Century Textiles & Industries Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

This report encapsulates the operational and financial performance of Aditya Birla Real Estate Limited (formerly Century Textiles and Industries Limited) for the fiscal year ended 31^st March, 2025, and constitutes an integral part of the Integrated Annual Report.

1. OVERALL REVIEW:

In the year under review, there was a decline in earnings before interest, tax, and depreciation (EBITDA) compared to the previous year due to challenges faced by the Pulp and Paper Division in terms of lower realization on account of dumping by international players and increase in input cost pursuant to lack of wood availability. However, the Real Estate Division has demonstrated strong performance in FY25 primarily contributed by increase in demand in the sector. During the year, the operations of Textile division has been completely discontinued.

The Indian real estate market has changed significantly in the last few years, becoming one of the most vibrant economic sectors. The industry currently accounts for around 7% of Indias GDP and by 2030, it is expected to reach a market size of $ 1 trillion.

In FY25, Companys real estate business performed admirably, exhibiting expansion and high client confidence. Across all initiated projects, around 5.1 million square feet were sold in FY25, totaling 8,087 Crores, doubling from the previous year. With over 3,150 Crores in sales at launch, our recently opened luxury development, Birla Arika in Sector 31, Gurugram, received an extraordinary response from the market and set a new record for the Companys debut sales. Similarly, Birla Evara in Sarjapur, Bengaluru, showed remarkable results, with initial sales exceeding 850 Crores.

Additionally, collection in FY25 was over 2,700 Crores, demonstrating the close relationship and confidence our clients have placed in us.

Five projects with a combined Gross Development Value (GDV) of approximately Rs.25,000 Crores were successfully added to the Companys portfolio during FY25, this includes a magnificent 10-acre plot of land next to our flagship project at Birla Niyaara, Worli, Mumbai with GDV of almost Rs.14,000 Crores. Our presence in one of the most desirable micro-markets within the Mumbai Metropolitan area is strengthened by this acquisition. Two significant acquisitions in Gurugram area, a 13-acre land parcel in Sector 31 (Birla Arika) with a GDV of Rs.5,300 Crores, and a 5-acre land parcel in Sector 71 with a GDV of roughly Rs.1,400 Crores. We have also expanded our portfolio in Pune with the acquisition of a 16.5-acre land parcel in Manjri, with a GDV of over Rs.2,500 Crores. Additionally, 71-acre land parcel in Boisar has been acquired and earmarked for our first plotted development.

The handover at Birla Alokya in Bengaluru, Birla Navya - Phase I in NCR and Birla Vanya in Kalyan is progressing smoothly, with a focus on meeting quality standards and ensuring a seamless transition for our customers.

Execution of all other launched projects is in full swing, with a complete focus on ensuring safety, maintaining high-quality and ensuring timely delivery. About 16 million safe man-hours have been successfully completed across all our under-construction projects in FY25.

The Board of Directors of the Company at its meeting held on 31^st March, 2025, approved the execution of the Business Transfer Agreement (BTA) for divestment of the Companys Pulp and Paper (CPP) undertaking situated in Lalkuan, Uttarakhand by way of slump sale to ITC Limited (ITC). The transfer of business will be for a lumpsum cash consideration of 3,498 Crores to be paid by ITC to the Company. The lumpsum consideration is subject to certain adjustment as per agreement. The transaction is subject to necessary statutory and regulatory approvals including approval from Competition Commission of India (CCI) and the shareholders of the Company. The divestment of the Pulp and Paper undertaking is a value unlocking exercise for the Company. It will further enable the Company to pursue growth opportunities in its core business.

It is expected that the sale process of Century Pulp and Paper will be completed in the first half of FY 2025-26 subject to receipt of statutory approvals and fulfillment of conditions laid down in the BTA and your approval.

2. BUSINESS SEGMENT - PULP AND PAPER (PULP, WRITING & PRINTING PAPER, TISSUE PAPER, AND MULTILAYER PACKAGING BOARD)

a. Industry Structure and Development:

World Bank projects India to remain the fastest- growing large economy for FY26 and FY27. The consumption of paper is closely linked to the economic development of a country. While India currently exhibits low per capita paper consumption, this trend is steadily improving alongside economic advancement and diverse governmental efforts.

Indias pulp and paper market is currently experiencing a significant transformation fueled by a mix of economic, demographic, and technological factors.

India is one of the worlds fastest-growing economies, with a growth rate of 6.5% in FY 2024-25. This rapid economic development has led to an increase in demand for various goods and services, including paper products.

The key demand drivers for the paper industry are from combination of factors including rising income levels, growing per capita spend, rapid urbanization, escalating demand for Personal Care & Sanitation, Government-led hygiene awareness initiatives, and a larger share of the working population, which is poised to fuel consumption and indicate significant growth prospects for the paper industry domestically.

b. Opportunities and Threats:

The Indian paper industry has undergone substantial transformation over the past few decades, driven by the integration of cutting-edge technology and increased capital investments in the sector. The industry has also benefited from government policies that promote sustainable forest management and the use of eco-friendly materials.

The following are the Opportunities & Threats for the Industry:

Opportunities :

• Rising literacy rates, especially in rural areas, have fueled the demand for writing and printing paper. With Government Policies on education (NEP), rising enrollment and through various schemes giving thrust on education.

• Growing consumption of packaging paper/ board in food (Food & Beverages) and pharma / FMCG sector.

• Widening of the market through ban on single-use plastic, Indias flexible packaging market experiencing a growth, driven by a growing middle-class population and increasing export demands. The shift towards convenience, hygiene, and sustainability enhances its appeal.

• With the real estate market growing steadily, decor and absorbent kraft grades have significant potential with a CAGR of 7.2%.

• The surging demand for tissue products, encompassing a wide range of applications in both residential and commercial sectors, is expected to result in an upward momentum in the years to come.

• The rapid growth of the e-retail industry, coupled with escalating retail penetration levels, is expected to substantially boost volumes and drive business growth.

• An increasing consumer preference for high-quality, eco-friendly, and sustainable paper packaging solutions is emerging as a major trend, creating new opportunities for innovation and development.

• The e-commerce sectors growth is expected to fuel a corresponding and parallel rise in demand for packaging paper, Kraft, and board, driven by the need for reliable and efficient packaging solutions.

• Multinational companies are prioritizing the substitution of plastic with biodegradable alternatives, and paper is increasingly being positioned as a prime replacement material due to its environment friendly and sustainable properties.

• With capacity expansion taking place in the domestic industry along with adoption of technological advancements, the production and efficiency is expected to increase, thus supporting the growth of exports in the near to medium term.

Threats :

• Increasing cost of raw materials.

• Scarcity of wood.

• Rising input cost including coal, chemicals and other inputs.

• There is growing competition from imports specially from ASEAN countries.

• BIS certification resulting in increase of Copier Paper import.

• Digitalization is affecting paper demand in some areas.

• Higher energy cost imparting competitiveness.

c. Segmental Review and Analysis:

As stated under Serial No. 1 above viz. Overall review, the Company has entered into a Business Transfer Agreement (BTA) for divestment of the Companys Pulp and Paper (CPP) undertaking situated in Lalkuan, Uttarakhand by way of slump sale to ITC Limited (ITC). Under the terms thereof the business will stand transferred effective from the Closing Date.

Writing, printing, and copier grades are performing fairly well compared to other paper grades, a trend not seen often in major producing countries. The steady demand reflects the essential nature of these products in education and business operations.

The paper, paperboard, and packaging sector continue to feel the effects of competitive ASEAN and Chinese pricing in global markets and subdued domestic demand.

Demand for tissue saw a fluctuating market condition in the year with new Mills entering into the segment. Also packaging board experienced some challenges due to lower demand from domestic pharma, FMCG, export Food and Beverages and hosiery market during the year. Though, India remains the fastest-growing paper market in the world, yet the domestic manufacturing sector is struggling since the rising demand is being increasingly met by imports. A significant contributor to this surge is the 36% increase in imports from China and a 23% increase from ASEAN in volume terms, exacerbating the challenges faced by Indian paper manufacturers.

According to IPMA report, Paper and paperboard imports into India jumped by 20% to 1.76 million tonnes in the April-December period of 2024-25.

d. Risks and Concerns:

Fueled by the Free Trade Agreement with ASEAN countries (mainly Indonesia, Japan and China) cheaper and superior quality paper is being imported by India. This has led to increasing y-o-y imports and becoming a concern for the domestic industry.

The domestic paper industry is faced with significant challenges, including price volatility, disrupted raw material supply chains due to geo-political tensions, and rising input costs. As a result, businesses are forced to pass on increasing expenses to consumers, leading to adverse effects on consumer sentiment and a subsequent contraction in demand.

Soaring container freight rates have also significantly contributed to the demand for price hikes in the mills. The increased shipping costs have subsequently impacted the overall supply chain, necessitating adjustments in product pricing.

Indian virgin board packaging market is likely to face tough price competition from international suppliers in FY 2025-26.

Risk of higher Import in Writing, Printing, Copier and Board segment by International manufacturer will lead to volume & cost pressure.

e. Outlook:

India is one of the fastest growing major economy. It demonstrated a growth rate of 6.5% in FY 202425. Despite global headwinds, Indias growth is expected to remain rangebound, 6 - 6.5% in next couple of years. The robust growth will be driven by public and private sector investment and improvement in consumer demand.

Indian population is around 15% of world population but consumes only 5% of the total paper produced in the world. Indias growing FMCG sector and high spending in education coupled with growth in organised retail and demand for better quality paper as well as more health consciousness of people, etc., are triggering factors of growth prospects of Indian Paper Industry.

In the last five to seven years, an amount of over 25,000 Crores has been invested in new efficient capacities and induction of clean and green technologies.

Paper demand is expected to grow moderately in fiscal year 2026. The paperboard segment is expected to drive demand in the near and long-term due to healthy demand from end-use industries. W&P paper demand is estimated to witness a sharp growth in fiscal year 2026 as the NEP is expected to be rolled out.

The governments increased education spend will fuel writing and printing paper demand.

Meanwhile, organized retail, e-commerce, and healthcare growth will drive paperboard and packaging paper market expansion, propelled by demand for premium packaging solutions for FMCG, pharma, and Food packaging related product. Thus focusing on sustainability, efficiency, and quality will be key to unlocking these opportunities and driving the industry forward.

Projections indicate a 6% to 7% annual growth in paper consumption in India, reaching 30 million tonnes by FY 2026-27.

Going ahead medium to long term outlook of the Indian paper industry is positive and is expected to grow further with the countrys GDP and the economy.

3. BUSINESS SEGMENT - REAL ESTATE

a. Industry Structure and Development:

The Indian real estate market has undergone a remarkable transformation in recent years, evolving into one of the most dynamic sectors of the economy. This shift has been fuelled by sustained economic growth, rapid urbanization, infrastructure development, and a rising demand for both residential and commercial spaces. The sector today contributes significantly to employment generation and economic output, accounting for nearly 7% of Indias GDP With projections placing its market size at $1 trillion by 2030, real estate stands as a foundational pillar of Indias long-term development strategy.

The outlook for the sector remains highly promising. A growing middle class, favorable demographics, and increasing household incomes are reinforcing the strong preference for home ownership, especially in urban centres. Simultaneously, the commercial real estate segment continues to gain momentum, supported by the expansion of key sectors such as IT/ITES, BFSI, startups, and e-commerce. Demand for premium office spaces, flexible workspaces, and logistics parks is driving new investments and shaping next-generation asset classes.

In parallel, there is a growing emphasis on sustainability and innovation. Green building practices, energy-efficient designs, and smart infrastructure are increasingly influencing both buyer preferences and regulatory frameworks. Developers are responding by integrating sustainable construction methods, digital tools, and tech-enabled solutions to enhance both product offerings and customer experience.

With strong macroeconomic fundamentals, policy support, and an evolved consumer landscape, the Indian real estate sector has reached a steady stabilization phase. As the market matures and developers adapt to emerging trends, the sector will continue to shape Indias urban and economic development.

b. Opportunities and Threats:

Indias residential real estate segment is entering a phase of sustained growth, driven by rising urban aspirations, evolving lifestyles, and a stronger emotional connection to home ownership. Buyers today seek more than just a home they expect integrated living, thoughtful design, wellness-focused amenities, and longterm value. This has fueled demand in the premium and luxury segments, especially among affluent and globally exposed consumers, including NRIs. Sustainability and digital innovation are becoming essential. Energy-efficient design, green certifications, and seamless digital experiences from discovery to post-sale engagement are increasingly shaping buyer decisions. In this evolving environment, developers who can combine relevance, trust, and differentiated offerings are well-positioned to lead the next phase of growth.

A key challenge facing the industry today is the shortage of reliable, skilled contractors and labour especially in fast-growing urban centres. This imbalance impacts construction quality, consistency, and timelines, making it critical to build long-term partnerships.

Your Company is actively aligning with the evolving landscape of residential real estate by focusing on thoughtful design, premium positioning, strong partnerships and a seamless customer experience. Our projects are curated to meet the aspirations of modern homebuyers offering not just homes, but well-rounded communities that integrate convenience, aesthetics, and long-term value. With our Birla Living initiative, we are focused on crafting memorable experiences and building lasting customer relationships by celebrating moments that matter.

Sustainability and technology are central to our approach. From adopting green building practices to enabling digital discovery and virtual walkthroughs, were enhancing both the product and the purchase journey. This helps us build stronger engagement, greater trust, and longterm relationships with our customers.

By staying sharply attuned to market trends and executing with agility, your company continues to differentiate itself in a supply-rich environment delivering homes that stand out for their relevance, quality, and experience.

c. Segment Review Analysis:

Your Company has demonstrated strong performance in FY25, showcasing continued growth and robust customer trust. In FY25, nearly 5.1 million sq. ft. were sold, amounting to 8,087 Crores doubling from last year, across all launched projects. Our newly launched luxury development, Birla Arika in Sector 31, Gurugram, garnered an exceptional market response, generating over 3,150 Crores in sales at launch, marking it highest sales at the launch in the Companys history. Similarly, Birla Evara in Sarjapur, Bengaluru, demonstrated impressive performance, surpassing 850 Crores in sales at launch.

Additionally, three new projects and three new phases were successfully launched during the year across Bengaluru, NCR, Pune and MMR regions. Birla Trimayas new phases were launched in Bengaluru, with Phase II achieving 98% of its total sales potential and Phase III achieving 72% of its sales potential. Birla Ojasvi in Bengaluru achieved 76% of its total sales potential. In NCR, a new phase of Birla Navya Avik was launched, surpassing 250 Crores in sales. In Pune, the launch of Birla Punya, generated over 300 Crores marking a significant entry in to the city. Further, we launched Birla Anayu in the prestigious Malabar Hill micro market. We have sold 5 out of the 8 exclusive units in the project. Furthermore, in FY25, Collection stood more than 2,700 Crores underscoring the strong connection we have established with our customers and the trust they have placed in us. During FY25, the company expanded its portfolio through the successful additions of five projects with a combined Gross Development Value (GDV) of approximately Rs.25,000 Crores. Notably, this includes a prime 10-acre land parcel in Worli, Mumbai, with an approximate GDV of Rs.14,000 Crores, situated next to our flagship project Birla Niyaara. This acquisition strengthens our presence in one of the most sought-after micro-markets within the Mumbai Metropolitan Region. Other acquisitions include a 71-acre land parcel in Boisar, earmarked for our first plotted development, a 16.5-acre land parcel in Manjiri, Pune with a GDV of over Rs.2,500 Crores, along with two key acquisitions in Gurugram - a 13- acre land parcel in Sector 31 (Birla Arika) with a GDV of Rs.5,300 Crores, and a 5-acre land parcel in Sector 71 with a GDV of approximately Rs.1,400 Crores.

The handover at Birla Alokya in Bengaluru, Birla Navya - Phase I in NCR and Birla Vanya in Kalyan is progressing smoothly, with a focus on meeting quality standards and ensuring a seamless transition for our customers.

Execution of all other launched projects is in full swing, with a complete focus on ensuring safety, maintaining high-quality and ensuring timely delivery. About 16 million safe man-hours have been successfully completed across all our under-construction projects in FY25.

The Company has been officially granted the Integrated Management System (IMS) certification for implementation of ISO 9001:2015 (Quality Management), ISO 14001: 2015 (Environmental Management), and ISO 45001:2018 (Occupational Health & Safety Management) across all functions, projects, and facility sites.

Our commercial assets, Birla Aurora and Birla Centurion, continue to generate steady rental income. Birla Aurora has achieved the status of "Net Zero Energy Building", a prestigious recognition from Indian Green Building Council (IGBC) for our commitment to sustainability and environmental stewardship.

In Global Real Estate Sustainability Benchmark (GRESB) rating, Birla Estates scored 96 in Development portfolio (Residential), ranking 4^th in Asia (residential -non listed category) and 90 in Standing Investments (Commercial portfolio), securing 3^rd in India (office - non listed category) with five star ratings. We remain committed to reducing carbon emissions across all our properties.

Birla Estates unwavering commitment to safety at its project sites has been recognized at multiple forums. Birla Estates has received the prestigious "Golden Peacock Award" for the year 2025 for its unwavering commitment to excellence, quality and continuous improvements. Birla Niyaara, Mumbai, has been awarded a distinguished "Five Star Rating" and "Merit Award Winner" by the British Safety Council. Similarly, Birla Tisya, Bengaluru, received the "Safety Shield"

Award for Excellence in Safety from the National Safety Council of India, and the "Gold Award" for Excellence in EHS practices at the 16^th Edition of the Confederation of Indian Industry - Southern Region CII-SR EHS Excellence Awards. Moreover, Birla Navya, Gurugram, was conferred the "Silver Award" at the prestigious ROSPA Health and Safety Awards 2024 and "CIDC Vishwakarma Awards 2025".

We are committed to optimizing business processes through digital means. In FY25, we have successfully integrated several key tools, including the "Single Project Window" for managing all Pre-construction project documentation and workflows on Asite, the implementation of Building Information Modelling (BIM) for enhanced design collaboration for key projects, and the use of AR/VR technology for immersive safety training. These initiatives reflect our commitment to aligning digital assets with the organizations long-term growth objectives.

d. Risk and Concerns:

While the residential real estate sector remains on firm footing, signs of moderation are beginning to emerge as the market gradually transitions from a high-growth phase to a more balanced growth trajectory. This presents an important moment for developers to recalibrate strategies and focus on long-term fundamentals. Navigating evolving regulations, managing project approvals efficiently, and maintaining cost discipline will be key to ensuring timely execution. In a supply-rich environment, getting the location and pricing right will be critical to capturing demand and ensuring sustained absorption. Developers have an opportunity to stand out by aligning closely with buyer preferences and delivering differentiated, high-quality offerings.

e. Outlook:

Indias real estate market remains on a growth trajectory, though the pace is gradually stabilizing after a period of rapid expansion. Residential demand continues to be strong, supported by urbanization and evolving lifestyle preferences. The luxury and premium housing markets are also holding firm, reflecting confidence among high-net-worth buyers who prioritize exclusivity, larger spaces, and prime locations. Gated communities, integrated townships, and sustainable developments are gaining popularity as buyers increasingly look for a holistic living experience with green spaces, smart home features, and wellness-driven designs. While the sector is mellowing from its peak growth phase, it continues to present attractive opportunities, with a solid foundation for long-term expansion. With infrastructure advancements and a growing investor appetite, Indias real estate sector continues to present attractive opportunities and is well-positioned for long-term expansion.

4. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company maintains robust internal control systems to align with growth objectives while ensuring compliance with regulations and safeguarding against fraud. An extensive internal audit framework, overseen by the Audit Committee, evaluates control effectiveness and recommends enhancements. The Companys Internal Control System is underpinned by an extensive, year-round, independent internal audit. Annually, a comprehensive internal audit plan covering various functions across all divisions is formulated and ratified by the Audit Committee. Quarterly, the Audit Committee convenes with auditors and management personnel to conduct an audit review, reaching consensus on an action plan to address areas identified for improvement or enhancement from these audits. Audit findings are categorized as High, Medium, or Low based on associated risks and impacts, with a scientifically derived Control Effectiveness Index (CEI?) score. A CEI score exceeding 90% is deemed satisfactory performance, while anything below 71% is considered inadequate. Presently, your Companys CEI score stands at 88%.

5. HIGHLIGHTS OF THE COMPANYS FINANCIAL PERFORMANCE:

				(Rs. in Crores)
PARTICULARS	Standalone		Consolidated
	2024-25	2023-24	2024-25	2023-24
Continuing Operations
Total Income	497.60	589.43	1257.33	1148.71
Earnings before Exceptional items, Finance Cost, Tax, Depreciation and Amortisation and Share of Profit/ (Loss) of Joint-Venture (EBITDA)	352.21	455.88	68.04	290.83
Less: Finance Cost	140.14	90.78	45.75	29.86
Profit before Exceptional items, Tax, Depreciation and Amortisation and Share of Profit / (Loss) of Joint-Venture	212.07	365.10	22.29	260.97
Less: Depreciation and Amortisation expenses	55.12	50.48	63.79	59.01
Profit before Exceptional items, Tax and Share of Profit / (Loss) of Joint Venture	156.95	314.62	(41.50)	201.96
Less: Exceptional item	(156.89)	-	(123.97)	-
Profit before Tax and Share of Profit/ (Loss) of Joint Venture	0.06	314.62	(165.47)	201.96
Less: Share of Profit/(Loss) of Joint Venture	-	-	(13.53)	(22.40)
Profit before tax	0.06	314.62	(179.00)	179.56
Less/(Add):
Current Tax	35.78	72.29	86.18	117.45
Current Tax pertaining to earlier year	-	-	1.08	-
Deferred Tax	(20.67)	20.66	(117.52)	(66.14)
Profit after tax from continuing operations	(15.05)	221.67	(148.74)	128.25
Discontinued Operations
Add / (Less):
Profit / (Loss) before tax from discontinued operations	(13.38)	105.62	(13.38)	108.26
Loss on measurement to Net Realisable Value	-	(214.00)	-	(214.00)
Tax (Expense)/ Income of discontinued operations	4.68	37.87	4.68	37.87
Loss From Discontinued Operations	(8.70)	(70.51)	(8.70)	(67.87)
Net Profit for the year	(23.75)	151.16	(157.44)	60.38

The Consolidated EBITDA including exceptional item from continuing operations for the year 2024-25 is (69.46) Crores (including share of Joint Venture) as against Rs.268.43 Crores.

The Standalone EBITDA including exceptional item from continuing operations for the year 2024-25 is Rs.195.32 Crores as against Rs.455.88 Crores.

In consolidated financial statement finance cost has gone up from Rs.29.86 Crores to Rs.45.75 Crores.

Key financial metrics for the fiscal year, including total income, EBITDA, and net profit, reflect the Company Rs.s performance. Noteworthy changes include increased interest costs and satisfactory technical performance across all plants.

6. DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE AS COMPARED TO IMMEDIATE PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS:

Ratios	2024-25	2023-24	Change (%)	Explanation for change
1. Debtors Turnover Ratio	24.65	31.36	-21%	-
2. Inventory Turnover Ratio	7.44	6.41	16%	-
3. Interest Coverage Ratio	0.01	6.07	-100%	Due to lower earnings in Paper & Pulp business on account of evolving dynamics in the Sector.
4. Current Ratio	1.40	1.72	-19%	-
5. Debt Equity Ratio	1.29	0.61	111%	Due to increase in debt on account of issue of new NCDs and term loan for Real Estate projects.
6. Operating Profit Margin (including discontinued operations) (%)	-1.20	5.86	-120%	Due to lower earnings in Paper & Pulp business on account of evolving dynamics in the Sector.
7. Net Profit Margin (including discontinued operations) (%)	-3.54	1.13	-413%	Due to lower earnings in Paper & Pulp business on account of evolving dynamics in the Sector.
8. Return on Net Worth (%)	-4.05	1.47	-375%	Due to lower earnings in Paper & Pulp business on account of evolving dynamics in the Sector.

The above key financial ratios are in accordance with Note 47 of Consolidated Financial Statements prepared in accordance with Ind AS requirements and Schedule III of the Companies Act, 2013 and exhibit changes compared to the previous fiscal year, attributed to various factors impacting operational and financial performance.

7. HUMAN RESOURCE DEVELOPMENT / INDUSTRIAL RELATIONS:

The Company has an unwavering commitment to create a positive work environment that nurtures and supports the professional development of all employees, while striving to achieve the business goals. We believe and understand the importance of investing in the growth and development of employees which is crucial not only for their personal success, but also for the overall success of the organization. Hence, the Company has crafted a comprehensive employees growth and development strategy that aims to empower the workforce, cultivate a culture of continuous learning and stimulate innovation and excellence throughout the organization. During the year, the Company launched Learning Fest 2024, in alignment with the Aditya Birla Groups vision, to foster a strong learning culture and upskill employees across all levels. Throughout the year, employees were also nominated for various online and offline training programs to provide them with diverse learning exposure. In parallel, the Company successfully implemented a robust Talent Management Framework, facilitating effective talent segmentation. This has enabled focused engagement with the identified talent pool, laying the foundation for succession planning, targeted development, and structured career pathing. As part of its efforts to build a future-ready workforce, the Company also recruited 36 Graduate Engineer Trainees (GETs) at Century Pulp & Paper. This strategic hiring initiative aims to strengthen the talent pipeline and reinforce organizational capabilities.

With more than 125 years of existence, our noble legacy shines brightly, emphasizing strong values, innovation, customer-centricity, and sustainability. The collective skills, expertise, experience, passion, and unwavering commitment of our people contribute significantly to deeper customer understanding and the strengthening of relationships. This, in turn, enhances our brand value as a preferred employer. The continued maintenance of cordial industrial relations across all plants and project sites is a testament to our organizations enduring success.

As of 31^st March 2025, total employee strength stands at 2,129 (2,439 as on 31^st March, 2024), reflecting the strong workforce having dedication, passion, and commitment to our strategic business goals. The number of employees has decreased by 310 largely due to complete discontinuation of operations at Textile plant viz. Birla Century located in Jhagadia, Bharuch, Gujarat.

8. HEALTH, SAFETY AND SECURITY MEASURES:

The Company accords utmost importance to human life being precious on the planet. The safety of people involved with its business remains at the core of the Companys operations. Our plants and project sites adhere to Occupational Health and Safety management standards, seamlessly integrating occupational health, hygiene, and safety responsibilities into everyday business operations. The comprehensive safety inspections and audits are conducted at every plant and project site. Additionally, health and safety awareness programs are organized across all locations, fostering a culture of well-being among employees.

The Companys wellness programs educates and guides employees around work-life balance and the importance of a healthy lifestyle, emotional, physical well-being and prevention of diseases. Annual medical check-ups, structured periodical health programs, Mental Program through Mpower and health & safety awareness campaigns are periodically conducted at every plant and project site.

We value lives above all else with the goal of achieving a "Zero Harm" environment every year. The Company has implemented various systems to enhance employee safety across plants and sites. Our Occupational Health and Safety standards and procedures ensure our commitment to a consistent approach in eliminating major hazards across business operations for well-being of employees.

9. CAUTIONARY STATEMENT:

Statements in this report on Management Discussion and Analysis, describing the Companys objectives, projections, estimates, expectations, or predictions may be forward looking, considering the applicable laws and regulations. These statements are based on certain assumptions and expectations of future events. Actual results could, however, differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include finished goods prices, raw materials costs and availability, global and domestic demand supply conditions, fluctuations in exchange rates, changes in Government regulations and tax structure, economic developments within India and the countries with which the Company has business contacts. The Company assumes no responsibility in respect of the forward-looking statements herein, which may undergo changes in future based on subsequent developments, information, or events.