Orient Cement Ltd Management Discussions

Indian Economic Overview and Outlook

In 2024, India upheld its status as one of the fastest-growing major economies globally. The International Monetary Fund (IMF) projected a 6.5% GDP growth for both FY 2024-25 and FY 2025-26, underscoring confidence in the countrys economic path. This stable outlook is driven by robust private consumption, especially in rural regions, alongside significant public investments in infrastructure.

Despite global economic challenges like geopolitical tensions and inflationary pressures, Indias economic outlook remains optimistic. The country is set to continue its growth momentum, bolstered by structural reforms and technological advancements. Although some sectors are grappling with high inflation and reduced consumption, these challenges present opportunities for policy actions to boost demand and promote inclusive growth. The governments proactive fiscal policies and infrastructure initiatives are expected to address these issues, supporting a resilient and dynamic economic environment.

Industry Overview

Indias Cement Industry Overview

India is the second-largest producer of cement in the world. It accounts for more than 8% of the global installed capacity. India has a lot of potential for development in the infrastructure and construction sector and the cement sector is expected to benefit from it. Additionally, driven by increasing rural housing demand, cement consumption in India has been steadily rising. The robust expansion of the industrial sector is another key driver of demand for cement. As a result, the long-term demand potential for the cement industry is strong. Initiatives, such as the development of 98 smart cities, are expected to provide a significant boost to the sector.

The government has been sharpening its focus on the infrastructure sector and has launched various schemes for the development of following:

Roads: The Bharatmala Pariyojana is a centrally funded project aimed at developing 34,800 km of national highways. Phase I of the project is in-progress and it is expected to be concluded by FY 2027-28.

Airports: Ude Desh Ka Aam Nagarik (UDAN) is the Ministry of Civil Aviations flagship scheme, which aims to connect regional airports in smaller towns.

Railways: Most of Indians prefer commuting via trains, as railways remain the most affordable transport option for inter-state connectivity. Expansion of the railway network is slowly progressing.

After a subdued first half in FY 2024-25 due to the general elections and heavy monsoon rains, the cement sector saw revival in demand in the December 2024 quarter. This was driven by a pick-up in construction activities, improved rural demand, growth in the real estate sector, and increased government spending.

Major players are strengthening their market positions through significant acquisitions and expansions to boost capacity and growth. However, the industry faced several challenges in FY 2024-25, including moderate capacity utilisation, lower sales realisation, contraction of margins, and slower volume growth, which impacted the topline and profitability of most manufacturers. Cement demand grew by 2% year-on-year (YoY) in the first half of the current financial year, recovering to 5% by February25. Despite modest infrastructure sector allocations in the budget, increased funding for Pradhan Mantri Awas Yojana (PMAY) and initiatives to boost rural income are expected to drive housing demand, benefiting the cement sector.

Consolidation within the industry is expected to improve profitability in due course. Large players stand to benefit from economies of scale, improved supply chain efficiency, and better pricing. Despite new capacity additions, long-term demand is expected to outstrip supply.

The Indian cement industry is set for significant growth, driven by infrastructure projects and urban development. Installed capacity is expected to reach 850 million tonnes per annum by 2030 and

1,350 million tonnes by 2050. Strong economic factors, including GDP growth, rising incomes, and a growing workforce, will support demand. Recent tax cuts and capital expenditure plans will further boost housing and infrastructure development. The Cement Manufacturers Association targets a 6% CAGR* in capacity, with utilisation nearing 70%.# While demand moderated in 2024, the industry is expected to rebound in 2025, with 8% growth driven by government spending. Mergers & acquisitions, and capacity expansion will remain key industry trends towards sustained growth, supported by strong economic fundamentals, government initiatives, and strategic industry developments.

Company Overview

Orient Cement, founded in 1979, as a Division of Orient Paper and Industries, was demerged and its equity shares were listed on stock exchanges in July 2013, and since then it has emerged as one of the most respected cement manufacturers in India. The Company is primarily engaged in cement manufacturing and selling, and have presence in various states such as Maharashtra, Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, Kerala, Gujarat, and some parts of Madhya Pradesh and Chhattisgarh.

Over the years, the Company has gained the trust of its clients based on the quality and reliability of its products and services. Utilising state-of-the-art facilities, the Company uses high-quality raw materials in its cement production. The company operates manufacturing plants at Devapur (Telangana), Chittapur (Karnataka), and Jalgaon (Maharashtra). The Company consistently innovates to address the changing needs of its customers by introducing new products to suit the emerging needs. To further enhance its efficiencies and circularity ambitions, it focuses on the use of advanced manufacturing processes and technologies.

The members of the Promoter Group (PG Members) of the Company have entered into a share purchase agreement dated October 22, 2024 (SPA) with Ambuja Cements Limited (Purchaser/Ambuja) for sale of all equity shares of the Company held by them. The Purchaser has received the required approval of the Competition Commission of India (CCI) under the Competition Act, 2002 on March 4, 2025. On April 22, 2025, post completion of transfer of equity shares from the PG Members of the Company to Ambuja and subsequent change in the Board of Directors of the Company, Ambuja has assumed control of the Company. Pursuant to the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, Ambuja has further acquired 5,34,19,567 equity shares from the public shareholders of the Company, constituting 26% of the equity share capital of the Company at a price of I 395.40 per equity share under the Open Offer.

Financial Overview

In the markets served by the

Company, demand remained subdued throughout the year. Cement prices were under pressure and followed a downward trend due to this subdued demand. The demand was significantly impacted by the General

Elections in Q1 and the Maharashtra Assembly Elections in Q3. The effect of the elections on cement consumption was more severe than we had anticipated as, Maharashtra accounts for nearly two-thirds of the Companys total volume, along with better realisations.

Throughout the year, international petcoke prices fluctuated, but the overall trend showed a moderate decline. In contrast, domestic coal prices saw an upward movement. Despite these challenges, the Company effectively managed its fuel costs by enhancing operating efficiencies, leveraging digital tools, making strategic procurement decisions, exploring alternative fuel options and sources, and optimising price arbitrage and fuel availability. Additionally, the Company made significant progress in replacing fossil fuels with sustainable alternatives. As part of this commitment, the Company expanded its alternative fuel portfolio and significantly improved use of alternative fuels including in its captive power plants. These initiatives not only contributed to environmental sustainability by promoting green and clean operations but also led to cost reductions. The use of Alternative Fuels (AFR) in cement manufacturing has increased to 17% TSR (Thermal Substitution Rate) from 12% TSR last year. AFR usage at the Captive Power Plants (CPP) has also improved to 20% TSR, up from 6% TSR last year.

During the year, the Company commissioned the second phase of its Waste Heat Recovery System (WHRS) at its Chittapur plant. The WHRS is generating power continuously at full capacity, even exceeding our expectations, and is helping the Company achieve its goal of sustainable green power while also delivering substantial cost savings.

Additionally, the Company added 3.7 MW of solar power capacity under the group captive scheme for its Jalgaon plant. With this additional capacity, the Jalgaon plant now consumes more than 70% of its energy from green sources. During the year, renewable and green power consumption increased to 40% from 17% YoY, supported by WHRS at Chittapur, the new solar power capacity at Jalgaon, and higher renewable power purchases through the energy exchange at Chittapur.

The fly ash rake handling facility at the Chittapur plant, along with the lease of a fly-ash rake, has improved flexibility in sourcing fly ash from distant locations at lower costs, while also reducing road traffic and pollution.

The increase in B2B sales, which generally involve longer credit periods, and the import of petcoke in vessels toward the end of the year, have placed pressure on working capital. However, the Company has effectively managed its cash flow. As a result, the Companys balance sheet is now nearly net debt-free. During the year, the share of premium products in trade sales further increased to 25% from 21% last year. This improvement reflects the sustained efforts the Company has made on premium products and the superior quality of the products, which have gained strong acceptance in the market.

Despite challenges in demand and pricing, our focus on renewable power, AFR usage in CPP and kilns, operational efficiency, digitalisation, and prudent management of discretionary spending has helped partially mitigate the impact on EBITDA.

For the year under review, the Company reported total income of I 2,728.70 crore, a decline of 15% compared to I 3,200.61 crore in the previous year. The Companys capacity utilisation for the full year was 64%, a decline of 8 percentage points over the previous year.

Cement sales volume for the year decreased by 11% to 54 lakh metric tonnes.

The Companys EBITDA for FY 2024-25 is I 321.19 crore, reflecting a decline of 31% compared to I 464.75 crore in the previous year. The Company reported a post-tax profit of I 91.25 crore in

FY 2024-25, compared to I 174.85 crore in FY 2023-24.

Key Financial Ratios
Particulars	March 31, 2025	March 31, 2024	Change (%)
Earnings Per Share(C)	4.45	8.53	(48%)
Return on Net Worth%	5.07%	10.41%	(51%)
Debt Equity Ratio#	0.02	0.07	(71%)
Interest Coverage@	50.49	31.43	61%
Operating Profit Margin	11.86%	14.59%	(19%)
Net Profit Margin^	3.32%	5.47%	(39%)
Debtors Turnover	10.92	14.20	(23%)
Inventory Turnover	8.21%	9.19	(11%)
Current Ratio	1.38	1.29	7%

?Earningpersharehasdeclinedduetodecreaseincurrentyearsprofitmainlyonaccountofdecreasein sales volume and sales price.

%ReturnonNetworthdeclinedduetodecreaseincurrentyearsprofitmainlyonaccountofdecreasein sales volume and sales price.

#Debt equity ratio improved due to repayment of the debt through internally generated funds. @Interest Coverage improved due to repayment of the debt through internally generated funds. ^Net Profit margin declined due to decrease in current years profit mainly on account of decrease in sales volume and sales price.

Operational Overview

During the year, the Company made efforts to further strengthen its brand positioning in the markets, along with leveraging our unique brand portfolio. This has led to an improvement in the sales of premium products led by Strong Cement, one of our key premium offerings, compared to last year.

The Western region continues to be our primary sales contributor, followed by the South and Central regions. Various new initiatives have been implemented to expand and strengthen our brand visibility and network. The Company has also made further investments in technology upgrades, particularly in sales, marketing, and logistics, which have enhanced systems, processes, and data-driven decision-making, thereby improving operational efficiency.

The additional capacity of WHRS at Chittapur, one of our integrated cement plants and the new solar arrangement under captive scheme for our Jalgaon grinding plant, have helped reduce the Companys reliance on fossil fuels and replace thermal power with green energy, reinforcing our commitment to fostering a sustainable future.

The rake fly-ash handling system, installed last year along with a leased rake is now operating at full capacity. It has improved the flexibility and efficiency of our fly-ash movement and helped in sustainable operations by reducing road transport via trucks.

The Company has made proactive contributions to environmental sustainability by adhering to regulatory compliance, undertaking biodiversity protection initiatives, and reducing reliance on fossil fuel.

In FY 2024-25, the Company has invested further to expand its sales and distribution infrastructure. Orient Cement uses advanced technologies to enhance transparency and to track its deliverables effectively. Further, training and development programmes are organised by the Company to enhance the abilities of its sales and distribution teams. In FY 2024-25, the total sales of the Company amounted to 54 lakhs metric tonnes down from 61 lakhs metric tonnes in FY 2023-24.

Branding and Marketing

Marketing Initiatives

Radio Campaign Strong Cement Monsoon Cement Campaign

To further strengthen the brand awareness of our premium product – Strong Cement & enhance brand saliency, the Company has done 30-day radio campaign.

Strengthening Brand Presence & Awareness

Expansion of Digital Marketing Initiatives: Given Orient Cements limited digital presence, a strategic push was made towards increasing digital marketing activities. This included enhanced social media engagement, performance marketing, and influencer collaborations to boost brand recall.

Award and Recognition

The brand received the Green Concrete Initiative of the Year award at the World of Concrete India Awards 2024, reaffirming the Companys commitment to sustainability.

Additionally, Orient Cement was honoured as one of Indias Top 500 Value Creators by Dun & Bradstreet and named the 3rd Fastest Growing mid-size Cement Company (2024–25) at the 8th Indian Cement Review Awards.

Concrete Xpert Bike Engineer Service

The Company had introduced an innovative marketing initiative, ‘Concrete Xpert Bike Engineer service, across selected regions. This marketing initiative is focused on providing on-site assistance to our customers in additional locations by skilled engineers. The Company enhanced its coverage to include 70 additional units, over and above the initial 10 for this financial year.

Product-focused Initiatives

The Company undertook focused Above-the-Line (ATL) and Below-the-Line (BTL) promotional activities aimed at enhancing consumer awareness and strengthening dealer engagement.

As part of the initiative, an on-site One-Day Strength Demonstration campaign for Strong Cement was conducted across the region. The campaign yielded a positive impact on market perception, with over 400 demonstrations conducted, engaging more than 6,000 stakeholders.

Marketing campaigns were strategically designed to emphasise the sustainable and eco-friendly attributes of the product, in alignment with the Companys broader environmental initiatives. A Green Day campaign was launched to promote the Green Cement brand. The initiative effectively engaged dealers, influencers, and consumers through a series of activities including tree plantation drives, drawing competitions highlighting Green Cements unique selling propositions, counter meets, and Bazar Day camps—aimed at generating awareness and interest around the product.

Over 300 activities were conducted, reaching more than 4,000 individuals and resulting in over 400 consumer conversions.

Consumer and Trade Engagement

Participation in key festivals: Marketing initiatives during Ganesh Utsav in Mumbai and Karnataka Rajyotsava were successfully executed to build brand visibility in key regional markets.

Trade and Influencer Engagement: Special campaigns and dealer-focused activities were undertaken to reinforce channel relationships and drive sales performance. For influencer engagement, two cycles of the UNNATI and PRAGATI programs were implemented during the financial year, reaching over 20,000 influencers across key operating markets through targeted activations.

Digital Campaigns

Strong Cement Monsoon Cement Campaign on Plantix

Plantix, the most widely accessed agricultural app in India, served as a key platform to engage with one of our most critical target segments. Through this channel, Strong Cement was promoted as the optimal choice for construction activities during the monsoon season.

Achieved an organic reach of over 50,000 accounts across key social media platforms, including Facebook, Instagram, LinkedIn, X (formerly Twitter), and YouTube.

The Strong Cement campaign, themed No Compromise on Home Building, achieved a total reach of over 11 million across YouTube and Facebook, surpassing the planned target of 9 million.

Both platforms delivered exceptional performance, not only in terms of reach but also across key engagement metrics such as views and clicks. Notably, the Facebook campaign alone garnered 55 million impressions.

We Care

In FY 2024-25, the Companys ‘We Care programme enhanced the well-being of its channel partners and strengthened the Companys identity as a responsible and caring corporate. The Company provided its dealers with opportunities to prioritise their health and well-being through ‘Fit Together programmes, and ‘Health Talks. Participants in these sessions received essential insights from fitness instructors and certified nutritionists.

Brand Awareness

The Company has implemented various initiatives to further raise brand awareness of its portfolio of brands and products.

Water-repellent Cement

The Companys Water-repellent Cement has been well received by customers, with its special qualities earning strong appreciation since its launch.

Product features

A super-premium product

An all-weather cement product

Dolphins lower permeability slows down water infiltration and air into concrete. This protects steel bars from rusting for longer period when compared to regular cement.

Strong Cement

Strong Cement, used for concrete applications such as foundations, beams, columns and slabs, is specially engineered by using innovative technology. The most crucial portions of a house—the load-bearing concrete structures—require special cement that can sustain very high pressure and withstand harsh climatic changes. Strong Cement, with the power of OptiMix18™, not only helps in building stronger houses, but also ensures that it lasts for ages.

Green Cement

Green Cement aligns with the Companys objective of creating safe and sustainable ecosystems for future generations by providing better eco-friendly experiences throughout its life cycle. The CII - Green Products and Services Council awarded the Company with the GreenPro accreditation.

Key Features Rust Resistance

Green Cement increases the concrete quality in RCC works as it reduces the numbers and size of capillary pores and as a result, it increases the density of the concrete matrix. Further, it hinders the transport of chlorides into the concrete through microscopic cracks responsible for the corrosion of steel inside the concrete structure.

By maintaining the required pH, Green cement prevents rusting of steel in the structure.

Needs Less Water

When compared to other variety of cement, it uses less water to make mortar and concrete mix. It lowers porosity in concrete and inhibits seepage, resulting in denser and more impermeable concrete.

Moisture- and Tamper-proof

The tamper-proof and water-resistant LPP (Laminated Polypropylene) packaging ensures the cement remains protected from spillage and adulteration. Adherence to a zero-hook handling policy further preserves the integrity and freshness of the product. Additionally, the laminated packaging effectively prevents moisture ingress during the rainy season, thereby extending the cements shelf life and maintaining its quality.

Super Strength

Green Cement is produced in technologically advanced manufacturing plants using high-quality Portland cement clinkers along with high-purity gypsum, and highly reactive mineral admixtures. The presence of high-quality material helps in providing superior early strength and long-term compressive strength gain, resulting in a stronger and denser construction.

PPC

PPC is made by grinding of clinker, gypsum and very fine-grained highly reactive fly ash together. The uniform particle size distribution enhances strength and density while reducing porosity in concrete. This offers more durability and best in class compressive strength after 28 days of curing.

Product Features

Offers higher strength and resistance

Provides higher resilience to cracking due to reduced heat-of-hydration Higher strength lends better resistance to structures in an aggressive environment, such as chlorides and sulphates attack. Plus, concrete made with PPC gains more strength with the passage of time.

OPC 53 Grade

With the introduction of the 53-Grade cement in 1992, Orient Cement revolutionised building construction. Orient Golds success is a testament to the companys commitment to providing consumers with only the best. The brand has been renamed Premium Cement - OPC 53 Grade and integrated under the Companys umbrella brand. After 28 days of curing, it achieves a compressive strength of at least 53 MPa (megapascal).

High compressive strength, attained through high-quality raw material and optimum process control. Economical construction, as high initial strength helps save cement consumption and construction time.

OPC 43 Grade

OPC 43 Grade was originally named as Orient 43 Grade Cement. The product was one of the earliest successes of Orient Cement. It was manufactured under controlled process conditions with sophisticated plant and machinery. The product also gained immense popularity within a short period and made Orient Cement a household name. The brand was integrated under the Companys umbrella brand and was renamed as OPC 43Grade. The product achieves a minimum of 43 MPa as compressive strength after 28 days of curing.

Initiatives for Cost Optimisation and Efficient Resource Mobilisation

Towards cost optimisation and efficient resource mobilisation, the Company continued its efforts to explore new, technically superior and cost-effective suppliers to source good quality materials.

With respect to coal procurement, we continued our efforts in alternative mitigation measures to counter the lower quality linkage coal. The Company continued its efforts to enhance the rail transportation of Cement to reduce its cost.

The Company aims to meet 50% of its total electrical energy requirements through renewable and green energy sources by 2030. In line with this objective, a 10.1 MW Waste Heat Recovery System (WHRS) was commissioned at the integrated plant in Chittapur during FY 2024-25. This initiative aligns with the Companys long-term vision of achieving Net Zero Carbon emissions by 2070.

Towards enhancing the usage of alternative fuels and reduce the natural fossil fuels, the Company is developing the infrastructure facilities at it integrated plants Devapur & Chittapur plants towards sustainability and targeting of 25% of TSR (Thermal Substitution Rate).

Sustainability

Our sustainability strategy reflects the organisations broader aspirations, with goals aligned to both national and international targets. We will continue to advance our collaborative approach, guided by a robust sustainability framework, to further strengthen the pillars of socio-economic development, environmental stewardship, and sound governance.

By 2030, the Company aims to attain a 25% Thermal Substitution Rate (TSR) and 50% of the total energy to come from renewable energy and WHRS. During the year, the Company also commissioned the second phase of its WHRS at its Chittapur plant. Aligning with Indias commitment to becoming Net Zero by 2070, the Company is aspiring to become Net Zero for both Scope 1 and 2 emissions by 2070. The Company is a member of the Global Cement & Concrete Association (GCCA) and strives to contribute to the global efforts against climate change.

During the FY 2024-25, the Company actively collaborated with GCCA in releasing a Decarbonisation Roadmap for the Indian Cement Industry, rolled out the safety initiatives like Drivers passport, Vehicles passport, Contractors passport etc. to enhance the cement industrys safety performance. Your company also disclosed its Climate and Water performance at Carbon Disclosure Project (CDP) and got B rating for Climate Performance and B- rating for Water Performance. Orient Cement fosters sustainability in Cement Production by undertaking several initiatives and the salient points are given below:

Environment

Emissions

The Company is consistently adhering and monitoring all the latest Environment guidelines. During FY 2024-25, the Company has not received any significant notices and was not subject to any penalties. The Company is pursuing the following initiatives to curb its CO2 emissions:

During FY 2024-25, the Companys CO2 performance i.e. Scopes 1, 2 and 3 (8 categories) have been assured by M/s TUV India Private Limited.

Water Management

The Company continuously monitors and focuses its efforts on the effective water management which includes rainwater harvesting, increased recycled water utilisation, changing the people behaviour in the colony to reduce the water consumption etc. The Company reports its water performance as per the GCCA protocol.

The Company consistently works to reduce its specific water consumption and for FY 2024-25, our specific water consumption remained static when compared with.

Plastic Waste Management

The Company, adhering to Extended Producer Responsibility (EPR), engages in the co-processing of substantial quantities of plastic waste obtained from municipalities, waste recyclers, regulators and local recyclers. Shortfall if any is met by buying the EPR Credits from the market. The Company complies with EPR regulations and believes this practice to be essential for effective plastic waste management.

Waste Heat Recovery System

During FY 2024-25 period, WHRS of 10.1 MW has been successfully achieved the rated operation efficiency at their Chittapur plant. Through WHRS system Company generated 56,211 MW units which is equivalent to 17% of the total Companys energy requirement. Further this reduces the greenhouse gases by 95,558 tonnes* by the Company.

Biodiversity

Orient Cement is aware of the impact of its mining operations on biodiversity. To minimise this, the Company has collaborated with local forest authorities and conducted large-scale afforestation drives, planting native and diverse species. The Company has achieved over a 92% survival rate in its plantation initiatives. During FY 2024-25, the Company has planted ~26,500 number of saplings.

Circular Economy

The Company is dedicated to fostering a circular economy as it considers this essential for meeting its Thermal Substitution Rate (TSR) (%) targets. The Company aims to minimise waste, save resources and reduce adverse environmental impact by undertaking projects for fly ash utilisation, alternative fuel co-processing and using low-grade limestone. Additionally, the Company co-processes a range of waste materials in its kilns. The Companys focused efforts have helped in:

Co-processing 1.2 lakhs metric tonnes of waste, including plastic material in kilns

Using 4,168 metric tonnes of waste in CPP

Achieving 18% of TSR thereby conserving ~1.47 lakhs metric tonnes of Indian coal

Health and Safety

The Company embraces the philosophy of ‘Work Safe-Live Safe and has implemented strict safety protocols to prevent workplace accidents. With mechanised mining operations in place, it follows established Standard Operating Procedures (SOPs) to minimise occupational risks. New employees undergo safety training during their induction, covering infrastructure, electrical, and fire safety. Existing employees participate in a behavioural-based safety training program. Additionally, routine safety inspections and audits are conducted to ensure adherence to safety measures.

Zero Fatality

The Company prioritises ensuring Zero fatality within its organisation. The Company has adopted the necessary safety protocols across the organisation. The continuous efforts of the Company have contributed to maintaining ‘Zero fatality for six consecutive years.

Certifications

All the plants of the Company are certified by the Integrated Management System, covering the following areas:

Human Resources

The Company is committed to developing a future-ready workforce. It promotes open communication and fosters camaraderie among team members, cultivating a positive work environment. The Companys HR policies emphasise talent and leadership development, internal job rotation, skill enhancement, and automation-driven process efficiencies.

Great Place to Work Certified

The Company is ranked 50th in the top 100 Best Companies to Work For - 2024 by Great Place to Work? Certified™. Furthermore, the Company is also featured in the Top 25 - Indias Best Workplaces in Manufacturing - 2024, Indias Best Workplaces™ in Cement & Building Materials 2024, Top 50 Indias Best Workplaces TM for Millennials 2024, Top 25 Indias Best Workplaces TM in Manufacturing 2025, Top 50 Indias Best Workplaces TM Building a Culture of Innovation by All 2025. The above laurels are key milestones in the Companys journey toward becoming an Exceptional Organisation based on its approach towards fostering Care, Connect and Develop (CCD), leading to a High-Trust, High-Performance Culture.

Some of key people initiatives that helped the Company in its journey are listed below:

Talent Acquisition

The Company is committed to recruiting top talent and enabling their success by offering opportunities that align with their potential and aspirations.

During the year under review, the Company has enhanced its hiring process by further advancing the digitalisation of recruitment and onboarding through Sahayog (SAP SuccessFactors). The Company has digitised the I-Refer policy on Sahayog which enables end users to upload CVs of references to a specific job opening or to the database. Also, launched Recruiting Marketing (RMK) module of SuccessFactors linked to the Career page on the official website to enhance recruitment marketing both internally and externally, ensuring seamless integration with the RCM module for improved hiring efficiency.

The Company is committed to promoting diversity and inclusion in its hiring practices and has made it a requirement to hire women for specific roles. The Company achieved a 120% increase in diversity hiring compared to last year, reinforcing the Companys commitment to building an inclusive workforce. Additionally, the Company focuses on nurturing internal talent by encouraging job rotations. 20% of emerging positions were filled up by preparing and promoting in-house talent. This has helped in significantly reducing the cost of hiring and boosting employee motivation.

The Company has implemented the Executive Dashboard on Sahayog for all the Leadership team to access real-time data on Active Management Staff details, Talent Acquisition, L&D, Separation, Performance, Time Management, etc.

The Companys strong processes for continuously nurturing its talent pipeline enable it to tap into internal talent to fill a significant number of open positions as they arise.

Learning and Development – Skill Matrix

This year, the Company successfully designed and implemented the Skill Matrix using in-house resources to develop the Training Needs and Training Calendar. The Skill Matrix aims to create a structured system that maps actual skills against desired skills for each role, enabling the identification of individual training needs while also serving as a guide for Talent Acquisition and Talent Management. The HR team worked closely with the business team to establish the Skill Matrix Framework for each role and develop individual Skill Matrices for team members, identifying skill gaps and recommending appropriate learning interventions. This resulted in the creation of a high-quality, role-based Skill Matrix. As a key outcome, we updated all job descriptions and formulated the Training Calendar.

LEAP & LEAD Training

The Company strongly believes in fostering internal growth opportunities for team members whenever possible. Recognising the organisations responsibility to equip first time managers with essential people management skills, the LEAP programme (for seasoned managers) and the LEAD programme (for first-time managers) was launched this year. As part of this initiative, two batches for the LEAP programme and one for the LEAD programme, partnering with the Great Manager Institute (GMI) was organised. These programmes follow the Connect, Develop, and Inspire (CDI) framework and are structured as a five-month certification course. The journey includes orientation, pre-assessment, a two-day workshop, action planning, e-learning, implementation of the action plan, and post-assessment. As a result, 77 managers have been successfully certified as LEAD and LEAP Managers.

Handling Multi Value Propositions

Selling the Range of Products with Distinct Value Proposition and Grow Business in Trade. By far this has been the highlight of the year in terms of learning and development in our organisation, in which the Company has made the largest investment. As the Companys product range is gradually expanding, it was essential to have a specific mindset and a niche value proposition across all product groups that would help the Sales and Technical Services teams in the marketplace to be more effective. With the shift in sales approach from single brand to multiple brands such as Strong Cement, Green Cement and Water-repellent Cement with a focus on Value Selling, Behavioural and mind set shift, the management felt the need to enhance the Sales and Technical Capabilities of the team. The objective is to have a consistent selling approach across geographies, understand the value proposition for each product based on its pricing and features, which would ultimately lead to better sales in various types of markets. To achieve this objective, the Company partnered with the Mercuri Goldmann team to design and deliver the Multi Value Proposition Programme.

Learning and Development Session

Medhas 2.0: A fortnightly knowledge-sharing platform for teams across all three plants, with monthly sessions for Sales and Marketing. Each one-hour session is led by internal members, supported by a core committee comprising Technical and HR representatives. The initiative sees active participation, including engagement from senior leaders.

Prayas 3.0: A cross-functional learning platform bringing together teams from Finance, Instrumentation, Operations & Maintenance, Procurement, Stores, and Logistics. Held fortnightly, these sessions enhance functional understanding and collaboration, with an average of 40 participants. Finance Team: A training calendar featuring 14 programmes was developed based on a skill matrix. Internal sessions were led by accounts team members, with additional external trainings attended by select participants to strengthen key competencies.

POSH Certification Programme

In line with the Companys commitment to fostering a safe, inclusive, and discrimination-free workplace, changes were made to the Internal Complaints Committee (ICC) through the induction of new members. A mandatory virtual training session, POSH Beyond Basics, was conducted for all Internal Committee and HR members, facilitated by the external IC member. The training focused on conducting fair, process-driven inquiries, ensuring the protection of both employee rights and organisational integrity. The POSH e-Learning module was assigned to all the team members in the organisation achieved 100% compliance.

Employee Engagement

MD and CEO Connect

As part of this initiative, the Managing Director and CEO maintained consistent engagement with team members. In FY 2024-25, this included interactions through E-Town Halls, Workplace Live sessions, Women Team Member Connect sessions, and in-person Town Halls across various plants and locations.

Following the announcement of the Adani Groups acquisition of Orient Cement Limited, the MD and CEO addressed all employees, providing timely updates and transparent communication. This demonstration of strong leadership played a key role in managing employee morale and motivation during a period of significant change.

People Connect (P-Connect)

P-Connect - Bindas Bolo is a real-time proactive communication programme that is held to engage all team members to listen to and understand their diverse perspectives. Suggestions and feedback are encouraged, further building trust and fostering

In all the sessions conducted this year, 985 team members (732 management staff and 253 workmen) participated and shared their views.

Coffee with Leaders

The Coffee with Leaders - Bindas Suno is a candid discussion where the leaders get to know the team members at a personal level, learn about their professional aspirations and resolve their challenges. The leaders share their stories and experiences which are very interesting. The leaders also gauge the team members career aspirations and find out ways and means to improve the business operations. In all 209 team members participated in this years Coffee with Leaders sessions.

Samvaad

It is an open and interactive session with the Leadership Team, designed to encourage free-flowing dialogue between team members and senior management. In these insightful discussions with our President of Manufacturing and Sales & Marketing, employees express their thoughts, experiences, and sense of belonging within the Company. Beyond strengthening cross-functional connections, these interactions spark valuable ideas and fresh perspectives, fostering innovation and collaboration. This year, the Samvaad program successfully engaged with over 250 team members, creating a platform for meaningful conversations and shared growth.

IGNITE 2024

The Company hosted the two day event for the Sales and Marketing team in Bangalore this May, centred around the theme IGNITE 2024. The agenda featured impactful presentations by the Leadership Team and other team members, along with APPLAUSE—our initiative to recognise and reward outstanding performers. Adding a touch of creativity and fun, Orients Got Talent (OGT 4.0) spotlighted the exceptional in-house talent within our team. Brimming with JOSH and high energy, the conference served as a platform to reignite passion, celebrate successes, acknowledge talent, and chart bold goals for the year ahead.

Organisation-wide Open-door Culture

Over the years, Orient Cement has been practicing an open-door culture where any team member can walk in, share any opinion and gain feedback from the senior leadership team. This is helping in building openness and transparency across the organisation. The open transparent, warm, and caring culture is a product of numerous such initiatives and practices to live the Companys values thus displaying its belief of a Care-Connect-Develop (CCD) organisation.

Health, Wellness and Sports Initiatives

As part of the F3 Club initiatives, the Company actively promotes Fun, Fitness, and Festivities through regular activities that enhance employee well-being and engagement. To support physical health, wellness updates are shared on Workplace, and webinars with medical experts are conducted. For mental well-being, the Company partners with 1to1 Help under the Employee Assistance Program (EAP), offering counselling and webinars for employees and their families. Medical check-up and blood donation camps are organised to benefit both employees and the community. Regular sports activities across locations further encourage a healthy, active lifestyle.

Employee Recognition and Appreciation

Recognising and appreciating employees is essential for fostering a positive work environment, boosting morale, and enhancing job satisfaction. When employees feel valued, they are more engaged, motivated, and committed to the Company. At Orient Cement, we celebrate our teams contributions through various recognition platforms.

Connect with Families

The Company actively involves employees families in celebrations, achievements, and fun activities, fostering a strong sense of belonging and reinforcing work-life integration. Its always a family wali feeling when team members and their loved ones come together.

At plant locations, families participate in festivals, sports, and cultural events, creating joyful memories and connections. In the Hyderabad office, Diwali celebrations bring families together, while for field teams, initiatives like Family Day offer a special opportunity to connect through day-long outings. By engaging families in the Companys culture, Orient Cement becomes more than just a workplace—it becomes a community built on shared values.

Human Rights

Human rights are enshrined in Orient Cements core values of ‘Respect for All and ‘Celebrate Diversity, where ‘All includes the Companys employees, workers, contractors, suppliers, channel/ business partners and the communities where it operates. The Company has implemented policies and practices to identify, assess and minimise potential breaches of conduct and promptly resolve grievances. The Company has a truly inclusive work culture that empowers its team members to thrive and unlock their full potential, regardless of their gender, age, nationality, region, religion, sexual orientation or disability. Respect for human rights is fundamental to how the Company carries out its operations and treats its people. As the Company believes that respecting human rights is essential for its sustainability efforts and for businesses to flourish, it remains committed to working for the well-being of humanity, saving the planet, as well as defending and advancing privacy, safety, freedom of opinion and expression and other human rights.

Risk Management

Risk management is more than a regulatory obligation for the Company; it is a strategic imperative that guides the decision-making and operational excellence of the Company. The Company operates in a dynamic business environment and remains steadfast in its commitment to identifying, assessing, tracking and effectively mitigating risks to safeguard its business, enhance stakeholder value creation and contribute to sustainable development. The Company has a Risk Management Committee and an Audit Committee that oversee the implementation of its risk management framework. The Company adheres to a robust Board-approved.

Risk Management Policy, which offers a comprehensive overview of the Companys risk management processes and the associated responsibilities of committee members.

Chittapur mines of the Company have adequate limestone reserves for continued operations for a long time. For Devapur plant, the Company has a long term agreement with Telangana Mineral Development Corporation for supply of limestone from mines in close proximity with the plant.

Corporate Social Responsibility

Orient Cement remains resolute in its commitment to nurturing stronger communities and enabling societal well-being through its CSR projects. By integrating the CSR activities undertaken by the Company not only fulfils its ethical obligations but also contributes to the holistic development of the communities it operates in.

Providing Quality Educational Environment

Orient Cement strongly believes in the power of education to shape future leaders. The Company runs a school in Devapur, Telangana, which has now received CBSE accreditation up to 10th standard from the upcoming academic year. The school has been upgraded with modern digital infrastructure, new classrooms, labs, sports facilities, and a library.

In Chittapur, the Company is supporting the construction of a government girls high school and hostel to benefit the local community. In Jalgaon, Orient Cement has donated LCD projectors to primary schools and built washrooms and a drinking water facility to improve hygiene and learning environments.

Further demonstrating its commitment, the Company has provided reading tables, cupboards, and fans to the 108-year-old Public Library in Nashirabad. In Devapur, over 3,600 women have benefited from the New India Literacy Programme, which aims to enhance craft skills and improve literacy in Telugu.

Promoting Health and Wellness

To promote health and wellness in the local community, the Company has undertaken several impactful initiatives. In Chittapur, the Government Hospital was renovated and beautified to improve medical services for residents. Regular free medical camps are organised around the plant premises to provide essential healthcare support to villagers. In Jalgaon, a special health camp was .conducted for senior citizens, offering free medical tests and medicines. At Devapur, a medical camp provided nutrition syrups and medicines to students from nearby tribal schools to help combat malnutrition.

Additionally, in collaboration with the Indian Red Cross Society, Mancherial, a blood donation camp was organised with the participation of 500 volunteers. To support menstrual hygiene, free sanitary pads were distributed to high school girls at ZPHS, Ashram School, and DAV School.

Rural Development

Orient Cement has relentlessly undertaken various initiatives to promote rural development.

The Company has not only contributed towards Women Skill Centre but also has played a significant role. in constructing roads, borewells, community hall in the villages near plants. These efforts highlight the Companys dedication to support and development of the communities in its operating environment.

To support local vendors and hawkers in Chittapur market, the Company has developed a dedicated market yard, offering a safer and more organised space for them to conduct business. In Devapur, essential food supplies were provided for an entire year to two ashrams, helping protect residents from malnutrition. To combat water scarcity during the summer months, six borewells were installed across various villages. Additionally, two new RCC roads were constructed in Devapur village, improving accessibility and ensuring safer movement for the local community.

Outlook

Indias robust economic growth creates lucrative opportunities for driving the growth of cement industry. The growing need for construction activities owing to rapid urbanisation and infrastructural development is expected to increase the market demand for cement products. Leveraging the strong foundation built over the years, Orient Cement is well-positioned to benefit from the expected growth in cement demand. Further to this, the Company is strategising its policies to achieve its goal of ‘Net Zero Carbon goal by 2070.

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 sufficiency and effectiveness of the Companys internal controls. To address the identified risks, 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 (EY) as its Internal Audit (IA) partner. With standard risk coverage, all essential business processes were thoroughly 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 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.

Cautionary Statement

The goals, estimates, plans and projections of Orient Cement are detailed in this section. These statements may qualify as ‘forward-looking statements under the rules governing applicable securities laws and regulations. Statements that gaze forward are predicated on several anticipations and assumptions about the future. The Company makes no guarantees as to the accuracy of these expectations or the Companys ability to meet them. Due to the influence of other circumstances outside of the Companys control, the actual outcome may differ considerably from those stated in the statement or inferred. The Company disclaims any obligation to revise or update any forward-looking statements arising due to new information, developments, or otherwise.

By order of the Board of Directors
For Orient Cement Limited
	CK Birla
Place: New Delhi	Chairman
Date: 13.04.2025	(DIN 00118473)