GRP Ltd Management Discussions

Company overview

GRP Limited (hereinafter referred to as GRP) is an integrated polymer recycling company that not only helps brand owners replace traditional virgin-based materials with sustainable secondary materials designed to deliver value but also supports them in fulfilling their obligations for the responsible management of end-of-life waste

With operations spanning Reclaim Rubber, Engineering Plastics, Polymer Composite, Custom Die-forms, and Repurposed Polyolefins, GRP has built a robust foundation rooted in recycling, innovation, and environmental stewardship. Through its wholly owned subsidiary, GRP Circular Solutions Ltd. (GCSL), the company is now also actively contributing to the circularity of postconsumer rigid plastics, supported by regulatory shifts such as the implementation of EPR norms in India

With a capacity to recycle over 122,000 MT of end-of-life materials, GRP has built a strong international supply network across more than 55 countries and a sourcing base in over 150 cities. Backed by the trust of 400+ customers and 350+ vendors, and certified to the best of industry standards, GRP offers a broad range of customised, end-of-life-based solutions catering predominantly to the mobility and packaging industries.

The financial year 2024-25 marked a milestone in GRP Limiteds journey, celebrating 50 years of pioneering efforts in the field of recycling and sustainable materials manufacturing. This year underscored GRPs ongoing transformation from a traditional reclaim rubber company to a multifaceted sustainability solutions provider operating at the heart of Indias and the worlds circular economy agenda.

The year under review, marked significant progress in infrastructure, technology deployment, and market reach, bolstered by internal alignment around a bold, new vision: "To be the trusted global partner offering innovative sustainability solutions, committed to responsible value creation for all stakeholders."

Despite facing demand volatility driven by geopolitical uncertainties and raw material supply-demand imbalances, the company demonstrated improved performance across key metrics compared to previous years.

Key Parameters	2024-25	2023-24
Total Income (Rs Lakhs)	53,852	46,396
Profit before tax (Rs Lakhs)	5,003	3,114
Profit after Tax (Rs Lakhs)	3,786	2,371
Return on Capital Employed (%)	26	20
Market Value per share (Rs) (As on 31st March) (BSE)	2,782	6,496*
Sales volume - growth/(decline) in % over previous year	8%	7%

*Market value per share as on 31^st Mar24 is Ex-Bonus. During the year, the company has issued and allotted bonus equity shares to the eligible shareholders in the ratio of 3:1.

Business wise overview

Your company is committed to empowering its customers and communities by seamlessly integrating them into the circular economy through initiatives embedded within its business operations, as well as through its CSR efforts focused on building a sustainable future.

While GRPs standalone businesses have majorly catered to the mobility sector—whether through the Reclaim Rubber (RR) business (with strong dependence on the automotive sector, including tyre and component manufacturers), the Engineering Plastics (EP) business (linked to the automotive OE supply chain), the Polymer Composite (PC) business (serving ground transportation, trailers, and shipping), or the Custom Die-Forms (CDF) business (focused on agricultural and earth-moving equipment)—the companys strategic focus is now on expanding and strengthening its position in the broader sustainable materials space within mobility sector and beyond.

Reflecting this shift, GRP has diversified into polyolefins and taken a major step toward vertical integration with the commissioning of its Crumb Rubber facility in Solapur, located adjacent to existing RR plants. This facility represents Phase 1 of GRPs End-of-Life Tyre (ELT) to Energy strategy, which also includes future production of Tyre Pyrolysis Oil (TPO) and recovered Carbon Black (rCB). These efforts highlight GRPs commitment to innovation and its growing ability to serve a wider range of customer needs across emerging and adjacent sectors.

Reclaim Rubber

Known for developing breakthrough reclaim rubber grades, your company this year launched a next-generation, low-GHG emission production line—already approved by a global tyre leader and now being introduced across tyre and non-tyre sectors—as part of our ongoing efforts to align innovation in product development and operations with the evolving sustainability goals of our customers. Further reinforcing this commitment, we transitioned all Reclaim Rubber plant heating systems to biofuels derived from agricultural waste, significantly reducing carbon emissions, lowering operating costs, and supporting Indias net-zero ambitions.

Engineering Plastics

Initially centred on tire cord extracted from end-of-life (EOL) tires, the vertical has broadened its raw material base and successfully developed and commercialized grades using ocean plastics (such as fishnet waste) and textile waste. This shift has reduced reliance on in-house sources while improving supply chain flexibility. During the year, the business secured approvals from global majors and made inroads into new markets, including the highly regulated European region. However, since these alternative raw materials are externally sourced, the margins on such engineering plastics remain lower than those based on our core tyre recycling operations. Key focus areas during the year included streamlining processes for alternate material handling, adopting automation and machine learning, expanding the product portfolio, and obtaining approvals for the newly developed grades.

Polymer Composite and Custom Die Forms

The operations of these businesses at the Chincholi plant stabilized during the year. With more than 90% of the output catering to the United States, the businesses faced demand challenges due to a slowdown in the U.S. market during the year, driven by geopolitical conditions. The focus remained on improving margins through cost control and developing new applications. Your company remains committed and has initiated efforts to drive application development and explore opportunities for market expansion.

Repurposed Polyolefins:

This business initiative is driven by the Government of Indias Extended Producer Responsibility (EPR) regulation for the plastics sector, which mandates brand owners to incorporate recycled polymers into their packaging from April 1, 2025. In response, our company has been at the forefront of developing materials from rigid end-of-life (EOL) packaging waste, with a focus on polyolefins such as polypropylene and polyethylene. The business currently operates at an annual capacity of 6,000 tons, with utilization steadily increasing month over month.

All operations related to Repurposed Polyolefins are housed under our wholly owned subsidiary, GRP Circular Solutions Limited (GCSL). After successfully overcoming post-fire challenges, GCSL commenced commercial production in March 2024 and has since secured approvals from leading FMCG, lubricant, and paint manufacturers, including prominent brands like Asian Paints, Mobil, Castrol, Pidilite, and Bisleri. With the upcoming enforcement of EPR regulations, GCSL is well-positioned to capitalize on the growing demand for recycled plastic solutions.

As per the Indian Accounting Standards (Ind AS) - 108 on operating verticals, "Reclaim Rubber" has been identified as a reportable vertical, and smaller business vertical not separately reportable (Polymer Composite, Engineered Plastics) have been grouped under the heading "Others".

Verticals wise revenue:

- Revenue of Rs42,470 lakhs was generated from Reclaim Rubber vertical and

- Revenue of Rs6,211 lakhs was generated from Other verticals.

Capital Expenditure:

During the year under review, the company invested about Rs6,739 lakhs across key areas:

• Plant and Machinery: Rs3,704 lakhs

• Civil Infrastructure: Rs2,285 lakhs

• Others: Rs750 lakhs

Major initiatives included the commissioning of bio-fuel energy plants in alignment with GRPs long term goals of GHG reduction, commissioning of the Crumb Rubber unit, capacity enhancement of Reclaim Rubber through next-generation technology, and automation within the Engineering Plastics vertical.

In line with our strategic capital expenditure plan, the Board approved raising up to EUR 15 million through an external commercial borrowing (ECB) from the French development institution, Proparco. This funding has also supported preliminary groundwork for future growth initiatives, including the establishment of pyrolysis units under the ELT to Energy vertical.

Subsidiary:

GRP Circular Solutions Limited

With approvals in place for operating the plant at your companys facility in Solapur, the WOS has commenced operations for manufacturing Repurposed Polyolefins business.

Capital Expenditure:

Your company also invested a sum of Rs65 lakhs in current year towards the infrastructure and automation for Repurposed Polyolefins business.

Industry Structure and Development:

The global economy experienced a moderate slowdown to a projected 3.3% in 2024 from 3.5% in 2023, reflecting the impact of high interest rates and sluggish global trade. Growth in Asia and Pacific moderated from 5.1% to 4.5%, Europe saw a slight improvement from 1.3% to 1.7% but remained subdued with weakness concentrated in Germany, while North America slowed from 2.8% to 2.6%. Inflation continued to ease but at a slower-than-expected pace.

Global growth is projected to slow to 2.8% in 2025, as persistent trade tensions, rising tariffs, and high policy uncertainty continue to disrupt economic activity. Growth is expected to moderate to 3.9% in Asia and Pacific, 1.3% in Europe, and 1.6% in North America. Global headline inflation is forecasted to ease to 4.3%, but ongoing turbulence from protectionist measures and geopolitical risks will weigh heavily on the outlook.

India continues to be one of the fastest-growing major economies, with growth projected at 6.5% in 2024, following a strong 9.2% expansion in 2023. In 2025, growth is expected to moderate to 6.2% amid a weaker global environment.

The outlook for circular materials remains robust, driven by strong mandates from governments, increasing consumer awareness, and sustainability targets set by global brands. Indias progressive enforcement of Extended Producer Responsibility (EPR) regulations has created structured demand for certified recycling solutions across both tyres and plastic packaging. GRP is well positioned to benefit from these developments, particularly as regulatory frameworks stabilize and operational models mature.

Reclaim Rubber

Our companys core business continued to grow with a registered volume increase of 8% over the previous year (FY24). This growth came despite a challenging macroeconomic environment marked by a slowdown in the global tyre market, particularly in the Original Equipment (OE) segment across key markets. Replacement tyre (RT) demand, however, remained stable, supporting the impact of weaker OE activity. Reclaim rubber (RR) exports from India saw a robust growth of 10% in FY25 compared to FY24, reversing the previous years stagnant trend. GRPs exports grew slightly ahead of this, enabling the company to maintain its market share at 35% in FY25. The global outlook for CY2025 suggests continued stability in RT demand, with expectations of a modest uptick. OE demand is forecast to revive in the second half of the year. Locally, rubber consumption during the calendar year 2024 grew by 3%, with reclaim rubber consumption exceeding this at 8% growth. GRP strengthened its domestic presence, increasing market share from 19% to 20%, reflecting improved penetration and product acceptance.

As our customers commit to using more sustainable materials and intensify their focus on reducing emissions across Scope 1,2, and 3, your company is aligning closely with these evolving expectations by developing next-generation products and processes. In line with this shift, our new technology—designed to lower CO₂ emissions and enhance product quality—secured customer approvals during FY25 after being under evaluation earlier in the year, validating our R&D efforts. GRPs ongoing transition towards renewable energy further reinforces our leadership in sustainability within the industry. These operational shifts are not only helping us better meet customer requirements but have also begun to positively impact our margins. Process improvements and automation led to a 2% absolute reduction in RR manufacturing costs.

A significant external development during the year was the sharp rise in natural rubber (NR) prices, which crossed Rs. 200 per kg—levels last seen in 2012. This surge broke a decade-long range-bound trend, driven by supply constraints due to limited new plantations. Prices peaked in August and September before moderating slightly but are expected to remain elevated in the coming quarters. Synthetic rubber prices also moved higher during the year, driven by strong crude oil prices and elevated shipping costs. These trends contributed to a marginal improvement in volumes and realizations across select grades.

In September 2024, the imposition of anti-dumping duties on virgin butyl rubber had notable implications for the domestic market. Given the historically high import volumes of this product, the duty significantly increased local prices and led to a shift towards butyl reclaim. This, in turn, drove up demand and prices for butyl tube waste—one of your companys key raw materials in the synthetic rubber portfolio. However, the sharp increase in raw material costs, which could not be immediately passed on to customers, resulted in margin compression despite stable or improved sales volumes for the grade.

On the global trade front, uncertainties remain due to proposed tariff barriers in North America. Although final decisions are pending, early effects have already emerged through reduced container availability and increased ocean freight rates. GRP has responded by diversifying its customer base, balancing regional supply chains, and leveraging its inland customer network to maintain service levels.

On the domestic front, the normalization of the EPR (Extended Producer Responsibility) credit market—with the introduction of floor and ceiling prices at Rs. 2.525-Rs. 8/kg—has ushered in much-needed transparency and pricing predictability. Most trades are currently occurring near the floor, indicating an early but maturing market. This evolution supports GRPs compliance efforts and positions us to benefit from a more structured sustainability incentive environment.

Other Business:

Other verticals also delivered notable efficiency gains during the year. The Engineering Plastics division registered a strong 23% growth in volumes, supported by expanding applications across sectors, including automotive. During the year the overall auto industry sales increased by 7% (Source: FADA). This growth reflects broader adoption of our materials across end-use industries, driven by product performance and increased customer approvals. We successfully developed and commercialized new grades derived from ocean plastics and secured approvals from global majors, including in stringent European markets. This reflects our growing ability to diversify raw material sources, reduce dependence on in-house inputs, and manage supply risks, while widening our customer base across India and key international segments. The expected rollout of new government regulation mandating the use of recycled plastics in vehicles is poised to provide further momentum to this business.

This performance was supported by the increasing traction of our Repurposed Polyolefins products in automotive and thermoplastic elastomer applications. Our Repurposed Polyolefins business, operated through our wholly owned subsidiary GCSL, continued to face constraints due to delays in the enforcement of plastic EPR regulations during the year. These delays were limiting the scalability of the business. However, we remain confident about the long-term potential, with regulatory developments likely to expand the use of recycled materials beyond the packaging segment. Sourcing polypropylene (PP) remains a structural challenge, as it typically does not flow through municipal waste channels like other polymers. In response, we have proactively signed an agreement with a Brand Owner to secure post-industrial recyclate (PIR) in select regions, providing a more stable sourcing path and helping de-risk supply constraints.

Our Polymer Composite and Custom Die Form businesses, which are primarily oriented towards the U.S. market, continues to navigate a volatile external environment. Ongoing trade tensions and policy uncertainties are expected to create turbulence in the near term. The direction forward will depend on how effectively we respond to these challenges and capture emerging opportunities within this shifting landscape.

Changes in key financial ratios:

Particulars	Ratio as on	Ratio as on
	31st March, 2025	31st March, 2024
(i) Debtors Turnover	4.62	4.95
(ii) Inventory Turnover	17.14	17.22
(iii) Interest Coverage Ratio	7.80	6.65
(iv) Current Ratio	1.24	1.31
(v) Debt Equity Ratio	0.68	0.65
(vi) Operating Profit Margin (%)	12.57%	8.84%
(vii) Net Profit Margin (%)	7.86%	5.41%
(viii) Return on Net worth (%)	18.91%	14.10%

Opportunities, Risks and Concerns:

The integration of the Crumb Rubber-Pyrolysis-recovered Carbon Black (rCB) value chain is progressing steadily and is expected to be fully operational by December 2025. This development aligns with a broader industry transformation underway in the recovered carbon black sector, which is entering a new growth phase. Emerging markets such as India and the Asia-Pacific region are driving demand, while mature markets like the EU and North America are creating opportunities through policy support and sustainability mandates.

Standardization initiatives are gathering pace globally, aimed at facilitating wider adoption of rCB in tyre manufacturing. These efforts are critical in enabling consistent product quality and broader OEM acceptance. At the same time, non-tyre rubber goods (GRG) segments—including conveyor belts and automotive components—are beginning to commercialize applications using rCB, opening up parallel avenues for scale. In Europe, the evolution of mass balance systems has accelerated the use of Tire Pyrolysis Oil (TPO) as a sustainable feedstock, replacing conventional naphtha in petrochemical processes. A notable shift is now occurring as even virgin carbon black (vCB) manufacturers are entering into agreements to secure TPO for use as a CBFS substitute, to blend rCB into their formulations, and to collaborate with rCB producers for outsourced supply. This evolving landscape not only validates the relevance of the pyrolysis-rCB value chain but also strengthens the long-term business case for our investment in this space.

While your company continues to grow and innovate, several risks warrant attention:

Customer Centricity: Inconsistent delivery performance in select business units, delays in fulfilling large-volume orders, and slower- than-expected implementation of customer-facing technologies have impacted satisfaction levels. Addressing these areas remains a priority.

Global Trade Volatility: Container shortages and rising freight costs linked to geopolitical tensions could affect export margins. GRP continues to mitigate this through geographic diversification and domestic focus.

Raw Material Price Volatility and Availability: Fluctuations in raw material prices and supply chain disruptions could pose risks to cost management and production timelines, requiring proactive sourcing strategies and supplier diversification

Extended Producer Responsibility (EPR): While the overall risk has reduced due to greater regulatory clarity on pricing and improved stability of the EPR portal, external stakeholder dependencies and imbalances in demand and supply dynamics continue to pose operational uncertainties. Additionally, ongoing issues with the plastics EPR portal contribute to the residual risk, underscoring the need for continuous monitoring and adaptive compliance strategies.

Capacity Utilization: GCSL, despite a successful launch and major customer approvals, is currently operating below optimal capacity due to delays in scaling operations and supply chain bottlenecks.

Technology Adoption: Although significant projects are underway (DMS, shopfloor digitization), the pace of execution needs to accelerate to match the scale of GRPs growth ambitions.

Outlook:

Looking ahead, FY 2025-26 is poised to be a transformative year for GRP With several high-potential initiatives in execution mode, the company is targeting a threefold capacity expansion across key verticals:

- Scaling the Reclaim Rubber business with increased deployment of next-gen, high-margin technologies.

- Operationalizing the ELT to Energy vertical through launch of TPO and rCB facilities.

- Responding to surging demand of Repurposed Polyolefins by improving capacity utilization, with a strong focus on profitability turnaround

- Entering the road surfacing segment using Crumb Rubber.

On the technology front, shopfloor automation initiatives are already underway, with the SAP S/4HANA migration to follow. Together, these efforts are expected to significantly enhance operational efficiency, data transparency, and decision-making across the enterprise.

To support these ambitious plans, GRP has received Board and shareholder approval for equity infusion, supplementing the debt financing from Proparco. This positions the company for long-term, sustainable growth aligned with its new vision:

"The trusted global partner offering innovative sustainability solutions, committed to responsible value creation for all stakeholders."

With strong fundamentals, an empowered team, and a mission-driven approach, GRP is well prepared to deliver continued value to all its stakeholders in FY 2025-26 and beyond.

Internal Control Framework:

Your Company conducts its business with integrity and high standards of ethical behaviour, and in compliance with the laws and regulations that govern its business. Your Company has a well-established framework of internal controls in operation, supported by standard operating procedures, policies and guidelines, including suitable monitoring procedures and self-assessment exercises. There are Internal Audit and Compliance functions in place which are responsible for independently evaluating the adequacy of all internal controls and ensuring that operating and business units adhere to internal processes and procedures as well as to regulatory and legal requirements. The audit function also proactively recommends improvements in operational processes.

In addition to external audit, the financial and operational controls of your Company at various locations are reviewed by the Internal Auditors, to report significant findings to the Audit Committee of the Board. The Audit Committee reviews the adequacy and effectiveness of the implementation of audit recommendations including those relating to strengthening the Companys risk management policies and systems. Compliance with laws and regulations is also monitored through a matrix of a well laid down framework which requires individual functions to confirm and report statutory compliances on all laws and regulations concerning their respective functions and which gets integrated with the overall compliance reporting on all laws and regulations for the purposes of review and monitoring by the Audit Committee.

People and Practices:

FY 2024-25 was marked by GRPs strong focus on building a future-ready workforce. The launch of ESOP 2024 has aligned key employees with the companys long-term value creation goals. As the organization scales and enters new verticals, the emphasis on skill development, process innovation, and cross-functional mobility has grown significantly.

Living our aspiration of growth & diversification, the Company has been successful in attracting and retaining key professionals from multiple sectors. We intend to continue to seek fresh talent to further enhance and grow our business and operations. Considerable number of our critical positions have been filled by internal talent, thereby validating the effectiveness of our leadership development interventions. GRPs employee base reflects diversity, inclusion, and a values-driven culture. Several employees have successfully transitioned into new roles and geographies, reinforcing the companys belief in internal growth. Participation in global benchmarking programs, including UN Womens Empowerment Program, continues to enhance workplace equity. These initiatives are closely linked with GRPs broader ESG objectives and commitment to sustainable growth.

Socially, the company continues to focus on inclusive employment practices, training and upskilling, and womens empowerment. Metrics linked to GRPs Proparco funding will now track impact across environment (carbon savings), social (job creation and skilling), and governance (transparency and compliance), reinforcing its position as a responsible corporate citizen.

The operation and deployment processes of Reclaim Rubber needed a fresh look given our investments towards mechanisation. A process improvement consultant was engaged to revalidate the operational processes in one of our Reclaim Rubber manufacturing units. The recommendations are being implemented, and initial results show promise. Various improvements brought in the work processes, to ensure safety and also improve productivity. An internal cross functional team was created for this project which have been trained and tasked to implement their learnings in all other plants.

Renewing our commitment towards providing safe workplaces for our employees, our EHS teams at all locations have been strengthened by inducting domain experts. The plans and interventions are being tracked through reviews at leadership levels to ensure that commitments made are delivered.

Remuneration, growth opportunities and wellbeing forms important pillars of employee retention. Long Term Incentives and Employee Stock Option Plans were introduced for employees in critical roles; key positions were internally filled by identified employees and several interventions towards employees health and wellbeing were organized during the year.

The Company continues to maintain its focus on overall skill development. Structured managerial skill development programs were organized and impact evaluated in the previous fiscal. To streamline its HR and employee life cycle processes, the Company has adopted a Human Resource Management Software for its entire workforce category.

With focus on holistic health, facilitate teamwork, promote accountability and ownership, the Swasth Raho Mast Raho pilot campaign was launched in collaboration with the Life By Jonty foundation. This is a unique intervention focussing on individual health priorities along with achieving the team goals. Having generated enthusiasm and camaraderie in the organization during the pilot at Head office and plants, similar interventions will be extended to the entire organization in due course.

Employee experience is ensured through periodic surveys. The Companys recognition & reward mechanisms and competency frameworks are based on its Values, thereby ensuring we live our Values in our daily work interactions, which further gets assessed and defines definite outcomes. The GRP Board is constituted of seasoned professionals with expertise in the tyre industry, chemical sector, private equity, and the fields of branding and marketing. The Board persistently offers strategic guidance to the Company and actively participates in shaping the Companys long-term vision.

Manufacturing operations:

As global brands place increasing emphasis on their ESG credentials and emission scopes, they demand greater transparency from their supply chain partners. We have proactively met these expectations, enhancing our metrics over the years. Consequently, we are proud to be the first reclaim rubber manufacturer to achieve ISCC+ certification. Our efforts to improve supply chain and workplace practices have led to an upgrade in our CDP rating, and our Engineering Plastics & Repurposed Polyolefin plant has earned GRS certification, ensuring traceability in recycling processes. All our manufacturing locations uphold IATF and IMS certifications, and we have improved our EcoVadis scores. ESG performance is integral to your companys performance review process, ensuring comprehensive adoption and implementation across all levels. Our Business Responsibility and Sustainability Reporting (BRSR) on our website, provides a comprehensive overview of our efforts in this area. We remain dedicated to leading the industry in sustainability and operational excellence, consistently striving to meet the highest standards for the benefit of our customers, stakeholders, and the environment.

Environment, Health and Safety (EHS):

Sustainability lies at the core of GRPs business model. During FY 2024-25, the company made substantial strides in lowering its environmental footprint while enhancing social and governance frameworks.

Environmental achievements include the transition to biofuels for process heating at all Reclaim Rubber plants, significantly reducing CO2 emissions and dependence on fossil fuels. These initiatives not only support Indias net-zero ambitions but also enhance GRPs cost efficiency. Planned investments in solar power under a group captive scheme are expected to further elevate renewable energys share in GRPs total consumption to over 70%.

EHS continues to be of utmost importance at all levels. Investing in infrastructure upgradation, multiple rounds of training on safe working practices, safety audits through esteemed external agencies, EHS reviews by the leadership team are some of the initiatives institutionalised. The EHS teams have been strengthened appointing professionals from the domain.

Cross-functional teams are established to foster a safety culture across the organisation. These teams operate within set timeframes and offer all employees the opportunity to participate and contribute. It ensures adherence to all relevant EHS standards, maintains its status as a zero-discharge organisation, and records no time loss due to injury or occupational illness.

Risk Management:

Enterprise Risk Management (ERM) process is embedded in the organizations working methodologies and decision-making process and is aligned to the Companys Strategic Planning Process. The process involves identification, evaluation, mitigation and review of risks and opportunities both at business and enterprise level.

ERM process is owned by the internal committee consisting of functional heads and is a comprehensive process that ensures coverage of major strategic, marketing, finance, people related, environmental,/ ESG related, economic and operational risks that could possibly derail achievement of the companys objectives and goals.

Risk owners, identified for each risk, prepare detailed mitigation plans which are formulated based on projects undertaken and in line with the companys goals, both short and long term.

ERM framework promotes a risk awareness culture with a monthly risk review mechanism in place by individual and cross-functional teams with quarterly reporting of the enterprise risks and mitigation plans to the Audit Committee of the Board.

Sustainability practices:

Our company has embraced the United Nations Development Programmes Sustainable Development Goals (SDGs) as part of its sustainability commitments. In alignment with GRPs dedication to circularity, we have identified and adopted six specific SDGs to guide our business practices. In addition, over the past year, we have taken steps to empower our supplier community and are actively developing a roadmap to support their local communities, further reinforcing our partnerships and shared growth.

Under SDG 3 aimed at Improved Health and Wellbeing, your company continues to implement targeted initiatives to support not only the communities in which we operate but also prioritize the wellbeing of our employees. Health checkups for all employees are a practice in GRP for long and is taken with lot of seriousness from all over the organization. During the year under review, we had Stress Management Session, Ergonomics workshop, Knowledge sessions, and Yoga days to promote holistic wellness. Understanding the need to prevent our workforce who work in outdoor conditions, we arranged awareness sessions towards snake bites - prevention and handling post bite conditions. Wellbeing cannot be complete without safety at home along with workplace. We ran awareness programs towards fire safety including safety handling LPG & CNG at home. Awareness camps towards tobacco and substance abuse were also organised across the Company. The Company also offers opportunities of physician consultation, emergency support, participation in fitness groups, medicines and preventive health services through its health service partners. The recently launched Swasth Raho Mast Raho initiative in collaboration with Life By Jonty Foundation has aimed to facilitate employees focus on their individual health targets along with supporting their teams to achieve the teams wellness goals. This promotes social wellbeing as well. To enable financial wellbeing of our workforce, particularly women workforce, multiple sessions of financial awareness were conducted at our Gujarat plants. Similar programs are being rolled out across the organisation.

Under SDG 4 aimed at Quality Education, your company continues to honour its commitments towards offering quality education opportunities to school children in Ankleshwar and Solapur, which includes encouraging creativity, enhancing cognitive skills and promote social interactions. In addition, the company encourages its employees to volunteer their time towards education at various school, undergraduate & post graduate institutions both in technical and social sciences fields. The company also offers internship opportunities for engineering, and management students regularly, thereby enhancing their knowledge & skills. The company encourages its employees in their pursuit to higher education as well.

Under SDG 5 aimed at Gender Equality, your company has increased participation of women employees across the hierarchy of the company through being a signatory of the Women Empowerment Program (WEP) of the United Nations, we endeavour to achieving 20% participation of women across variety of job roles by 2025. To achieve our mission of Gender Equality, we have focussed on identifying job roles for women, create appropriate infrastructure and environment for women workers, identify and support women entrepreneurs and regularly conduct awareness sessions towards Prevention of Sexual Harassment. Your Company is also a proud member of the India Gender Collaborative and contributing towards increasing participation of women in the manufacturing sector at large. Efforts are being taken to initiate deployment of women workers in the evening shifts as per the legal and statutory provisions. With close to 30% women employees at its Corporate Office, your Company provides focussed internship and apprenticeship opportunities to women professionals across job roles thereby creating equal opportunities for both genders.

Under SDG 6 aimed at Clean Water and Sanitation, the company continues to have zero discharge plants. Recycling plants to reuse water used in the manufacturing process have helped to reduce net new consumption of water in the process. Your company has actively contributed to building of drinking water stations and upgraded toilets at all locations to improve hygiene standards and reduce the spread of water borne diseases.

Under SDG 7 aimed at Clean Energy, your company operates Solar panels in addition to the wind energy. During the year under review, your company has also invested in biofuel heating systems to replace its fuel source from Furnace Oil (a fossil fuel-based system). The resultant impact on GHG emissions on the companys fuel needs will be significant. This investment was made across all its RR manufacturing plants.

Under SDG 12 aimed at Responsible Production and Consumption, your companys businesses are organized around the principles of 3Rs, and it is playing an important role in encouraging responsible production and consumption. Through the development of the Plastic compounding business, your company has ensured that waste materials from one business can successfully be converted to usable material for another opportunity. Similar application focus is being deployed to replace wood, other natural resource-based materials in the organization and at customer sites. Furthermore, we have taken steps to minimize our carbon footprint by replacing diesel forklifts with electric forklifts. Embracing the concept of Extended Producer Responsibility (EPR), we are now recycling paint pails and other rigid plastic waste, ensuring they are effectively managed and recycled to minimize environmental impact.

Cautionary Statement:

Statements in the Management Discussion and Analysis report describing the companys objectives, projections, estimates and expectation may be forward looking within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied. The company assumes no responsibility to publicly amend, modify or reverse any forward-looking statements, based on any subsequent developments, information or events.

While we have come a long way since the return from the pandemic, the focus of the organization will remain on building scale in the non-reclaim rubber business in the days to come apart from focusing on cleaner upgraded process for reclaim rubber manufacturing. As a sustainable materials company, we shall endeavour to create Impact Positive in all the sectors we operate in.

	For and on behalf of the Board of Directors
	Sd/-	Sd/-
	Rajendra V. Gandhi	Harsh R. Gandhi
Place : Mumbai	Executive Chairman	Managing Director
Date : 20th June, 2025	DIN: 00189197	DIN: 00133091