale, improved operational logistics cost efficiency, and strengthened sustainability through the prudent use of fuel and other resources while conserving natural resources. Looking ahead, the Company remains committed to further exploring and expanding the MSA to drive revenue growth and enhance profitability.

ACC, alongside its parent company Ambuja Cements Limited (ACL), is undertaking various capacity expansion projects to reach a target of 140 MTPA cement manufacturing capacity by FY 2027-28. Key expansions include Sindri, Salai Banwa, and Kalamboli. ACC stands to benefit from ACLs 6 MTPA cement grinding unit in Bihar, which will be executed in three phases. The first phase, involving 2.4 MTPA and an investment of D 1,100 crore, is expected to be commissioned by FY 2025-26. The strategically located project in Nawada, Bihar, will boost local infrastructure, contribute D 250 crore annually to the state, and generate 1,250 direct and indirect jobs.

A customer-focused solution by ACC represents an integrated approach that connects dealers, influencers, and individual home builders (IHBs) with specialised products and services, creating value for all stakeholders. Aimed at IHBs and small project builders (SPBs), ACT offers a comprehensive package of men, materials, and methods, enhancing consumer recall and brand recommendations. This initiative not only aids in acquiring new customers and retaining existing ones by providing

The Company is addressing the vital needs of Individual Home Builders (IHBs) and promoting sustainable construction practices. ACC recognises the significant investment made by IHBs and is committed to supporting their construction journey by meeting their needs for quality materials, construction methods, and skilled professionals. ACCs GRIHA-certified products and on-site sustainable construction solutions are designed to enhance construction quality and promote sustainability, ensuring a seamless and efficient experience for its customers.

technical guidance, connecting customers with trained contractors, and ensuring proper construction practices, but also aims to make consumers dream homes stronger and more durable. The proactive engagement strategy, based on the IEAR approach (Identify, Enrol, Acquire, Retain), has enabled the Company to form closer connections with customers and expand its reach. ACT was implemented at over 88,065 customer sites.

Sites Where ACT is Implemented

The Companys instant concrete mix proportioning solution optimises the use of natural resources by reducing the need for aggregates, sand, and water in the concrete mix, based on their properties. During the reporting period, the instant mix proportioning solution was enhanced at 43,095 customer sites, contributing to the production of strong and durable concrete.

Customer Sites Improved through Instant Mix Proportioning Solution

Also known as the Zero Water Curing solution, this in-house innovation enables effective and efficient curing of concrete slabs without using water. During the year, the Company successfully implemented its modular curing solution at 588 customer sites, saving approximately 12,000 litres of water per 1,000 sq. ft. of slab area per site.

ACCs team of technical experts offered guidance and supervision for slab casting at over 70,000 customer sites.

Customer Sites provided with Slab Supervision

The Companys knowledge-sharing platform for architects and engineers has a nation-wide presence, promoting sustainable construction practices and advanced materials. Through this platform, over 18,000 professionals have engaged in various knowledge-sharing initiatives, both in-person and virtually, enhancing industry awareness and expertise.

Professionals Participated in Diverse Knowledge Sharing Activities

The engineering and architectural community plays a vital role in shaping the nations infrastructure. To honour their contributions, the Company, in collaboration with ACL and IIT Kanpur, introduced the Executive Excellence Programme (EEP). This four-day residential certification course, designed by IIT professors, enhances technical expertise with a focus on advanced industry topics.

Honouring Bharat Ratna

Dr. Mokshagundam Visvesvaraya, Indias construction community celebrates National Engineers Day annually. To mark Engineers Day 2024, the Company launched a 30-day campaign in September for construction professionals and B2B customers. Partnering with over 40 national and local professional bodies, the campaign featured 200+ technical events, engaging 16,500+ professionals. ACC showcased its Cement, RMX, and allied products at exhibitions and personally engaged with 11,000+ professionals through technical quizzes and expert video messages.

ACC Atoot Bandhan, a contractor loyalty programme designed to recognise, strengthen, and enrich partnerships, has now transitioned to the upgraded RewardConnect platform. By promoting ACCs certified technology, it empowers and incentivises contractors to build long-lasting homes. More than just a cement initiative, this programme introduces innovative concepts to support contractors growth. Currently, over 3.7 lakhs contractors are enrolled, benefitting from exclusive rewards and professional development opportunities.

Contractors Trained under Various Workshops

ACCs contractor loyalty programme is designed to recognise, strengthen, and enhance relationships with its valued partners. Contractors and their spouses enrolled in Reward Connect programme (formerly known as Atoot Bandhan) provides three types of insurance coverage to its Gold and Platinum categories contractors which includes: Accidental Insurance, Accidental Mediclaim, and Mediclaim. Eligible contractors were issued digital Mediclaim health insurance cards via an online e-card bank in case of Mediclaim.

Over 1,64,811contractors covered in accidental coverage, while more than 11,974 contractors were covered under Mediclaim.

The Company trains over 22,000 masons and contractors annually through its in-house applicator programmes, promoting sustainable construction practices. These programmes cover a range of modules, including project management, repair and waterproofing, steel estimation, earthquake-resistant structures, cost estimation, rainwater harvesting, and advanced wall solutions.

In todays rapidly evolving business landscape, customer-centricity remains a core principle. The Company actively engages with contractors to strengthen its relationships with key influencers, using standardised creative templates to recognise and appreciate their invaluable contributions. Additionally, it organises impactful below-the-line initiatives during nation-wide channel partner meets, fostering stronger connections with its network of partners across India.

In recent years, the Company has consistently incorporated digital technologies into its core business operations, covering sales, logistics, material management, manufacturing, control systems and technological functions. This strategic initiative aims to improve operational efficiency and secure a competitive edge. Through a well-defined digital transformation strategy, the Company focuses on refining business processes and optimising resource use to drive sustainable growth, all while ensuring full compliance with regulatory requirements.

As part of its ongoing efforts to ensure the Confidentiality, Integrity, and Availability of its digital landscape, ACC has further strengthened its security measures by implementing IT-OT network segregation across its manufacturing sites. This ensures secure data transfer and communication between Information Technology (IT) and Operational Technology (OT) systems. Additionally, the Company has deployed an advanced OT observability solution, enabling real-time visibility and threat detection. These enhancements have significantly improved ACCs cyber security stance and the reliability of its industrial operations.

ACC has modernised all outdated systems and implemented SD-WAN across all sites, ensuring seamless business operations with zero downtime. Furthermore, the Company has completed the implementation of state-of-the-art in-plant automation, which includes Plant Vehicle Tracking & Weighbridge Automation, mobile-based vehicle indenting, and Intelligent DO allocation through reverse auctions, business rules, OET, and the Packing Plant Optimiser.

ACC, alongside its parent company, has transformed its sales operations by re-platforming all legacy applications and introducing unified solutions such as OneConnect and Adani Cement Connect. These applications enhance efficiency and improve user experience for various stakeholders, including TSOs, ASMs, and Dealers. The initiative has seen exceptional adoption, with features like AI-driven visit planning and real-time account updates. This transformation reflects Adani Cements commitment to technological innovation and operational excellence within the cement industry.

Additionally, ACC has launched the Rewards Hub platform to elevate customer engagement and drive sales, offering a wide array of features that make it an outstanding choice for businesses seeking to enhance their loyalty programmes. The platform has shown significant ROI through repeat purchases, influencer retention, and premium product penetration, with approximately 30% of trade sales recorded in the loyalty app.

This year, ACC introduced a comprehensive Power BI dashboard for projects, centralising monitoring and reporting. The dashboard features a landing page displaying financial status, project progress, and detailed information. It includes drill-down views for finance, daily and monthly construction reports, safety metrics, and site photos.

The benefits include real-time access for team members, informed decision-making for leadership, and proactive management to address issues promptly.

In a remarkable display of innovation and resilience, Adani Groups Cement Business successfully executed

Asias largest SAP to SAP Suite on HANA upgrade in just six weeks. This transformation involved establishing a robust data recovery system, migrating to the Azure data centre, and implementing a comprehensive Business Continuity Plan. The seamless integration of mergers and acquisitions further reinforced ACCs market leadership, highlighting its commitment to operational excellence and innovation.

In a strategic move to modernise its financial systems, ACC, along with its parent company Ambuja Cements Limited (ACL), successfully implemented the New General Ledger (GL). This upgrade has streamlined month-end closing processes, improved reporting accuracy, and positioned us for future technological advancements such as SAP S/4HANA. The project completed in August 2024, involved meticulous planning, data migration, and rigorous testing. The New GL now supports parallel accounting, document splitting, and real-time financial reporting, ensuring our financial infrastructure is efficient, compliant, and future-ready.

ACC, and its parent company ACL, have modernised network infrastructure by introducing SD-WAN technology, reducing network deployment times by 50%. Over 130 sites are now live with SD-WAN, improving operational efficiency and security. Additionally, our Wi-Fi Modernisation Project has expanded coverage across 41 sites, with 242 new Wi-Fi Access Points installed. This robust digital infrastructure supports seamless communication and enhances efficiency, ensuring the Company is well-prepared for future growth and expansion.

ACC, in collaboration with its parent company, ACL, has revolutionised its procurement process with the launch of the Note for Approval (NFA) portal. This innovative platform centralises all NFAs, streamlining approvals and significantly improving efficiency. The portals features—such as tracking, traceability, and easy document retrieval—have led to rapid adoption and increased productivity across the organisation. Future expansions will further enhance procurement operations, reinforcing ACCs commitment to digital transformation.

The Electronic Proof of Delivery (ePOD) system has transformed ACCs invoicing process, ensuring greater accuracy and efficiency. With secure login authentication, an intuitive interface, and real-time status updates, transporters can now generate and submit invoices seamlessly. The ePOD system reduces human errors, accelerates invoice processing by 30%, and reduces costs associated with physical document management by 40%, significantly enhancing overall customer satisfaction.

Launched by ACC, the Indian Concrete Journal (ICJ) stands as one of Indias most prestigious and longest-running publications in construction and civil engineering. Serving as a vital knowledge hub, it fosters innovation, research, and technical excellence in cement and concrete applications. ICJ bridges the gap between academia and industry, featuring insightful articles, case studies, and advancements shaping the built environment. Through this initiative, ACC continues its commitment to knowledge-sharing and sustainable progress in construction.

ACC employs a dynamic marketing strategy that strengthens its brand through innovative communication, leveraging both regional on-ground branding and digital platforms for maximum outreach. Its brand film, The Bridge of Unity, celebrates Indias diversity while reinforcing ACCs role in nation-building. The Monsoon Ad Campaign for ACC Gold Water Shield successfully raised awareness about protecting homes from seepage, reaching over 16.1 million people. A strong digital presence has driven engagement, with ACCs content reaching over 24.1 million accounts in a single month.

The Company marked its 88^th Foundation Day with a tribute film honouring its legacy in shaping Indias infrastructure. Festival-based campaigns, such as branding at Lalbaugcha Raja and Ganesh Pandals, have enhanced consumer engagement across key regions. AI-powered storytelling was introduced through thematic films for Durga Puja and Diwali, reinforcing emotional connections with audiences. Strategic sponsorships, including the Adani Ahmedabad Marathon and partnerships with major sports events like the IPL and T20 World

Cup, have significantly boosted brand visibility. ACCs television campaigns dominated the cement category, maintaining a strong media presence with a 45% share of voice.

Localised brand activations, premium product promotions, and enhanced signage strategies continue to strengthen ACCs market position, ensuring sustained growth and consumer trust.

ACC is actively reducing logistics costs, a key component of its overall expenses, through various initiatives. The Company optimises its transportation mix, using 11 GPWIS rakes for clinker movement and 26 BCFC rakes for fly ash transportation These efforts are supported by route planning, renegotiation of commercial terms, and the integration of GPS technology. With warehouse footprint and network optimisation, ACC is effectively reducing its secondary lead along with strong focus on Go Direct. Additionally, the Company is pioneering marine logistics, and the implementation of the Electronic Proof of Delivery (ePOD) system has improved invoicing accuracy and customer satisfaction.

ACC is working aggressively on digitisation of its supply chain, with initiatives on dynamic demand & supply forecasting/allocation, along with AI based decision making tool.

The Company has strong internal control systems and best-in-class processes commensurate with its size and scale of operations. There are well formulated policies and procedures for all major activities.

These procedures facilitate effective business operations with governance. Well-defined delegation of power with authority limits are in place for approving revenue as well as capex expenditure at level of organisational hierarchy. This enables ease of decision- making in day-to-day affairs as well as long-term and short-term business plans

Financial control is effectively managed through the Annual Budgeting process and its monitoring is conducted through monthly reviews for all operating and service functions.

The Company has a state-of-the- art ERP system to record data for accounting, consolidation and management information purposes and connects to various locations for efficient exchange of information. It continues its efforts to align all its processes and controls with global best practices.

The Company has a well- established online Compliance Management System in which technology is seamlessly integrated with laws. The system provides comprehensive covering across all laws applicable on the business and its compliance update at each of operating units through the management dashboard.

There is a well-established multidisciplinary Management Audit & Assurance Services (MA&AS) that consists of professionally qualified accountants, engineers and SAP experienced executives who carry out extensive audit throughout the year across all functional areas and submits reports to Management and the Audit Committee about the compliance with internal controls and efficiency and effectiveness of operations and key process risks.

Internal Audit in collaboration with the Digital Team has rolled out several dashboards of critical audit exceptions which are of a recurring nature. This helps in identifying audit exceptions in real time basis.

MA&AS follows Risk Based Annual Internal audit plan. The audit plan and its scope are reviewed and approved by the Audit Committee of the Board.

• Internal audit is conducted in accordance with auditing standards to review design effectiveness of internal control system and procedures to manage risks, operation of monitoring control, compliance with relevant policies and procedure, and recommend improvement in processes and procedure.

• The Audit Committee of the Board regularly reviews the execution of audit plan, the adequacy and effectiveness of internal audit systems, and monitors the implementation of internal audit recommendations, including those relating to strengthening of the Companys risk management policies and systems.

• In terms of governance, there are independent Committees in place for monitoring and governance over efficiency and effective internal controls.

The Companys risk management framework provides a process of identifying, assessing, monitoring, reporting, and mitigating various risks at all levels at periodic intervals. Under the framework, the Company has constituted a Risk Management Committee to continuously monitor, report and mitigate various risks faced. The outcome of this process is reported to the Audit Committee and to the Board on a quarterly basis.

Information technology & data security governance is an integral part of an overarching organisation-wide governance structure. The Company has a matured IT governance process wherein the Governance Committee periodically reviews, recommends and monitors the Companys IT priorities, projects, major IT investments besides effectiveness of control established for data security.

The Committee exercises oversight with respect to the structure, operation, and efficacy of the Companys compliance programme and to review compliance with applicable laws and regulations.

Community engagement is central to ACCs corporate social responsibility (CSR) efforts. Through its CSR initiatives, the Company has positively impacted millions across numerous villages and districts, guided by the UN Sustainable Development Goals (SDGs). With active stakeholder engagement, CSR Committees, and community advisory panels, ACC fosters sustainable growth, instils confidence, and strengthens local partnerships.

As part of the Adani Foundation, ACC CSR drives initiatives in education, healthcare, livelihoods, skills, and infrastructure, aligning with national priorities and global SDGs. Since 1996, the Adani Foundation has empowered children, women, and marginalised communities, impacting 96 lakhs lives across 7,060 villages in 21 states. At ACC sites, it supports 315 villages across 15 states, benefitting 8.79 lakhs lives.

During FY 2024-25, 285 health camps were organised to provide essential health services to vulnerable populations who would otherwise be unable to afford treatment. These camps offered both general and specialised services, including disability care, eye care, gynaecology, tuberculosis, and other critical health needs. The Foundation also supplied a portable X-ray machine to the district centre responsible for the TB eradication programme in Gagal, Tikaria and Keymor. In addition, infrastructural support was extended to health centres in Kudithini, Wadi, Madukarrai and Lakheri with one centre in Kudithini receiving recognition from both the state and national governments. Furthermore, the Foundation continues to support 378 TB patients in Sindri and Keymor with nutritional kits and was honoured with an award from the Honble Chief Minister of Himachal Pradesh for its contribution to TB eradication.

Beneficiaries Impacted through Community Health Initiatives

The Adani Foundations education initiatives have made a significant impact on communities, particularly among children and youth. The ‘Utthan project, aimed at enhancing education in rural schools, promoted digital learning and provided teacher training, leading to increased enrolment and improved learning outcomes in 19 schools. Through the Adani Competitive Coaching Centre (ACCC), the Foundation supports 360 academically gifted rural students in overcoming socio-economic barriers to education. Additionally, the Pre-Police Training Programme has empowered 722 young aspirants, out of which 43 candidates got selected, and are preparing them for careers in the Armed Forces, and Police.

The Foundation has also enhanced school infrastructure by building new classrooms in 9 schools, renovating 23 schools, constructing toilets in 15 schools, and developed 31 Anganwadi centres as model facilities. Apart from these efforts, 17 schools are being supported at ACC Sites with 11,289 children enrolled. 43 Selected in Armed Forces and Police 32,134 Beneficiaries Impacted through Education Initiatives Sustainable Livelihood Development The Adani Foundation and ACC are working diligently to enhance and diversify the income of grassroots communities by creating a self-sustaining ecosystem that harnesses human potential and community resources for socio-economic progress. This consistent effort spans on-farm, off-farm and non-farm sectors, aiming to boost, diversify, and sustain income. Micro-irrigation projects, such as sprinkler and drip irrigation, are benefitting 553 farmers, irrigating 840 acres of land. 57 solar lift irrigation projects at Lakheri, Damodar, Sindri and Chaibasa are assisting 313 farmers, covering 307 acres of land. The Livestock Development Programme (LDP), which promotes artificial insemination and cattle health camps, has helped farmers

70 lakhs improved calves for enhanced milk The dairy development programme owners by linking them to markets through a milk collection center I improve milk production with 513 production and treated 30,906 animals through 90 cattle camps. in Tikaria supports 90 cattle with an earning of over in a year. Throughout the year, the Foundation is supporting 952 self-help groups (SHGs) with 9,799 members. Additionally, 415 SHG members across 65 groups are being supported in income generation activities. Through Adani Saksham, the companys skilling programme, ACC provide youth with training to enhance employability and entrepreneurship. 23,095 Beneficiaries Impacted through Sustainable Livelihood Development Initiatives

Skill Development Aligned with the Government of Indias Skill India Mission, the Adani Foundation runs a skill development programme for youth through the Adani Skill Development Centre. Operating across 12 ACC sites, the programme has enrolled 6,610 youth in certification courses in FY 2024-25. Of these, 6,286 have successfully completed their training and received certificates, while 1,733 have secured placements in relevant industries. Additionally, 617 candidates have launched their own enterprises. 6,286 Beneficiaries Impacted through Skill Development Initiatives Community Development The Adani Foundation is committed to improving the quality of life in communities through strategic investments in infrastructure development. Key initiatives include the construction of cement concrete (CC) roads to enhance connectivity and durability, as well as the creation of community halls for social gatherings, cultural events, and public meetings. The Foundation also focuses on energy efficiency and safety by installing LED streetlights and high-mast lights, ensuring well-lit and secure environments in villages and towns. To combat water scarcity, the Foundation repairs and maintains handpumps and borewells to ensure access to clean drinking water. Additional infrastructure support includes the construction of community toilets for sanitation, bus stop shelters for commuter convenience, and libraries to foster education and learning. Recreational facilities such as open gyms and playgrounds are also developed to promote physical activity and strengthen community ties. 5,43,783 Beneficiaries Impacted through Community Development Initiatives 192 Infrastructure Development Initiatives

Climate Action ACC and the Adani Foundation are actively contributing to climate resilience and environmental sustainability through a range of impactful initiatives. These include the construction of farm ponds, deepening both new and existing ponds, building and repairing check dams, and creating sunken ponds to enhance water conservation and recharge groundwater levels. Furthermore, large-scale tree plantation drives are conducted to combat deforestation, improve biodiversity, and mitigate the effects of climate change. 14,841 Beneficiaries Impacted through Climate Action Initiatives 2,22,627 cubic metres Additional Water Storage Capacity Created

3.88

D

695 crore, of which Other Programmes made a significant contribution to environmental sustainability through its community forest tree plantation initiatives, planting 51,063 trees across 49.95 acres of land. The Company engages with youth, positively channelling their energy by promoting various sports such as football, cricket, volleyball, and kabaddi in rural areas. These initiatives have benefitted the foundation facilitated direct employment for 150 women. Additionally, the Meri Sangini Meri Margdarshika programme, through which ‘Sanginis (women volunteers) link eligible families with government schemes, has helped over 34,000 individuals, unlocking a D ACC and the Adani Foundation has 8,191 young people across ACC CSR sites. Through its rural KPO programme in Kymore and Varanasi, value of crore has already been realised in beneficiaries bank accounts.

Human Resources The Company cultivates a workplace culture that nurtures individual potential while aligning with organisational goals. It has adopted six guiding pillars to foster a resilient, adaptive, and inclusive environment where every team member feels valued and empowered. Through these principles, ACC seamlessly integrates growth and achievement, ensuring that each employee thrives while contributing to the Companys collective success. Employee Care and Wellness The Company has introduced various initiatives to prioritise employee well-being, including health and wellness programmes, mental health support, and other benefits that foster a healthy work-life balance. For example, it has played an active role in empowering employees through a range of health-focused initiatives. Furthermore, the Company has launched the Adani Security Helpline to ensure the safety and security of its employees. M&A Seamless Integration This year witnessed significant mergers and acquisitions, with considerable efforts made to ensure their seamless integration into the Adani Groups Cement Business. This process involved leadership transitions, the allocation of new roles, identification of skill gaps, and the provision of necessary training. The Company also focused on cultural integration to ensure a smooth transition. Leadership Connect sessions were organised to facilitate these changes and keep all stakeholders informed.

Performance and Productivity To enhance employee performance and productivity, the Company has implemented various strategies and tools. These include performance management systems and productivity-enhancing tools. For instance, the Company has developed the Cement Network Operating Centre (CNOC) dashboard, which leverages advanced analytics to optimise strategies for maximum output. Additionally, digital initiatives such as the OneConnect app offer real-time visibility into workforce activities, enabling proactive decision-making and efficient resource allocation. Aligning with Strategic Objectives Goals are set to align with the Companys overall strategic objectives, ensuring that every employees efforts contribute to Adanis broader mission and vision. The goal-setting process includes identifying key performance indicators (KPIs) essential to the organisations success. This process is collaborative, involving both managers and employees, which ensures that goals are realistic, achievable, and aligned with the employees role and capabilities. It also fosters a sense of ownership and commitment. Performance management at Adani extends beyond annual reviews, incorporating continuous feedback and development throughout the year. Managers provide regular feedback, helping employees recognise their strengths and areas for improvement. Performance Management System (PMS) ACC has implemented a robust Performance Management System (PMS) to facilitate goal setting and performance evaluations. The PMS includes tools and features for tracking goals, performance reviews, and feedback, ensuring transparency and consistency in evaluations. Adani Group is committed to recognising and rewarding employees for their achievements and contributions. The performance management process identifies high performers

and provides them with appropriate recognition and rewards, motivating employees and reinforcing a culture of excellence. To support employees in achieving their goals, the Company offers various training and development programmes aimed at enhancing skills and capabilities, promoting continuous learning and development.

Continuous learning and development are prioritised through various training programmes, workshops, and other initiatives. The Skill Development Centre has played a key role in providing high-quality training to rural youth. The Company also offers Digital Dexterity Certification Programmes through the Adani Institute of Digital Technology Management (AIDTM), covering topics such as IoT, AI and cloud computing.

The Saksham initiative empowers both employees and managers by harnessing technology. Oracle Fusion is utilised to streamline processes, enhance efficiency, and facilitate better decision-making. This initiative has been recognised for its innovative approach to digital transformation. Additionally, the Company has introduced various training programmes to support and strengthen this initiative.

The establishment of the Global Capability Centre (GCC) is a strategic initiative designed to enhance operational capabilities, foster innovation, and create a dynamic environment for employees. The GCC supports global operations by integrating decision-enabling analytics through digital tools. This initiative is expected to deliver significant benefits to the organisation, including improved efficiency and effectiveness.

Efforts to maintain positive and productive relationships between employees and management include various initiatives and programmes. For example, the Company has introduced the Career Conversations initiative, wherein employees can engage with leadership to discuss rewards, role clarity, and career development. Additionally, workshops and training sessions are held to improve communication and collaboration among employees.

ACC cultivates strong employee-management relationships through open communication, mutual respect, and collaboration. Regular feedback sessions, team-building activities, and transparent decision-making foster trust and alignment. These initiatives create an engaged and supportive workplace, promoting a positive environment that drives collective success and organisational growth.

ACC is committed to fostering diversity, equity, and inclusion

(DEI), recognising their role in driving innovation, productivity, and sustainable growth. The Company ensures equality and respect for all, promoting inclusive workplaces through pay parity, skill balancing, and diverse representation. Aligned with its DEI policy, ACC integrates these principles into human resource management and stakeholder partnerships, maintaining a zero-tolerance approach to discrimination and harassment. Regular training and awareness programmes, alongside the Prevention of Sexual Harassment (POSH) policy, reinforce this commitment. The Company follows a gender-neutral remuneration policy based on skills and experience.

ACC is committed to enhancing workforce skills and capabilities to drive performance and professional growth. Its comprehensive talent development programme leverages a digital ecosystem, offering seamless learning through dedicated modules, virtual masterclasses, and customised web sessions on functional and leadership aspects.

The Company follows the 70:20:10 learning philosophy—70% through on-the-job training, 20% via mentorship, and 10% through structured programmes. Embracing digitalisation, ACC integrates AI, data analytics, and SAP upgrades to optimise operations. AI-driven processes, including drones and MS Co-pilot, enhance decision-making and workforce efficiency.

At ACC, safety is not merely a compliance requirement—it is a deeply held value, embedded in our culture, operations, and leadership ethos. We continue to drive our Zero Harm vision by placing people at the center of safety, empowering the frontline, embracing innovation, and fostering a participative culture that views safety as a collective responsibility. In 2024, our commitment to safety matured into a more resilient, data-driven, and inclusive system with leadership accountability, workforce engagement, and advanced technology at its core.

At the highest levels of the organisation, safety is treated as a strategic priority. Key Performance Indicators (KPIs) for safety are formally integrated into the performance scorecards of senior leaders, linking business success with safety excellence. These KPIs are reviewed regularly through structured governance forums, including monthly executive reviews and quarterly Board-level assessments, ensuring full visibility, accountability, and continuous improvement.

Our safety governance framework encompasses internal audits, third-party evaluations, and rigorous incident investigations. With real-time dashboards, standardised protocols, and control mechanisms across all plants and project sites, we have strengthened our assurance processes and embedded discipline and transparency across operations.

The We Care programme continues to be the heart of our safety culture transformation. Built on the pillars of empathy, engagement, and empowerment, the programme drives ownership of safety from the ground up. It has been instrumental in fostering psychological safety, encouraging employees and contractors alike to raise concerns, suggest improvements, and take proactive measures to prevent incidents.

In 2024, We Care was scaled across all sites, creating forums for daily toolbox talks, peer learning sessions, and open feedback channels. Through We Care, safety became more than a process—it became a shared value, reinforced by visible leadership and mutual respect.

Our safety journey is grounded in the belief that the frontline is the most critical line of defence. In 2024, we prioritised deeper engagement with frontline teams, including production staff, maintenance crews, logistics operators, and contractors.

We launched targeted interventions to strengthen hazard awareness, risk mitigation, and emergency response capabilities among our workforce. These efforts culminated in the recognition of over 300+ Safety Heroes—individuals who demonstrated extraordinary commitment to safe behaviours, peer support, and incident prevention. Their contributions have inspired a wider cultural shift and affirmed our belief that safety leadership can come from any level in the organisation.

A strong safety culture begins with a capable, informed workforce. In 2024, we made a substantial investment in safety training and learning infrastructure, tailored to different roles and risk profiles. We enhanced our delivery by adopting audio-visual learning tools, interactive e-learning, and simulation-based modules, making training more accessible and effective.

We recorded the equivalent of 2.1 Mondays per Full-Time Employee (FTE) in safety training—underscoring our commitment to building knowledge depth across all roles. From high-risk activities like working at heights and energy isolation to behavioural safety and incident analysis, our programmes helped sharpen both technical skills and leadership behaviours.

Specialised training tracks were created for supervisors, plant heads, and contractors, alongside programmes focused on mental well-being, stress management and communication under pressure—ensuring holistic safety competence.

To proactively manage risk, we have shifted our focus from lagging to leading indicators. We strengthened our capability to collect, monitor, and analyse predictive safety data—including near-miss reporting, unsafe condition observations, behavioural safety metrics, and training completion rates.

These leading indicators now form the basis for monthly reviews, early warnings, and resource allocation. Our goal is to create a culture where risks are identified and mitigated before incidents occur—anchored in learning, agility, and early intervention.

Technology is playing a transformative role in how we manage, monitor, and improve safety performance. In 2024, we expanded our use of digital tools and platforms, enabling real-time safety visibility and faster decision-making.

• Digital safety observation platforms for field teams

• Mobile apps for incident reporting, audits, and contractor onboarding

• IoT-enabled monitoring systems for high-risk zones

• AI-powered dashboards to identify risk patterns and predict potential incidents These innovations have enhanced accountability, reduced administrative overhead, and created a more connected, data-rich safety ecosystem across our operations.

Compliance provides the foundation—but commitment is what sustains performance. In 2024, we focused on building a culture where safety is owned, not imposed. Through behaviour-based safety programmes, open communication channels, and integrated governance, we ensured that every team member—from leadership to the shopfloor—understands their role in keeping our workplaces safe.

We reinforced this commitment through site-level engagements, performance-linked incentives, and knowledge-sharing sessions that promoted learning from near-misses and incidents across sites. Our safety culture is evolving from one driven by rules to one driven by values—where people choose to act safely, not because they have to, but because they want to.

We are proud of the significant progress made in 2024, but we recognise that the journey to Zero Harm is ongoing. Our focus in the coming year will be on:

• Deepening frontline engagement through We Care 2.0

• Enhancing predictive analytics and digital safety tools

• Strengthening contractor safety onboarding and governance

• Increasing behavioural safety interventions and leadership coaching

• Continuing investment in training, with customised learning journeys for high-risk roles At ACC, safety is not a standalone initiative—it is woven into the fabric of who we are. With strong leadership, empowered teams, and a commitment to care, we are building a safer, stronger, and more sustainable future for everyone who works with and around us.

In 2024, ACC made significant strides in institutionalising safety excellence across our operations with the launch of STRAP — Strategic Action Plan for Safety. Anchored in the 5C Framework, STRAP is a comprehensive initiative that incorporates Commitment, Capability Building, Conformance, Culture, and Communication. This strategic plan is designed to create a seamless, end-to-end safety ecosystem, extending from driver to drone, where every facet of our operations is governed by shared responsibility, proactive action and continuous improvement.

At the heart of STRAP lies leadership commitment. Safety is not simply a corporate requirement but a core value that is demonstrated from the highest levels of the organisation. Senior executives integrate safety into their Key Performance Indicators (KPIs), ensuring that leadership is fully accountable for the safety outcomes in their respective areas.

• Visible Leadership: Regular safety walkdowns, site visits, and safety briefings ensure senior leaders are actively engaged and demonstrate safety leadership on the ground.

• Top-Down Ownership: Every level of leadership, from plant managers to board members, is responsible for driving safety culture and performance.

By fostering a leadership culture that prioritises safety in every decision and action, we reinforce our commitment to Zero Harm.

STRAP places a strong emphasis on building capability at every level of the organisation. To ensure that our teams are not only compliant but also competent and confident in their ability to manage risks, we have developed targeted training and development programmes.

• Tailored Training: In 2024, we rolled out specialised programmes in critical areas like confined space entry, energy isolation, and working at heights.

• Modern Learning Tools: From audio-visual modules to virtual reality (VR) simulations, we employed cutting-edge training methods that cater to various learning styles and roles.

• Drone Pilot Certification: We have introduced drone safety and operation training, equipping our teams with the skills to use aerial technology for inspections and monitoring.

On average, each full-time employee (FTE) participated in 2.1 Mondays of safety training, underscoring our dedication to continuous improvement and skill development.

Conformance to safety protocols is a critical pillar of STRAP. We have implemented a robust framework that integrates safety standards, audits, and real-time monitoring tools into our daily operations, ensuring that safety is adhered to at all levels.

• Digital Safety Platforms: Real-time permit-to-work systems, electronic audits, and IoT-enabled vehicle tracking help ensure compliance and accountability.

• Standardised Protocols: Across all locations, we use standardised safety processes and systems, from hazard assessments to incident reporting, to ensure uniformity in safety practices.

By reinforcing the importance of safety systems and aligning our practices with global standards, we maintain a focus on risk mitigation.

STRAP aims to cultivate a safety culture where compliance evolves into personal ownership. Our vision is to foster an environment where every individual is empowered to contribute to the safety of their worksite, making safety a natural part of their daily routine.

• Peer-to-Peer Recognition: Programmes like Safety Heroes reward employees who exhibit exceptional safety leadership and encourage safe behaviours among peers.

• We Care Initiative: This programme encourages open discussions around safety, supporting mental well-being and enabling employees to speak up without fear of retribution.

• Behavioural Safety: We have introduced behaviour-based safety programs where individuals are actively engaged in identifying risks and taking preventive actions.

Through a focus on cultural transformation, we are shifting from compliance-driven safety to a culture where everyone takes ownership of their own and their colleagues well-being.

Effective communication is essential for the success of STRAP. We ensure that safety messaging is clear, consistent, and reaches all corners of the organisation. From leadership messages to safety alerts, communication plays a pivotal role in maintaining a shared safety vision.

• Real-Time Safety Alerts: Our teams are equipped with mobile apps and digital signage to receive immediate updates and reminders about safety protocols.

• Daily Briefings: Every team begins their shift with a toolbox talk that aligns on key safety priorities for the day.

• Multilingual Content: Safety communications are made accessible to a diverse workforce through multilingual resources and digital platforms.

By fostering an open, transparent flow of information, we ensure that safety remains top of mind for every team member.

The STRAP framework is designed to ensure that safety is upheld at every touchpoint in the cement and concrete value chain. Our focus extends from the driver on the road to the drone overhead, encompassing a range of safety measures to protect people, processes, and technology.

• Drivers: Through fatigue management tools, telematics and route risk assessments, we ensure that drivers are equipped to navigate safely at all times.

• Plant Operators: Ongoing training, safety audits, and behavioural assessments keep operators engaged and prepared to handle operational hazards.

• Contractors: We ensure that contractors meet our strict safety standards through comprehensive onboarding programmes, safety audits, and compliance checks.

• Drone Operators: Certified pilots operate drones for routine inspections, ensuring that high-risk areas are monitored with precision and safety.

From the manual tasks in our plants to the digital innovations above, STRAP ensures that every component of our operations is aligned with the highest safety standards.

As we move into 2025, we are committed to scaling and strengthening STRAP across all areas of our business. Key areas of focus include:

• Expanding Safety Leadership: Encouraging deeper engagement and ownership of safety from all employees, especially at the frontline.

• Enhancing Predictive Analytics: Leveraging data and technology to anticipate and mitigate safety risks before they occur.

• Strengthening Contractor Safety: Extending our safety protocols to include our entire supply chain and contractor network.

• Embracing Technology: Continuing to innovate with digital tools, IoT devices, and drone technology to enhance real-time safety monitoring.

Through the 5C framework and the ongoing success of STRAP, ACC is committed to building a culture of care, where safety is not just a priority—it is an ingrained value.

Designed under the We Care principle, this programme is dedicated to ensuring Zero Harm for all workers and contract staff on-site. Each operational site (IU-3 & GU-2) celebrates the programme monthly, recognising outstanding contributions to safety with a reward of D 5,000 for each Safety Hero. In FY 2024-25, ACC has honoured 300+ Safety Heroes across all sites, reinforcing its commitment to a safer and more secure work environment.

Raksha Bandhan into Suraksha Bandhan across all sites, with over 90,000 participants engaging in the programme. The senior leadership team has empowered all employees to Walk the Talk and embrace the Roko Toko approach on the shopfloor—proactively identifying and addressing potential hazards to prevent injuries caused by negligence or lack of awareness.

Enterprise Risk Management (ERM) at ACC is an annual process designed not only to identify risks and opportunities but also to strengthen the Companys ability to build a sustainable business and a robust risk-intelligent ecosystem across functions. The ERM process involves systematically identifying and prioritising risks through a comprehensive analysis of the business environment. Potential risks and opportunities are assessed using a 3x3 matrix, categorising them as High, Medium, or Low, based on severity and probability.

A functional approach is adopted for risk and opportunity identification, whereby each function carefully evaluates its current and future scope of work to determine potential business risks and opportunities. These findings are then consolidated and calibrated to provide a holistic view of organisational risks. For critical risks, a structured mitigation plan is developed and regularly monitored by senior management to ensure operational efficiency, regulatory compliance, and long-term business resilience.