India Glycols Ltd Management Discussions

Economy and Industry Overview

Amidst the volatile geo-political scenario post conflict in

Eastern Europe and Middle-East, the worldwide business scenario remained challenging, whereas, India continues to be a better performing economy. The baseline forecast is for the world economy to continue growing at 3.2 percent during 2024 and 2025, at the same pace as in 2023, indicating a stabilizing global economy with monetary policies finding new balance

The International Monetary Fund (IMF) projects Indias GDP to grow at 6.8% in fiscal year 2024-25, underscoring the nations resilience and potential as a manufacturing powerhouse. India is fifth-largest economy in the worlds and is set to retain its position as the worlds fastest growing economy. The country is on track to establish itself as the next manufacturer for the world with its policy reform agenda.

The Indian chemical industry, contributing approximately 6.7% to the GDP, emerges as a linchpin of economic growth, with its touchpoints spanning across daily human necessities. With global companies increasingly seeking to de-risk their supply chains, India positions itself as a formidable player in the chemical sector. Rising demand from end-user industries like food processing, personal care, and home care fuels industry growth, accentuated by the potential of specialty chemicals.

Government initiatives such as the Production Linked Incentive (PLI) schemes further bolster the sector, paving the way for it to contribute $300 billion to Indias GDP by 2025.

The Indian liquor market, valued at approximately $35 billion in

2021, serves as a testament to the nations robust consumption patterns and diverse cultural fabric. With a compound annual growth rate (CAGR) projected at 3.6%, the industry is expected to reach $41.7 billion by 2026, propelled by a mix of traditional and premium spirits catering to varying consumer preferences.

The Indian liquor industry and chemical sector emerge as twin engines of growth, navigating through challenges to embrace opportunities and chart a course towards prosperity. With a strategic focus on innovation, collaboration, and market diversification, industry stakeholders can unlock the full potential of these dynamic sectors, contributing to Indias economic resurgence and global competitiveness. As the nation marches forward on its growth trajectory, the liquor industry and chemical sector stand as beacons of resilience, embodying Indias spirit of innovation and enterprise.

IGL being the only Bio-based ingredients and Performance Chemicals Company of its kind, figures in the list of leading chemical manufacturers in the country.

Products

IGL is one of the leading manufacturers with its presence in

Bio-Based Specialities and Performance Chemicals, Potable Spirits, Ennature Biopharma, Bio Polymers, Bio-Fuels and Industrial Gases. Our state-of-the-art manufacturing facilities are working to provide sustainable value added products using superior technologies.

The Company has organised its business into:

A. Bio-Based Specialities and Performance Chemicals ("BSPC") having following :-

• Bio-based Glycols (MEG, DEG, TEG and Heavy Glycols), Glycol Ethers, Glycol Ether Esters, Specialty chemicals, Bio-Polymers and Industrial Gases.

• Bio-based Ethylene Oxide.

• Power Alcohol (Bio Fuel).

B. Potable Spirits-Indian Made Foreign Liquor ("IMFL"), Branded Country Liquor and ENA (Extra Neutral Alcohol).

C. Ennature Biopharma.

The segment wise business share is indicated as below:-

Segment	Gross Revenue	% Share
	2023-24
	(Rs. In Crores) (Domestic + Exports)
A. BIO-BASED SPECIALITIES	2,139	27.01
AND PERFORMANCE
CHEMICALS
B. POTABLE SPIRITS	5,575	70.40
C. ENNATURE BIOPHARMA	205	2.59
TOTAL	7,919	100

Bio-Based Specialities and Performance Chemicals Segment (BSPC)

During the year under review, Gross revenue in Bio-Based Specialities and Performance Chemicals Segment was

Rs. 2,139 Crores in comparison to Rs. 1,704 Crores in FY 2022-23. This segment has contributed about 27% of the gross revenue of the Company.

FY	2021-22	2022-23	2023-24
Bio-Based Specialities and Performance Chemicals Gross Revenue (Rs. in Crores)	2,235	1,704	2,139

Bio-based Glycols

The Company is a leading manufacturer of Bio-based glycols (Monoethylene Glycol (MEG), Diethylene Glycol (DEG), Triethylene Glycol (TEG) and Heavy Glycols) and ethanol derived from renewable sources.downturn in the Glycol EtherNotably, Bio-based MEG serves as the flagship product, boasting a significantly reduced carbon footprint that aids companies in meeting their sustainability goals outlined in the UNSDGs (United Nations Sustainability Development Goals).

The Company faced several challenges last year in the glycols business. Declining prices of petro-based MEG due to excess supply and over capacity and low offtake in China due to economic slowdown, high energy and processing costs following the Russia-Ukraine conflict leading to lower capacity utilsation of PET and Polyester plants created a lower demand for MEG and adversely impacted the global MEG market. Furthermore, changes in US market policies favored recycled

PET, thus creating significant.

Innovation and strategic positioning helped mitigate challenges, allowing the Company to largely retain sales volume in the Glycols segment. Despite reduced Bio-MEG sales in the US and European markets, strategic partnerships and innovative marketing approaches enabled increased market share in Far East and SE Asia.

The Company is working with a well thought over strategy to cater to the global high value added green market constituting Multinationals & Large Corporates, who have a special concern for the environment and have their internal sustainability objectives of moving towards greener products. As result of sustained efforts, today, IGL enjoys the trust and confidence of world renowned companies in beverage/packaging/textile fiber segment and is a regular supplier of Bio-MEG made from renewable green feedstock.

International prices of crude based MEG remained in the range of US$ 500-550 during large part of the year. We were unable to recover our cost in domestic market so we consciously reduced domestic sale. milestone in this For Bio-based Glycols (other than Glycols Ethers), the Company registered a sales value of Rs. 933 Crores during the year under review as compared to Rs. 977 Crores during previous year. Whereas, the sales volume was 25,108 MT and 27,396 MT in the corresponding years. Strategic partnerships and initiatives to reduce the carbon footprint align with the Companys commitment to sustainability. Initiatives include partnering with international technology innovators to convert ethanol from recycled industrial carbon emissions into MEG, offering consumers sustainable sourcing options.

The global MEG market is about 32 Million MT and expanding at a CAGR of about 6%. The biggest driver of demand is likely to be the increasing market for polyester fiber from the textile sector in Asia Pacific region. In India, the strong domestic PET demand and increase in exports of textiles and apparel shall keep the MEG on stable footing. In India, the demand for MEG has been witnessing a CAGR of around 7-8% which is higher than global average.

Your Company foresees opportunities in Green markets where acceptance of Bio-MEG is increasing. With new customers adopting Bio-MEG as a green alternative, this will witness a steady growth in the foreseeable future.

Glycol Ethers

IGL faced a significant largely due to the pronounced decrease in international prices of rival products like Butyl and Propyl Glycol Ethers. This sharp decline was primarily influenced by the substantial reduction in prices witnessed in China, a key global producer of glycol ethers, stemming from the notable decrease in feedstock costs.

Consequently, Chinese products emerged as formidable competitors, even in the SE Asia markets, leading to a discernible reduction in IGLs sales to both China and SE Asia. Moreover, the reverberations of these low prices in China reverberated in the domestic market, prompting traders to align their quotes with import prices from China.

In response to these market dynamics, IGL was compelled to undertake significant adjustments to its pricing strategy, aiming to sustain competitiveness and safeguard its market share amid escalating competition in the Glycol Ether segment. Lower prices of competition products led to a decline in overall sales volume of Glycol Ethers. The sales value declined from

Rs. 313 Crores in FY 2022-23 to Rs. 273 Crores in FY 2023-24 and sales volume declined from 21,971 MT to 19,394 MT in the corresponding year.

Despite the low prices of competition products, your Company is realigning its strategy in global markets by trying to position some of the key glycol ether products as green alternatives.

Also, an effort is being made to find some new application areas with better value addition to sustain the sales volume.

Specialty Chemicals

In line with its forward-looking growth strategy, IGL is set to embark on an exciting journey of introducing new specialties products. The part commissioning of our state-of-the-art specialty unit marks a significant as we gear up to delve into the development of innovative chemistries that promise to redefine industry standards and meet evolving market needs and niche applications.

We have launched innovative value-added products for maximizing performance in Oil & Gas sector. These products have found a good success in terms of achieving sustainability targets for clients. Some of the key areas of focus for IGL in the upcoming financial year are the exploration and production of new chemistries, with a keen eye on sustainability and efficiency. Among the exciting new ventures on our horizon are the development of:

Oil-Field Chemicals.

C-Smart Derivatives.

Bio-Amines.

Bio-polymers and derivatives.

Green Solvents.

Non phthalate based Plasticizers.

These cutting-edge products are poised to not only meet market needs but also set new benchmarks in terms of performance, sustainability, and versatility. The production capacity of our specialty unit will be a primary focus in the coming months, as we appreciation for the period understrive to ramp up operations to deliver industrial-scale quantities of these innovative specialty chemicals to our customers. Our commitment to quality and reliability will remain unwavering as we navigate the challenges of scaling up production while maintaining stringent standards of excellence.

Moreover, IGL is dedicated to fostering a culture of innovation and continuous improvement within our organization. In addition to expanding our existing product portfolio, we are actively engaged in research and development efforts aimed at creating a robust pipeline of new products and chemistry. By staying at the forefront of technological advancements and market trends, we aim to anticipate future needs and seize opportunities for growth and expansion.

Recognizing the significance of collaboration, were enhancing our R&D as well as the pilot plant capabilities.

Bio-based Ethylene Oxide

The Company continues to supply Bio-based Ethylene Oxide to its JV entity (Clariant IGL Specialty Chemicals Private Limited) as per the agreed terms.

The Company has also managed to develop a market for supply of EO within a limited distance in view of the safety aspects involved in transportation of EO over large distances.

Bio-Polymers

India is native to guar or cluster beans which are used as a vegetable. Guargum is an extract of the guar bean, where it acts as a food and water store. The guar bean is principally grown in India and Pakistan, with smaller crops grown in the U.S., Australia, China, and Africa. India accounts for 80 percent of the worlds guar produce, of which 72 percent comes from

Rajasthan. About 90 percent of guar gum processed in India is exported.

The consumption pattern of guar seeds is largely influenced by the demands of the petroleum industry. Guargum versatile bio-polymer finding application in a wide range of industries such as Oil drilling, Textile printing, Human food and Pet Food, Paper, Explosive, Water Treatment, etc. where it is binding, thickening film-forming and lubricating factors are of great interest.

The largest share of industrial-grade guar gum products goes in oil field related applications like oil well fracturing, oil well stimulation, oil recovery, oil well drilling, geological drilling, and water drilling. It acts as a deformer, surfactant, and synthetic polymer in these applications. The shale gas industry in US was almost stagnant for past more than a year which led to substantial decline is sales. Alternative market took time to develop as regulatory approvals were slow. The sales value declined from Rs. 54 Crores in FY 2022-23 to Rs. 39 Crores in FY 2023-24. Sales volume declined from 2,299 MT to 1,572 MT in the corresponding year.

Industrial Gases

During the year under review, the Company, from its Air separation unit, sold 20,173 MT of Liquid Oxygen out of which

448 MT was exported to newly developed export customer in

South Asia. Besides this, 10,233 MT of Liquid Nitrogen was also sold. Also, demand of Liquid Argon was high and its prices saw significant. During FY 24, your Company sold 2,811 MT of Liquid Argon at a good margin.

The Gas Division produced 34,018 MT and sold 31,737 MT of Beverage and Industrial Grade Liquid Carbon Di-oxide

23% higher than the last year. Your Company has also done^(LCO2^{) from the Kashipur plant. The sales value were about} plant which will improve ^{some debottlenecking of Liquid CO} the overall yield in the coming year and make larger volumes2 available for sale. In line with its long term vision to build business on strength of superior quality your Company has taken steps to invest in upgradation of quality control equipment. IGL, Kashipur unit have adopted ISO 13485:2016 for its gas mixtures cylinder fillingplant in 2023 for ‘Manufacturing, Sales & ^EO-CO2 Distribution of Cylinders filled with Ethylene Oxide and Carbon

Dioxide at different ratios applicable for Medical use only. This will help explore new markets and add new customers. Your Company also produced ETO (Ethylene Oxide & Carbon

Dioxide Gas Mixtures) under the trade name IGL-STERI GAS at its Kashipur Plant. It is suitable for sterilization of Disposable Surgical & Medical Devices, spices and packing substances like rubber, plastic etc. The Company has in-house facilities which are used in production ^{for production of EO and LCO} of ETO and as such it is the only plant in India to have such2 manufacturing facility, which gives it a distinct edge over other suppliers in the market. During the year under review, the Company has sold 1,431 MT of STERI Gas as compared to 1,492 MT in the last year. Future outlook for the Industrial gases is good but very competitive because of addition of new facilities in ASU and dedication to quality and customer satisfaction it will have ^{Liquid CO}2^{. However, your Company is confident that with} an edge over the competition, ensuring that your Company remains a market leader.

The Industrial Gases business registered total sales of all gases of Rs. 52 Crores as compared to Rs. 41 Crores during the last year, which is 31% more than the last year.

FY	2021-22	2022-23	2023-24
Sales Value	46	41	52
(Rs. In Crores)

Power Alcohol (Bio- Fuels)

In the realm of Bio-fuels, IGLs Power Alcohol plants contribute to sustainable energy solutions, catering to government policies for ethanol blending in petrol. The Companys revenue from Power Alcohol witnessed substantial growth, reflectingits commitment to renewable energy sources. In our continued thrust towards offering sustainable and renewable ingredients, the Company enhanced the capacity of Bio-Fuel ethanol plant at Kashipur from 140 KLPD to 410 KLPD in FY 24 and is working to further enhance to 590 KLPD by adding 180 KLPD during FY 25. Also, the enhancement of Bio-Fuel ethanol capacities at Gorakhpur from 100 KLPD to 190 KLPD is under process. The Company continues to supply Bio-Fuels to Oil Manufacturing Companies ("OMCs") through their tender participation, as per Government of Indias Ethanol Blending Programme ("EBP"). During the year under review, the Company has been allocated quantities through tender participation for supply of Ethanol under EBP during Ethanol Supply Year from November, 2023 till October, 2024. The work to further increase the grain-based distillery capacities both at Kashipur and Gorakhpur is at an advanced stage. With enhanced capacities, the Company would be able to leverage its strength in ethanol manufacturing. The Company registered a revenue of Rs. 512 Crores during financial year 2023-24 as compared to Rs. 126 Crores last year from sale of Power Alcohol.

Potable Spirits and Extra Neutral Alcohol (ENA)

During the year, your Company registered total sales value of Rs. 5,558 Crores as compared to Rs. 4,705 Crores last year in the Potable Spirits division. The Company has two state-of-the-art distilleries (Kashipur-Uttarakhand and Gorakhpur-Uttar Pradesh) with a total distillery capacity of 830 KLPD for the production of ethyl alcohol, out of which, 229 KLPD is for potable alcohol. The Kashipur facility is considered one of the most efficient distilleries in the country. Apart from producing industrial alcohol for its captive consumption, IGL is also one of the biggest exporters of superior quality ENA

(Extra Neutral Alcohol). The Company has been certified by CONTROLUNION, an international certifying agency for sustainability standard "Bonsucro MB ‘Chain of Custody

Standard" for ENA-Special Sprit.

The Company maintained its sales in the domestic market. However, export of ENA declined as competition from producers in West India and neighboring Pakistan were able to offer lower prices. As a result, your Company diverted larger volumes to Bio-fuels under the Ethanol Blended Fuel Program of the government which has been giving better realization. ENA is primarily used in Indias alcoholic beverage industry, with a significant ^{is a} growing demand for grain-based ENA, driven by the expanding Indian Made Foreign Liquor (IMFL) industry and blending requirements abroad. Factors such as rising disposable incomes, evolving drinking perceptions, and Western alcohol preferences further propel the potable alcohol market.

Moreover, ENA finds extensive applications in the fragrances, cosmetics, personal & health care, printing, and pharmaceutical industries. It is utilized in various cosmetic products, medicines, and syrups, as well as in the production of antiseptics and sprays. The grain-based segment dominates the market due to its widespread use in alcoholic beverage production, supported by government regulations ensuring product quality and safety standards.

IGL has been producing its country liquor brands with Grain ENA and Molasses and continues to hold the commanding position as the largest supplier of country liquor with highest market share in the states of Uttar Pradesh and Uttarakhand. In Uttar Pradesh, "Bunty Babli^?" brand continues to be the highest selling brand in the country liquor segment. With the continuation of Excise liquor policy in Delhi (business with only government controlled bodies) has proven better from the perspective of managing outstanding as well width of distribution of our products in Delhi. The Company enjoys pie share of over 30% in the flavoured Vodka category in the Tetra segment. The amended excise policy of Uttarakhand allows sale of liquor in tetra pack for both IMFL and Country Liquor categories in addition to the glass bottles. We plan to install a tetra pack machine to cater to the market in new packaging. The Company has launched a pocket friendly 180 ml "Smart Pack" (PET Bottle) for its various Premium segment brands in the State of Uttar Pradesh which would be extended to Delhi

& Uttarakhand in the current financial year thereby increasing the contribution of these brands. The Company is also looking at inorganic growth opportunities to increase the top line of potable spirits segment and has obtained few well-known brands on royalty basis.

FY	2021-2022	2022-2023	2023-2024
Potable Spirits Sales	4,393	4,705	5,558
Value (Rs. In Crores)

Ennature Biopharma

During the year, your Company registered sale value of

Rs. 202 Crores as compared to Rs. 189 Crores last year in the Ennature Bio-pharma division, an increase of about 7 % over the previous year. Despite high competition due to emergence of new players, the segment increased its market shares and volumes both in Thiocolchicoside and Nicotine.

The Company is fully focused on building its branded Nutraceuticals ingredient range and has taken several initiatives including tie up with strategic partners for registration of our branded Nutraceutical ingredients backed up clinical trials. In this line, the unit has also successfully completed first human clinical trial for Maxicuma for joint health-results indicate a substantial reduction in pain and stiffness in the target population. The segment has also completed the first human clinical trial for eye health for Xanthogreen^TM, our branded Lutein offering results whereof are encouraging. This will surely help us to position our Maxicuma range with strong scientific credentials specially in the regulated markets.

The upgradation of Nutra facility is in pipeline to cater to the regulated markets of US and Europe. The Company is also dedicated to expand the businesses into new geographies and has taken many initiatives for market development for expansion of Vinpocetine into untapped markets of Europe, Russia, and Bangladesh which would yield positive results in the coming years. Additionally, to improve the margins, we are working on cost reduction, capacity debottlenecking and risk mitigation strategies for the input raw materials.

FY	2021-22	2022-23	2023-24
Sales Value	153	189	202
(Rs. In Crores)

Exports

IGL leverages green feedstock for the manufacture of chemicals that are helping our partners and customers to achieve their sustainability initiatives. The Company continues to hold the ‘Three Star Export House status as granted by the Government of India. The rising adoption of the ‘China plus one approach among developed nations is elevating the prominence of Indian goods worldwide. Simultaneously, India is witnessing increased interest from emerging markets like the Eastern Europe, North Africa region and Middle East. Furthermore, India has been proactive in forging Free Trade Agreements (FTAs) with strategically important nations, aiming to stimulate economic growth. Reforms and policy initiatives in recent years are resolving manufacturing challenges and boosting exports. Additionally, the government can consider addressing the complexities in disbursement of funds under the PLI schemes. The positioning of our Green Chemicals is one of the levers for driving business growth. Your Company continues to leverage green feedstock to manufacture its products. The Company is strategically focusing on exports to carve a niche for its green chemicals, particularly Bio-MEG, Glycol Ethers, Specialty Chemicals, Thiocolchicoside, Nicotine, Colchicine & Leutin thereby positioning itself as a leading supplier in the global market. Targeting high-value green markets, IGL over the years has gained the trust of multinational corporations and large enterprises that are committed to environmental sustainability. By partnering with global brands and leveraging innovative technologies, such as converting ethanol from recycled carbon emissions into MEG & other derivatives, IGL is pioneering efforts to reduce carbon footprints. Additionally, IGL plans to expand its product lines to further penetrate both green and other value added chemical segments in order to drive profitable growth.

During the year under review, your Company has recorded export sales value of Rs. 535 Crores as compared to Rs. 577 Crores during last year.

FY	2021-2022	2022-2023	2023-2024
Export Sales Value	717	577	535
(Rs. In Crores)

Financial Review

During the FY 2023-24 on a standalone basis, your Company recorded total revenue of Rs. 7,944 Crores (the highest ever revenue) as compared to Rs. 6,668 Crores in FY 2022-

23. Whereas, the profits after depreciation and tax for the FY 2023-24 were Rs. 152 Crores as compared to Rs. 99 Crores during the FY 2022-23. For more financial and performance details, Board Report be referred.

During the year under review, the Gross Fixed Assets has increased to Rs. 3,713 Crores in FY 2023-24 from Rs. 3,141 Crores in FY 2022-23.

The Company has been regular in meeting its obligations towards timely payment of principal/interest to the financial Institutions and Banks.

Key Financial Ratios

Details of Key Financial Ratios and explanation for significant changes therein are provided in note no. 62 to the Standalone Financial Statements for FY 2023-24.

Outlook

Factors such as Indias demographic dividend, increasing disposable incomes, Production Linked Incentive Schemes,

Atam Nirbhar Bharat Initiatives, underpin the growth trajectory of Indian manufacturing industry.

Looking ahead, the global MEG market presents promising growth opportunities, particularly in the polyester fiber sector in the Asia Pacific region. IGL anticipates further growth in green markets, with increasing acceptance of Bio-MEG as a sustainable alternative, projecting a healthy growth. Also, the growth in the end markets will continue to drive the specialty business.

The Potable Liquor segment being a lifestyle business would remain driven by the increasingly affluent population with rising disposable incomes and changing lifestyle preferences. We compete strongly with the Indian companies as well as the MNCs in the IMFL and branded country liquor space. With augmented capacities, the Company is poised to embark on for a healthy growth.

In the Ennature Biopharma segment, our products both under API and nutraceuticals, in the B2B category, are widely accepted worldwide. Simultaneously, the Company is successfully establishing its brands under the segment. Growth whereof is driven by the increasing health-conscious population and is creating favorable market environment. We are looking forward to further penetrate the European and US market.

Looking ahead, Indias economic activity and GDP growth are expected to remain resilient despite ongoing geopolitical uncertainties.Adaptation to evolving market dynamics, strategic collaborations, and harnessing technological advancements emerge as imperatives for industry stakeholders to unlock growth potential. The outlook for the coming year is being monitored closely by IGL keeping in view of all growth and demand drivers and expects sustained demand growth across all its segments. The Company, now with its augmented capacity, is well poised to take advantage of the growth in the segment.

Sustainability-Health, Safety, Environment and Management Systems

IGL prioritize employees Safety, Health and Environment as a responsible corporate. We continue to strengthen our policies around Quality, Safety, Health, Environment Stewardship & Energy conservation. It extends support to stakeholders helps in and influencing maintaining environmental impacts.

The Company has signed on to Responsible Care^? Guiding Principles to become a signatory to the Indian Chemical Councils Responsible Care^? initiative. Being a Responsible Care? signatory, we are committed for continual improvement of the performances in the fields of environmental protection, occupational safety, health, process safety, product stewardship and logistics, We continue to engage with our community and shareholders on a timely basis.

Health

Your Company accords very high priority to provide healthy and safe working environment. The Company has a medical centre at factory site with basic amenities; two qualified and experienced doctors with trained and experienced para-medical personnel who are available round the clock to meet any contingency. The Company also has a qualified

Occupational Health Physician and the Company also has ambulances to provide necessary assistance in case of any emergency. All employees are required to undergo annual medical check-up for early diagnosis of any health problem. For the well-being of the Employees and Contractual workers, the Company has started monitoring lifestyle diseases and providing in-house follow-up facilities for the same, this helps us to improve the health index. IGL has made arrangements for treatment of employees and their dependents under the mediclaim insurance policy, which allows employee to avail treatment from any of the listed hospitals without having to make any cash payments. The Company is organizing many health awareness talks, Health camps and First aid training for all the Employees, Family members and Contractual workers. The Company organizes blood donation camp as part of community welfare activities. The Company also organized medical camps at nearby villages and organize/assist in

National health related programs in the nearby villages as part of community welfare activities.

Safety

Your Company has set up elaborate safety systems to ensure a safe work environment. Emphasis is given to prevention of any accident. As a result of strict safety norms being followed We have been able to maintain good safety record and have received various prestigious national and international safety awards recognizing our efforts in the area of safety.

A Central Safety Committee has been constituted to continuously review and upgrade the safe working practices. Emergency management plan is in place for mitigating any kind of emergency. Proper systems have been set up to record and report any accident, which is thoroughly investigated and corrective action taken for future prevention.

At work place appropriate protective equipment and gears are provided to the employees and usage of the same is strictly monitored to ensure a high level of safety. Training programs are regularly conducted for training the employees in proper use of safety equipment and following the safe work practices.

The Company always encourages internal and external stakeholder by conducting motivational program on safety by celebration of National Safety Day, Fire Service Day and Transport safety awareness program to promote safe work practices and environment inside and outside premises.

Various incentive schemes are in operation for motivating the employees to work in a safe environment. The Company has its own Fire Station fully equipped with Fire Tenders, modern communication facilities and an elaborate auto fire hydrant system and other equipment which are manned and supervised by trained experts. There is also an auto fire alarm system covering all the areas. Live fire training drills are organized to provide hands-on training to the employees. contribution

Environmental Stewardship

Environmental stewardship refers to responsible use and protection of the natural environment through conservation and sustainable practices.

Your Company uses molasses, a residue from sugar mills generated in the process of manufacturing of sugar. The molasses is converted into alcohol in the captive distillery and thereafter used in the process to make ethylene oxide and its products. Company has set up elaborate systems by making substantial capital investments for proper treatment of the effluent generated and meets all the requirements in this regard. The Company has also installed Rainwater Harvesting systems and keeps on working for reduction of water footprint (WFP). To make the system more environmentally friendly, we have developed a green belt all around our factory by growing approx. 1,20,000 trees of different species some of which are fruit bearing in addition to providing green cover. All possible efforts are being made to preserve the environment and improve the same.

The Company has already achieved zero effluent discharge from its Ethanol Plants by having concentrated effluent burning in specially designed Boilers. The Company has installed zero liquid discharge unit for high Chemical Oxygen Demand and high Biological Oxygen Demand effluent streams from various units. The Company focuses on effective integration with the basic philosophy of resource optimisation, use of alternative sources and maximisation of ‘recycle and reuse by innovation. The liquid effluent from Distillery is concentrated in the evaporator system to generate concentrated spent wash (slop). The Slop (concentrated spent wash) from the evaporator is used as fuel for the generation of steam and electricity. This is a novel boiler that has been developed for utilization of concentrated spent wash and generation of steam therefrom. The Company have taken waste-to-wealth project by installation of unit to recover Potash (K 2SO4) granulation from waste as "Boiler Ash" and spent wash from molasses based distillery.

Sustainable Environment and Climate Change Initiatives

The emission of greenhouse gases by mankind in the last century has brought about the current climate crisis.

India Glycols provides Sustainable solutions with defined action plans and standard based on Life Cycle Assessment (LCA) methodologies. Our Sustainable Solutions enable customers to identify, evaluate and select the right materials and confidently choose high-performance materials that advance their environmental and business goals. There are a number of sustainable solutions and products that

IGL offers. The raw material, properties, performance and/or content of these materials make a significant to mitigate environmental impact, by lowering carbon emissions and helping resource consumption optimization.

Your Company is continuously working for integrating the life cycle perspective in management system, as per revised Environmental Management System for bringing product and process in a more sustainable direction.

The Company believes in life cycle approach which directs business to consider responsibility on environmental protection from raw material procurement to product use. Company has conducted comparative LCA study of Bio-Mono Ethylene

Glycol (Bio-MEG) based on ISO 14044-2006 standards and determining several Environmental Impacts (including Carbon Foot-Print) from its Renewable Manufacturing Approaches and conclude that "Manufacturing MEG through Renewable based raw materials is a better option than adopting Conventional

Petro route approaches in India, US and Europe". The LCA study was conducted on a purchased software-SIMAPRO with regular updation and report of "LCA on Bio-MEG". In continuation Company has also conducted LCA study for its other products such as Bio-Ethanol, Bio-Ethylene Oxide, Bio-Glycols and Bio-Poly Ethylene Glycols etc. The Company is also working continuously on LCA study for its other products such as Ethylene Oxide derivatives and specialty chemicals. Your Company has become a key partner in the supply chain for innovative process of MEG, Ethylene Oxide and derivatives production by utilizing biotechnologically converted Ethanol from industrial carbon emissions. In continuation, the Company has also conducted LCA study for these products and enabled customers to evaluate the products and choose the same to achieve their environmental and business goals. The Company always encourages stakeholders by conducting motivational programs on the World Environmental Day. The focus of the World Environment Day Program is to promote environmental stewardship practices. A special campaign is taken up with communities, employees and individuals to come together and explore sustainable alternatives to reduce Air Pollution and encourage to participate in water conservation practices. The Company has taken up several initiatives in promoting climate change and environment-sustainable projects.

Management Systems

• Integrated Management System

Your Company is having Integrated Management System (IMS) comprising of Quality Management System, Environmental Management System, Occupational Health & Safety Management System, Food Safety

Management System, Food Safety System Certificate,

Energy Management System and Social Accountability.

Your Company is successfully certified against the new revised High Level Structure (HLS) of Quality Management

System (ISO 9001:2015), Environmental Management System (ISO 14001:2015), Occupational Health & Safety Management System (ISO 45001:2018), Energy Management System (ISO 50001:2018), Food Safety Management System (ISO 22000:2018), Food Safety

. System Certificate

All these are comprised under Integrated Management

System and accreditation done by M/s DNV, a renowned certification agency.

Special emphasis on risk-based thinking has been the new focus of Quality Management System & Environmental Management System. This risk based thinking enables to determine the factors that could cause deviation in processes and thereby in management systems, which may pose business risk in turn. This risk-based thinking offers opportunity to put necessary controls, to mitigate and minimize the premature risks, in place. Furthermore, preventive actions can be implemented to avoid any potential business risk. Value addition to Environmental Management System is its new focus and emphasis on Life

Cycle Perspective to achieve sustainable development by balancing three pillars Environment, Society and Economy which are essential to meet the present day need of sustainable business without compromising ability of future generation and rendering them impaired. Integrated Management System has been upgraded to cover RC 14001:2015 standard. Responsible Care helps companies to not only improve their environmental, health, safety and security performance, but also to improve their business operations. As per requirement of the standard, emphasis on risk-based thinking is given. Focus for security is also considered in addition to Quality, Health, Safety & Environment system.

The Company also has HALAL and KOSHER certificates for the defined products. The Company has worked for

"Bonsucro MB ‘Chain of Custody Standard" and enhance the scope included range of products in addition to the Extra Neutral Alcohol (ENA)- Special Sprit and successfully certified by CONTROLUNION.

The Company uses an established ERP system, latest version of SAP S/4 HANA which is built on a robust

IBM hardware platform and has helped the Company to achieve inter-alia, faster performance, improved user experience through simplified data structure, smaller data footprint & embedded analytics. The Company is practicing Behaviour Based Safety (BBS) under name "BHAVISHYA BANAYE SURAKSHIT".

The Company has received International Sustainability and Carbon Certification (ISCC) for range of products, which represents that Bio - circular and circular based Products are Indeed Sustainable. It ensures that the company covers production and supply chain to meet environmental and social standards and communicate our sustainability successes. The Company has received for

Roundtable on Sustainable Biomaterial (RSB) certification to demonstrate and gain confidence of our valued customers for their sustainable purchases.

• Process Safety Management System

India Glycols is continuously working towards implementation of Process Safety Management (PSM) along with RC in the organization to ensure systematic and high level Process Safety by elaborating its specific elements and ensuring the safety of employees, environment and physical plant assets in the event of any unexpected process excursion. All the new project and major changes has been processed through Hazard and

Operability Study (HAZOP), Quantitative Risk Assessment

(QRA), Dust Hazard Analysis (DHA), Hazardous Area

Classification (HAC) and Pre Startup Safety Review

(PSSR). The Company practices one of the key pillars of PSM as Management of Change which helps to address and compile process safety information and changes.

The Company also carried out Hazard Identification and

Risk Assessment as Group Risk Assessment (GRA) and have a well-defined safety work permit system to ensure safe jobs.

Lean Management

Your Company has adopted a systematic approach to identifying and eliminating non-value-added activities through continuous improvement by following the product through flow processes based on a signal from the customers (internal

& external). India Glycols Ltd. uses the building blocks of standardized work, optimization of manpower, workplace organization 5S & visual controls, material handling systems, effective plant layout, improved operational and maintenance practices, quality at the source, batch cycle time reduction, customer demand-based manufacturing, point of use storage, quick changeover, cellular manufacturing and process improvements. We are committed to work towards continual improvement of Quality, Environment, Health & Safety, Food Safety, Energy Performance and Social accountability and we discourage discrimination of any kind in any form.

R&D and Customer Oriented Innovation

IGL has a strong commitment to both research and development

(R&D) and customer-oriented innovation, which is crucial for driving growth in todays competitive landscape. By continually designing new products, engaging with customers to understand their needs, and adopting innovative approaches,

IGL ensures that its offerings provide value to customers while also aligning with global trends such as sustainability and the push towards net zero carbon emissions. Focusing on finding alternative inputs and process technologies demonstrates a forward-thinking approach to sustainability and efficiency, which not only benefits the environment but also positions IGL as a leader in its industry. By keeping the interests of customers at the forefront of product development, IGL can tailor its offerings to meet their needs and preferences, ultimately enhancing customer satisfaction and loyalty.

Moreover, the emphasis on low carbon footprint products derived from renewable resources aligns well with the growing demand for environmentally friendly solutions. This not only helps IGL stay ahead of regulatory requirements but also attracts environmentally conscious consumers whodemands onprioritize sustainable products.

Overall, by combining R&D efforts with a customer-centric approach and a focus on sustainability, IGL is well-positioned to maintain its competitive edge and drive continued growth in the market.

Post the transfer of the Bio-based Ethoxylates and select derivatives to the JV with Clariant, IGL has established a new R&D centre. There are some notable tasks have been accomplished during the past year by IGLs R&D team:

a) Set up of New Pilot Plant Facilities: Expanding the pilot plant facility for process and product development at the newly established R&D facility in Kashipur, showcases India Glycols commitment to innovation and sustainability. By enhancing the capabilities of the pilot plant, the

Company is better equipped to design and develop novel products with focus on achieving low carbon footprints.

b) Development of Novel Specialties: A comprehensive NPD plan has been formulated for novel specialties.

A series of new speciality products including Bio-Polymers have been developed for export market as well as for domestic market, used in various industrial applications.

c) Branded new R&D Nutraceutical development and formulation:

A new Lab facility was created to further expand the Nutraceutical value added business. Different development equipments were installed with the focus on particle design to prepare the nutra product with increased bio-availability.

d) Preclinical, safety and toxicology and human clinical evaluation: The product evaluation and its safety studies (preclinical and clinical studies) has been initiated for new products in order to further penetrate globally on the branded nutra business. This will be a new area to support the product in the market with scientific data.

e) Future Trends and Growth Path: IGLs R&D efforts are geared towards providing indigenous products for various industry sectors using local resources while meeting global quality standards. With a focus on superior performance and sustainable chemistry, IGL has established itself as a leading manufacturer of bio-based performance chemicals, bio-Polymers, nutraceuticals, APIs, and more. The companys product range is known for its significantly low carbon footprint, reflecting its commitment to environmental responsibility and innovation.

Overall, these achievements underscore IGLs dedication to research excellence, sustainability, and driving innovation in the specialty chemicals industry.

The evolving landscape, particularly the increasing emphasis on environmental protection, water pollution control, and

R&D energy efficiency, has placed significant departments worldwide. India Glycols Ltd. recognizes this shift and has made it a priority to focus on innovative solutions through "GREEN CHEMISTRY." This approach aligns with the companys commitment to sustainability and addresses key challenges facing the industry.

India Glycols is actively diversifying into bio-based specialties, developing new products based on novel chemistries and green technology. These efforts are geared towards creating customized, value-added products and processes with a strong emphasis on sustainability. By utilizing renewable raw materials and optimizing energy and water usage, the company aims to minimize its environmental footprint while maximizing efficiency.

Overall, India Glycols strategic focus on value added performance chemicals, green chemistry, sustainable practices, and adherence to international standards positions it as a leader in the industry, driving innovation and helping address critical environmental challenges.

IGLs future growth trajectory looks promising, driven by its abundant key starting materials and its strategic positioning in the market. With a significant capacity in key resources such as bio-ethylene, bio-EO, bio-ethanol,

CO2^{, N}2^{, and O}2^,

the Company is well-equipped to explore new avenues in chemical production.

IGLs potential to manufacture a diverse range of products derived from renewable resources positions it as a leader in sustainable alternatives to conventional fossil-derived products. By leveraging its resources and expertise, IGL aims to offer import substitutes for specialty chemicals with minimal carbon footprints and superior performance, contributing to global efforts for decarbonization.

Looking ahead, IGL envisions itself as a trusted partner for organizations dedicated to achieving net-zero emissions. By continuing to innovate and invest in sustainable practices,

IGL aims to play a pivotal role in driving the transition towards a greener, more sustainable future, both domestically and internationally.

IGLs R&D efforts are set to introduce a diverse array of innovative products catering to various industry sectors. Heres an overview of some of the developmental projects. i) Products Derived from Carbon capturing: Leveraging C-smart alcohol, IGL aims to develop novel products with unique properties and applications. ii) Bio-Based Specialties: IGL is committed to expanding its portfolio of bio-based specialties, offering sustainable alternatives to conventional products. iii) Green Solvents: The Company plans to introduce a range of green solvents, including bio-esters and specialty bio-amines, to meet the growing demand for environmentally friendly solutions. iv) Specialty Derivatives of Poly-Galactomannans: IGL will focus on developing specialty derivatives of poly-galactomannans, unlocking new possibilities in various industries. v) APIs and Nutraceuticals: IGLs pipeline includes the development of APIs and nutraceuticals, catering to the healthcare sectors needs for high-quality, sustainable ingredients.

In terms of industry sectors, IGLs R&D efforts will target: Introducing i) Oil & Gas Industry including refineries: innovative solutions to enhance efficiency and sustainability in oil and gas operations. ii) Food Industry: Introducing sustainable ingredients and solutions for the food industry, meeting quality standards while promoting environmental responsibility. iii) Healthcare: Developing APIs and nutraceuticals to address healthcare needs, prioritizing sustainability and efficacy.

Others industry verticals include coatings, personal care and crop care, etc. By focusing on these industry sectors and leveraging innovative concepts and sustainable practices,

IGL aims to create value for its customers while advancing its commitment to environmental responsibility and innovation.

Internal Financial Controls and their Adequacy, Risk Management

The Company has in place adequate internal financial controls commensurate with the size, scale and complexity of its operations. The Company periodically discusses and reviews at its Audit Committee and with its auditors the effectiveness of the internal financial control measures implemented by the

Company including with reference to the Financial Statements of the Company.

The Company has a proper and adequate system of internal financial controls which includes the policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information.

The systems, procedures, checks and controls are routinely tested and certified by our Statutory as well as Internal Auditors.

Moreover, Company continuously upgrades and validates these systems in line with best practices and standards on internal control systems and procedures. The Company has a Risk Management Committee consisting of Directors and the Senior Management Personnel of the Company to monitor the Risk Management Plan, to identify and mitigate the risks attached to the business of the Company.

Your Companys objective of risk management is to have a meaningful identification, measurement, prioritization of risks or exposures to potential losses on a continual basis through active participation of all members of the Company and accordingly establish controls and procedures to build a visible & structured enterprise-wide risk management framework; reduce the risk levels and mitigate their effects in the likelihood of a risk event with an aim to protect our Company from harm; and have a contingency plan to manage risks having high probability and high impact.

Risk management framework is created to ensure that risk management principles are implemented and integrated all over the organization and that information retrieved from the risk management process are correctly reported. This framework provides a stable foundation for the risk management work, orient the organizational arrangements properly in order to have a clear risk strategy across the organization & share information, experiences amongst different sites of the Company.

Considering the importance of keeping the risk management process dynamic, a quarterly review of the risks is carried out across sites and departments for necessary key risks and risk management strategies are communicated to the Board of Directors for their assessment for minimization of effects of risk.

Human Resource/Industrial Relations

Company continues to focus on training its employees on a continuous basis both on the job and through training program to face challenges in the business/industry. During the year, industrial relations have been cordial. Total Number of Employees on Companys role are 1,326.

Cautionary Statement

The statement made in this report describing the Companys expectations and estimations may be a forward looking statement within the meaning of applicable securities laws and regulations. Actual results may differ from those expressed or implied in this report due to the influence of external and internal factors which are beyond the control of the Company.