Orient Cement Ltd Management Discussions

Prelude

Orient Cement Limited, part of Ambuja Cements and the Adani Group, combines a legacy with innovative solutions to address Indias diverse construction needs. Recognised for its focus on durability and sustainability, OCL offers advanced materials that support long-lasting and responsible construction.

With modern cement manufacturing plants and a dedicated clinker grinding unit, the Company is positioned to expand its presence across key markets, including Maharashtra, Karnataka, Telangana, Andhra Pradesh, Madhya Pradesh and South Gujarat, while supporting the Groups nation-building vision and creating long-term value for stakeholders.

One Cement Platform

Adani Cement has announced the amalgamation of ACC Limited and Orient Cement Limited into Ambuja Cements Limited under its One Cement Platform strategy. The move consolidates operations under a single flagship entity, strengthening scale, competitiveness and capital efficiency to build a pan-India building materials leader.

Building on the integrations of Sanghi Industries Limited and Penna Cement Industries Limited, the initiative enhances synergies, governance and ESG alignment while maintaining institutional execution capabilities. It will support the targeted capacity expansion to 119 MTPA in a structured and phased manner by FY 2026-27, unlocking efficiencies across manufacturing, logistics and capital allocation to drive sustainable long-term growth. s and support responsible resource efficiencie

Capital Markets Engagement

Adani Cement organised plant visits for analysts and investors during the year, at the Marwar Mundwa plant in Rajasthan and Sanghipuram Kutch, Gujarat, engaging leading analysts and investors from domestic and global institutions. Through plant walkthroughs and leadership interactions, OCLs parent company showcased its scale, capacity expansion, digital integration and Group synergies. The visits also highlighted Sanghipurams strategic advantages, including its strong resource base, integrated infrastructure and logistics capabilities, reinforcing investor confidencein execution strength and long-term growth.

Master Supply Agreement (MSA)

Orient Cement Limited operates within a structured network of Master Supply Agreements

(MSAs) across the Adani Cement portfolio, including arrangements with Ambuja Cements

Limited, ACC Limited, Sanghi Industries Limited,

Asian Fine Cement Private Limited, Penna Cement

Industries Limited and Adani Cement Industries

Limited. These agreements enable the structured movement of cement, clinker and other materials across group companies, supporting efficient inter-company transactions.

During the year, OCL sold 6 million tonnes

Cement and Clinker (CLC) under these arrangements, reflecting the scale of this integrated supply network.

The framework allows either entity to operate manufacturer or procurer, enabling reciprocal sourcing of materials and services under transparent pricing and arms length principles. This helps optimise capacity utilisation, improve supply network efficiency and enable flexible allocation of cement, clinker, fly-ash, coal and other critical inputs. Cement supplied under the arrangement is marketed under the procuring entitys brand, preserving brand identity while leveraging shared infrastructure. These MSAs strengthen operational synergies, improve cost

utilisation across the Groups integrated cement ecosystem.

Economic Scenario

In 2025, global economic growth remained resilient despite headwinds from evolving trade policies. Strong technology-led investments, particularly in artificial intelligence, provided an important counterbalance, with growth momentum more pronounced in North America and Asia. Supportive fiscal and monetary measures, broadly accommodative financial conditions and the adaptability of the private sector sustained economic activity. However, global uncertainties, including geopolitical developments and energy market volatility continued to pose risks to growth. Overall, global GDP is estimated to have grown by 3.4% in 2025, while headline inflation averaged around 4.1%.* Supported by robust domestic demand, continued structural reforms and a stable macroeconomic environment, Indias economic scenario remained favourable. During the year, the country received three sovereign credit rating upgrades. Manufacturing and construction recorded growth of around 7%, and investment momentum remained strong, with gross fixed capital formation (GFCF) rising by 7.8% in FY 2025-26 and contributing nearly 30% of GDP over the past three years.

Inflation moderated significantly during the year. Average headline

CPI inflation stood at 1.7% during April-December 2025, reflecting broad-based easing in food and fuel prices. Among major emerging markets, India recorded one of the sharpest declines in inflation during 2025.** Although input costs for sectors such as cement remained sensitive to global commodity trends.

Infrastructure development continues to accelerate, supported by a more than fourfold increase in capital expenditure since

FY 2017-18. Rapid highway expansion, near-universal rail electrification, growing aviation

Economic Scenario Outlook

Indias economic prospects remains structurally strong over the medium to long term, supported by resilient domestic growth drivers even as global demand conditions may remain uncertain. However, prolonged geopolitical tensions in West Asia, particularly the

Iran-Israel conflict, could pose risks to growth.

Continued investments in infrastructure are likely to enhance logistics efficiency and reduce production costs, strengthening the countrys cost competitiveness. Investment conditions are also expected to remain stable, with the real investment-to-GDP ratio projected to remain around current levels and capital productivity supported by sustained efficiency gains. Advancing the Viksit Bharat vision is expected to rely significantly on fiscal policy. This could involve a greater share of government spending directed towards capital expenditure, alongside a strategic focus on emerging technology sectors including artificial intelligence, space, robotics, advanced infrastructure and defence. The expansion is likely to be supported by stronger tax compliance and improved revenue buoyancy rather than major structural tax reforms.

Cement Industry Scenario

The operating environment during FY 2025-26 remained dynamic, with input cost pressures, particularly in fuel, logistics and energy continuing to influence profitability across the industry. Demand conditions also remained variable across regions and periods, reinforcing the need for disciplined execution and cost management.

Construction momentum has remained strong, during FY 2025-26.

Demand has remained supported with variability across regions and

*ICRA

periods. With construction activity typically accelerating after the monsoon, demand is expected to improve sequentially in H2 FY 2025-

26 as compared to average growth of 6% to 6.5% in H1 FY 2025-26.

Policy support could reinforce demand, particularly through a potential reduction in GST on cement and the governments sustained focus on infrastructure investment, supporting demand trends, subject to execution pace and external factors.

In anticipation of favourable demand conditions, leading cement manufacturers are pursuing both organic and inorganic expansion strategies. Industry capacity additions are projected at

42-44 MTPA in FY 2026-27, following additions of 50-55 MTPA in FY 2025-26. Capacity utilisation is expected to remain broadly stable at around 70-71%, with relatively higher utilisation levels in northern and central markets, while the southern region may continue to experience comparatively moderate utilisation due to capacity overhang.*

Cement Industry Outlook

The Company anticipates that cement demand in India will expand by approximately 5% in FY 2026 27.

This follows a robust growth phase of 6.5 7.5%* in FY 2025 26, which was fuelled by steady momentum in the housing and infrastructure sectors. Throughout the year, demand showed resilience due to active construction, even as shifting geopolitical events in West Asia caused volatility in the raw material and fuel markets. Moving forward, the Governments ongoing emphasis on infrastructure-driven development, combined with a potential cut in the GST rate for cement, is anticipated to sustain demand momentum into

FY 2026 27, balancing out the high input costs triggered by international supply chain disruptions. In this favourable demand climate, major cement producers are actively executing organic and inorganic capacity expansion plans to secure their market positions. Simultaneously, they are working to mitigate cost pressures stemming from expensive coal, petcoke, and freight, alongside the strain of a depreciating Rupee on imported resources.

Overall, the industry is positioned for long-term growth, despite near-term demand and cost fluctuations.

Industry competitiveness and resilience are being bolstered by rapid capacity expansions, technological integration, and environmental initiatives. Backed by supportive policy reforms, eco-friendly innovations, and broadening export markets, Indias cement industry is ideally positioned to anchor the nations long-term infrastructure goals and foster sustainable development for decades to come.

Key Demand Drivers

Urbanisation and Housing Development

Urbanisation, rising housing demand and government-led affordable housing initiatives are supporting cement consumption in India. Investments in commercial real estate, logistics, manufacturing and data centres are diversifying demand, while stronger rural incomes, expanding infrastructure and improved multimodal logistics are lowering freight costs and widening market access in an underbuilt economy.

Increasing Per Capita Consumption

Indias per capita cement consumption remains well below worldwide benchmarks, signalling immense room for long-term expansion as economic growth and construction projects accelerate. Currently standing at roughly 290 kg per capita against the global average of nearly 540 kg, domestic consumption is poised for steady gains over the next ten years. This upward trend is driven by fast-paced urbanisation, a growing number of new households, and wider adoption of formal housing. These foundational demand factors are expected to anchor the industrys long-term growth, even as manufacturers manage temporary fluctuations in raw material and operating expenses.

Government Infrastructure Push

Higher capital expenditure on highways, ports, metro rail and industrial corridors is accelerating construction activity and supporting cement demand. Long-term consumption is reinforced by PLI schemes, Smart Cities initiatives,

FDI inflows and China+1-led manufacturing shifts. The $2.6 trillion

National Infrastructure Pipeline and strong FY 2025-26 capex allocations continue to underpin infrastructure-led growth for the sector.

Operational Overview

OCL maintains reliable and efficient operations across its 8.5 MTPA manufacturing network, supported by standardised processes, rigorous operational controls and continuous improvement practices. Certified management systems and established operating protocols ensure consistent plant performance, product reliability and disciplined operational execution across locations.

The Companys quality assurance framework is aligned with the operating, quality and sustainability systems of its parent organisation. Standardised quality control infrastructure, certified testing processes and continuous monitoring across the value

88 chain enable the delivery of high-performance cement products.

Sustainability-linked quality improvements focus on optimised raw material utilisation, supply chain stabilisation and responsible input substitution, strengthening both product quality and environmental performance. Automation and digitalisation across laboratories and testing systems enhance accuracy, operational efficiency and real-time decision-making.

Operational efficiency is supported by an integrated logistics framework that combines behavioural initiatives, technology and performance monitoring. Driver Management Centres established across multiple locations provide structured counselling and training programmes focused on fatigue management, speed discipline,

PPE usage, vehicle fitness and route safety. Performance-based recognition systems and logistics scorecards reinforce accountability and continuous improvement across the transport ecosystem.

The Company is also strengthening supply chain resilience through strategic partnerships and modal optimisation. A collaboration between its parent company and

Container Corporation of India

Limited (CONCOR) is expected to scale up rail-based bulk cement transportation through specialised tank containers and dedicated container rakes across key corridors. The initiative will support improved logistics efficiency, lower transportation costs and reduced carbon intensity, while laying the groundwork for the development of future bulk cement terminals.

Digital Interventions

Driven by its RESQ philosophy:

Reliability, Efficiency, Sustainability and Quality, OCLs parent company, Ambuja Cements, has built its digital strategy around three key priorities: modernising core platforms, transforming processes for scalable growth, and developing future-ready intelligent systems. This approach reflects a shift from using digital as an enabler to embedding it at the core of the business, enabling decisions, processes and operations to become increasingly data-driven, agile and resource efficient.

OCLs parent company, Ambuja Cements, continues to strengthen its digital infrastructure to support more efficient and sustainable operations. The initiative also enables the gradual adoption of advanced digital solutions, including Digital Twins, aimed at enhancing reliability, forecasting capabilities and operational efficiency across plants.

The parent also continued to advance its digital manufacturing capabilities through the implementation of the Technical

Information System (TIS), a centralised platform designed to improve operational visibility and efficiency across the value chain. The platform enables real-time monitoring, predictive maintenance and data-driven decision-making, while supporting improved resource efficiency and more streamlined operations.

Pillar 1 - Reimagining and Reengineering the Core

OCLs parent company, Ambuja Cements, has continued to strengthen its digital foundation through an AI-first, cloud-native ecosystem designed to support scale, agility and intelligent decision-making. Platforms such as the Adani Ambuja Intelligence

Platform and CiNOC are enabling enterprise-wide integration of ERP, IoT, analytics and fleet systems to improve operational visibility and decision throughput.

A standardised ERP backbone and software-defined architecture are further enhancing resilience, operational consistency and financial governance. At the same time, the Company has reinforced digital trust and cyber resilience through a comprehensive OT cyber security framework covering asset visibility, risk monitoring and automated recovery systems, supported by

ISO 27001 certification.

Pillar 2 - Strategic Differentiation at Scale

The parent company continues to leverage digital technologies to enhance efficiency, responsiveness, and customer experience across its operations.

Intelligent and touchless processes, including ePOD and automated invoice-to-pay systems, are streamlining workflows, improving accuracy and strengthening planning through AI-enabled forecasting tools. Enhanced digital visibility across a fleet of more than 60,000 trucks, along with initiatives such as DIGIPIN, is improving logistics efficiency, route discipline and delivery precision.

Manufacturing operations are also evolving through the use of over 10,000 IoT sensors across

38 units, enabling predictive maintenance, AI-led optimisation, and automated control systems that enhance throughput and equipment reliability. In parallel, digital engagement platforms are simplifying dealer onboarding and strengthening customer interactions and service responsiveness.

Pillar 3 - Future-Proofing with Sustainable Intelligence

network

With a focus on resilience and sustainability, OCLs parent company, Ambuja Cements, is embedding intelligence across the value chain to build more agile and future-ready operations. AI-enabled systems are improving decision-making speed, operational responsiveness and functional control. Digital integration from quarry to lorry, including drone-based inspections, voice-enabled interfaces and automated traceability solutions, is enhancing visibility, execution and safety. The adoption of digital twins is improving lifecycle visibility and enabling more efficient planning and operational management, while sustainability dashboards are strengthening monitoring of greenhouse gas emissions, material efficiency and greener logistics planning. Alongside technology adoption, the Company continues to invest in workforce capability building through structured learning and cross-functional collaboration, ensuring digital transformation is embedded across the organisation.

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Branding and Marketing

Orient Cement benefits from the brand-building initiatives of its parent company, Ambuja Cements, which follows a digital-first marketing approach supported by regional activations and strong channel engagement. These campaigns have generated over 610 million impressions and reach, enhancing visibility and engagement across key markets.

Supported by a wide dealer and channel partner network, the parent companys marketing efforts focus on premiumisation and deeper market penetration. Cinema and digital audio campaigns, on-ground activations, targeted digital content and dealer enablement programmes, backed by data-driven performance tracking, drive engagement, lead generation and sales conversion.

Knowledge Sharing and Technical Engagement

Orient Cement benefits from its parent company Ambuja Cements knowledge-sharing platforms for architects and engineers, which promote sustainable construction practices, advanced materials and innovative techniques. Ambuja Knowledge Centres (AKCs) across 18 locations educate architects and engineers on sustainable construction practices through physical and virtual sessions, reaching 20,000+ professionals with 22,525 engagements through Knowledge Meets.

Executive Excellence Programme

OCLs parent company collaborated with IIT Kanpur and introduced the

Executive Excellence Programme

(EEP), a four-day residential certificationcourse for architects and engineers, strengthening technical capabilities through focused modules on emerging construction technologies and industry best practices.

Celebrating Engineers Day

On Engineers Day, the Company recognised engineers across the construction ecosystem for delivering scalable, precise and sustainable solutions that support responsible infrastructure development.

Contractor Engagement - RewardConnect

The contractor engagement programme Ambuja Abhimaan, now integrated into the RewardConnect platform, strengthens engagement with contractors while promoting high-quality construction practices. With nearly three lakh contractors enrolled, the platform offers structured rewards, recognition and initiatives that foster long-term partnerships.

Contractor CEO Club

Introduced by Ambuja Cements, the Contractor CEO Club engages leading contractors through leadership interactions, skill development programmes and safety initiatives. The platform recognises excellence, strengthens collaboration and supports premium product adoption, currently engaging over 1,800 contractors nationwide.

NEEV Abhiyaan - Building Contractor Trust

Through NEEV Abhiyaan, led by Ambuja Cements, contractors participate in structured plant visits to experience manufacturing processes, quality controls and safety systems firsthand.

These engagements enhance transparency, reinforce confidence in product quality and deepen long-term contractor relationships.

Channel Partner and Contractor Engagement

Orient Cement benefits from the broader partner engagement ecosystem of its parent company, which conducts structured contractor and channel partner meets across markets to recognise contributions, strengthen relationships and reinforce a performance-driven partner network.

Dhanvarsha

Dhanvarsha, an Adani Cement initiative, is a quarterly platform connecting channel partners, influencers and contractors through transparent, performance-linked rewards. Combining digital and on-ground engagement, the programme has reached over 50,000 stakeholders, strengthening collaboration across the cement ecosystem.

Dealer CEO Club

The Dealer CEO Club, led by Adani

Cement, engages top-performing channel partners through strategic dialogues, recognition programmes and productivity initiatives. The platform strengthens partnerships, aligns partners with growth plans and reinforces a performance-driven ecosystem built on shared success.

Sustainability

OCLs sustainability strategy targets an increase in thermal substitution rate and renewable energy use by 2030, advancing toward Net Zero emissions in alignment with its parent company and global frameworks. The Company is strengthening its low-carbon transition through greater use of alternative fuels and raw materials, lower clinker factor, utilisation of lower-grade limestone and fly ash, improved energy efficiency and expanded renewable energy, including a 10.1 MW Waste Heat Recovery System (WHRS) at Chittapur, while preparing for

Indias Carbon Credit Trading

Scheme (CCTS).

Alongside environmental action, OCL continues to support community development and responsible operations through road infrastructure at Devapur and Kasipet, a box culvert at Tudemgudem, health camps, enhanced safety practices and medical facilities at its plants. The Company also promotes education through schools at Devapur (Telangana) and Chittapur

(Karnataka), while strengthening digital infrastructure in Government schools near Jalgaon.

OCL remains committed to inclusive growth and operational excellence, with focus on local hiring. Its

Devapur and Chittapur plants have also been recognised by the

Bureau of Indian Standards (BIS) for recording zero quality complaints over the past four years.

Pathway to Net Zero

OCLs parent company Ambuja Determined Contributions under Cements is committed to the Paris Agreement, Ambuja achieving Net Zero emissions Cements is expanding green by 2050 and is also among four power usage, reducing fossil large-scale cement companies fuel dependence and advancing globally to have its Net Zero circularity initiatives. It is also and Near-Term targets validated investing in emerging solutions by the Science Based Targets such as rotodynamic heating initiative (SBTi) and a leading powered by green energy and Indian cement company to piloting carbon capture and become a TNFD adopter. utilisation technologies to

Aligned with Indias Nationally accelerate decarbonisation.

Environment

Climate and Energy Management

Orient Cement strengthens its climate and energy management practices through operational efficiency improvements, renewable energy adoption and technology-led initiatives. Energy performance across plants is monitored through periodic audits and management reviews to identify efficiency opportunities and optimise thermal and electrical energy consumption. These efforts align with the sustainability roadmap of its parent company and support the transition to a lower-carbon operating model. The Company continues to reduce energy intensity through process optimisation, increased renewable power use and the deployment of Waste Heat Recovery Systems (WHRS).

A key milestone was the commissioning of a 10.1 MW WHRS at the Chittapur plant, which recovers energy from kiln exhaust gases to support power requirements and reduce emissions. The Company is also upgrading infrastructure at Devapur and Chittapur to increase alternative fuel use and improve thermal substitution rates. Following its integration with the Adani Group, Orient Cement is accelerating its transition to renewable and green power. y 716 kCal/kg clinker Specific thermal energy consumption y 3.1 GJ/tonne cementitious material - Energy intensity y 66.8 kWh/tonne cement Specific electrical energy consumption y 41% - Power consumed from renewable and green sources y 9% - Thermal Substitution Rate

Emissions Management

The cement industry contributes

approximately 7-8% of global CO 2

emissions, largely due to energy use and process emissions from clinker production. Orient Cement monitors emissions across Scope 1, Scope 2 and Scope 3 and continues to implement initiatives to lower its carbon footprint.

Key decarbonisation levers include increasing renewable energy use, improving thermal substitution rates, generating power through

WHRS, enhancing energy efficiency and optimising clinker factor. The

Company is also advancing supply chain decarbonisation through bulk transportation, adoption of electric mobility and AI-enabled logistics optimisation. The broader group is exploring emerging solutions such as zero-carbon heating technologies and carbon capture, utilisation and storage (CCUS) to support long-term decarbonisation.

GHG Emissions

Emissions Emission Intensity

Scope 1

640 Kg CO 2 /tonne of

cementitious material

Scope 2

4 Kg CO 2 /tonne of

cementitious material

Air Emissions

To control air pollutants such as NOx, SOx and particulate matter, the Company has installed advanced emission control systems, enclosed material handling infrastructure and dust suppression systems. Continuous Emission Monitoring

Systems (CEMS) provide real-time monitoring and regulatory reporting to ensure compliance with environmental standards.

Particulate Emissions

236 tonnes

SOx

61 tonnes

NOx

2,460 tonnes

Water Management

Orient Cement advances responsible water stewardship through efficient use, recycling and conservation across its operations. Water withdrawal and consumption are monitored to ensure responsible use of shared resources.

Treated water is reused for dust suppression, greenbelt maintenance and other operational needs, with all wastewater treated and reused within plant premises, enabling Zero Liquid Discharge (ZLD). Rainwater harvesting through mine pits, rooftop systems, check dams and pond restoration supports water security for operations and surrounding communities.

0.99 million KL

Water Consumption

158 KL/tonne of cementitious material

Water Intensity

42 % million KL

Share of Harvested Rainwater

92,998 KL

Recycled Water Used

Waste Management and Circular Economy

Orient Cement promotes responsible waste management through segregation, recycling and co-processing. Waste from maintenance, packaging and auxiliary activities is systematically managed.

Waste is segregated at source and classifiedas hazardous or non-hazardous. Plastic waste is co-processed in cement kilns, while e-waste, biomedical waste and other hazardous materials are handled through authorised recyclers and treatment facilities. Used oil and scrap materials are reused or recycled wherever feasible.

Mining overburden is repurposed for mine backfilling, and fly ash is utilised in blended cement production. These practices ensure zero hazardous waste is sent to landfill while strengthening circular economy principles.

0.125 million tonnes

Total Waste Generated

1.14 million tonnes

Waste-derived Resources

Utilised

Certifications

ISO 9001

Quality Management System

ISO 14001

Environment Management System

ISO 45001

Occupational Health and Safety Management System

ISO 50001

Energy Management System

ISO 27001

Information Security Management System (ISMS)

Biodiversity

Orient Cement undertakes afforestation and biodiversity initiatives around its plants and mining areas, planting native species in collaboration with local authorities and communities to strengthen green cover and support ecosystem restoration.

40,954

Saplings Planted during

FY 2025-26

Human Resources

The Company is committed to building a future-ready workforce by fostering open communication and collaboration. Its HR policies focus on leadership development, internal mobility, continuous skill building and technology-driven process improvements.

Cadre Hiring and Future Talent Pipeline	Internal Career Progression and Promotions	Workforce Integration with Adani Cement
Orient Cement strengthened its talent pipeline through focused hiring of Graduate Engineer Trainees (GETs), Diploma Engineer Trainees (DETs) and Management Trainees (MTs), building technical, operational and managerial capabilities aligned with evolving business needs.	The Company supports internal career growth through merit- based promotions, structured performance evaluation and succession planning, strengthening leadership across functions.	Following the acquisition, Orient Cements workforce was smoothly integrated into the Adani Cement ecosystem, ensuring continuity of employment and alignment with shared policies, governance standards and organisational values.

Diversity, Equity and Inclusion

The Company promotes an inclusive and respectful workplace reflecting Indias cultural and regional diversity, with a zero-tolerance approach to discrimination and harassment supported by regular training and

POSH policies. Women hold key positions, supported by initiatives such as BeConnected, which offers mentorship, networking and professional growth opportunities. Equal pay practices are maintained, while efforts also promote the inclusion of differently-abled employees. These initiatives embed

DEI principles across HR practices and stakeholder engagement.

Talent Acquisition

Orient Cement, supported by its parent company Ambuja Cements, attracts talent through multi-channel recruitment including digital platforms, professional networks, internal mobility and campus engagements. Employee retention is strengthened through defined career pathways, recognition programmes and a supportive work culture.

Long-term incentives such as the

Retention Bonus programme, structured onboarding and continuous learning through the e-Vidyalaya platform support employee development.

Employee Engagement and Development

Employee engagement is strengthened through open communication and leadership interaction. Initiatives such as team-building activities, town halls, leadership sessions and Coffee with Leaders interactions encourage collaboration and participation. High performance is recognised through spot awards, Employee of the Month honours and Long Service Awards for employees completing over 10 years with the organisation. Regular surveys and feedback mechanisms help enhance employee experience and workplace culture.

Learning and development remained a priority during the year.

A comprehensive Skill Matrix was introduced to map competencies and design targeted training plans supported by an updated training calendar. Sales and technical teams were trained through the Multi Value Proposition Programme, while knowledge-sharing platforms such as Medhas 2.0 and Prayas

3.0 strengthened cross-functional collaboration. The Finance team also conducted functional skill sessions to enhance domain expertise.

Health and Safety

Health and safety are integral to OCLs manufacturing operations, supported by structured governance, leadership oversight and workforce engagement. Safety KPIs are integrated into leadership performance frameworks, with regular reviews covering high-risk areas such as Life-Saving

Controls (LSCs), structural integrity, electrical safety and process safety management.

Training programmes incorporate lessons from past incidents and plant-specific risk assessments. The Saksham programme provides video-based training for contract workers, while line managers receive specialised training in risk assessment, incident investigation and management of high-risk activities.

Technology strengthens safety assurance through platforms such as Benchmark Gensuite, centralised dashboards and periodic safety audits, with drones used to monitor high-risk processes.

Employee engagement campaigns including Boots on Ground, My

TOOL My PRIDE, Roko Toko and

Bye Bypass, along with leadership interactions through Suraksha

Samvad, reinforce safe behaviours and participation across operations.

Safety Management Pillars
Leadership Commitment and Governance	Training and Capability Building	Technological Intervention for System Assurance	#WeCare
Significant investments are made to enhance structural integrity and plant safety, with no budget constraints for safety improvements. Safety by design is embedded in projects, alongside continued focus on capability building. Robust first- party audits, led by cross-site leadership teams, strengthen safety systems, with over 248 (OCLs parent Ambuja Cements).	Subject matter experts were deployed to strengthen on-site capabilities, with a focus on process safety, incident investigation and controls for high- risk areas such as silo cleaning and coal mills. This was supported by targeted safety workshops and incident- learning videos to reinforce best practices. Additionally, Saksham training was delivered to contract workers through video-based learning modules.	The Company aligns with established safety standards, using the SafeX tool to report key indicators. It deploys technologies like drones for high-risk activities, supported by Life Saving Controls and Boots on Ground initiatives. Safety parameters are monitored via the One India dashboard, with regular audits ensuring compliance.	As a part of Ambuja Cements, OCL places strong emphasis on people and is committed to achieving zero harm across its workforce, including employees, associates and contractors. Aligned with the WeCare framework, a care-based safety management system, the Company reinforces safety through robust controls, regular audits and structured reviews. With a focus on competency building and cultural transformation, the Company continues to strengthen risk awareness and embed a proactive safety culture across its operations.

Human Rights

OCL embeds human rights in its tolerance for child or forced values, ensuring fair treatment, labour and sets standards on fair ethical conduct, and grievance wages, safety, non-discrimination, redressal for employees, contractors, and freedom of association. suppliers, and communities. Its Workplace culture promotes dignity, Human Rights Policy, aligned privacy, and a discrimination-free with international standards, environment, supported by trade covers the value chain, while unions and anonymous grievance 100% of employees were trained. mechanisms.

The Supplier Code enforces zero

Corporate Social The Company Secretary serves as The community in focus is Responsibility the Committees secretary. Devapur in Telangana, where integrated interventions are OCLs CSR initiatives are aligned with A Corporate Social Responsibility being implemented. the Adani Foundation framework,

(CSR) Committee has been embedding social responsibility into constituted in accordance with Community Health its operations to drive inclusive and the Companies Act, 2013 and SEBI Across cement locations, Adani sustainable development across (LODR) Regulations, 2015. Foundation is strengthening its footprint. Interventions are

The Committee reports to the Board primary healthcare delivery through focused across key areas including of OCLs parent company, Ambuja decentralised, last-mile systems. climate action, community health, Cements Limited, and comprises A mix of outreach services and fixed education, sustainable livelihoods, four members, including three facilities, enabled by digital tools, skill development and community Independent Directors, with an diagnostics and frontline workers, development.

Independent Director as Chair. helps improve access, continuity of care and early intervention, supported by partnerships with public and private providers.

71,597

Outreach

Education

Efforts focus on improving learning environments and outcomes through school infrastructure upgrades and structured academic support.

Interventions include capacity-building for teachers, remedial learning and inclusive programmes, complemented by initiatives like

UTHAAN that enhance classroom practices and address learning gaps in government schools.

29,667

Outreach

Sustainable Livelihood Development

Programmes are designed to diversify and strengthen rural incomes through an integrated approach spanning agriculture and allied sectors. Interventions promote resource-efficient farming, build farmer capabilities and improve market linkages, while supplementary activities such as livestock rearing create additional income streams for vulnerable groups.

24,434

Outreach

Skill Development

Youth-focused skilling initiatives align training with market demand, enabling pathways into employment and self-employment. Convergence with government schemes and access to financial services further support income stability and long-term livelihood security.

7,043

Outreach

Community Development

Infrastructure projects are implemented based on local priorities, enhancing essential services and shared spaces.

Improvements in connectivity, water access, lighting and community infrastructure contribute to better living conditions and strengthen social cohesion.

2,76,760

Outreach

Climate Action

Interventions aim to improve ecological resilience through water conservation, natural resource management and afforestation. These efforts support sustainable agriculture, restore local ecosystems and help communities better manage climate-related risks.

35,968

Outreach

Risk Management

For the Company, risk management is not just a regulatory requirement but a strategic priority driving decision-making and operational excellence. Operating in a dynamic environment, the Company remains committed to identifying, assessing, monitoring, and mitigating risks to protect its business, enhance stakeholder value, and support sustainable development. Oversight is provided by the Risk Management Committee and the Audit Committee, guided by a Board-approved Risk Management Policy detailing processes and committee responsibilities.

Key Risks and Mitigation Measures

R1 Maintaining Market Position in a Dynamic Industry Environment

Description	Mitigation Measures
The Indian cement market is evolving rapidly, with consolidations and ongoing capacity additions increasing competitive pressure on market share and profitability.	To mitigate this risk, OCLs parent company, Ambuja Cements, is focusing on capacity expansion, thereby strengthening its market position across India. In addition, the Company is enhancing its brand equity through innovation and digitalisation to remain competitive and profitable.
R2 Compliance with Changes in Regulatory Landscape
Description	Mitigation Measures
Regulatory requirements are evolving rapidly across countries in response to climate and environmental concerns. Non-compliance with these new standards introduces significant complexity, with potential reputational and financial consequences. Addressing these challenges necessitates transformation, which entails upgrading and modifying strategies, which can often involve substantial costs.	OCLs parent company, Ambuja Cements, is investing in various initiatives across its operations to lower carbon emissions and comply with the new emission standards for dust, SOx and NOx, as mandated by the Ministry of Environment, Forest and Climate Change (MoEF&CC). These initiatives help ensure compliance with environmental regulations and minimise any adverse impact.
R3 Fuel and Raw Material Security Challenges
Description	Mitigation Measures
The cement industry is capital- intensive and heavily reliant on energy and resources (like limestone, fly ash and coal), which constitute a significant portion of operating costs. Consequently, effective cost management and efficiency improvements are critical to the industrys sustainability and competitiveness.	OCLs parent company, Ambuja Cements, prioritises long-term supply agreements to ensure business continuity by optimising its fuel mix, enhancing plant efficiency, and increasing the use of alternative fuels such as WHRS and solar energy, while also ensuring reliable fly ash availability through long-term sourcing agreements.
R4 Cybersecurity Threats
Description	Mitigation Measures
Cybersecurity is of utmost importance within the organisation. OCLs parent company, Ambuja Cements, continuously identifies and mitigates potential data leakages that could threaten its information systems. Simultaneously, measures are being implemented to establish a secure and monitored environment for the use of AI tools and solutions. As the digital landscape evolves nationally and globally, OCLs parent company, Ambuja Cements, recognises the need for the construction sector to adapt, driving the development of more efficient and effective solutions.	OCLs parent company, Ambuja Cements, operates within a secure environment, supported by advanced cybersecurity solutions and air-gapped, cyber-safe backup procedures to protect critical systems. Regular upgrades, patching, policy reviews and user awareness programmes strengthen resilience across networks, cloud infrastructure, data centres, business applications and cybersecurity frameworks.
R5 Health and Safety Priorities
Description	Mitigation Measures
Health and safety are fundamental to how OCLs parent company, Ambuja Cements, operates, requiring a multidisciplinary, collaborative approach, with a strong commitment from all stakeholders across every level of the organisation.	OCLs parent company, Ambuja Cements, continuously reviews systems and processes to enhance frontline safety. Initiatives such as Unchaai Kendra and Life-saving Safety Rules raise awareness and help prevent accidents, while regular risk assessments further support onsite and offsite measures in OCLs parent company, Ambuja Cements, commitment to achieving Zero Harm.
R6 ESG Risks
Description	Mitigation Measures
The main ESG Risks fall under the category of climate risk, water risk and biodiversity risk. Climate risks consists of physical risks (acute: flooding, droughts, etc; chronic: heat stress, water stress, etc.) and transitional risks (regulatory, technology, market, and reputation risks) which may impact operations and supply chains. The water stress in certain areas may impact water availability for operations as well as communities around. The dependencies and impact of our operations on the surrounding ecosystems may cause biodiversity risks.	A strong climate governance mechanism is in place, supported by clear metrics, resilient infrastructure planning, emergency preparedness, and continuous monitoring aligned with climate targets, water efficiency and conservation initiatives and biodiversity conservation and enhancement.
R7 Natural Resource Availability
Description	Mitigation Measures
The cement industry is heavily reliant on natural resources such as limestone and coal. Ensuring a continuous supply of these essential materials, while maintaining optimal cost and quality standards, is critical for smooth business operations.	To mitigate risks associated with natural resources, OCLs parent company, Ambuja Cements, is enhancing operational efficiency to optimise resource utilisation. The Company is also prioritising resource conservation, reuse and recycling, implementing initiatives to improve the clinker factor and thermal substitution rate, alongside investments in renewable energy and WHRS systems to reduce reliance on non-renewable sources. Additionally, OCLs parent company, Ambuja Cements, is investing in coal and limestone mines to secure the supply of key raw materials, aiming to enhance sustainability, minimise environmental impact and build a more resilient supply chain.

R8 Energy Security

Description Mitigation Measures

Energy security is critical for OCLs Recognising the significance of mitigating the risks associated with parent company, Ambuja Cements,, as energy price inflation, OCLs parent company, Ambuja Cements, implements it directly affects both operations and a strategy to diversify fuel sources, including deploying alternative fuels. overall production costs. With energy This approach minimises the impact of fluctuating energy prices and supports expenses constituting a significant sustainability. The Company continually evaluates energy procurement options portion of production costs, particularly and implements innovative technologies to improve energy efficiency and during the energy-intensive kilning operational resilience, ensuring it remains competitive in a dynamic and grinding processes, efficient cement industry. management of energy consumption is essential for the Company.

R9 Project Execution
Description	Mitigation Measures
Project execution is central to the Companys vision of achieving 119 MTPA by FY 2026-27, with large- scale projects already underway at multiple efficiency, speed and sites. Ensuring timely completion, upholding the highest safety and quality standards, and adhering to budgetary targets remain OCLs parent company, Ambuja Cements, foremost priorities.	The Company leverages synergies with the Adani Groups project management arm to execute large-scale projects efficiently. Strong cash flow through internal accruals and an EPC-led project delivery model with global suppliers and streamlined processes under the Projects teams 5S approach help achieve maximum scale.

Outlook

Orient Cement is set to become one of the countrys most valuable cement companies. Its integration reinforces the belief that scale, disciplined execution, and shared purpose create enduringadvantage.

The Company will continue to scale responsibly, innovate with purpose, and build sustainably, advancing renewable energy,

alternative fuels, waste heat recovery, water stewardship, biodiversity, and community development. Safety, reliability, environment, and quality remain core operational priorities, supported by digital monitoring, AI-enabled systems, and industry-first innovations that strengthenresilience and operational excellence.

Internal Control Systems and their Adequacy

The Company has internal control systems that are appropriate for the business requirements, size of operations, and applicable regulations. The Board of Directors and the Audit Committee are independent of management and are responsible for ensuring the

Companys internal controls.

To address the identifiedrisks, the company has adopted control systems. Such controls are implemented by policies, standard operating procedures (SOPs), and

Internal Financial Control (IFC) risk and control matrices. Digitisation initiatives, such as ERP - SAP S/4HANA with SAP Rise, sales force automation for interactions between the sales team and customers, transaction flow via electronic proof of delivery (EPOD), invoice upload to the customer portal and automated invoice matching, approval workflow automation by the approved DOA with SharePoint 2.0, and its integration with SAP transactions, have strengthened the control environment. As the use of digital applications and exposure to an external network increase, cybersecurity evaluations are done frequently.

The Company has retained Ernst &

Young (E&Y) as its Internal Audit (IA) partner. With standard risk coverage, all essential business processes were thoroughly and effectiveness of evaluated to gain an understanding of the operations related to the Companys business. Continuous

Control Monitoring (CCM) is a key part of extracting value from data analytics. In addition, the company has an internal audit department staffed by skilled professionals who plan, conduct, coordinate, and monitor audit activities, as well as follow up on compliance and indicated actions.

Furthermore, the Companys whistleblower policy allows all stakeholders to report and assist the organisation in detecting and preventing any suspicious behaviour. The whistle-blower follow up mechanism then conducts a thorough investigation into all reports to detect and curb any violations. The whistleblower policy ensures complete confidentiality and protects the whistleblower from any attempted harassment.

The Company uses an advanced internal financial controls (IFC) system in which process owners self-assess critical controls the quarterly utilising the controls self-assessment tool, in addition to external assessments by audit partners. Control documents are updated with revised practices, and responsibilities for control execution are updated regularly.

Looking ahead, the Company will use data analytics and automation in audit and other procedures to properly scope and deep dive into designated key areas. The

Company continues to raise stakeholder understanding of governance, risk, and compliance through training, workshops, and culture development.