P I Industries Ltd Management Discussions

Economic Overview:

a. Global Economy

The global economy experienced a boost in the latter half of 2023, growing at 3.2 percent. The latest projections indicate a stable growth rate of 3.2 percent for 2024¹. Notably, inflation rates have been declining faster than anticipated across regions such as Europe² and the United States³, attributed to the resolution of supply-side issues and the implementation of

restrictive monetary policies. Projections suggest that global headline inflation will decrease from an estimated 6.8 percent in 2023 to 5.9 percent in 20 24⁴. This combination of steady economic growth and decreasing inflation rates has diminished the likelihood of a hard landing following recent tumultuous years.

As we reflect on the past year, the ongoing conflict between Russia and Ukraine, now entering its third year, remains a pressing concern. Similarly, heightened violence in the Middle East, particularly in Gaza, has captured global attention. These conflicts have resulted in an unprecedented humanitarian crisis. This underscores an urgent need for peaceful resolutions that prioritize lasting harmony and geopolitical stability. Its crucial to recognize that such conflicts not only inflict immediate humanitarian harm but also pose significant risks to the global economy, emphasizing the importance of concerted efforts towards peacebuilding and conflict.

Global supply chains are facing a significant challenge due to escalating hostile activities in the Gulf of Aden, which serves as a crucial shipping bottleneck for freight movement between Europe and Asia. According to the IMF, there has been a notable decrease of nearly 28 percent in container ship traffic, as vessels opt for the longer route via the Cape of Good Hope, which saw a 67 percent increase⁵, caused by targeting of commercial ships by hostile actors in the region. Consequently, this situation has resulted in a dual impact on shipping costs, namely increased fuel expenses and higher insurance premiums. These cost escalations are reflected in the rising import prices across various sectors, including agrochemicals. Moreover, prolonged shipping durations are leading to reduced availability of intermediate inputs and consumer goods. While the future trajectory of shipping costs remains uncertain, it is plausible that they will remain elevated for several quarters.

Policymakers near-term challenge is to successfully manage the final descent of inflation to target, calibrating monetary policy in response to underlying inflation dynamics and—where wage and price pressures are clearly dissipating—adjusting to a less restrictive stance. Targeted and carefully sequenced structural reforms would reinforce productivity growth and debt sustainability and accelerate convergence toward higher income levels. More efficient multilateral coordination is needed for, among other things, debt resolution, to avoid debt distress and create space for necessary investments, as well as to mitigate the effects of climate change.

World Economic Forum (WEF) listed ten most critical risk factors for the next decade⁶, of which environmental risks comprised top four. Against this backdrop, COP 28 held in Dubai this year was particularly momentous as it marked the conclusion of the first global stocktake of the worlds efforts to address climate change under the Paris Agreement. Having shown that progress was too slow across all areas of climate action - from reducing greenhouse gas emissions, to strengthening resilience to a changing climate, to getting the financial and technological support to vulnerable nations - countries responded with a decision on how to accelerate action across all areas by 2030.

We are also cognizant of downside risks to global growth and that at least 64 countries—representing 49% of the combined global population—will head to the polls this year, which will add to political uncertainties. WEF ranked Al-induced Misinformation and Disinformation, especially rampant during elections, as the most critical risk over the next two years while Cyber Insecurity was ranked as the fourth. Although, the near-term risks posed by technology are profound, longer-term prospects of Artificial Intelligence (Al) do hold promise to lift productivity and improve growth prospects.

a. Indian Economy

While global growth is slowing at a divergent pace across economies and inflation continues to ebb though it remains above target with underlying inflationary pressures staying relatively stubborn, domestic economic activity is exhibiting resilience. The

growth in real GDP during 2023-24 is estimated at a robust 7.6 per cent as compared to 7 per cent in 202223⁷, with Q3 showing a robust 8.4 percent growth⁸ exceeding expectations by approximately 200 basis points. All the economic sectors have fared well by witnessing more than 6 percent, except for Agriculture and Allied sector, for which the estimated growth is 1.8 percent.

The resilience of Indias growth has been underpinned by the robust domestic demand, strengthening infrastructural spend with a simultaneous focus on developing niche and complex manufacturing Government has focused on sectors that can capitalize on Indias competitive advantage in resources and skills, tap into local-market opportunities, and help the country climb higher on the manufacturing value chain globally. The Production Linked Incentive (PLI) scheme, tax incentives, the ease of effecting business reforms, the national infrastructure program, and the national logistics plan were announced with the intent to boost manufacturing, improve logistics to reduce costs and save resources, and gain from positive externalities. the central government fiscal deficit projected to continue to decline from 6.4 percent to 5.9 percent of GDP. Public debt is expected to stabilize at 83 percent of GDP. On the external front, the current account deficit is expected to narrow to 1.4 percent of GDP, and it will be adequately financed by foreign investment flows and supported by large foreign reserves.

Based on an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50 per cent. The standing deposit facility (SDF) rate remains unchanged at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent.¹⁰ These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth. The MPC

observed that recurring food price shocks are impeding the ongoing disinflation process. Core disinflation has been steady, indicative of the impact of past monetary policy actions. Headline inflation, however, remains volatile, with possible implications for the anchoring of expectations. Domestic food inflation unpredictability, and volatility in crude oil prices and financial markets in an uncertain international environment pose risks to the inflation outlook. The path of disinflation needs to be sustained.

Government policy and initiatives also fostered innovation by building the required infrastructure and ensuring security and responsiveness. variations in the subsidy-to-capex ratio (with more going toward IT hardware, medical devices, and telecommunications) show governments intent to focus on "hi-tech" products that fall toward the higher end of global value chains.

Continued strengthening of manufacturing activity, buoyancy in construction, and gradual recovery in the rural sector are expected to brighten the prospects of household consumption. Healthy balance sheets of banks and corporates, supply chain normalization, improving business optimism, and rise in public and private capex should bolster investment going forward. With improvement in exports, the drag from external demand is expected to moderate. Headwinds from the geopolitical turmoil, volatility in international financial markets and geoeconomic fragmentation pose risks to the outlook.

Industry Overview

a. Global Agricultural Sector

In 2022, the United Nations estimated that the global population could reach 9.7 billion by 2050 (United Nations, 2022). Although this estimate is slightly lower than earlier projections, we conclude that the assumption of needing to double agricultural production from 2010 to 2050 is still valid, especially because this assumption does not explicitly account for any negative impacts of climate change—which will continue to have important impacts on agricultural production and outputs.

Global growth in the production of agricultural products continues to exceed population growth, as it has every year since 1994 (except for 2009). Average annual global population growth during 2011-2021 was 1.11 percent. During the same period, the annual output of agricultural products grew by 1.94 percent annually. However, global demand for agricultural outputs is still not being met as a result of system failures such as distribution inefficiencies, food loss and waste, and socioeconomic inequalities. As a result, undernourishment continues to be an acute problem, with more than 735 million people still facing chronic hunger globally.⁹ In 2022, the FAO estimated

that the prevalence of undernourishment jumped to 9.2 percent of the global population.

The global agricultural industry is expected to grow at a CAGR of 8.2 percent to a $14,356 billion sector in 2024. Agricultural development is one of the most powerful tools to end extreme poverty, boost shared prosperity, and feed a projected 10 billion people by 2050. Growth in the agriculture sector is two to four times more effective in raising incomes among the poorest compared to other sectors.¹⁰ However, the sector faces multiple challenges, disruptions to extreme weather, pests, and conflicts - are impacting

food systems. The growing impact of climate change could further cut crop yields, especially in the worlds most food-insecure regions. A booming agricultural sector supported globally by favourable legislation, innovation driven research, sustainable agricultural practices, adoption of farm management software, AI integration, water management solutions, etc. could see the sector grow at a CAGR of 7.7 percent till 2028¹¹.

b. Agriculture Sector in India

Indias agriculture industry is on the cusp of a major technological transformation, which is a pivotal

moment after decades of growth. The sector has been witnessing robust growth with an average annual growth rate of 4.6 per cent over the last six years. Emerging developments include accurate crop forecasting, sensor technology, robotics, etc., which heralds a paradigm shift in how agriculture is used and managed. India has the largest area planted for wheat, rice, and cotton, and is the largest producer of milk, pulses, and spices in the world. It is the second- largest producer of fruit, vegetables, tea, farmed fish, sugarcane, wheat, rice, cotton, and sugar. The year saw a drop in the amount of foodgrain production to 3093.49 lakh tonnes from last year.

Several emerging trends are set to reshape the practices and management of agriculture in India in the coming year of 2024. Technology adoption is escalating, with precision farming, drones, and IoT devices gaining prominence for improved crop monitoring, management, and resource utilization. The aim is to increase yields, save costs and improve business processes to make agriculture more efficient while increasing income. In this context, AgriTech emerges as a catalyst, bringing transformative and sustainable shifts in farming practices. The primary objective is not only to enhance the quality and quantity of crops, optimize livestock management but also to strive towards achieving a sustainable future.

The agricultural sector in India encountered challenges during FY 2023-24, resulting in a year-on-year decline

in foodgrain production. The primary cause of this decline is attributed to the erratic monsoon season experienced nationwide, owing to the El Nino weather phenomenon. Farmer livelihoods were impacted by uncertainties in food prices, along with an increase in headline inflation in November-December. Monitoring was necessary for Kharif harvest arrivals, as well as progress in rabi sowing. However, adequate buffer stocks for cereals and a significant moderation in international food prices, coupled with proactive supply-side interventions by the Government, helped mitigate these food price pressures.

In India, a growing emphasis on sustainable and organic farming practices demonstrates a dedication to environmental conservation. This change aims to reduce agricultures environmental effect, fostering

a more climate-conscious and sustainable approach within the farming sector. One of the most prominent trends in sustainable farming is the use of regenerative agriculture practices. This strategy emphasizes the significance of soil health and advocates the adoption of soil organic matter-building practices.

The active implementation of diverse government schemes and initiatives, with a specific focus on elevating farmers income, improving irrigation facilities, and enhancing overall agricultural productivity, stands out as a pivotal pathway for fostering the growth of agriculture.

Moreover, regarding market linkages, it is evident that technology platforms consistently act as facilitators, strengthening the connections between farmers and markets. This leads to an improved system that guarantees better prices for agricultural produce, consequently contributing to the overall economic prosperity of farmers.

In 2024, developments in Indian agriculture will lead to a paradigm shift toward a more technologically advanced, sustainable, and resilient sector. This transformation not only tackles current difficulties, but also creates the groundwork for a future-ready agricultural sector capable of meeting the increasing demands of a growing population while encouraging environmental care.

Agrochemicals Business

a. Global Scenario

The global agrochemical market size is estimated to grow from US $243.55 billion in 2023 to US $296.32 billion by 2028, at a CAGR of 4 percent.¹³ It is estimated that annual crop losses could double without the use of crop protection products. Food crops must compete with 30,000 species of weeds, 3,000 species of nematodes and 10,000 species of plant-eating insects. Agrochemicals are the last and one of the key inputs in agriculture for crop protection and better yield. Approximately 25 percent of the world crop output is lost every year due to diseases and attacks by pests & weeds. Hence, agrochemicals play a vital role in enhancing crop yield and production.

The demand for agrochemicals is growing due to demand for food supply in order to meet the needs of a growing world population from 8 billion to 9.8 billion in 2050 and 11.2 billion in 2100. Growing food demand, increasing adoption of precision farming methods, shrinking arable land due to increasing population, and rapid urbanization & industrialization across the globe are some also among the key factors driving the market.

The Global crop protection industry was valued at USD 68.3 Billion in 2023 and is expected to reach USD 98.5 Billion by 2032, at a CAGR of 4.3 percent during the forecast period 2023 - 2032¹⁴. Key trends driving the crop protection chemicals market include the rising need for increased agricultural productivity to meet growing food demand, particularly in densely populated countries like India and China. Recent trends in the crop protection chemicals market include a growing emphasis on sustainable and eco-friendly formulations, driven by increased environmental awareness. Integrated pest management (IPM) practices, combining biological control and precision agriculture technologies, are gaining traction.

The average global consumption of chemical insecticides is 918.7 g per hectare of agricultural land. It has been increasing over the years owing to factors like the intensification of agriculture, increasing pest populations, and the need for higher yield and crop productivity to ensure global food security. According to the data provided by the Food and Agriculture Organization, 40 percent of global crop production is lost to pests annually, resulting in an average economic loss of around USD 70.0 billion. The Insecticide Market size is estimated at 36.70 billion USD in 2024 and is expected to reach 45.56 billion USD by 2029, growing at a CAGR of 4.42 percent¹⁵. Insecticide use is increasing through different application modes to protect crops from insect pests. Soil treatment in the insecticide market is expected to record a 4.3 percent CAGR between 2023 and 2029.

The global herbicides Market Size is valued at 41.25 billion in 2023 and is predicted to reach 71.15 billion by the year 2031 at an 7.22 percent CAGR during the forecast period for 2024-2031¹⁶. The recent trends

in herbicides within the crop protection chemicals market include a growing focus on sustainable and ecofriendly formulations. There is an increased emphasis on developing herbicides with reduced environmental impact and improved safety profiles. Integrated Weed Management (IWM) approaches, incorporating diverse strategies like biological controls and precision agriculture, are gaining traction.

There is a notable shift towards the development of biopesticides and biocontrols as alternatives to conventional chemical pesticides. The global Biopesticides Market is anticipated to be worth $6.7 billion in 2023 and $13.9 billion by the end of 2028, with a CAGR of 15.9 percent.¹⁷

Integrated pest management strategies, incorporating precision agriculture technologies, are gaining traction. Automated and sensor-based systems optimize foliar spray application, minimizing chemical use and environmental impact. Additionally, the rising demand for bio-based and biodegradable alternatives is influencing innovation. Smart formulations, such as microencapsulation and nano-formulations, are improving targeted delivery. Regulatory focus on sustainable and safer chemical solutions is steering research and development efforts. These trends reflect a shift towards more environmentally friendly and efficient crop protection solutions in response to evolving agricultural and societal needs.

b. Indian Agrochemicals Industry

The India Agrochemicals Market size is estimated at USD 8.22 billion in 2024, and is expected to reach USD 13.08 billion by 2029, growing at a CAGR of 4 percent matching the global average¹⁸. According to the Federation of Indian Chambers of Commerce and Industry, the Indian government recognizes the agrochemical industry as one of its top 12 industries to achieve global leadership, growing at 8-10 percent through 2025.

According to World Bank, Indias population was 1.39 billion in 2021 About 50 percent of the Indian population is still dependent on agriculture for their livelihood. The increasing population creates a huge demand for food products to feed the population. According to the India Council of Agriculture Research

(ICAR) scientists, nearly 30-35 percent of annual crop yield in India gets wasted because of pests. The per hectare consumption of pesticides in India is amongst the lowest in the world and stands at 0.6 kg/ha against 5-7 kg/ha in the UK and 13 kg/ha in China, signifying the scope of growth. The long-term growth of the sector lies in the ability of the country to be self-sustaining in agricultural production to feed its population which is achieved by increasing the yield per hectare. One key driver of the sectors growth lies in the backward integration of production processes. Domestic companies have been investing in the production of off-patent molecules.

The sector had to tackle a whole range of challenges such as the impending El Nino threat, lower water levels in the South, lack of mega production facilities like those in China, regulating the import of agrochemical formulations, exclusion of the sector from the governments PLI scheme. More specifically, Chinese dumping of chemicals owing to slower domestic demand and rising stockpiles, a dry kharif season and a lower domestic demand had to be overcome.

With lower financial pressures, theres potential for increased investment in essential agricultural inputs and technologies, leading to enhanced productivity and efficiency. Overall, the combination of government support, manageable seasonal challenges, and improving market conditions points to a positive outlook for the agriculture and fertilizer industry. Timely subsidy payments by the government, particularly for CPC and urea players, are expected to provide further impetus.

India is currently producing about 320.48 million tons of horticulture produce which has surpassed the food grain production, that too from one fifth the land coverage. Indian horticulture sector contributes about 33 percent to the agriculture Gross Value Added (GVA¹⁹) making very significant contribution to the Indian economy providing alternate rural employment

opportunities, diversification in farm activities, and enhanced income to farmers. India has emerged as world leader in the production of a variety of fruits like mango, banana, guava, papaya, sapota, pomegranate, Lime & aonla and is the second largest producer of fruits and vegetables.

Financial Review

During FY 2023-24, PIs revenue grew by 18 percent to 76,658 million as compared to 64,920 million in the previous year. Your Company saw strong growth in export of 25 percent in FY 2023-24, contributing to the volume growth of existing products and commercialization of new products. Domestic revenues were down by 6 percent. PIs Net Profit for the year saw a healthy 37 percent growth to 16,815 million from 12,295 million in FY 2023-24. Operating expenses increase of 30 percent mainly attributable to sharp increase in fuel prices leading to increase in utilities cost, commodity prices, onetime expenses pertaining to strategic initiatives, etc. Net worth of PI Increased by 21 percent over last year to 87,310 million in FY 2023-24 due to increased operating profits. As on March 31st, 2024, the Surplus Cash net of Debt stood at 38,825 million, including QIP net proceeds of 9,910 million. Debt equity ratio increased to 0.01 compared to Nil in the previous year. The Board of

Directors have recommended a final dividend of 900% which is 9/- per share. This, in addition to interim dividend of 6 per share that was already declared in FY 2023-24, takes the total dividend to 15/- per share for the financial year. The Company saw significant improvement in its Free Cash Flow and Gross Cash during FY 2023-24. Total CAPEX invested in FY 2023-24 was 5,851 million, order book position continues to stay strong at $1.75 billion with high visibility growth for the next couple of years.

PIs growth can be attributed to a variety of factors, including a geographically and product-diversified portfolio, prudent debt and money management, sustained efforts in R&D that result in innovative products, and good governance policies that result in a well-managed and environmentally conscious business. PI maintained higher inventory levels during the year to avert supply chain disruptions and meet customer supply schedules.

As required under SEBI (LODR) Regulations, key financial ratios are enumerated below as compared to previous year:

Particulars	FY 2023-24	FY 2022-23
Earnings per Share (EPS)	110.85	81.06
Current Ratio	3.90	4.79
Debt Equity Ratio	0.01	0
Operating Profit Margin (%)	26.4%	23.9%
Net Profit Margin	21.9%	18.9%
Inventory Turnover	2.84	2.52
Debtors Turnover	7.95	7.06
Interest Coverage Ratio	73.06	*
Return on Net Worth	21.1%	18.5%

Internal Control System

Your Company has in place adequate Internal Financial Controls with reference to the Financial Statements commensurate with the size, scale, and complexity of its operations. The Company has identified and documented all key internal financial controls as part of its Internal Financial Control reporting framework. The Company has laid down well-defined policies and procedures for all critical processes across Companys plant, offices wherein financial transactions are undertaken. The policies and procedures cover the key risks and controls in all the processes identified to respective process owner. In addition, the Company has a well-defined financial delegation of authority, which ensures approval of financial transaction by appropriate personnel. The Company uses SAP ERP to process financial transactions and maintain its books of accounts to ensure its adequacy, integrity, and reliability. The Company has also deployed an online control tool to enhance the operating effectiveness of internal controls. The control system comprises

of continuous audit and compliance by an in-house internal audit team supported by appointed auditing firm. M/s Ernst & Young LLP have been engaged as the corporate auditors covering all central corporate functions along with the CSM business vertical and PKF Sridhar & Santhanam LLP who are covering the Agri. Business vertical along with Depot audit. The agencies perform the internal audit and assess the internal controls and statutory compliances in various areas and provide suggestions for improvement.

Independence of internal auditors is ensured through direct reporting to Audit Committee. Internal Auditors independently evaluate the adequacy of internal controls and concurrently audit the financial transactions and review the various business processes. Internal Audit reports are placed before the Audit Committee of the Board. Accordingly, the Board is of the opinion that the Companys internal financial controls were adequate and effective as on March 31, 2024.

We have successfully completed one year of significant acquisitions. On April 27, 2023, PI Health Sciences Ltd. (PIHS) acquired Archimica S.p.A., Italy, followed by the acquisition of Therachem Research Medilab (India & US) and Solis Pharmachem (India) on June 2, 2023.

PIHS will integrate the R&D capabilities of these acquired businesses with the new integrated pharma research center being developed in IKP Hyderabad, aimed at enhancing our CRO and CDMO offerings. The CRO facility in Hyderabad is nearing completion, featuring eight labs, 65 fume hoods, fully integrated analytical labs, a process safety lab, and over 65 scientists. The services suite includes Medicinal Chemistry Services, Lead Optimization, Analytical Services, Process Development and Safety Studies, Tox, Preclinical & Clinical Supplies, and Tech Transfer.

For CMO operations, we are upgrading facilities in Lodi, with Kilolab build-up underway and a global

business development team in place to intensify lead generation.

Our successful debut exhibition at CPHI Barcelona in October 2023 is expected to result in a robust business pipeline. We incurred a capex of ^1,322 million for Pharma in FY24, with the development phase continuing for the next 12-18 months, post which we anticipate normalized EBITDA margins.

The process of building an integrated CRDMO market offering is well underway, with initiatives to upgrade research and manufacturing infrastructure, strengthen business development, and enhance key business processes progressing effectively. We have also augmented our talent base by hiring global industry experts to implement best practices and drive business development. Our R&D pipeline of new enquiries and products is shaping up well and should support our aspirational growth in this segment.

Business Outlook

Indias agricultural industry will benefit from aboveaverage monsoon season forecast by the IMD (Indian Meteorological Department). The forecast predicts average seasonal monsoon rainfall over the country likely to be 106 percent of Long Period Average (LPA) due to weakening El Nino, makes this the nineth consecutive year of normal monsoon conditions. This is expected to lead to record outputs of food grains as well as fruits and vegetables, positively impacting the agrochemical industry. Consequently, domestic demand for agrochemicals is likely to continue its upward trend, given the high dependency on rainfall for irrigation, thereby enhancing PIs prospects within the domestic agrochemicals market. Additionally, the company is set to benefit from the maturation of its recent product launches.

The global industry has faced performance pressure over the past three to four quarters, and the situation has yet to fully recover. The inventory destocking cycle remains incomplete, with material improvements in demand and pricing trends projected to commence only in the latter part of the current financial year. As the on-ground situation evolves, PI is well-positioned to benefit from the enhanced industry dynamics, thanks to its differentiated business model and product portfolio.

PI plans to introduce 9 new products to the domestic market during FY 2024-25. Additionally, the targeted approach to the horticulture segment through JIVAGRO, with the launch of five new products, combined with a robust pipeline of new product launches, will support domestic market growth in FY 2023-24 and beyond. An integrated crop solution approach with disciplined NWC management is expected to improve profitability. The development pipeline, including more than 20 products in development and registration, underscores the visibility of growth for the business in the forthcoming years.

Demand for products commercialized over the last 2-3 years is expected to scale up. The company plans aggressive commercialization of commercialization for exports. PI maintains a robust order book in exports, providing a solid foundation for revenue visibility and expansion. With the planned commercialization of five new molecules and one new process innovation, the

company is well-positioned to maintain its growth and profitability in FY 2024-25. Capacity expansion is in line with the plan, and the order book position remains strong at approximately USD 1.75 billion. Momentum in new enquiries and conversion is expected to continue. In the longer term, PI anticipates up to one- third of new molecule commercialization to come from non-agchem areas

PI is building a differentiated play in the Pharma CRDMO space with a full suite of offerings with our wholly-owned subsidiary PI Health Sciences Ltd with subsidiaries Therachem Research Medilab (TRM) LLC and Archimica SpA. Incorporating them into your Companys environment have been critical in staying true to our aim of Collaborating for Impactful Change. Pharma contributed to revenues of INR 3,148.63 mn amounting to 6 percent of total exports revenue growth. Moving ahead, we are anticipating steady increase in their contribution to your Companys growth story.

PI has a strong pipeline of biologicals at different stages of development and is actively evaluating inorganic growth opportunities. Promising R&D leads are progressing towards the development phase. The company is targeting to achieve approximately 15 percent revenue growth with sustained improvement in profits. This cautious guidance considers a higher base effect, overall industry sentiment, and demand scenarios, as well as the monsoon-dependence of the domestic market. Given the positive commentary about the monsoon, PI believes it can achieve this growth across domestic CSM exports and the pharma side, despite higher industry inventory levels.

Capacity expansion is on track, with plans to commission two plants—one dedicated and one multiproduct plant—in the next year, with approximately INR 8,000 - 9,000 million capex to be incurred during FY25. Discussions with global innovators for development partnerships of promising R&D leads continue. PIs demonstrated capability in process development and innovation, efficient scale-up of complex molecules, project execution capabilities, ESG standards, and respect for IP attract global innovators. The company is also working on new technologies and building blocks for future growth.

Looking ahead, PI Industries is well-positioned to navigate the challenges and capitalize on the opportunities within the agrochemical, CSM export, and pharma CRDMO sectors. Our strategic initiatives, robust product pipeline, and disciplined financial management underpin our confidence in achieving sustainable growth. As we continue to foster innovation and expand our capabilities, collaboration

across all aspects of our business remains paramount. By integrating our efforts and leveraging our strengths, we are set to drive impactful change, creating lasting value for our stakeholders. The future for PI Industries looks promising as we remain committed to delivering high-quality products and solutions, enhancing our market position, and contributing positively to the industry and the communities we serve.

Cautionary Statement: Statements in the Management Discussion and Analysis report may be forward looking statements within the meaning of the applicable laws and regulations. Actual results may differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include among other, climatic conditions, economic conditions affecting demand, supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and incidental.