Archean Chemical Industries Ltd Management Discussions

GLOBAL ECONOMY

The global economy in 2025 maintained a stable trajectory, registering moderate growth despite ongoing pressures from trade tensions, evolving US tariff regimes, policy uncertainty, shifting supply chains, and currency volatility across emerging markets. According to the IMFs World Economic Outlook, global growth is projected at around 3.3% for both 2025 and 2026. Global inflation trends indicate moderating price pressures, with headline inflation expected to ease to around 4.5% in 2025 and around 4.2% in 2026, supported by softer commodity prices, normalising supply chains, and calibrated monetary policy adjustments by major central banks.

However, geopolitical tensions in West Asia intensified following the US-Israel-Iran conflict in late February 2026, resulting in a partial blockade and disruption of shipping through the Strait of Hormuz, one of the worlds most critical energy chokepoints. The disruption has resulted in a sharp surge in global oil prices and heightened concerns over energy supply routes and global supply chains. The resulting increase in crude prices is elevating energy and raw material costs, impacting energy-intensive industries such as refineries and chemical manufacturers. Asian economies, including China, India and Thailand remain particularly vulnerable due to their heavy reliance on Middle Eastern crude imports. For the highly energyintensive chlor-alkali industry, the primary global consumer of industrial salt, surging electricity costs and escalating freight surcharges are significantly squeezing operating margins. Furthermore, as downstream vinyls production slows due to disrupted petrochemical feedstocks, the resulting moderation in chlor-alkali operating rates directly influences the global demand and pricing dynamics for raw materials like industrial salt.

(Source: )

GDP Growth Projection (in %)

INDIAN ECONOMY

With GDP growth estimated at around 7.4% for the year, India remained on a steady growth trajectory in FY 2025-26, reinforcing its position as the fastest-growing major economy globally. This momentum was supported by strong domestic demand, sustained public capital expenditure and a gradual recovery in private investment.

Private consumption remained a key driver, with rural demand recovering on the back of improved agricultural output, normal monsoon conditions and moderating inflation, while urban consumption stayed resilient, supported by formal employment growth, rising disposable incomes and steady credit expansion, albeit with selective moderation in discretionary spending. Government capital expenditure continued to play a counter-cyclical and crowding-in role, with sustained investments in infrastructure, logistics, railways, defence manufacturing and digital infrastructure enhancing supply-side efficiencies, reducing logistics costs and strengthening Indias manufacturing competitiveness. (Source: )

INDIAN CHEMICAL INDUSTRY

The Indian chemical industry is navigating a mixed market environment in FY 2025-26, with near-term stabilisation following a period of macroeconomic uncertainty, geopolitical developments, and supply chain disruptions. While tariff-related sourcing uncertainties and softer demand in select segments persist, improving inquiry levels signal early signs of recovery. Despite these short-term challenges, the industrys long-term outlook remains strong, supported by rising domestic consumption, government incentives, and global supply chain diversification. The market, valued at approximately USD 220 Bln in 2025, is projected to reach USD 383 Bln by 2030, with sustained expansion across both commodity and specialty segments. A roadmap by NITI Aayog highlights the potential for India to emerge as a global chemical powerhouse, targeting a market size of USD 1 Tln by 2040, while progress on proposed India- US and India-EU Free Trade Agreements is expected to create meaningful medium- to long-term opportunities for exporters.

(Source:

)

Key Opportunities

Rising Demand for Specialty Chemicals

Rising demand for high-performance materials across sectors such as automotive, electronics, pharmaceuticals,

construction, and personal care presents significant opportunities for specialty chemical manufacturers. Increasing product innovation, contract manufacturing, and export-oriented production are expected to support sustained growth in this segment.

Supply Chain Diversification

Global companies are increasingly diversifying supply chains to reduce dependence on concentrated manufacturing geographies, driving a shift in sourcing strategies. This transition is creating significant opportunities for Indian specialty chemical producers to capture a larger share of global supply chains, expand export markets, and attract foreign direct investment. Supported by rapid capacity expansion, favourable policy initiatives, and a strong domestic, as well as export-oriented market base, India is steadily positioning itself as a key global hub for chemical manufacturing.

Shift in Global Chemical Manufacturing

The ongoing reduction in Europes energy-intensive chemical production, driven by high energy costs and structural competitiveness challenges, is creating a supply gap in global markets. This is further underscored by a staggering sixfold increase in chemical plant closures across Europe since 2022, signalling a structural shift in global supply. This presents a significant opportunity for Indian specialty chemical companies to expand exports and address evolving customer demand. With global buyers increasingly diversifying sourcing, Indian manufacturers are well-positioned to emerge as reliable alternative suppliers, supported by cost competitiveness and a growing manufacturing base.

Green and Sustainable Chemicals

Growing regulatory emphasis on sustainability and environmental compliance is accelerating the adoption of green chemistry, bio-based chemicals, and circular manufacturing practices. Companies investing in environmentally responsible technologies are expected to gain competitive advantages in global markets.

Government Support and Policy Reforms

Policy initiatives like 100% FDI under the automatic route, development of Petroleum, Chemicals and Petrochemical Investment Regions (PCPIRs), and continued infrastructure investments are strengthening Indias chemical manufacturing ecosystem and supporting long-term sectoral growth.

(Source:

)

Key Challenges

Raw Material Price Volatility

Fluctuations in crude oil prices and feedstock costs continue to impact petrochemical pricing and margins, with volatility further exacerbated by geopolitical tensions, including the US-Iran-Israel conflict, which has heightened risks around global energy supply.

Environmental Regulations and Sustainability

Increasingly stringent environmental regulations are requiring companies to adopt cleaner production technologies, robust waste management systems, and more sustainable manufacturing practices. Restrictions on certain brominated flame retardants (BFRs) identified as persistent and bioaccumulative toxins across key markets like the US and EU, despite their long-standing use in plastics, electronics, and insulation, are one such instance. These evolving regulatory frameworks are accelerating the shift towards halogen-free and greener alternatives, often involving higher costs, reformulation efforts, and potential disruption to existing product portfolios.

Competition from Global Markets

Despite opportunities created by supply chain diversification, Indian manufacturers continue to face competition from established manufacturing hubs such as China, as well as emerging Southeast Asian markets.

Infrastructure and Supply Chain Constraints

Dependence on imported feedstocks and logistics bottlenecks can impact production planning and project execution timelines. Gaps in domestic infrastructure, including transportation networks, storage facilities, and utility reliability, can constrain scale-up and affect operational efficiency, particularly for export-oriented specialty chemical manufacturers.

R&D and Skilled Workforce Limitations

As the industry transitions towards higher-value specialty chemicals, stronger investments in research, innovation, and skilled technical talent will be essential to sustain longterm competitiveness.

(Source: )

Outlook

Over the longer term, the industry has the potential to scale significantly, with projections indicating that it could grow into a USD 1 Tln market by 2040 as India strengthens its

position as a global chemical manufacturing hub. Specialty chemicals, agrochemicals, and green chemistry segments will lead this charge. Policy reforms, PLI schemes, and a push for sustainability and circular economy practices are set to enhance competitiveness. Capacity expansion, technology adoption, and sustainability-focused manufacturing practices are expected to enhance Indias global competitiveness. Despite these positive growth drivers, the sector continues to face certain structural challenges including dependence on imported feedstocks, evolving regulatory requirements, and the need for stronger research and innovation capabilities.

(Source: )

INDIAN SEMICONDUCTOR INDUSTRY

The Indian semiconductor industry is entering a transformational phase in FY 2025-26, evolving from a predominantly design-led ecosystem into an integrated global manufacturing hub. Supported by strong domestic demand across consumer electronics, telecom (driven by 5G expansion), and the automotive sector (led by EV adoption), the market, valued at USD 59.78 Bln in 2025, is projected to clock in a CAGR of 11.95% to reach USD 180.20 Bln by 2034.

(Source: )

This rapid expansion is amplifying the need for next- generation, wide-bandgap semiconductor materials, particularly Silicon Carbide (SiC), both in India and globally. The accelerating shift toward electrification, renewable energy, and AI-driven digital infrastructure is placing a structural premium on power efficiency, positioning SiC as a critical enabler of high-performance, energy- efficient systems.

With its superior electrical and thermal properties, SiC is increasingly becoming indispensable in high-efficiency EV powertrains, renewable energy systems, and high-power electronics. As a result, the localisation of SiC-related capabilities presents a strategic, high-value opportunity for advanced specialty material manufacturers seeking to move up the value chain.

Policy support is further strengthening this opportunity. Targeted government initiatives such as the Production- Linked Incentive (PLI) schemes and the India Semiconductor Mission (ISM), alongside landmark investments in domestic fabrication and advanced packaging (ATMP/ OSAT) facilities, are laying the groundwork for long-term self-reliance and ecosystem development in critical semiconductor components.

Key Application Segments Automotive

The automotive sector is expected to dominate SiC demand, accounting for approximately 60-70% of the market by 2030. Battery electric vehicle (BEV) manufacturers are increasingly standardising SiC devices across traction inverters, onboard chargers, and DC-DC converters. The efficiency gains delivered by SiC directly enhance vehicle range, making it a key competitive differentiator and the primary driver of demand.

Renewable Energy Infrastructure

Renewable energy applications, including solar photovoltaic systems and energy storage, account for nearly 20% of demand and are expanding rapidly in line with global and domestic decarbonisation goals. Wind energy is also emerging as a high-growth segment, further reinforcing SiCs role in clean energy infrastructure.

Data Centres

The surge in AI workloads and hyperscale computing is placing power efficiency at the core of data centre economics. SiC-based power solutions, such as server power supplies and Uninterruptible Power Supply (UPS), enable higher efficiency and better thermal management, helping operators manage rising power densities while

Global Industrial Salt Market 2025-2034 (USD Bln)

optimising operating costs. This segment is expected to become an increasingly meaningful contributor to demand.

Industrials

In the industrials segment, SiC adoption is expanding across motor drives, industrial power supplies, rail traction systems, and factory automation. These applications require high reliability and efficiency under continuous operation. Compared to automotive, industrial demand is relatively less cyclical, providing stability to the overall SiC demand mix.

(Source: ) INDUSTRIAL SALT MARKET

Industrial salt remains an essential raw material for a wide range of industries including chemical manufacturing, water treatment, agriculture, food processing, and de-icing applications. Globally, the industrial salt market is valued at USD 19.63 Bln in 2025 and is expected to reach USD 33.06 Bln by 2034, reflecting a CAGR of 6.01% during the same period. This growth is driven by chemical manufacturing, rising water treatment needs, and infrastructure demands. The Asia-Pacific region dominates global salt production and consumption, with China and India among the largest producers and consumers, driven by rapid industrialisation and strong demand from the chemical sector.

BROMINE MARKET

The global bromine market is projected to continue expanding steadily, supported by increasing demand across flame retardants, oil and gas drilling fluids, pharmaceuticals, and water treatment applications. The market is estimated to be valued at approximately USD 3.8 Bln in 2025 and is expected to grow to around USD 5.5 Bln by 2034, reflecting a CAGR of about 3.95% during the same period. Demand growth is particularly strong in the Asia-Pacific region, driven by expanding industrial activity and increasing applications in specialty chemicals and energy storage technologies such as zinc-bromine flow batteries.

Global Bromine Market 2025-2034 (USD Bln)

In India, the bromine market reached USD 118.7 Mln in 2024 and is projected to grow to USD 169.9 Mln by 2033 at a CAGR of 4.1%, driven by water treatment, flame retardants in construction/electronics, and fire safety regulations.

(Source: )

BROMINE DERIVATIVES MARKET

The global bromine derivatives industry is experiencing steady expansion, underpinned by stringent fire safety regulations and the evolving needs of advanced manufacturing. Flame retardants constitute the largest application segment, driven by the rapid electrification of vehicles, the miniaturisation of consumer electronics, and rigorous global construction safety standards. Demand for bromine-based flame retardants is rising rapidly, particularly across electronics, automotive, and construction sectors where fire safety is a critical priority. Increasing global awareness of fire hazards, coupled with stricter regulatory frameworks, has further accelerated their adoption, reinforcing their importance in

ensuring safety compliance across modern infrastructure and high-performance products.

(Source: )

OILFIELD CHEMICALS MARKET

The oilfield chemicals market is experiencing strong growth, driven by rising awareness and regulatory scrutiny around environmental impact and their critical role in enhancing oil and gas operations. Widely used across drilling, cementing, stimulation, and production, these chemicals improve efficiency, maximise recovery, and ensure well integrity. Increasingly stringent norms are accelerating the shift towards eco-friendly, high-performance formulations, supported by advancements in low-toxicity and biodegradable additives.

At the same time, the market is expanding into deepwater and frontier exploration, driven by declining conventional reserves and rising energy demand. This shift is fuelling demand for advanced drilling technologies and specialised chemical solutions suited for extreme conditions, reinforcing the importance of oilfield chemicals in enabling efficient, safe, and reliable operations.

(Source: Oil Field Chemicals Market - A Global and Regional Analysis, BIS Research, February 2025)

SILICON CARBIDE (SiC) MARKET

The silicon carbide (SiC) market serves a wide range of end-use sectors such as electronics and semiconductors, steel manufacturing, energy, automotive, aerospace and defence, among others. The global market is poised for strong growth, expanding from USD 4.82 Bln in 2025 to USD 8.79 Bln by 2031, at a CAGR of 10.69% (20262031). This momentum is being driven by demand across two key fronts:

• Advanced electronics, where SiC is increasingly used in power semiconductor substrates for applications such as traction inverters, data centre power systems, and renewable energy converters.

• High-performance industrial applications, including ceramics for blast furnaces, high-temperature heat exchangers, and ballistic protection systems.

(Source: silicon-c

IEW

Archean Chemical Industries Limited (Archean or The Company) is a leading India-based manufacturer of specialty marine chemicals with a robust footprint across global markets. Operating a unique, resource-backed marine chemicals complex, the Company derives high- quality Industrial Salt, Bromine, and Sulphate of Potash

(SOP) directly from natural sea brine. This highly integrated operating model yields strong, sustainable cash flows, providing a resilient financial bedrock to fund the Companys broader strategic expansion.

Building upon this core platform, Archean is guided by a strategic mandate to optimise its foundational asset base, aggressively scale its specialty chemicals footprint, and pioneer next-generation technologies. The Company operates a tightly integrated value chain that spans from raw bromine to advanced bromine derivatives, including zinc bromide-based solutions, enabling significant operational efficiencies. As one of the few integrated players in India, Archean possesses the agility to seamlessly toggle production between market bromine and value-added downstream bromides based on global demand dynamics, thereby maximising value realisation and margin protection.

Looking ahead, the Company is strategically deploying capital to establish a strong presence in high-growth sunrise sectors such as energy storage and advanced semiconductor materials. A key focus is the SiCSem initiative, which not only positions the Company in a critical next-generation technology space but also supports Indias import substitution efforts in advanced semiconductor materials.

The Companys growth trajectory is anchored in durable, hard-to-replicate structural advantages, including access to premium brine reserves in the Rann of Kutch and the logistical edge of a captive port. Backed by resilient base demand and strong volume growth, Archean is well positioned to serve both established industrial applications and emerging technology-driven opportunities.

The Company has also signed an MoU with the Government of Gujarat for development of a captive salt jetty and associated infrastructure with a throughput of 7 MMTPA along the coastline of Gujarat.

Bromine and Bromine Derivatives

Bromine remains a core product within the Companys marine chemicals portfolio, with applications across agrochemicals, water treatment, pharmaceuticals, oil and gas drilling fluids, flame retardants and energy storage solutions. These applications span a diverse range of industries including chemicals, plastics, electronics, pharmaceuticals and energy.

To expand its presence in value-added segments, the Company continues to scale its bromine derivatives platform through its subsidiary, Acume Chemicals Private Limited (ACPL). ACPL has established a bromine derivatives manufacturing facility with a capacity of 28,000 MTPA, with Phase 1 commissioned in 2024. The facility is focused on producing clear brine fluids, PTA synthesis catalysts and other bromine-based specialty compounds, with further product additions planned as part of the Companys strategy to move up the value chain.

Sulphate of Potash (SOP)

Archean is Indias only large-scale producer of fertiliser- grade, water-soluble Sulphate of Potash (SOP) through the natural sea brine route. This process offers a structurally lower cost of production and is environmentally sustainable as it does not involve chemical conversion processes. Globally, only a small proportion of SOP production is derived from natural brine sources, with the majority produced through the Mannheim process, which converts Muriate of Potash (MOP) using sulphuric acid.

During the year, the Company progressed from successful pilot trials to plant-scale trials for SOP production. Based on the current development timeline, meaningful financial contributions from SOP are expected in the latter half of FY 2026-27, as the Company advances towards commercial-scale operations.

Oilfield Chemicals

The Company is strengthening its presence in the oilfield chemicals segment through Idealis Mudchemie Private Limited (formerly Oren Hydrocarbons Private Limited). Leveraging its core brine chemistry capabilities, this business is integrated into the Companys broader specialty chemicals portfolio.

Following the acquisition of five non-operational units through the NCLT process, three units have completed trials and begun initial commercial operations, including sample

supplies to customers. Refurbishment of the remaining two units is underway, with commissioning expected in the next financial year. Scale-up has been gradual due to extensive restoration needs, as the facilities had remained idle for nearly six years. Progress has also been constrained by NCLT-related regulatory complexities, lengthy customer certification cycles, and muted demand due to lower crude prices, impacting rig activity and order conversion.

The Company views this segment as a natural extension of its legacy strengths, with a resilient long-term demand outlook supported by sustained global oil and gas exploration.

Semiconductor Initiative - Silicon Carbide (SiC)

Archean has taken a strategic step toward participating in the advanced materials and semiconductor ecosystem through its subsidiary SiCSem Private Limited. SiCSem is developing an integrated Compound Semiconductor facility in Odisha, the first commercial Compound Semiconductor Fab & ATMP facility to receive approval under the India Semiconductor Mission (ISM), focused on the design and manufacture of Silicon Carbide (SiC)-based semiconductor components. In FY 2025-26, it received landmark ISM approval, followed by the groundbreaking ceremony in November 2025, both significant validation of the projects scope and national relevance. The project involves a capital investment of Rs. 2,067 cr. and is designed to serve high-growth end markets including electric vehicles, renewable energy systems, data centres, and advanced power electronics etc., where SiCs superior thermal and electrical properties make it the material of choice over conventional silicon.

Energy Storage - Zinc Bromide Battery Technology

As part of its strategy to expand bromine applications into emerging energy technologies, the Company has made a strategic investment in Offgrid Energy Labs, acquiring an 18.14% stake in the company. Offgrid Energy Labs is developing zinc-bromide based battery technology for various applications including energy storage. These batteries are well suited for renewable energy integration, industrial energy management and off-grid power solutions.

To support technology scale-up and commercialisation, a pilot manufacturing facility is currently being established in the United Kingdom. The investment enables Archean to leverage its bromine capabilities while participating in the rapidly growing global energy storage market.

is a critical input for a wide range of industries, particularly the chlor-alkali sector, where it is used in the production of caustic soda, chlorine and soda ash. These chemicals are further used in manufacturing products such as glass, synthetic rubber, detergents, pesticides, paints, adhesives, fertilisers, explosives and metal coatings. The Company exports a significant portion of its industrial salt production to global markets, benefiting from its strategic proximity to Jakhau Jetty and Mundra Port, enabling efficient logistics and competitive export operations.

FINANCIAL OVERVIEW

In FY 2025-26, Archean reported standalone total revenue of Rs. 1,04,153.98 Lakhs. EBITDA stood at Rs. 30,804.24 Lakhs, compared to Rs. 37,212.14 Lakhs in FY 2024-25, while PAT was Rs. 15,437.29 Lakhs, compared with Rs. 18,492.32 Lakhs in the previous year. Earnings per share (EPS) for FY 2025-26 stood at Rs. 12.51.

On a consolidated basis, total revenue was Rs. 1,08,105.07 Lakhs in FY 2025-26. EBITDA stood at Rs. 26,573.14 Lakhs, compared to Rs. 35,143.74 Lakhs in the previous year, while PAT was Rs. 10,540.80 Lakhs as against Rs. 16,214.49 Lakhs in FY 2024-25. EPS stood at Rs. 8.66.

Key Ratios

Particulars	FY 2025-26	FY 2024-25	Rationale
Current Ratio	1.41	4.50	Due to increase in borrowing and reduction in mutual fund investments
Debt-Equity Ratio	0.13	0.03	Due to increase in net-worth
Return on Net Worth	7.96%	10.30%	Due to increase in net-worth and offset by reduction in operating profit margin
Inventory Turnover	5.86	7.20	-
Debtors Turnover	6.77	6.20	-
Operating Profit Margin	21.90%	31.20%	-
Net Profit Margin	14.82%	17.40%	-
Interest Coverage Ratio	12.88	28.40	Due to increase in borrowings

RISK MANAGEMENT

The Company recognises that effective risk management is integral to sustaining operational resilience and longterm value creation. Accordingly, it follows a structured approach to identifying, assessing and mitigating risks, supported by clearly defined governance mechanisms and mitigation frameworks.

The Risk Management Committee oversees the Companys risk management framework and ensures that appropriate methodologies, processes and systems are in place to monitor and evaluate risks associated with the business. The Committee is responsible for reviewing the implementation and adequacy of the risk management policy, periodically assessing emerging risks, and keeping the Board informed about key risk discussions, recommendations and proposed actions.

Given the dynamic and evolving environment in which the Company operates, continuous risk evaluation and proactive mitigation remain central to safeguarding operational continuity and financial performance.

Key Risks and Mitigation Measures Operational Safety Risk

Accidents or unsafe conditions at manufacturing facilities can lead to employee injury, asset damage, operational disruptions and potential regulatory non-compliance, which may adversely affect the Companys reputation and business continuity.

Mitigation

The Company prioritises workplace safety through strict adherence to safety protocols, provision of appropriate personal protective equipment and regular employee training. A well-equipped Occupational Health Centre and ambulance facilities are available at the site to provide immediate medical support when required. Periodic mock drills are conducted and learnings are integrated into safety practices. Proactive monitoring of leading indicators such as near-miss reporting, unsafe acts and PPE compliance further strengthens on-site safety management.

Competitive Risk

Increasing competition within the chemical industry could impact the Companys market share, pricing dynamics and return on capital if emerging opportunities are not addressed in a timely manner.

Mitigation

The Company continuously evaluates market developments and proactively expands its product portfolio to address evolving customer needs. Strong and long-standing customer relationships position the Company as a preferred and reliable supplier. Continuous benchmarking against peers, combined with a focus on product quality and timely delivery, supports sustained competitiveness.

Raw Material Price Risk

Volatility in crude oil prices and fluctuations in the cost of other raw materials may impact the Companys cost structure and profitability.

Mitigation

The Companys backward integration capabilities enable access to key inputs at competitive and stable costs. In addition, a diversified supplier base and multi-supplier sourcing strategy reduce dependence on any single supplier and enhance supply security.

Natural Disaster Risk

Force majeure events such as cyclones or other natural disasters may disrupt operations and impact production.

Mitigation

The Company maintains robust preparedness measures to manage such contingencies. Manufacturing facilities are adequately insured against natural calamities, helping mitigate potential financial impact.

Foreign Exchange Risk

Given that exports account for a significant portion of the Companys revenue and certain raw materials are imported, fluctuations in foreign exchange rates may affect financial performance.

Mitigation

The Company follows a disciplined foreign exchange risk management framework, including the use of forward contracts and other hedging mechanisms to manage currency volatility.

SUSTAINABILITY AND RESPONSIBLE STEWARDSHIP

The Company has embedded sustainability into its core operations, with a focus on resource efficiency, environmental impact reduction, and community engagement. The Company maintains globally recognised certifications, including ISO 9001, ISO 14001, and ISO 45001, and is a certified member of the Responsible Care initiative of the Indian Chemical Council.

Operational initiatives undertaken during the year have delivered meaningful improvements in environmental performance. The reuse of acidic effluent in the bittern acidification process has reduced lime consumption and lowered ETP sludge generation significantly. Energy efficiency has been enhanced through the deployment of Variable Frequency Drives (VFDs) and an Automatic Power Factor Correction (APFC) system, while a hybrid renewable energy solution supplying over 52,000 MWh has enabled the replacement of conventional boilers and reduced reliance on fossil fuels. Coal consumption has also declined by ~1,500 MT per month, contributing to lower Scope 1 emissions.

Water stewardship remains a priority, with ~4.99 Mln kL of rainwater harvested during the year and continued operation under a Zero Liquid Discharge (ZLD) framework.

As part of its social responsibility, the Company actively supports neighbouring communities through initiatives such as the distribution of medicines and provision of water tankers, contributing to improved access to essential resources.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The Company continues to strengthen its people-centric culture, recognising employees as a critical driver of longterm growth and organisational capability. During the year, the Human Resource function advanced its digital transformation through the implementation of a new HRMS, enhancing process efficiency, enabling data-driven decision-making, and improving employee experience.

The Companys talent strategy focuses on clearly defined career pathways aligned with business objectives, supported by streamlined onboarding and continuous capabilitybuilding programmes. There is a growing shift towards strategic training plans aimed at preparing employees for future business needs. Leadership development initiatives have been reinforced through structured assessment frameworks to identify and nurture high-potential talent. In parallel, the Company maintains a strong focus on training the workforce in Six Sigma methodologies, enabling a transition from reactive to proactive, data-led process management

Safety remains a top priority, with a vision to be among the safest chemical manufacturing companies globally. This is supported by structured, theme-based training across key safety areas, designated safety leadership at the shop floor level, and daily safety engagement initiatives designed to embed a strong safety culture across the organisation.

Employee engagement continues to be reinforced through transparent communication practices, alongside recognition and reward programmes aligned with performance outcomes. The Company also remains committed to fostering a diverse and inclusive workplace, embedding DEI principles across policies, processes, and culture, while supporting holistic employee wellbeing spanning physical, emotional, and financial dimensions.

As of March 31, 2026, the Company employed 257 individuals across its plant and registered office.

INTERNAL CONTROL SYSTEMS

The Company has established a robust internal control framework designed to ensure the accuracy and reliability of financial reporting, safeguard assets and support operational efficiency across business functions.

The internal control environment is aligned with recognised governance practices and is periodically reviewed to reflect the evolving scale and complexity of operations. Clearly defined Standard Operating Procedures (SOPs), automation-enabled workflows and IT-driven monitoring systems strengthen transparency, accountability and compliance across processes.

Independent internal audits are conducted periodically, and key observations are reviewed by the Audit Committee to ensure timely corrective actions and continuous improvement. This framework reinforces the Companys commitment to strong governance, risk discipline and operational excellence.

CAUTIONARY STATEMENT

The Management Discussion and Analysis (MD&A) may contain forward-looking statements reflecting the Companys current expectations regarding future developments, business prospects and financial performance. These statements are based on assumptions and expectations in light of currently available information and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied.

Such forward-looking statements speak only as of the date of this report. The Company undertakes no obligation to publicly update or revise these statements to reflect subsequent events or developments.