Race Eco Chain Ltd Management Discussions

industry overview

Indias waste-management industry is moving from a largely fragmented, informal ecosystem towards greater formalisation.

regulation

EPR frameworks are creating defined responsibilities for producers, brand owners, importers and recyclers.

recycled content

Mandatory recycled-content requirements are creating a direct link between waste recovery and demand for recycled material.

esg

Companies are increasingly expected to understand and manage sustainability issues beyond their own operations.

technology

Digital platforms can improve connectivity, traceability, price discovery and supply-chain efficiency.

value addition

The next stage of the industry is likely to favour businesses that can move beyond collection into sorting, processing and production of higher-quality recycled feedstock.

circular consumption

Recycled materials are increasingly becoming inputs for mainstream manufacturing rather than being confined to niche applications.

Scale, Spectrum & Lines of Business (LoBs)

RACEs original Annual Report described its principal business as the collection, trading and supply of recyclable waste to recyclers, while expanding into multiple waste streams. This philosophy has evolved into a broader circular-economy model.

waste management

organising Indias waste supply chain

Waste Management remains the foundation of RACES business. The Company provides solutions for the collection and supply of recyclable waste to recyclers, while working across multiple waste types. The strategic focus is increasingly on creating an organised, technology-enabled and ESG-aligned supply chain.

industry opportunity

Indias EPR ecosystem is expanding rapidly. Government data indicates that multiple waste streams are now covered by EPR frameworks and that recycling capacity and formal participation have increased significantly.

race eco app

The RACE Eco App represents the Companys effort to digitise the waste marketplace. The platform is intended to connect buyers and sellers of recyclable materials, improve market access and facilitate more efficient transactions.

Its strategic role includes digital connectivity, market access, transaction efficiency, supplier-buyer interaction, price discovery and supply

collection centres & pan-india presence \

RACEs strategy includes developing collection and aggregation infrastructure closer to sources of recyclable material. A wider collection network can provide better access to recyclable material, improved aggregation, more consistent supply, better logistics, greater traceability and stronger connections with local waste entrepreneurs.

driving behavioral change

A circular economy cannot be built through infrastructure alone. RACE believes that behavioural change is a critical first step.

• Segregate waste

• Dispose of plastic responsibly

• Participate in recycling systems

• Understand the economic value of waste

• Increase reuse

From something to throw away to something worth recovering.

pet washing & forward integration

from collection to quality recycled feedstock

One of the most significant strategic developments for RACE is its move towards forward integration in PET recycling.

RACE has historically built its capabilities around PET waste collection and supply. The next stage is to add greater value before the material enters downstream recycling applications.

To pursue this opportunity, RACE established Ganesha Recycling Chain Private Limited, in partnership with Ganesha Ecosphere Limited. RACE subscribed to 51% of the equity, making Ganesha Recycling Chain a subsidiary of RACE, while Ganesha Ecosphere holds 49%.

The venture is focused on establishing PET washing plants for the production of PET flakes.

Washing and cleaning are critical stages in producing quality flakes from post-consumer PET waste. For RACE, moving into washing creates an opportunity to participate further along the value chain.

multiple washing lines across india

RACEs strategy is to establish washing infrastructure across India through Ganesha Recycling Chain.

value addition

Moving from collected PET waste towards processed PET flakes.

quality

Creating more consistent recycled feedstock for downstream users.

supply security

Creating stronger linkages between RACEs collection network and processing capacity.

logistics

Enabling processing closer to collection clusters where commercially viable.

forward integration

Allowing RACE to capture value at an additional stage of the PET recycling chain.

quality pet flakes - the opportunity

Independent market research estimates Indias recycled PET flakes market at US$1.58 billion in 2025, projected to reach US$3.13 billion by 2033, representing an estimated 8.4% CAGR from 2026 to 2033. Demand is supported by applications across fibre, sheets and films, strapping, bottles and containers and other recycled PET applications.

Higher Recycled Content Requirements

Greater Demand for Recycled Material

Greater Need for Quality PET Feedstock

Greater Need for Collection

Washing Infrastructure

business impact

Forward integration through PET washing provides RACE with the opportunity to transition progressively from Collection & Supply towards Collection + Processing + Quality Feedstock.

• Greater value addition per tonne

• Better control over material quality

• Stronger downstream relationships

• Better supply consistency

• Better integration of the collection network

• Potential improvement in business margins

The eventual impact on margins and profitability will depend on factors including plant utilisation, PET input costs, processing efficiency, product realisations, logistics and market conditions.

From collecting PET waste to creating value from PET waste.

biomass briquettes

converting biomass waste into energy

Biomass Briquettes represent RACES participation in the resource-to-energy segment.

The Companys original Annual Report recorded the entry into biomass fuel briquettes in FY2021-22 and described them as an alternative to conventional coal, using agricultural and biomass residues.

industry overview

Indias policy environment provides support for biomass utilisation. The Ministry of New and Renewable Energys National Bioenergy Programme includes support for briquette and pellet manufacturing plants and biomass-based cogeneration.

Under the Biomass Programme, Central Financial Assistance for briquette manufacturing plants is ? 9 lakh per MTPH of capacity, subject to a maximum of ?45 lakh per project.

races opportunity

The business fits naturally into RACEs circular-economy philosophy. The long-term opportunity is to convert underutilised biomass resources into commercially useful industrial fuel.

The policy framework, industrial demand for alternative fuels and increasing focus on biomass utilisation provide a supportive environment for the sector.

restore

giving recycled materials a new life

RESTORE represents the downstream extension of RACES circularity model.

The Companys original Annual Report described RESTORE as a brand promoting products such as bags and cushions made from plastic waste and natural fibre.

Today, RESTORE provides a platform for taking recycled materials further into finished products for corporate and mass-market applications.

RESTORE creates an additional downstream market for recycled materials. As businesses and consumers become more familiar with recycled products, the opportunity is to make circular products increasingly functional, accessible and commercially relevant.

Its strategic role is to create additional demand for recycled materials and demonstrate their usability in finished products.

technology & traceability

digitising a fragmented ecosystem

Technology has been central to RACES vision from the beginning.

The Companys earlier Annual Report described technology, AI, Big Data and digital platforms as tools for improving price discovery, transparency, supply-demand matching and supply-chain efficiency.

Indias waste ecosystem involves multiple participants:

Without appropriate technology, information and material flows can remain fragmented.

RACE Eco App

The RACE Eco App is designed to connect buyers and sellers of recyclable materials.

• Digital connectivity

• Market access

• Transaction efficiency

• Supplier-buyer interaction

• Price discovery f

• Supply visibility \

Traceability

Traceability is increasingly important as recycling moves towards more formal corporate supply chains.

Source

Where material originates.

Collection

Who collects and aggregates it.

Movement

How material moves through the network. Processing

Where it is sorted, washed or recycled.

Output

Where the recycled material ultimately goes.

esg & supplier ecosystem

building Indias esg-aligned circular supply chain

RACES ESG strategy extends beyond its own operations.

The Company operates within a network of suppliers, collection centres, logistics partners, recyclers and customers. The sustainability and quality of the overall ecosystem therefore depends on the capabilities and practices of its participants.

RACEs objective is to build an ESG-aligned supply chain for waste procurement and proactively develop supplier capabilities.

making suppliers future-ready

• Documentation

• Traceability

• Responsible sourcing

• Environmental practices

• Labour standards

• Governance

• Data and reporting

Our objective is to build a stronger ecosystem around the source.

SEBI & Value-Chain ESG

SEBIs BRSR framework has brought greater focus to ESG information within corporate value chains.

In March 2025, SEBI revised its framework concerning ESG disclosures for value-chain partners, including provisions for assessment or assurance and changes designed to ease compliance.

The revised framework made value-chain disclosures voluntary for the relevant top listed entities from FY2025-26 and narrowed the relevant value-chain concept to significant partners meeting specified thresholds.

What this means for RACE

This is not a mandate that all RACE suppliers must be ESG compliant. Rather, it reflects a broader direction in corporate markets: companies increasingly need greater visibility into the sustainability performance of their value chains.

Our objective is to build an ESG-aligned circular supply chain before ESG becomes a constraint on participation in organised markets.

industry outlook

the structural drivers behind races business

01 i epr & formalisation

EPR frameworks are bringing greater accountability and formal participation into waste management.

02 i recycled content

Increasing recycled-content requirements are creating structural demand for recycled materials.

03. pet recycling

The recycled PET flakes market is projected to grow steadily, with Indias market estimated to expand at 8.4% CAGR between 2026 and 2033.

04 i esg value chains

Corporate ESG expectations are increasingly extending beyond a companys own operations to relevant value-chain partners.

05. technology

Digital platforms can make fragmented waste markets more connected, transparent and scalable.

06. biomass energy

Government support for biomass briquette manufacturing and biomass utilisation creates an enabling environment for resource-to-energy businesses.

07 i circular consumption

Recycled materials are increasingly becoming mainstream inputs for manufacturing and consumer products.

races strategic position

One Circular Economy. Multiple Value-Creation Points.

• WASTE MANAGEMENT - Collect -> Aggregate -> Trace

• PET WASHING - Sort -> Wash -> Produce Quality PET Flakes

• BIOMASS - Convert Residues -> Industrial Fuel

• RESTORE - Recycled Material -> Finished Products

Environmental Value + Economic Value + Social Value

This is the evolution of RACEs original R3 philosophy - Reduce, Reuse and Recycle.

The 2026 story is not a change in direction. It is the next stage of the same journey.

outlook

from managing waste to enabling circularity

RACES next phase of growth will be driven by its ability to move progressively up the circular value chain.

our strategic priorities

• Strengthen the pan-India network - Expand the Companys collection and supplier ecosystem.

• Expand collection infrastructure - Develop collection and aggregation capabilities closer to material sources.

• Scale digital connectivity - Increase the role of the RACE Eco App in connecting suppliers, buyers and recyclers.

• Drive behavioural change - Use awareness and community engagement to encourage responsible waste handling, segregation and recycling.

• Build future-ready suppliers - Strengthen supplier capabilities around ESG, traceability and responsible business practices.

• Build PET washing capacity - Establish multiple PET washing lines through Ganesha Recycling Chain across India, subject to execution and commercial viability.

• Produce quality PET flakes - Create a higher-value recycled feedstock for downstream applications.

• Capture greater value - Move progressively from collection towards processing and value addition, with the potential to support improved margins and profitability.

• Scale biomass - Participate in the growing opportunity for biomass-based industrial fuels.

• Grow RESTORE - Create additional applications and demand for recycled materials.

the next chapter

• COLLECT - Build the supply.

• CONNECT - Digitise the ecosystem.

• PROCESS - Add value to recovered material.

• TRACE - Create visibility across the chain.

• CIRCULATE - Return materials into productive use.

To build a technology-enabled, traceable and ESG-aligned circular supply chain for India.

The collection network provides the foundation. Technology provides connectivity. ESG provides responsibility. PET washing provides value addition. Biomass expands resource recovery into energy. RESTORE extends recycled materials into products. And awareness helps bring people into the circular economy.

The philosophy remains the same.

REDUCE. REUSE. RECYCLE.

FROM WASTE TO WEALTH.