Himadri Speciality Chemical Ltd Management Discussions

Himadri Speciality Chemical Ltd

Established in 1990, Himadri Speciality Chemical Ltd ("Himadri" or "the Company") has evolved into a global speciality chemical conglomerate. With a leadership position in Coal Tar Pitch for over three decades and in Carbon Black production for over 15 years, the Company has also emerged as one of the leading players in speciality carbon blacks, speciality oils, naphthalene and sulphonated naphthalene formaldehyde (SNF). Along with its strong business excellence, Himadris ESG strategy ‘Together towards Tomorrow also enabled the adoption of circularity, innovation, climate action and inclusive stakeholder value creation.

Himadris diverse portfolio caters to critical industries such as lithium-ion batteries, paints, plastics, tyres, technical rubber goods, aluminium, graphite electrodes, agrochemicals, defence and construction chemicals. Its deep expertise in aluminium and graphite has further strengthened its presence in the battery chemicals space backed by government-recognised in-house R&D facility.

Himadri is advancing its forward integration strategy by leveraging its expertise in coal tar derivatives. This new initiative transforms its existing coal tar distillates into two high-value Speciality chemicals—anthraquinone and carbazole. These chemicals, with unique properties and critical applications across multiple industries, are poised to unlock new market opportunities and strengthen Himadris leadership in high-performance materials.

Acquisition of Birla Tyres Limited

Himadri, along with resolution applicant Dalmia Bharat Refractories Limited (DBRL), jointly acquired Birla Tyres Limited in a corporate insolvency resolution process. The acquisition cost of H 306 Crores is financed through

1World Economic Outlook Update, January 2024: Moderating Inflation internal accruals and debt. Moreover, the expertise gained by Himadri in carbon black production will further help the Company to develop tyres for commercial and passenger vehicles under the brand of Birla Tyres.

Macroeconomic review

Global economy

In CY 2024, the global economy exhibited steady growth, expanding by 3.2% despite persistent challenges such as supply chain disruptions, geopolitical tensions in the West and inflationary pressures. Global Inflation, which stood at 6.8%2 in CY 2023, was estimated to ease down to 5.8%1, driven by tight monetary policies by Central Banks in major economies and an expansion in energy supply. Strong government spending, resilient household consumption, and rising labour force participation further supported economic momentum. Additionally, in 2024 the emerging markets in Asia demonstrated robust growth, fuelled by high demand across various sectors.

Looking ahead, CY 2025 presents a cautiously optimistic outlook, with global growth projected to sustain at 3.2%. As central banks shift toward expansionary policies and inflation continues to ease, emerging markets are expected to benefit from improving stability and recovery prospects. However, geopolitical tensions and structural challenges in key economies such as China remain risks. Continued government initiatives and fiscal discipline will be crucial in maintaining economic stability and fostering long-term, inclusive growth.

Indian economy

The Indian economy continued its strong growth trajectory, expanding by 6.5% in FY 2025 despite global economic turbulence and geopolitical uncertainties. This resilience was driven by robust macroeconomic fundamentals, sustained domestic demand and targeted policy interventions. The governments Production Linked Incentive (PLI) scheme, with an outlay of H 1.97 Lakhs Crores, bolstered domestic manufacturing and exports across 14 key sectors. Additionally, increased public capital expenditure, fiscal prudence, and a calibrated monetary policy ensured stability while supporting growth.

Inflation remained within the Reserve Bank of Indias (RBI) target range, easing to 3.6%3, aided by proactive monetary measures. A significant development was the RBIs 25-basis-point repo rate cut to 6.25% in February 2025, complemented by a CRR reduction to 4%, which improved liquidity and reduced borrowing costs. Additionally, Indias merchandise exports grew by 5.8% in FY 2025, highlighting its position in global trade. The manufacturing sector, after experiencing some moderation, regained momentum, with the Index of Industrial Production (IIP) reflecting a 5% output growth in January 2025.4

Looking ahead, Indias economic outlook remains optimistic, with GDP projected to expand by 6.5% in FY 2026. The Union Budget 2025-26 introduced tax benefits and sector-specific incentives, promoting discretionary consumption and investment. The economy is expected to benefit from continued structural reforms, infrastructure expansion and a rising private capital expenditure (CapEx) cycle.

Indias push for self-reliance through ‘Atmanirbhar Bharat and ‘Make in India presents significant growth opportunities for the Speciality chemicals industry, crucial for high-value manufacturing. The countrys strategic focus on green energy, sustainability and advanced materials aligns with global trends, creating expansion prospects for companies like Himadri Speciality Chemical Ltd.

With rising demand for lithium-ion battery materials, carbon black and advanced chemical solutions in sectors such as EVs, energy storage and Speciality applications, Himadri is well-positioned to capitalise on these opportunities. The Company has planned out investments over six years to establish a 2,00,000-tonne capacity for lithium iron phosphate, a key component for lithium-ion batteries, highlight its commitment to innovation and industrial growth.

As India is set to become the fourth-largest economy by FY 2026 and the third by FY 2027, strong macroeconomic fundamentals, industrial policies and increasing focus on advanced manufacturing provide a solid foundation for sustained growth, reinforcing Himadris leadership in the Speciality chemicals sector.

Business review

Battery Materials for Electric Vehicles (EVs) and Energy Storage Solutions (ESS)

Indias commitment to achieving net-zero emissions by 2070 has driven a strategic push for electric vehicles (EVs) and energy storage solutions (ESS). To support this transition, the Government of India has introduced various policies and targeted incentives such as PLI &

PM e-Drive schemes promoting rapid growth of EV and battery manufacturing.5 Increasing consumer adoption, coupled with advancements in infrastructure, further strengthens Indias position as a hub for sustainable mobility and domestic manufacturing.

Batteries play a crucial role in this shift, driving demand for Speciality carbon black, particularly furnace black, due to its conductive properties. Essential for enhancing electrode performance, longevity and energy density, carbon black is a key component in battery manufacturing. As the EV and ESS markets expand, the need for high-quality carbon black continues to rise, fuelling growth in this segment of the Speciality chemicals industry.

Additionally, Himadri supports the India-led global movement Lifestyle for Environment (LiFE), which was launched to boost Indias sustainability efforts by encouraging environmentally friendly practices. In accordance with this, Himadri is implementing circular economy practices within battery material production by integrating recovery processes and promoting resources efficiency across its value chain.

Global Li-ion battery industry

The global lithium-ion (Li-ion) battery market has experienced significant growth, reaching an estimated USD 97.88 Billion in CY 2024.6 This surge is primarily attributed to -

The Asia-Pacific region has been a key driver of this growth, supported by its advanced manufacturing ecosystem, technological innovations and increasing demand for energy storage solutions.

Looking ahead, the global Li-ion battery market is projected to grow at a CAGR of 14.58% from CY 2024 to CY 20297 , driven by

Automakers worldwide are expanding their EV offerings to meet regulatory requirements and consumer demand for low-emission vehicles.

The need for efficient energy storage solutions to balance power supply from intermittent renewable sources continues to rise.

Economies of scale and technological innovations are expected to further reduce battery costs, making them more viable for a broader range of applications.

By 2030, global battery demand is anticipated to increase significantly, necessitating substantial investments in mining and battery production to meet this growing need.

Indias Li-ion battery industry

Indias Li-ion battery market is expected to grow rapidly, with projections indicating a shift from USD 5.78 Billion in 2025 to USD 16.09 Billion by 2030, representing a CAGR of 22.72.8 Key drivers of this growth include -

Battery demand in India is expected to rise to 260 GWh by 2030,9 driven by the escalating adoption of EVs and renewable energy storage systems. By FY 202710, Indias reliance on imported Li-ion batteries is projected to decrease by approximately 20%, promoting self-reliance and reducing dependence on fossil fuels. In the long term, India aims to become a significant exporter in the global Li-ion battery market, aligning with the governments ‘Atmanirbhar Bharat vision.

Demand for Li-ion battery in the coming years

Annual demand for Lithium-ion battery storage expected to reach ~54 GWh by FY 2027 and ~127 GWh by FY 2030

All-Solid-State Battery (ASSB) for EVs

Although in its nascent stage, ASSBs have emerged as a promising solution to the limitations of the traditional Lithium-ion batteries. These advanced batteries use solid electrolyte instead of a liquid one, offering numerous benefits such as higher energy density, faster charging and enhanced safety.

Electric vehicle industry

Global Electric Vehicles (EV) industry

The global EV market experienced significant growth, attaining a market size of USD 396.4 Billion in CY 2024.11 This expansion has been fuelled by multiple key factors, including increasing environmental awareness, advancements in battery technology and government initiatives supporting EV adoption.

Key growth drivers

Growing concerns about carbon emissions and climate change have led to a surge in EV adoption.

Many countries have introduced incentives such as reduced registration fees and subsidies to encourage EV purchases.

Continuous improvements in battery efficiency, cost reduction and increased range have bolstered the industry.

The rise in fuel prices during CY 2024 has further accelerated the shift toward electric mobility.

The rapid expansion of charging infrastructure and urban mobility solutions has facilitated the industrys growth.

In the reporting year, the passenger car segment remained dominant, driven by widespread adoption. By 2025, the number of EVs on the road globally is projected to reach 85 Million, with Battery Electric Vehicles (BEVs) comprising 73%, marking a 35% increase from 2024. Additionally, Plug-in Hybrid Electric Vehicles (PHEVs) are expected to reach 23 Million by 2025.12

Looking ahead, the global EV market is projected to expand further, reaching USD 951.9 Billion by CY 2030.13 A perceptible shift toward smaller, more affordable EVs is also making electric mobility accessible to a broader range of consumers.

With the increasing adoption of EVs in the Middle East and Africa,14 these regions are expected to contribute significantly to global market growth in the coming years. Furthermore, governments worldwide are actively investing in EV charging infrastructure, with the number of global public charging points expected to increase sixfold to 25 Million by 2035.15 These efforts are set to play a crucial role in shaping the future of the EV industry.

technologically advanced and cost-effective EV models, further propelling industry expansion in FY 2025.

During the reporting year -

EV registrations in India reached 5.67 Million16 cumulatively, with the passenger EV segment expected to capture a 6% market share.

EV sales surged by 26.5% year-on-year, reaching 1.94 Million units in CY 2024.17

Plug-in Hybrid Electric Vehicles (PHEVs) are witnessing steady growth and are projected to jump by 23.8% in FY 2025.18

Over 50% of three-wheelers, approximately 5% of two-wheelers, and 2% of passenger cars sold/ to be sold were estimated to be electric.19

India witnessed a significant expansion, surpassing 25,000 public EV charging stations in the 2024.20

Indian Electric Vehicles (EV) industry

Indias domestic EV industry experienced substantial growth in the reporting year, driven by rising demand for fuel-efficient, high-performance, and low-emission vehicles. Increasing awareness of clean transportation solutions, coupled with proactive government policies, has significantly influenced consumer preferences and accelerated EV adoption. Additionally, key industry players have responded to market demand by introducing

Indias EV industry is on track to sustain its strong growth trajectory, positioning the country as the third-largest automobile industry globally by 2030.21 Supporting this growth, the Indian Government has introduced favourable policies, such as reducing customs duties to 15% for international EV manufacturers that establish manufacturing facilities in India. This strategic move strengthens Indias position as a global EV manufacturing hub.22

India aims to increase the share of EV sales to 30% by 2030, a goal that aligns with the governments broader strategy to accelerate the growth of the domestic EV industry in support of the nations net-zero target by 2070.23

Carbon Black

Carbon black, a fine black powder produced by the incomplete combustion of carbon-based compounds, serves as a crucial material across diverse industries due to its unique properties such as reinforcement, conductivity, colouring and rheology control. These attributes make it invaluable in a wide range of applications, including tyres, rubber compounds, plastics, coatings, printing inks, batteries, electronics and synthetic fibres. In 2024, the global carbon black industry was estimated to be close to 14.4 Million tonnes (Oct 2024- Notch Consulting, Inc.), with the automotive sector being the primary growth driver, followed by significant contributions from textiles, packaging, construction, and infrastructure industries.

The Asia Pacific region has dominated the global market in 2024.25 This dominance is primarily attributed to the rapid industrial growth in countries like China and India, where vehicle production, infrastructure development and construction projects are on the rise. As a result, carbon black consumption in the region has seen steady growth, further propelled by the increasing usage in industrial applications such as coatings and plastics. By 2030, the global demand for carbon black is estimated to reach about 17.11 Million tonnes by 2030, at a CAGR of about 2.9 % (October 2024- Notch Consulting, Inc.), driven by expanding demand for carbon black in plastic production. The Indian carbon black industry, in particular, is expected to grow at a Compounded Annual Growth Rate (CAGR) of 3.17% from 2025 to 2032, positioning India as a potential global leader in carbon black manufacturing.26

Himadri is one of the leading global players in high-quality speciality carbon black. It offers a diverse portfolio that includes ASTM grades and Speciality blacks for advanced applications. Its flagship products—VIRTEX for high-performance tyres, KLAREX for specialised rubber goods, and JETEX, ONYX, ELECTRA, COLORX and BARONX for plastics, coatings, inks and conductive applications—cater to diverse industry needs. Himadri ensures seamless global supply with a robust distribution network, local warehouses and sales offices. Further to this, the Company implemented Zero Liquid Discharge (ZLD) across its carbon black facilities. Additionally, it is progressing towards energy digitisation through smart energy monitoring systems such as Smart Comm.

Speciality Carbon Black

Speciality carbon black is a highly engineered material that offers enhanced aesthetics, superior UV stability, improved conductivity and ease of processing with fewer defects. Representing approximately 10% of the global carbon black market, it is tailored for specific industry applications, significantly boosting the performance of end-products.

In 2024, the global demand for speciality blacks was near about 1.44 Million tonnes (Source- Notch, Company Analysis), driven by growing demand in sectors such as tyres, plastics, rubber and high-performance coatings. The increased use of Speciality carbon black in plastics and coatings further fuelled this growth. The Indian market mirrored this global trend, with positive growth in FY 2025, led by demand from plastics, automotive and ink manufacturing industries.

The market is set for continued expansion, with the global demand for Speciality carbon black to be close to 1.85 Million tonnes, at a CAGR of 4.78% by 2030 (Notch, Company Analysis). This growth will be driven by trends such as the demand for customised carbon black grades and the increasing need for performance-enhancing carbon blacks in industries like automotive, energy and electronics. The shift to electric vehicles (EVs) is expected to boost demand for Speciality carbon blacks in EV tyres and lithium-ion batteries.

In India, the Speciality carbon black industry is projected to grow, supported by sustained demand across multiple sectors.

Himadri is making significant investments in its rubber, plastics and coatings laboratories to enhance performance across key areas such as dispersion ease, reduced filter pressure values and improved conductivity at lower loadings. This strategic initiative is part of its broader expansion plan, which includes the addition of 70,000 metric tons per annum of Speciality carbon black by Q3 FY 2026. This expansion will further strengthen Himadris market position and drive growth in these industries.

Allied industry

Tyre industry

The global tyre industry has experienced steady growth, driven by rising vehicle sales, particularly in emerging economies like China, and the increasing adoption of electric vehicles (EVs). In 2024, the global tyre market size was estimated to be 1.85 Billion units, as per Notch data, growing to an estimated 2.19 Billion units by 2030 reflecting a CAGR of 2.86%. This expansion is influenced by several key trends:

Rising EV penetration: The growth of electric vehicles will drive demand for tyres that reduce rolling resistance, enhance durability and manage higher torque, all of which rely on Speciality carbon black for performance.

Sustainability goals: The tyre industry is moving toward more sustainable materials and production processes, with carbon black playing a central role. The push for eco-friendly tyres has accelerated, particularly in India, where the government supports sustainable manufacturing.

Advancements in autonomous vehicles: The rise of autonomous vehicle technologies will require tyres with new specifications, opening further opportunities for Speciality carbon black.

India is emerging as a significant player in the global tyre market, particularly for North America and Europe. The countrys tyre industry is expected to grow 4-6% annually, driven by strong domestic demand, including for EV tyres.

27Government initiatives, such as countervailing duties on Chinese tyres, further support Indias competitive position. With the Indian automobile industry contributing significantly to the nations GDP, the growth of the tyre sector will continue to stimulate demand for high-quality, sustainable Speciality carbon black.

Himadri is making significant investments in the tyre industry, focusing on improving wear performance. The Companys innovations are centered around high surface area carbon blacks, particularly the VIRTEX brand, which is engineered to enhance wear resistance and improve chip and cut performance. These innovations are especially critical for the EV tyre market, where the high torque of electric vehicle drivetrains demands tyres with superior durability.

Plastics, ink and coatings

Plastics is the largest application for speciality carbon black in non-rubber applications. In plastics, it is used in electrostatic dissipative (ESD) applications, agricultural films, plastic pressure pipes, moulded parts, food contact packaging, automotive, and consumer goods, as well as wires and cables. Its versatile properties enhance the aesthetics of plastic products but also extend the performance life. After plastics, inks is the next largest market but, outside of packaging inks and inkjet, is a relatively slow growth market. The coatings industry is considered one of the most diversified markets for carbon blacks and leverages specialised grades of carbon black to achieve deep black pigmentation and exceptional UV stability.

The global plastic ink and coatings industry exhibited strong performance in CY 2024 and it is expected to rise at a CAGR of 3.17% from 2024 to 2030. Whereas the, plastic industry is anticipated to grow at a CAGR of 4.3% during the same time frame28. The Asia Pacific region is expected to be the region contributing significantly to the growth of the global industry in the coming years.

In India, the coating industry serves a wide range of applications across key sectors, including automotive, wood, industrial, packaging and transportation. The domestic coating industry is categorised based on technology, resin type and end-user industry. The expansion of the automotive sector is expected to be a primary factor propelling the growth of the coating industry in India, supported by increasing demand for high-performance and sustainable coating solutions.

Mechanical rubber goods

The carbon black plays a crucial role in Mechanical Rubber Goods (MRG) by optimising performance through its reinforcing properties. MRG constitute a significant segment of the market, accounting for an estimated 19% of overall demand. The global mechanical rubber industry remained a significant contributor to the growth of the global industrial rubber industry by holding 35.8% of the market share. The performance and durability of the mechanical rubbers are enhanced by advancements in the rubber compound. Further, it is anticipated that this will help the mechanical rubber goods to maintain its dominance in the industry in the coming years.

Over the years, mechanical rubber goods have emerged as a significant segment within the Indian market. The expansion of this sector has been primarily driven by the steady growth of the automotive industry in India. In the coming years, the mechanical rubber goods industry is expected to benefit from the increasing demand for industrial rubber, which will further contribute to its development. Additionally, the Indian Governments strategic initiatives aimed at transforming and strengthening the domestic manufacturing sector are anticipated to play a crucial role in promoting the growth of the mechanical rubber industry in the foreseeable future.

Batteries

Batteries represent the fastest-growing market for Speciality carbon blacks. While acetylene blacks continue to dominate demand, furnace blacks are experiencing a higher growth rate due to their increasing adoption in lithium-ion batteries. These furnace blacks are being used to enhance battery performance, including improving charge/discharge rates, longevity and energy density.

Carbon blacks for batteries are highly specialised, requiring not only high purity but also specific morphology to ensure optimal dispersion while maintaining excellent conductive performance. The market for these materials is expected to grow at an unprecedented CAGR of over 15% from 2024 to 2030. Himadri is making significant investments to develop Indias lithium-ion battery market, with support from its new ENERGEX Series Speciality carbon blacks.29

Coal Tar Pitch

Coal Tar Pitch (CTP) is a highly specialised chemical derived from distilling coal tar, playing a key role in various industrial sectors. It is primarily used in aluminium smelting, graphite electrode manufacturing, surface coatings and other chemical industries. One of its most important functions is as a binder in the production of anodes, where it effectively interacts with coke particles during the mixing phase, making it indispensable in the aluminium production process. This interaction directly influences both the quality and cost-effectiveness of the aluminium manufacturing process.

The global coal tar pitch market has experienced consistent growth, rising from USD 4.5 Billion in CY 2023 to USD 4.74 Billion in CY 202430. This growth is strongly tied to the expansion of the aluminium industry, where CTP is a crucial raw material. Additionally, the increasing demand for electric vehicles, driven by advancements in renewable energy and the growing need for lithium-ion batteries, has significantly boosted CTP consumption. As CTP is a key ingredient in the production of anode materials for these batteries, its demand is closely linked to the growth of clean energy technologies.

In India, which is a major producer of aluminium, the need for CTP is especially high. The chemical impacts both the cost and quality of aluminium production processes, making it a critical material in the countrys aluminium industry. Beyond aluminium, CTP is used to impregnate graphite electrodes for electric arc furnaces (EAFs) in steel production, as well as in high-tech applications like carbon fibre production and lithium-ion battery anodes.

Indias economic growth and rapid urbanisation are further fuelling the demand for coal tar pitch. The countrys expanding infrastructure, construction activities, and industrial sectors all rely on CTP for various applications, contributing to the overall growth of the industry.

Himadri is one of the leaders in the coal tar pitch industry for over three decades and is known for its high-quality products. Its success is driven by its commitment to cost optimisation, energy efficiency and sustainable practices, which enhance product yield, reduce conversion costs and lower energy consumption.

With advanced technology and a focus on innovation, Himadri provides long-term cost advantages and reliable, competitive coal tar pitch solutions across industries. Its focus on sustainability and efficiency ensures it remains a leading provider in the global market, supporting the production of aluminium, steel and other essential materials.

Our business is poised for accelerated growth across market segments and geographies. By leveraging a combination of new products like Anthraquinone and Carbazole, our entry into the consumer segment with a branded offering of naphthalene balls and catering to the lucrative Global Liquid pitch market, we are working towards our aim of becoming a leading player in these segments within the next 2-3 years.

Soumyodeep Bhattacharya Executive Vice President- CTD

Allied industries

Aluminium industry

Aluminium is a recyclable environment-friendly metal having a host of applications in a number of diverse sectors - power, transportation, building, construction, packaging and many more. Increasing application, growing environmental concerns & move towards greater use of recyclable materials are driving growth in the world aluminium market. The global aluminium industry attained a market value of USD 249.83 Billion in CY 202431. Aluminium is increasingly favoured for its ability to enhance fuel efficiency while reducing emissions, making it a critical material in various industries. As the metal is recyclable, the growing environmental concerns across the globe are driving the demand for aluminium.

Additionally, growth in infrastructure and automotive sectors have also propelled the global industrys growth. Among these, the automotive sector remained the primary growth driver in the global aluminium industry throughout the reporting year. Global aluminium demand will increase by almost 40% by 2030, according to a recent report conducted by business intelligence analysts CRU International on behalf of the International Aluminium Institute (IAI).32 This growth is further supported by advancements in recycling practices and an increased emphasis on sustainability, which have positively influenced the global market.

In addition to this, India is the second largest aluminium producer in the world. The significant economic growth along with increased demand for automobiles and infrastructure have contributed in the growth of the aluminium industry in India. Policies and programmes introduced by the Indian Government such as Make in India, Housing for All, Smart Cities, National infrastructure pipeline, FAME (Faster adoption of manufacturing of Hybrid and EV) schemes for electric vehicles, increase in FDI have also fuelled the consumption level for aluminium in India. Additionally, the recent tax structure introduced in Budget 2025-26 is anticipated to boost the consumption level of various commodities including automobiles. Such development in the industry is expected to support the increase in demand for aluminium in the coming years. Moreover, in terms of its value, the Indian aluminium industry is projected to expand at a CAGR of 6.27% from 2024 to 2030.33 The industrys growth is expected to be driven by rising infrastructural development and rapid urbanisation, which will increase demand across multiple sectors. Additionally, the domestic automotive industry is anticipated to play a crucial role in sustaining this upward trend, contributing significantly to the expansion of aluminium production and consumption in India.

Graphite Industry

The global graphite industry attained a market size of USD 7.97 Billion in CY 2024.34 Graphites exceptional properties, including high thermal and electrical conductivity as well as resistance to heat and chemicals, make it a crucial material for a wide range of industrial applications. Graphite plays a significant role in the steel moulding applications that involve different forms of alumina-graphite used in continuous casting ware such as nozzles and troughs. Additionally, it serves as a fundamental component in lithium-ion batteries and is also essential for manufacturing brake linings and clutch facings in the automotive sector. The increasing adoption of green technologies primarily drove the growth of the global graphite industry in the reporting year. Additionally, ongoing expansion efforts within the sector are expected to create significant growth opportunities in the coming years. The global graphite market is projected to grow at a CAGR of 6.82% from CY 2024 to 2034, reaching an estimated market valuation of USD 15.42 Billion by CY 2034.34 India remained one of the fastest-growing Asian markets for graphite in FY 2025, and the domestic industry is expected to grow at a CAGR of ~9% from 2024 to 2030. In India, graphite is widely utilised across a range of industries, particularly in the battery manufacturing sector. Natural graphite emerged as the most lucrative and fastest-growing segment in the Indian market during FY 2025.35

Factors driving the growth of graphite sector

Strong growth in the global EV and energy storage system

Growingnumberoflithium-ionbatterymanufacturers

Increased awareness for a cleaner and sustainable environment

Demand for graphite is expected to rise due to increased steel production

New value-added products

Himadris H 120 Crores investment in a cutting-edge facility for extracting high-value Speciality products—Anthraquinone and Carbazole from coal tar distillates is set to transform the Companys product portfolio. This strategic move will reduce Indias reliance on chemical imports and open up new markets both domestically and internationally. By forward-integrating coal tar distillates, Himadri strengthens its competitive edge, leveraging its established customer base in dyes and pigments to drive significant growth and profitability.

Anthraquinone

Anthraquinone is a versatile chemical that is applied across various industries including dyes, paper, and hydrogen peroxide. It is also used as a catalyst in the production of hydrogen peroxide. Further, by foraying into the Anthraquinone industry Himadri will not only diversify its presence but it will also position it as a reliable supplier of Anthraquinone.

Carbazole

Carbazole is a high-value chemical extracted from anthracene oil and it is heavily used in industries such as pharmaceuticals, agrochemicals, and organic electronics. Further to this, it is a key component in the development of organic light-emitting diodes (OLEDs), which are used in modern display technologies. Himadri is anticipated to strengthen its position in the carbazole industry through innovation.

Speciality Chemicals

Speciality chemicals, or performance chemicals, are highly engineered products designed to deliver specific benefits to end products. These chemicals are used across diverse industries, ranging from pharmaceuticals and chemicals to personal care, oil & gas and pulp & paper. Whether in complex formulations or as single input units, Speciality chemicals are integral to the manufacturing process, contributing significantly to both industrial and consumer products.

In 2024, the global Speciality chemicals industry experienced steady growth, reaching a market size of USD 769.75 Billion.This growth was driven by factors such as strong business performance, increased consumer demand, changing lifestyles and globalisation. Notably, the escalating demand for these chemicals in sectors like oil and gas and personal care has been a significant growth catalyst. Investments in research and development (R&D) and innovation by major players have further fuelled the industrys expansion. The global Speciality chemicals market is expected to grow at a CAGR of 5.42% from 2024 to 2029, supported by the adoption of smart manufacturing, Industry 4.0 technologies, and a shift toward eco-friendly solutions. Additionally, the rising demand for high-performance coatings will continue to drive market growth.36

India is emerging as a key destination for Speciality chemicalmanufacturing,drivenbycompetitiveproduction costs, stringent quality standards, and a diverse industry catering to niche sectors such as pharmaceuticals, agriculture, and personal care. The country is also focusing on decarbonisation, infrastructure development and the integration of advanced digital technologies, which will further boost the growth of its Speciality chemical industry. Government incentives and supportive policies are expected to promote R&D and innovation, positioning India to meet the global demand for Speciality chemicals, especially amid geopolitical uncertainties.

Refined Naphthalene

Refined naphthalene, a volatile, fragrant, white crystalline substance, is primarily produced through the distillation of coal tar or petroleum fractions. It is an essential industrial intermediate used in the production of phthalic anhydride, which is crucial for manufacturing plastics, dyes, resins and plasticisers. Naphthalene also plays a key role in producing insecticides, low-volatile solvents, naphthalene sulfonates, and moth repellents. Widely used in the textile, pharmaceutical, agriculture and construction industries, naphthalene is particularly important in the production of plasticisers and construction chemicals. Its domestic use, primarily as mothballs for pest control, further highlights its versatility, while the growing demand in various sectors is expected to drive market growth, particularly in Indias textile industry.

The global market for refined naphthalene is experiencing steady growth, with demand expected to continue increasing in the coming years. The market size is projected to reach USD 2 Billion by 2030, with a CAGR of 3.4% from 2024 to 2030.37 Asia Pacific, especially India, is expected to be a significant driver of this growth due to rising demand across industries. The Indian naphthalene market, in particular, is set to witness substantial growth, potentially reaching USD 232 Million by 2030, driven by the expanding need for high-quality naphthalene derivatives in domestic industries.38

Himadri, as one of the leading players in the refined naphthalene space, is recognised for its quality and innovation. The Company utilises advanced multi-stage distillation units to produce high-grade naphthalene products, ensuring stringent quality control and excellence in manufacturing. Himadris consistent investment in cutting-edge technology and its deep industry expertise have earned it a strong reputation for delivering premium naphthalene-based compounds. (Read more on page 49)

Sulphonated Naphthalene Formaldehyde (SNF) and Polycarboxylate Ether (PCE)

Sulphonated Naphthalene Formaldehyde (SNF) and Polycarboxylate Ether (PCE) are advanced chemical admixtures widely used in the construction industry to enhance concrete performance. SNF, a high-range water-reducing admixture, significantly improves workability, strength and durability by reducing the water-to-cement ratio without compromising mixture consistency. This makes it ideal for large-scale infrastructure projects, high-rise buildings and heavy-duty construction requiring high compressive strength. In contrast, PCE offers superior dispersion and flowability, enhancing workability, reducing water consumption and improving the durability and long-term performance of hardened concrete structures. This makes it particularly favoured in high-performance projects such as bridges, tunnels, and smart city infrastructure.

The Indian Concrete Admixtures Market, estimated at USD 332.81 Million in 2024, is projected to reach USD 492.12 Million by 2030, growing at a CAGR of 6.74% from 2024 to 2030. This growth is fuelled by the rising demand for advanced construction materials, driven by both public and private sector investments in infrastructure and urban development.39

The global naphthalene and PCE-based admixture industry is also on a growth trajectory, expected to expand at a CAGR of 4.85% from 2024 to 2028. The increasing focus on sustainable construction practices and the need for high-performance materials are key factors behind this growth.40

Government initiatives for infrastructure

The Union Budget 2025-26 has increased infrastructure spending, allocating C 11.21 Lakhs Crores (approximately USD 135 Billion), which constitutes 3.1% of Indias GDP. This investment is part of a broader strategy to bolster Indias economic growth, aiming for a GDP of USD 7 Trillion by 2030, supported by an estimated USD 2.2 Trillion in infrastructure development.41

Smart cities mission

The governments Smart Cities Project has already seen projects worth approximately USD 17.8 Billion (C 1,47,704 Crores) completed out of a total project value of USD 19.8 Billion (C 1,64,687 Crores) as of FY 2025.42 This initiative is driving demand for modern construction practices and high-performance admixtures like SNF and PCE.

Rapid urbanisation and high-rise construction

Indias growing urban population has accelerated the demand for high-rise buildings, commercial complexes, and residential projects. This surge in construction activities requires advanced admixtures to meet the demands for durability, strength and sustainability.

Sustainability and green construction

The shift towards sustainable construction practices has heightened the demand for eco-friendly materials. SNF and PCE-based admixtures contribute to this trend by reducing water consumption, enhancing energy efficiency, and improving the overall environmental footprint of construction projects.

Himadri is one of Indias leading manufacturers of Sulphonated Naphthalene Formaldehyde (SNF), with an annual production capacity of 50,000 MTPA. The Company operates a best-in-class facility managed by a team of experienced professionals. In addition to SNF, Himadri develops advanced concrete admixtures, including Polycarboxylate Ether (PCE), designed to meet diverse construction requirements. Its high-quality products are widely used in projects ranging from bridges to high-rise buildings and are exported to markets across Asia Pacific, Bangladesh, the Middle East and Europe.

Business performance

Financial highlights

Himadri achieved another milestone of profitable growth journey in FY 2025 with record high revenue from operations and profitability.

	Standalone		Consolidated
Particulars	FY 2025	FY 2024	FY 2025	FY 2024
Revenue from operations (C in Crores)	4,595.80	4,184.89	4,612.63	4,184.89
Earnings before interest, tax, depreciation, amortisation and foreign exchange fluctuation	843.55	632.37	846.75	635.39
(EBITDA) (C in Crores)
Profit Before Tax (PBT) (C in Crores)	807.74	573.14	806.18	573.86
Profit After Tax (PAT) (C in Crores)	558.07	411.00	555.10	410.68
Basic Earnings Per Share (EPS) (C)	11.31	9.17	11.26	9.16
Diluted Earnings Per Share (C)	11.22	9.16	11.17	9.16

Changes in financial ratios and changes in return on interest

The tables below provide a comparative analysis of the changes in the financial ratios and the return on net worth of the Company from FY 2024 to FY 2025.

Details of key financial ratios

Particulars	FY 2025	FY 2024	Variance (%)	Explanation for the change in the ratio by more than 25%
Debtors Turnover (Sales/Average Debtors)	7.05	7.09	(0.56%)	NA
Inventory Turnover (COGS/Average Inventory)	4.88	4.85	0.62%	NA
Interest Coverage Ratio (EBITDA/Interest)	20.84	10.99	89.63%	Increase in EBITDA and reduction in interest resulted in improvement in interest coverage ratio
Current Ratio (Current assets/Current liabilities)	3.56	1.93	84.46%	Reduction in current liabilities resulted into improvement in current ratio
Debt Equity Ratio (Net Debt(including lease liabilities)/Equity)	(0.10)	(0.04)	150%	Reduction in net debt & increase in net worth on account of higher profitability
Operating Profit Margin (%) (EBITDA/ sale of goods)	18.37%	15.11%	21.58%	NA
Net Profit Margin (%) (PAT/sale of goods)	12.15%	9.82%	23.72%	NA
Return on equity (PAT/Average equity)	16.84%	15.82%	6.45%	NA

The anticipated growth in the global wood preservatives industry at a CAGR of 4.56% from 2024-202943

Owing to the significant growth in housing construction activities, the industry in Asia Pacific region is anticipated to witness significant expansion

The reduction in the Goods and Services Tax (GST) by the Indian Government is anticipated to drive the construction activities especially among the middle-class people.

Through Housing for All initiatives, Indian Government expects to boost the Indian housing sector in the coming years

Anti-Corrosion products

The anti-corrosive products offered by the Company are well-known for their resistance to acid and alkali assaults, and they are specifically designed to give outstanding corrosion protection. These products are made from premium-grade high-temperature carbonisation coal tar. The anti-corrosion products offer long-term durability due to their ability to endure a wide range of climatic conditions as well as the harsh salinity of seawater. To extract the best durability and enhanced performance, their temperature and pressure requirements can be rigorously calibrated. These products have a range of applications including petrochemical factories, ships, water purification facilities, distilleries and milk chilling facilities.

Opportunities

1. Capitalising on Indias economic growth

The ongoing expansion of economic activities in India offers Himadri significant opportunities. As various industries in the region continue to develop, Himadri is well-positioned to serve a growing domestic market and expand its footprint.

2. Leveraging global supply chain shifts

Amid the global trend of diversifying supply chains away from China, Himadri stands to benefit from this shift. By increasing its export contributions, the Company can strengthen its international market presence and capitalise on the opportunities arising from changing global dynamics.

3. Expansion and market leadership

Through the brownfield expansion of Singur facilities, Himadri is set to become the fourth-largest global producer of Speciality carbon black. This strategic growth will significantly enhance its presence in international markets, positioning it for greater global leadership.

4. Commencement of operations at Birla Tyres plant in Odisha

Himadri anticipates the commencement of operations in Q1 of FY 2026, and is expected to be ramped up in phases. This development is expected to strengthen Himadris manufacturing capabilities.

5. Introduction of high-value speciality products

The Company plans to introduce high-value-added Speciality products in coming fiscal year for both domestic and international markets. This will solidify its position in the global Speciality chemicals sector.

6. Entry into the Electric Vehicle (EV) tyre market

With the electric vehicle industry poised for significant growth in the coming years, Himadri plans to enter the EV tyres market. This presents a promising opportunity to tap into a rapidly expanding sector with substantial growth potential.

Challenges

Himadri operates in a highly competitive market, facing strong competition from both domestic and global players in the Speciality chemicals sector. This intense competition puts pressure on cost optimisation efforts and market share.

However, the Company stays ahead by closely tracking market trends, maintaining financial discipline, and promoting a culture of continuous innovation. These proactive strategies help Himadri navigate industry challenges while ensuring sustained growth and operational resilience.

Himadri believes that innovation and responsibility go hand in hand to create a better, greener future.

Anurag Choudhary, CMD & CEO

Research and development (R&D)

The Company is highly regarded for its Research and Development (R&D) efforts, which are instrumental in sustaining its competitive position in the market. Himadri incorporates cutting-edge technologies within its R&D framework, allowing its team to create products that cater to the dynamic demands of the market. The R&D initiativesoftheCompanyarealignedwithitssustainability goals focused on reducing water consumption elevating water recycling. Moreover, the Company is equipped with advanced facilities, with all its laboratories holding accreditation from the National Accreditation Board for Testing and Calibration Laboratories (NABL). The R&D team, comprising global experts, further enhances the Companys commitment to fostering innovation and advancing its product offerings.

[To read more, refer page 52]

Quality

Himadri prioritises rigorous quality control techniques for all of its products, thereby helping in the achievement of consistency and precision. Across all operations, including product development and manufacture, the Company has achieved compliance with quality standards, therefore supporting in attaining customer satisfaction. In addition to this, the Companys emphasis on quality has resulted in partnerships with a variety of organisations, as well as recognition from the Indian government. Along with the certifications such as ISO 9001:2015 (Quality Management System), IATF 16949:2016 (International Automotive Task Force), ISO 50001:2018 (Energy Management System), ISO 37001:2016 (Anti-bribery Management System), ISO 17025:2017 (NABL Lab Accreditation). To maintain quality standards, the Company guarantees that the QA staff receives regular training and conducts audits at its advanced research laboratory, which is accredited by the National Accreditation Board for Testing and Calibration Laboratories (NABL). These further highlight Himadris emphasis on maintaining quality. Moreover, the introduction of cutting-edge technology and sustainable practices has allowed the company to exceed client expectations and strengthen customer relationships.

This achievement reaffirms its commitment to sustainability, responsible business practices and a thriving workplace culture.

Sustainability and responsible growth

Himadri embeds Environmental, Social and Governance (ESG) principles into its business model. During the reporting period, the Company strengthened its climate risk framework, published its Net Zero 2050 roadmap with short-, mid- and long-term targets in alignment with SBTi, and implemented supplier engagement programmes under its Sustainable Procurement Policy. The company during the reporting period has secured marquee accreditations such securing the prestigious Platinum Medal by EcoVadis, a B rating from CDP for Climate and Water Security and ‘Merit in International Safety Award by the British Safety Council, reinforcing its committment to sustainability.

The Company achieved full Zero Liquid Discharge (ZLD) at all operational sites and conducts third-party verified water and energy audits. In FY 2025, Himadri advanced the implementation of clean energy, condensate recovery and circular use of by-products like Anthracene Oil. Moreover, the company also has in place management systems such as ISO 20400:2017 (Sustainable Procurement), SA8000:2014 (Social Accountability) , ISO 27001:2013 (Information Security Management System), ISO 45001:2018 (Occupational Health and Safety Management System), and ISO 14001:2015 (Environment Management System).

Himadri aligns with global frameworks including UNGC, ICCA Responsible Care, and Global DEI Alliance, enhancing environmental stewardship and social responsibility.

Governance and ethical leadership

Himadris governance framework is anchored in transparency,accountability,andethicalconduct,ensuring long-term stakeholder value creation. The Company maintains a Board-led ESG Oversight Committee, guiding the integration of sustainability in corporate strategy and monitoring performance against key ESG metrics.

The Board comprises a balanced mix of executive and independent directors, including female representation, fostering diversity in strategic oversight. Key governance practices include a Code of Conduct for team members and suppliers, a Whistleblower Policy, Anti-Bribery & Anti-Corruption Policy, and periodic training on ethics and compliance.

Himadri follows SEBI LODR Regulations and voluntarily aligns with leading disclosure frameworks such as GRI, TCFD and BRSR Core. The Company undertakes third-party ESG assurance, publishes its Business Responsibility and Sustainability Report, and discloses climate and water performance through CDP.

Human resource

Himadris talent management strategy is aligned with the companys goals to support sustainable growth. Focused on trust, transparency, and shared values, the company fosters a collaborative and innovative work culture. A strong team ethos drives people engagement and loyalty, ensuring long-term market success.

The Companys workforce development strategy emphasises attracting and retaining top talent while promoting a dynamic environment for creativity and operational excellence. Talent development programmes, including assessment and development centres, are designed to nurture future leaders and prepare the team for upcoming challenges.

Himadri is maintaining a diverse and inclusive workforce through rigorous recruitment policies that encourage respect and appreciation, fuelling innovation. Equal opportunities for career progression are provided to all team members. Various people engagement initiatives, such as annual picnics and competitions, further enhance motivation, productivity and long-term success.

People health and safety

Himadri upholds its "Together Towards Tomorrow" vision, and promote a safer, healthier and more sustainable workplace. It has made notable progress in improving its safety performance, reducing the Lost time injury frequency rate (LTIFR) from 1.18 in FY 2024 to ZERO in FY 2025. Himadri adheres to internationally recognised standards, including ISO 45001:2018 and SA 8000:2014, ensuring the safety of its people and stakeholders.

Additionally, Himadri has implemented a comprehensive safety framework that includes hazard identification, risk assessments and behavior-based safety programmes to maintain a robust safety culture. It conducts regular safety drills, emergency response simulations and refresher training to ensure a high level of preparedness.

Himadri works with a vision of ‘Zero Accident/Incident. To ensure this, the Company continuously monitors safety performance through both leading and lagging indicators. Using these real-time monitoring and digital safety audits helps Himadri proactively address potential risks. It is also investing in cutting-edge technologies such as wearable safety devices and real-time monitoring systems to enhance safety outcomes.

Occupational health initiatives, including periodic medical evaluations and stress management programmes, further support team well-being. It has also expanded its ergonomics initiatives, ensuring that workplace conditions meet the highest standards of people health and productivity. The Company continuously enhances emergency response protocols, improves personal protective equipment (PPE) standards, and promotes a culture of safety leadership through engagement programmes.

Corporate Social Responsibility (CSR)

Himadri has undertaken several community development programmes aimed at enhancing the well-being of underserved communities. It actively promotes women empowerment and skill development. The Company focus on promoting education through book donations and various scholarship programmes.

Himadri also provides primary healthcare services through the Village Medical Centre. It contributes significantly to rural development by rebuilding homes and ensuring that villages have access to clean water and reliable electricity.

[For details on Himadris CSR initiatives, refer to the page 76 of the Annual Report]

Himadris outlook

Himadri is poised for strong growth, driven by the expanding EV industry and strategic capacity enhancements. The Company plans to establish a Lithium Iron Phosphate (LFP) demo plant. Additionally, the commissioning of its liquid pitch terminal will facilitate exports at ambient temperature, strengthening its footprint in the Middle East.

Further diversifying its portfolio, Himadri is introducing high-value Speciality chemicals such as Anthraquinone and Carbazole, expanding its reach across multiple industries. The Company is also intensifying its sustainability efforts and community development initiatives. Plans include setting up skill development institutions to upskill individuals and promote entrepreneurship, along with allocating funds to establish nursing homes to provide quality healthcare to underserved communities.

With these strategic initiatives, Himadri is well-positioned for sustained expansion and industry leadership.

Risk management

Himadri recognises that risk is an unavoidable component of business and is committed to managing the risk in a proactive and effective manner. The Company has laid out a risk management policy and Risk Assessment and Minimisation Procedure for identification and mitigation of risks. The Company has also constituted a risk management committee that identify the key risks for the Company and implements the risk mitigation plan of internal and external risks.

The committee is responsible for monitoring and guiding the application of the risk management procedures and recommendation/suggestion towards the risk management approaches. This includes assessing the effectiveness of risk management processes and systems of risk reduction, methods and procedures for the control of identified risks.

In a dynamic operating environment, Himadri has been able to solidify its position as a pioneer in its industry by adhering to its robust risk management framework.

Risk mitigation

The Company evaluates and reviews risks periodically to develop new strategies in response to evolving market conditions. It believes in mitigating risks at the rudimentary stage so that operations can continue uninterrupted without harming the people and property. Through the combined efforts of the Risk Management Committee, Audit Committee and the Management, risks are identified and minimised to the levels which can be predicted with reasonable accuracy.

Risk category	Description of risk	Mitigation measures
Industry risk	A decline in industry prospects, demand fluctuations or slowdown in the downstream industry can impact production and profitability.	Serves core sectors like aluminium, automobiles, and infrastructure, ensuring stable demand. Shift in production facilities from the West to Middle East and Asia to strengthen demand for Coal Tar Pitch Growing steel capacities in India and China strengthen raw material availability and end-product demand.
Operational risk	Equipment downtime, process inefficiencies, or system failures can lower productivity and profitability.	Established raw material and end-product storage capacity to prevent shortages. Regular training, preventive maintenance, and failure analysis. Strong governance mechanisms to track operational KPIs. Maintains adequate stock levels to ensure operational continuity. Long term relationship with all major Indian raw material suppliers for stable raw material sourcing.
Raw material risk	Dependence on coal tar, a by-product of steel plants, can pose availability and price fluctuation risks.	Captive consumption of one-third of production reduced the risk of raw material shortage. Strategic import partnerships and pricing policies mitigate material availability and cost fluctuations by allowing the passing of effects of fluctuations to customers through established formula in most cases
Dependency risk	High reliance on specific industries like aluminium and graphite can impact margins during industry downturns.	Aluminium demand is inelastic due to high shutdown costs. Diversified product portfolio built over the years which today serves an array of industries like tyres, construction chemicals, paints, and infrastructure. Investment in state-of-the-art effluent treatment and zero-discharge facilities that support reverse osmosis and continuous evaporation.
Environmental risk	Non-compliance with environmental norms can lead to reputational damage and regulatory action.	Periodic audits to ensure emissions meet regulatory standards. Certified for ISO 9001:2015, ISO 14001:2018, and OHSAS 45001.
People risk	Managing key positions is important for efficient operational activities.	Company has obtained all necessary environmental approvals from various State and Central Pollution Control Boards in the respective states of its presence Dedicated EHS team and people training programs. Well-defined succession plan and pay structure aligned with industry standards to attract and retain the right talent. Robust people engagement and performance-driven culture
Safety risk	Inadequate safety measures can impact people morale and Business growth.	Internal team members recognition programme to identify and recognise top performers. Standardised operating procedures and mandatory safety equipment usage. Established Apex Safety and Plant Level Safety Committees. Certified for ISO 45001:2018 Strong R&D and technology-driven quality improvements.
Quality risk	Failure to meet stringent quality parameters can lead to customer attrition.	Periodic customer interactions to align product quality with requirements. Extensive testing in compliance with international standards. Multiple dispatch points and well-connected transportation networks for coal tar pitch delivery.
Logistics risk	Disruptions in the supply chain can impact production and customer commitments.	Dedicated fleet of temperature-controlled tankers ensures timely delivery of liquid pitch at appropriate temperature. Secure railway and port storage for seamless raw material procurement. Continuous product innovation and expansion into new markets.
Competition risk	Market share may be impacted due to intense industry competition.	Strategic proximity to customer facilities enhances competitive advantage. Strong client relationships, with long-term agreements covering a third of sales. The Companys scale, efficiency and quality represent a competitive advantage that is difficult to replicate.
Anti-competitive practices risk	Practices which involve unfair methods of gaining a competitive edge, which pose a significant risk to businesses, markets and economics.	Well-defined fair competition policy in place to maintain a competitive marketplace. Himadris code of conduct guides the Companys operations and its engagement with its customers, suppliers and the broader community.
Geographic risk	Over-reliance on a single geography exposes the Company to economic downturns.	Expansion into export markets with a focus on high value speciality carbon black products and coal tar pitch. Established global distribution network and sales offices. In-house technical team dedicated to process improvements.
	Outdated processes can
Technological obsolescence	lead to inefficiencies and cost overruns.	Ongoing investments in advanced technology and environmental management.
Funding risk	Timely availability and cost of funds impact capital expansion and working capital efficiency.	Diversified debt portfolio with a mix of secured and unsecured loans. Optimal utilisation of funding options to secure low-cost financing.
Regulatory risk	Non-compliance with statutory requirements can disrupt business operations.	Dedicated compliance function ensuring adherence to legal norms. Regular monitoring and board reviews of compliance frameworks. Oversight of legal compliance for overseas subsidiaries.
	This risk poses significant risks to organisations, individuals and society. The main risks associated with these unethical practices include: Legal and Financial Risks	Himadri has a well-defined anti-bribery and corruption policy to mitigate risks arising due to unethical practices. We have a strong operational framework and vigilance policy which ensures that all concerns raised are handled transparently and efficiently, with appropriate oversight to ensure accountability and improvement in ethical practices. All the concerns raised about unethical practices are handled by Vigilance Officer.
Anti bribery and corruption risk	Reputational Damage Operational Disruptions Regulatory and Compliance Risks	Reporting Channels are available at all times, including direct reporting to the Vigilance Officer,drop boxes, email, and confidential hotline. Complete investigations is done within 90 days, extended if necessary.
	Financial Loss and misallocation of resources Ethical and internal challenges Risk of blackmail and extortion	Regular internal audits of the Vigil Mechanism are conducted to ensure compliance with the policy which evaluate efficiency of reporting channels, confidentiality of process and implementation of corrective actions. External audits are performed once in three years or as required by law. A record is maintained of all whistle-blower reports, investigations, and outcomes. Certified for ISO 37001:2016

 

	Himadri has well defined IT policies and procedures to mitigate risks arising due to IT systems and framework. The key points are as under
	This could result in one or IT Department of the Company maintains and upgrades the more of the following: systems on a continuous basis with trained personnel. Complex Password Protection is enabled at different levels System incapability to access Business Technology to ensure data integrity. Hardware vulnerability Licensed Software is being used in the IT systems. Network Security Risks Company Security", by The ensures "Data having Identity Endpoint Security Risks and access control and Authorisation matrix. business data is maintained on SAP S/4 HANA system
System risk	Data Integrity Risks All and cloud based. The system is fully protected with firewall
	Business Non - and antivirus/anti malware softwares. Continuity
	All critical Business Data (User Data and Application Data)
	Coordinating and are backed-up at alternate site to ensure Information Security interfacing risks
	The Company Gateway as well as End Points are secured using the best products like to mitigate Network and Web security risks
	Disaster Recovery is in place to ensure business continuity.
	Certified for ISO 27001:2013
Project risk	Improper planning may Thorough cost benefit/ROI analysis conducted before result into time and cost conceiving new capital intensive projects/initiatives and the overrun. Additionally, the same is then benchmarked against the actual output/ result assumptions taken before at regular intervals commencement of a new project may need to be revised with time.
Pandemic risk	Global pandemics such Clear procedures for working from home (WFH) and as COVID-19 has added a attending workplace in compliance with WHO and the new dimension to the risk Government of India guidelines are in place to ensure the of continuing business continuity of critical business operations under such adverse situations operations globally.

Industrial relations

Himadri is a people centric organisation. It treats its people as the most integral asset. Himadri has an excellent HR system and well-structured policies for the healthy development of this asset. The Company maintains open lines of communication with its personnel ensuring they are informed about its objectives and ensuring its goals are aligned with its people.

The Company strives to achieve inclusive growth for its people. The Company conducts several development programs for its people at various levels, creating a pleasant work environment, strengthen talent management, capability development, and performance of its people.

Further, the Company has a strong people policy aimed at recruiting the best talent, training the people, engaging with them continuously, and ensuring strong retention, thereby, laying foundation to a robust human capital. This alignment makes it easier for the Company and its people to work together toward common goals.

Statutory compliance

We are committed to maintaining the highest level of ethical practices and ensuring compliance with legal and regulatory requirements. Integrity, professional and ethical conduct remains at the forefront of all our business interactions and activities. The Company strongly believes that the spirit of Corporate Governance goes beyond the statutory form. Sound corporate governance is the key driver of sustainable corporate growth and long-term value creation for the stakeholders and the protection of their interests. Our company meticulously adheres to all legal requirements, emphasising compliance as a fundamental principle in every business decision and strategic direction. The role of the Company Secretary as the Compliance Officer is to ensure the Companys compliance with legal and regulatory requirements, SEBI regulations. The Company Secretary also functions as compliance officer to prevent insider trading. Internal auditors have been appointed to ensure timely reporting of any potential non-compliance thereby mitigating associated risks.

Internal control system

Himadri has designed well-structured internal control systems comprising detailed policies, guidelines and procedures commensurate with the nature, size and complexity of the industry in which it operates. The Companys Board of Directors is responsible for establishing & maintaining internal controls for financial reporting. The Board also evaluates the adequacy and effectiveness of such controls.

Within the Company, internal control mechanisms for business processes, operational efficiency and compliance with all applicable rules and regulations are firmly in place. Himadri follows stringent procedures, enabling to achieve high accuracy in recording ensuring robust financial reporting. To strengthen the internal control process, independent internal auditors are engaged. The Internal control systems are monitored by the internal audit team and Audit Committee, ensuring smooth business functioning by designing, implementing and maintaining adequate internal financial controls. The Audit Committee engages with the Companys statutory auditors to gather insights on financial statements, including the financial reporting system, compliance with accounting policies and procedures and the adequacy and effectiveness of internal controls and systems. The Management considers the Audit Committees views and recommendations in its decision-making processes.

Regular internal inspections and audits are conducted to ensure the efficient execution of obligations. A comprehensive assessment of the Companys internal controls, accounting procedures and policies is undertaken.

Senior Management evaluates and certifies the effectiveness of internal control mechanisms over financial reporting, adherence to the code of conduct and Company policies and compliance with established procedures in financial or commercial transactions, especially in cases of personal interest or potential conflicts of interest.

Cautionary statement

The management discussion and analysis (MDA) contains statements regarding the Companys objectives, projections, expectations, and estimations, which may constitute ‘forward-looking statements within the scope of applicable securities laws and regulations. Such forward-looking statements are based on certain assumptions and anticipations of future events. However, the Company does not guarantee the accuracy or realisation of these assumptions and expectations.

Actual results may vary materially from those expressed or implied in these statements due to external factors beyond the Companys control. The Company disclaims any obligation to publicly amend, modify, or revise any forward-looking statements in response to subsequent developments or events.