India Glycols Ltd Management Discussions

Economy and Industry Overview

The global economy in fiscal year 2024-25 navigated a complex landscape marked by moderate growth, evolving inflation dynamics, significant geopolitical tensions and policy uncertainties. Most of the agencies including International Monetary Fund (IMF) has predicted the global growth forecast at 2.5% to 2.7%, below the long-term average.

Amongst all economies, the Asia-Pacific region has demonstrated relative resilience, with India emerging as a particularly strong performer. The 2024 general elections in India marked a pivotal moment, reinforcing political stability and investor confidence which are critical for sustaining economic momentum. India is projected to maintain a robust growth rate of 6.5% in 2025-26, supported by strong domestic demand and structural reforms. Now ranked as the worlds fifth-largest economy, India is set to maintain its status as the fastest- growing major economy. Key sectors such as manufacturing and chemicals are at the heart of this expansion. The country is also benefiting from shifts in global supply chains, as companies seek alternatives to China amid trade tensions.

The Indian chemical industry, a cornerstone of industrial growth, contributing approx. 7% to countrys GDP and is deeply integrated into everyday life. With global companies looking to de-risk supply chains, India is increasingly viewed as a strategic hub in the global chemical value chain. The sector is expected to grow from USD 250 billion to USD 300 billion by 2025, supported by policy measures including the Production Linked Incentive (PLI) and Atamnirbhar Bharat scheme.

What is noteworty is Indias liquor industry which showcases strong growth potential. With a volume of approximately 350 million cases in 2025, the market is projected to expand at a CAGR of over 6 %, reaching about 450 million cases in next couple of years. This growth is driven by premiumization which eminates out of aspirational Indian consumer who wants to uptrade in the value chaim all the time. The Indian consumer is evolving in consumer preferences, increasing cultural diversity that supports varied consumption patterns.

India is taking significant steps toward securing its energy future by embracing sustainable practices like ethanol blending. The governments proactive approach to ethanol blending is evident in its decision to advance the target of 20% ethanol blending from 2030 to 2025, demonstrating a strong commitment to sustainable energy practices.

Together, the chemical and liquor sectors are dual engines propelling Indias economic growth. Through innovation, strategic collaborations, and market diversification, these industries continue to create new opportunities. As India advances on its development path, these sectors exemplify the countrys resilience, adaptability, and entrepreneurial vigor.

IGL, as the only Indian company solely focused on biobased ingredients and performance chemicals. With a strong commitment to sustainability and innovation, IGL is recognized as a key player in Indias chemical manufacturing landscape.

Products

IGL is one of the leading manufacturers with its presence in Bio-Based Specialties and Performance Chemicals, Potable Spirits, Bio-Fuels, Ennature Biopharma, Bio Polymers, and Industrial Gases. Our state-of-the-art manufacturing facilities are working to provide sustainable value-added products using superior technologies.

The manufacturing building blocks are as presented below:

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.

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

C. Power Alcohol (Bio Fuel).

D. Ennature Biopharma.

The segment wise business share is indicated as below:-

Segment	Gross Revenue 2024-25 ( In Crore) (Domestic + Exports)	% Share
A. BIO-BASED SPECIALITIES AND PERFORMANCE CHEMICALS	1,341	14.84
B. POTABLE SPIRITS	6,434	71.19
C. POWER ALCOHOL (BIO FUEL)	1,044	11.55
D. ENNATURE BIOPHARMA	219	2.42
TOTAL	9,038	100

Bio-Based Specialities and Performance Chemicals Segment (BSPC)

During the year under review, Gross revenue in Bio-Based Specialties and Performance Chemicals Segment was 1,341 Crore in comparison to 1,626 Crore in FY 2023-24. This segment has contributed 14.84 % of the gross revenue of the Company.

FY	2022-23	2023-24	2024-25
Bio-Based Specialties and Performance Chemicals Gross Revenue ( in Crore)	1,578	1,626	1,341

Note: Post creation of separate segment for Bio-fuel business w.e.f. Q1/FY25, its revenue has been reported separately and does not form part of BSPC segment, Hence, previous years number are different.

Bio-based Glycols

India Glycols Limited (IGL) is a leading producer of Bio-based glycols including Monoethylene Glycol (MEG), Diethylene Glycol (DEG), Triethylene Glycol (TEG) and Heavy Glycols and ethanol derived from renewable sources. Our flagship product Bio-based MEG offers a significantly reduced carbon footprint aiding companies in achieving their sustainability objectives aligned with the UNSDGs (United Nations Sustainability Development Goals). The Glycols market has been experiencing certain challenges such as:

Market Dynamics: An oversupply of petrochemical-based MEG, particularly from regions like Middle East and China, has led to declining prices and intensified competition.

Geopolitical Factors: The Russia-Ukraine conflict has resulted in elevated energy and processing costs, impacting the operational efficiency of PET and polyester plants and reducing MEG demand.

Policy Shifts: Changes in U.S. market policies favoring recycled PET are expected to create some headwinds for the Bio-MEG sector.

In response to these challenges, IGL has implemented several strategic initiatives:

Market Diversification: By forming strategic partnerships and employing innovative marketing techniques, IGL has expanded its market share in the Far East and Southeast Asia, offsetting reduced demand in U.S. and European markets.

Sustainability Initiatives: Collaborations with international technology innovators have enabled IGL to convert ethanol from recycled industrial carbon emissions into MEG, providing sustainable sourcing options for consumers.

Client Focus: IGL continues to cater to multinational corporations and large enterprises committed to environmental sustainability, supplying Bio-MEG produced from renewable feedstock to industries such as beverage, packaging, and textile fibers.

For Bio-based Glycols & Others (other than Glycol Ether & Specialty Chemicals), the Company registered a sales value of 885 Crore during the year under review as compared to 933 Crore during previous year. The sales volume for glycols was 27,736 MT and 25,108 MT in the corresponding years.

The global MEG market is projected to grow, with estimates indicating an expansion from USD 24.16 billion in 2022 to USD 30.98 billion by 2030, at a compound annual growth rate (CAGR) of 3.2%. This growth is primarily driven by increasing demand for polyester fibers in the textile industry, particularly in the Asia-Pacific region. In India, robust domestic PET demand and growth in textile and apparel exports are expected to sustain MEG demand, with the Indian MEG market witnessing a CAGR of around 7-8%, surpassing the global average. IGL anticipates opportunities in green markets where the acceptance of Bio-MEG is increasing. With new customers adopting Bio-MEG as a green alternative, we foresee steady growth in the foreseeable future.

Glycol Ethers

India Glycols Limited has encountered significant challenges in its Glycol Ether business, primarily due to a pronounced decline in international prices of competing products such as Butyl and Propyl Glycol Ethers. This downturn is largely attributed to reduced feedstock costs in China, a major global producer, leading to more competitively priced Chinese products in Southeast Asian markets. Consequently, IGL experienced a reduction in sales to both China and Southeast Asia. The ripple effect of these low prices also impacted the domestic market, compelling traders to align their prices with Chinese import levels.

In response to these market dynamics, IGL has proactively adjusted its pricing strategies to maintain competitiveness and protect its market share. Beyond pricing adjustments, the company is emphasizing sustainability and innovation to differentiate its products. By positioning key glycol ether products as green alternatives, IGL aims to cater to the growing global demand for environmentally friendly chemicals. The Company is exploring new applications with higher value addition to sustain sales volumes and enhance profitability.

The global glycol ethers market is projected to reach USD 9.9 billion by 2030, growing at a compound annual growth rate (CAGR) of 5.5% from 2025 to 2030. This growth is driven by increasing demand in sectors such as paints and coatings, pharmaceuticals, and personal care products. By focusing on sustainable solutions, strategic partnerships, and innovative applications, IGL is well-positioned to navigate the competitive landscape effectively and capitalize on emerging opportunities in the glycol ethers market.

The sales value remained 252 Crore in FY 2024-25 as compared to 265 Crore in FY 2023-24 whereas the sales volume were 19,447 MT and 19,394 MT in the corresponding year.

Specialty Chemicals

In line with its forward-looking growth strategy, IGL has embarked on an exciting journey introducing Performance Products. The commissioning of our state-of-the-art specialty unit marks a significant milestone in this endeavor, 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, Crop Protection and Industrial applications. 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 innovative chemistries, with a keen eye on sustainability and efficiency.

We are proud to announce the successful development and launch of Bio-Monoethanolamine specifically designed for cosmetics applications, including hair care and skin care. With this innovation, we have become the first company globally to develop bio-based Amines using more sustainable, renewable raw materials. This marks a significant step forward in our commitment to sustainability and green chemistry. Among the exciting new ventures on our horizon are the development of :

• Oil-Field Chemicals

• C-Smart Derivatives

• Crop-Protection

• 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 strive 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.

The sales value achieved was 40 Crore in FY 2024-25 as compared to 8 Crore in FY 2023-24 whereas the sales volume were 2,049 MT and 958 MT, respectively.

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

Guar, commonly known as cluster bean (Cyamopsis tetragonoloba), is a drought-resistant legume native to India, where it has traditionally been consumed as a vegetable. The endosperm of its seeds yields guar gum, a versatile biopolymer utilized across various industries. India is the leading producer of guar, contributing approximately 80% of the worlds supply. Within India, Rajasthan stands out as the primary cultivating state, accounting for about 83% of the nations guar production. Other significant producing states include Gujarat and Haryana. Beyond India, guar is cultivated in Pakistan, the United States, Australia, and parts of Africa.

The ability of guar gum to form a gel makes it useful in fracking where large volume is consumed. Also guar gum is a key ingredient of many industrial food products, from baked goods to ice cream, that need to retain moisture in order to have a long shelf life. There is a growing preference for natural additives which is leading to rising demand for natural additives /thickening agents. Which is driven by growing consumer preference for natural and sustainable ingredients. Also Guar Gum finds usage in a variety of industrial processes, such as mining, paper production, and textiles.

The demand for guar gum is closely linked to the oil and gas sector, particularly the shale gas industry in the United States. A decline in fracking activities, often due to falling crude oil prices, can lead to a significant drop in guar gum demand, impacting prices and export volumes. For instance, in 2015, a 60% fall in crude oil prices resulted in reduced demand for guar gum from the U.S., adversely affecting Indian exporters. Additionally, the guar industry faces challenges such as price volatility and climate dependence. Unpredictable monsoons and droughts can impact crop yields, leading to supply chain disruptions.

While the guar gum industry has faced challenges due to its reliance on the volatile oil and gas market, diversification into other sectors and the inherent versatility of guar gum position it for potential growth in the coming years. In order to grow its Biopolymer business volume, IGL is pursuing strategic alliances and strategic partnerships.

The shale gas industry in US was almost stagnant for past couple of years which led to marginal decline in sales. The sales value reduced from 39 Crore in FY 2023-24 to 37 Crore in FY 2024-25 and Sales volume remained 1,418 MT and 1,572 MT, respectively.

Industrial Gases

The Industrial gases business continues to be a key growth driver for the Company. During the year under review, Your Companys Gas Division achieved significant milestones in terms of sales volume and revenue growth.

The Air Separation Unit achieved notable sales milestones, including:

- Sale of 19,303 MT of Liquid Oxygen, with 2,242 MT exported to new customers in South Asia.

- Sale of 3,050 MT of Liquid Argon, sold at a favorable margin driven by strong demand and price appreciation.

The Gas Division produced 33,231 MT and sold 31,978 MT of Beverage and Industrial Grade Liquid Carbon Di-oxide LCO₂ from the Kashipur plant. Your Company has also done some debottlenecking of Liquid CO₂ plant which will improve the overall yield in the coming year and make larger volumes 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 EO-CO₂ gas mixtures cylinder filling plant for ‘Manufacturing, Sales & Distribution of Cylinders filled with Ethylene Oxide and Carbon Dioxide at different ratios applicable for Medical use which help in exploring new markets and expand customer base.

Your Company also produced ETO (Ethylene Oxide & Carbon Dioxide Gas Mixtures) under the trade name IGL-STERI GAS at its Kashipur Plant. This product is specifically designed for sterilization of Disposable Surgical & Medical Devices, It is also used for spices and packing substances like rubber, plastic etc. The Company has in-house facilities for production of EO and LCO₂ which are used in production of ETO and as such it is the only plant in India to have such manufacturing facility, which gives it a distinct edge over other suppliers in the market.

During the year under review, the Company has sold 1,796 MT of STERI Gas as compared to 1,431 MT in the last year.

With addition of many new facilities in ASU and Liquid CO₂, the environment is competitive However, your Company feels that with dedication to quality and customer satisfaction it will have an edge over the competition, ensuring that your Company remains a market leader, the future seems positive.

The Industrial Gases business registered total sales of all gases of 58 Crore as compared to 52 Crore during the last year, an increased over 11% in comparison to the previous year.

FY	2022-23	2023-24	2024-25
Sales Value( in Crore)	41	52	58

Power Alcohol (Bio- Fuels)

Power alcohol presents a promising alternative to traditional fossil fuels, offering numerous environmental and economic benefits. Its renewable nature, cleaner emissions, and ability to reduce dependency on fossil fuels make it an attractive option in the pursuit of sustainable energy.

IGLs Power Alcohol plants continue to contribute to sustainable energy solutions, catering to government policies for ethanol blending in petrol.

In our continued thrust towards offering sustainable and renewable ingredients, the Company enhanced the capacities of its both Bio-Fuel ethanol plants at Kashipur and Gorakhpur. With enhanced capacities, the Company would be able to leverage its strength in ethanol manufacturing. The Company is amongst the top supplier of Bio-Fuels to Oil Manufacturing Companies ("OMCs") through their tender participation, as per Government of Indias Ethanol Blending Programme ("EBP"). For the second year in a row, the Company has been allocated quantities through tender participation for supply of Ethanol under EBP during Ethanol Supply Year from November, 2024 till October, 2025.

The Companys revenue from Power Alcohol witnessed fabulous growth, reflecting its commitment to renewable energy sources.

The Company registered a revenue of 1,043 Crore during financial year 2024-25 as compared to 512 Crore last year from sale of Power Alcohol.

Potable Spirits and Extra Neutral Alcohol (ENA)

During the year, your Company registered total sales value of 6,306 Crore as compared to 5,558 Crore 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 3,79,000 KL per annum for the production of ethyl alcohol, out of which 1,35,788 KL per annum 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 portion dedicated to this sector. There 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 flavors & 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 co-packs Bacardi Range which keeps IGL in good stead to follow global standards for its products. While, the Bacardi partnership business continues to grow over all these years, your Company had also made another strategic partnership with Amrut Distilleries Pvt. Ltd, Bengaluru and is now manufacturing, bottling, marketing and selling Amruts premium brands for Whisky, Brandy and Rum segments, on royalty basis for different north Indian states. This partnership offers a handsome bottom line as well as image to the Company. What is noteworthy is that IGLs best quality ENA is used in all the brands.

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. India Book of Records has awarded a certificate to the Company (Gorakhpur Unit) for achieving highest sales (for the financial year 2023-24) for its Country Liquor brand namely "Bunty Bubbly" for the second consecutive year.

The Excise Policies for the year 2025-26 in both our home states (Uttar Pradesh and Uttarakhand) are progressive. Now, the manufacturers in these States dont have to pay Excise Duty upfront at the time of dispatch. The Excise Duty has to be paid by the Distributors along with the Indent to lift the stocks from the distilleries. This eases the pressure on working capital requirements for the Company. 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 a substantial pie share in the flavoured Vodka category in the Tetra segment. With the amended excise policy of Uttarakhand allowing to sell liquor in tetra pack for both IMFL and Country Liquor categories, the Company has commenced deliveries in new packaging.

In the Para Military & CSD vertical, the Company has got approved few more brands for All India Sales from authorities of Para Military. This vertical also has shown good traction during the year.

FY	2022-2023	2023-2024	2024-25
Potable Spirits Sales Value ( in Crore)	4,705	5,558	6,306

Ennature Biopharma

During the year, your Company registered sale value of 217 Crore as compared to 202 Crore last year in the Ennature Bio-pharma division, an increase of over 7 % in comparison to the previous year.

At Ennature Biopharma, our innovation strategy is firmly anchored in sustainability, scientific excellence, and social responsibility. We specialize in the development of safe, plant- based ingredients for the pharmaceutical, nutraceutical, and food & beverage industries—delivered through environmentally conscious and clinically validated processes.

In the API segment, Thiocolchicoside continue to gain market share in FY 24-25 and the Company has emerged as one of the leading suppliers in both domestic and international markets.

In Nicotine segment, the market share of Pure Nicotine decreased due to stiff competition from new players. The Company is working towards building value added Nicotine derivatives business for sustainable growth.

In Nutra vertical, as a part of our ongoing efforts to build branded nutraceutical Ingredients range, the Company has invested in developing three more branded ingredients with unique value proposition, targeting Womens health and gut health. The pre-clinical and Pharmacokinetic studies of Maxicuma are published in reputed journals. Maxicuma is getting a good response and is launched by some of our customers in Asia Pacific region. The Company continues to strengthen the science of existing branded nutraceutical ingredients by conducting some additional clinical studies.

Subsequent to the year closure, the unit has received the Establishment Inspection Report (EIR) with no observation from US Food and Drug Administration (USFDA) on 24^th April, 2025 for the Companys nutraceutical products and dietary supplements ingredients at Dehradun Plant. The receipt of EIR underscores the Companys commitment to adhering to global quality standards and paves the way for access to the premium U.S. market, along with other highly regulated global markets.

Furthermore, to boost margins we have undertaken initiatives such as cost optimization, capacity debottlenecking and mitigating risk associated with input raw materials.

A key differentiator lies in our use of 100% green Supercritical Fluid CO₂ and sugarcane-derived ethanol for solvent-free extractions. These methods, supported by complete solvent recovery systems, enable us to maintain zero liquid and zero solid discharge. By converting plant biomass into energy, we cover our major energy requirements, significantly reducing our carbon footprint and supporting our climate-positive manufacturing model.

Our raw material sourcing is deeply ethical and community driven. Partnering with Indian farmers and cooperatives, we promote organic cultivation, fair-trade practices, and local empowerment. Key ingredient is traceable from farm to formulation, and undergoes rigorous testing to comply with USP, Ph. Eur., and Indian Pharmacopeia standards.

FY	2022-23	2023-24	2024-25
Sales Value ( in Crore)	189	202	217

Exports

Exports has been a focus area for IGL. IGL has been leveraging its identity as a Green Chemicals Company to create niche markets in sutainability space. IGLs use of green feedstock for the manufacture of chemicals is helping our partners and customers to achieve their sustainability objectives. The Company continues to hold the ‘Three Star Export House status as granted by the Government of India. The matured markets like North America, West Europe and Far East /South East Asia who are leading the pack in adopting low carbon footprints are naturally our focus markets for promotion of Bio-Glycols. Additionally, the Middle East and South East Asia markets remain significant importers of Glycol Ether products. Our portfolio of Extra Neutral Alcohol is finding new markets in Middle East, North and East Africa and South East Asia markets. IGL exports are also likely to get momentum from the ‘China plus one approach among developed nations which is elevating the prominence of Indian goods worldwide. 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.

India Glycols Limited has long been at the forefront of sustainable chemical manufacturing, utilizing renewable feedstocks to produce eco-friendly products such as Bio-MEG, Glycol Ethers, and Specialty Chemicals. This commitment aligns with the global shift towards sustainability. Additionally, the Companys strategic focus on exports has solidified its position as a trusted supplier to multinational corporations dedicated to environmental responsibility. The Companys dedication to green chemistry and sustainable practices remains a strong differentiator, navigating the complexities of increased trade barriers is imperative. Exploring alternative markets, diversifying the product portfolio, and enhancing domestic collaborations could serve as viable strategies to mitigate the impact of these tariffs and sustain growth in a challenging global trade landscape. By targeting high-value green markets, IGL has earned the trust of multinational corporations and large enterprises committed to environmental sustainability. Through partnerships with global brands and the adoption of innovative technologies—such as converting ethanol from recycled carbon emissions into MEG and other derivatives—IGL is at the forefront of efforts to reduce carbon footprints. Additionally, IGL plans to expand its product lines to further penetrate both green and other value-added chemical segments, aiming to drive profitable growth.

During the year under review, your Company has recorded export sales value of 541 Crore as compared to 535 Crore during last year.

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FY	2022-23	2023-24	2024-25
Export Sales Value ( in Crore)	577	535	541

Financial Review

During the FY 2024-25 on a standalone basis, your Company recorded gross revenue of 9,052 Crore (the highest ever revenue) as compared to 7,944 Crore in FY 202324. Whereas, the profits after depreciation and tax for the FY 2024-25 were 180 Crore as compared to 152 Crore during the FY 2023-24. For more financial and performance details, Board Report be referred.

During the year under review, the Gross Fixed Assets has increased to 4,377 Crore in FY 2024-25 from 3,713 Crore in FY 2023-24.

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. 61 to the Standalone Financial Statements for FY 2024-25.

Outlook

Indias manufacturing landscape continues to benefit from strong macroeconomic fundamentals, ongoing government incentive schemes and policy support. These factors are expected to fuel industrial growth and domestic consumption in the coming year.

Aligning growth strategy with sustainability, innovation and evolving global trends, IGL has partnered with global technology innovators to produce MEG from recycled industrial carbon emissions. This not only strengthens our green product portfolio but also positions us as a frontrunner in offering sustainable alternatives, catering to the rising global demand for circular and low-carbon products.

The global MEG market presents promising and steady growth in the foreseeable future. This growth is primarily driven by increasing demand for polyester fibers in the textile industry, particularly in the Asia-Pacific region. In India, domestic MEG demand, particularly from the PET and textile sectors, is expected to outpace global growth. Opportunities are growing in green markets as more customers are adopting Bio-MEG as a sustainable alternative.

Joint venture with Clariant International Ltd, Switzerland (Clariant) is a major step in this direction. The JV combines IGLs renewable chemical expertise with Clariants global reach to supply green ethylene oxide derivatives, especially in the fast-growing home and personal care markets in India and neighbouring countries.

Indias specialty chemicals industry is a key part of the countrys economy and exports. Specialty chemicals are high-value products used in small amounts but have a significant impact in various industries like agriculture, pharmaceuticals, textiles, personal care, automotive, construction, and electronics. The main factors driving the growth of this industry are:

• Increased domestic demand due to urbanization and rising incomes

• Export opportunities under the China+1 strategy

• Infrastructure and construction fuels demand for construction chemicals, paints, coatings, and adhesives.

• Rising use of green and bio-based chemicals

IGLs investments in bio-specialty chemicals and our cutting- edge R&D facility at Kashipur are laying the foundation for long-term value creation. We are actively collaborating with global leaders for R&D, including efforts in bitterness masking and selective adsorption technologies for herbal extracts.

The spirits business continues to benefit from rising disposable incomes and better lifestyle preferences supported by excise policies. It is well known that spirits is the biggest revenue earner for any state exchequer. In IGL, we are working on premiumization of our brands portfolio which give both rich top and bottom line. With enhanced production capacity coupled with strategic tie ups like with Bacardi International and Amrut Distilleries, we expect to increase at an increasing rate both in volume and profits in this segment.

The governments continued push towards ethanol blending in petrol aiming for 20% blending by 2025 presents a significant opportunity for companies. This shift not only supports energy security and import substitution but also drives demand for ethanol and its derivatives, supporting our green chemistry initiatives.

In Ennature Biopharma segment, the global nutraceuticals market projects promising growth driven by increasing health awareness, preventive healthcare trends, and rising demand for functional foods and supplements. Ennature Biopharma, nutraceuticals and API arm, is well-positioned to capture this opportunity. With a strong global B2B presence and scientifically-backed products, Ennature is expanding its branded specialty nutraceutical line and deepening its footprint in the regulated markets of Europe and the U.S. Our focus remains on innovation, sustainability, and wellness, with an active pipeline of patents under development.

Under global challenges, Indias economic momentum is expected to remain robust. IGL is closely monitoring market trends and adapting proactively to changing dynamics. Through strategic partnerships, enhanced capacities, and continued investments in green technologies and innovation, the Company is confident of delivering consistent growth across all its business segments.

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 and influencing the entire value chain. This also helps in maintaining environmental impacts.

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 paramedical 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.

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 of 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 . 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 (K₂SO₄) 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 content of these materials make a significant contribution 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. The LCA analysis was carried out using the licensed software tool, SimaPro, and the reports are regularly updated to ensure relevance and accuracy. .

In continuation Company has also conducted LCA study for its other products such as Bio-Ethanol, Bio-Ethylene Oxide, BioGlycols 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 biotechnological ly 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 and Earth day. The focus of the World Environment Day and Earth 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 (FSSC 22000 ver-5), and Quality Management System for medical devices (ISO 134852016) as applicable. 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 the requirement of 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

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-key drivers of growth in todays competitive landscape. By continuously designing new products, engaging with customers to understand their evolving needs, and adopting innovative approaches, IGL ensures that its offerings deliver value while aligning with global trends such as sustainability and the transition toward net- zero carbon emissions. The Companys focus on identifying alternative raw materials and process technologies reflects a forward-thinking approach to both efficiency and environmental responsibility. This not only contributes to environmental sustainability but also reinforces IGLs position as a leader in its industry. By prioritizing customer needs throughout the product development process, IGL is able to tailor its solutions to specific market demands, ultimately enhancing customer satisfaction and loyalty.

Overall, by focusing on research, customer needs, and sustainability, IGL is in a strong position to stay ahead of competitors and keep growing in the market.

IGLs focus on low carbon footprint products made from renewable resources meets the rising demand for eco-friendly solutions. This approach not only ensures compliance with regulations but also appeals to environmentally conscious consumers. By combining R&D efforts with a customer- focused and sustainable strategy, IGL is well-positioned to stay competitive and continue growing. After transferring its Biobased Ethoxylates and selected derivatives to a joint venture with Clariant, IGL established a new R&D center, where the team has achieved several important milestones over the past year.

a) Expansion of Pilot Plant facility: Expanding the pilot plant facility by installing plug flow tubular reactor for the development of green solvent for various applications. 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 specialty products including Bio-Polymers have been developed for export market as well as for domestic market, used in various industrial applications.

c) New Specialty Products: A comprehensive new product development (NPD) plan has been implemented for novel specialty products. Several new specialty products,

including bio-polymers, have been developed for both export and domestic markets, intended for use in various industrial applications.

d) 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.

Scientific validation is at the core of our R&D. Every new ingredient if required undergoes comprehensive pharmacokinetic, toxicological, and clinical evaluation, using state-of-the-art analytical platforms such as HPLC, LC-MS/MS, and GC-MS. We adhere strictly to ICH and OECD guidelines, ensuring global compliance, data reproducibility, and research integrity.

Our innovation pipeline includes cutting-edge platforms like:

• MAXICUMA?: A clinically validated joint health ingredient.

• LIMAN™: Technology for converting lipophilic actives into water-soluble powders.

• SCEMOD™: Designed for enhanced solubility, stability, and bioavailability.

• Advanced delivery systems: Including taste-masked, sustained-release, and multilayered beadlet formats to improve user adherence.

e) 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.

f) 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.

As global priorities shift toward environmental protection, water quality, and energy conservation, R&D teams across the world face growing pressure to adapt. India Glycols Ltd. has responded to this change by placing a strong emphasis on developing innovative, eco-friendly solutions through the principles of green chemistry. This strategy reflects the Companys dedication to sustainability and tackles major challenges within the chemical industry.

India Glycols is strategically expanding into bio-based specialty products, focusing on innovative chemistries and environmentally friendly technologies. These initiatives are designed to deliver tailored, high-value solutions with sustainability at their core. By leveraging renewable resources and improving the efficiency of energy and water use, the company seeks to reduce its environmental impact while enhancing overall operational performance.

India Glycols emphasis on high-value performance chemicals, green chemistry, and sustainable operations—combined with its compliance with global standards—positions the Company as an industry leader, fostering innovation and contributing to the resolution of key environmental issues.

IGL is well-positioned for future growth, supported by its strong market presence and access to essential raw materials. With substantial capacity in key inputs like bio-ethylene, bio-EO, bio-ethanol, CO₂, nitrogen, and oxygen, the Company is well- prepared to expand into new areas of chemical manufacturing. IGLs capability to produce a wide variety of products from renewable sources positions it as a frontrunner in providing sustainable alternatives to traditional fossil-based chemicals. Utilizing its strengths and technical expertise, the Company strives to deliver high-performance, low-carbon specialty chemical substitutes, supporting global decarbonization initiatives.Looking forward, IGL aspires to become a reliable partner for companies committed to reaching net-zero emissions. Through ongoing innovation and investment in sustainable solutions, IGL seeks to contribute significantly to the global shift toward a greener and more sustainable future, both in India and worldwide. IGLs R&D initiatives are focused on launching a broad range of innovative products tailored to meet the needs of multiple industry segments. Below is a summary of some key development projects:

i) Products from Carbon Capture: By utilizing C-smart alcohol, IGL is working on the development of innovative products with distinct characteristics and specialized applications.

ii) Bio-Based Specialties: IGL is focused on growing its range of eco-friendly products that can replace traditional chemical options.

iii) Green Solvents: The Company aims to launch a variety of eco-friendly solvents, such as bio-esters for agriculture and specialty bio-amines for personal care, to address the increasing need for sustainable 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: IGL is working on developing active pharmaceutical ingredients and nutraceuticals to meet the healthcare industrys demand for reliable and sustainable ingredients.

In terms of industry sectors, IGLs R&D efforts will target:

i) Oil & Gas Industry, Including Refineries: Developing advanced solutions aimed at improving efficiency and promoting sustainability within the oil and gas sector.

ii) Food Industry: Providing sustainable ingredients and solutions that adhere to quality standards while fostering environmental responsibility in the food sector.

iii) Healthcare: Creating APIs and nutraceuticals to meet healthcare demands, with a focus on sustainability and effectiveness.

Other industry sectors, including coatings, personal care, and crop care, are also key areas of focus. By concentrating on these verticals and utilizing innovative ideas and sustainable practices, IGL strives to deliver value to its customers while reinforcing its dedication to environmental responsibility and innovation.

Internal Financial Controls and their Adequacy, Risk Management

The Company has established a robust framework of internal financial controls that is commensurate with the size, scale, and complexity of its operations. These controls are periodically reviewed and discussed by the Audit Committee and the Companys auditors to ensure their continued effectiveness, particularly in relation to the Companys financial statements.

A comprehensive internal control system is in place, encompassing policies and procedures designed to ensure the orderly and efficient conduct of business operations. These measures support compliance with Company policies, safeguard assets, prevent and detect fraud and errors, maintain the accuracy and integrity of accounting records, and facilitate the timely preparation of reliable financial information.

The internal control mechanisms are routinely tested and validated by both Statutory and Internal Auditors. The Company remains committed to continuous improvement, regularly upgrading its systems in alignment with evolving best practices and recognized standards for internal control.

In order to further strengthen the same, a dedicated Risk Management Committee—comprising members of the Board and Senior Management—oversees the Companys Risk Management Plan. This includes the identification, assessment, and mitigation of key business risks.

The objective of the Companys risk management approach is to systematically identify, evaluate, and prioritize risks on an ongoing basis. It seeks to implement structured controls and preventive measures enterprise-wide, reduce exposure to risk events, and ensure the organization is well-prepared to respond effectively. This includes contingency planning for risks with a high probability and significant impact, thereby protecting the Companys interests and continuity.

The risk management framework ensures that risk management principles are embedded across all levels of the organization and that insights from the process are accurately captured and reported. It also facilitates the alignment of risk strategies, fosters knowledge-sharing across locations, and promotes a unified risk-aware culture.

Recognizing the dynamic nature of business risks, the Company conducts quarterly reviews across departments and operational sites. Key risks and mitigation strategies are identified and communicated to the Board of Directors for further assessment and to guide strategic decisions aimed at minimizing potential impacts.

Human Resource/Industrial Relations

At India Glycols Limited, we recognize that our people are our most valuable asset. During the year, the Company continued to focus on strengthening its human capital through strategic initiatives in talent acquisition, capability development, performance management, and leadership pipeline building. We have placed strong emphasis on fostering a high- performance, inclusive, and collaborative work culture.

Employee engagement and well-being remained a priority, with various programs launched to enhance morale, productivity, and workplace safety. Our learning and development frameworks have been reinforced with digital tools and targeted interventions to equip our workforce for future-ready competencies.

On the industrial relations front, the Company maintained a harmonious and constructive relationship with all its employees. We continue to uphold transparent communication channels and fair employment practices. Our employee-first approach and consistent efforts toward mutual trust and respect have contributed significantly to a stable and motivated workforce.

Total Number of Employees on Companys role are 1,357.

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.