Race Eco Chain Ltd Management Discussions

Shaping a Sustainable Future:

RACE at the Forefront of Indias ESG Transformation

India is undergoing a powerful shift - one where sustainability is no longer optional, but essential. With evolving regulations and heightened expectations from stakeholders, the country is embedding ESG principles deep into the fabric of business practices.

The Securities and Exchange Board of India (SEBI) is leading this transformation. What began over a decade ago as a pioneering step in ESG reporting has now matured into a robust mandate. Today, the top 1,000 listed companies must report through the Business Responsibility and Sustainability Reporting (BRSR) framework - ushering in a new era of transparency and accountability.

But change doesnt stop there.

Starting FY 2024-25, SEBI is introducing BRSR Core - a more rigorous ESG framework requiring independent reasonable assurance of disclosures. The rollout begins with the top 150 companies, expanding to the top 1,000 by FY 2026-27. This move isnt just about compliance - its about credibility, comparability and trust in corporate sustainability narratives.

One of the most impactful additions?

The inclusion of value chain ESG reporting.

From FY 2024-25, companies among the top 250 by market capitalization must begin disclosing ESG metrics related to their value chain partners - initially on a comply-or-explain basis, with limited assurance becoming mandatory from FY 2025-26. This signals a landmark shift: sustainability can no longer stop at a companys doorstep - it must flow across the entire ecosystem

At RACE, weve been preparing for this moment.

Our ethos has always centered around building systems that are resilient, responsible and regenerative. Weve consistently aligned our operations and partnerships to enable long-term sustainability, not just for ourselves, but for the businesses and communities we serve.

As SEBI enforces value chain-level ESG accountability and the government tightens plastic recycling targets for Producers, Importers and Brand Owners (PIBOs) under the Extended Producer Responsibility (EPR) framework, companies face a dual challenge:

• Meeting stringent compliance norms

• Navigating a fragmented waste management ecosystem dominated by unorganized players

This is where RACE makes the difference.

With our deep sector expertise, ESG-driven innovation and tech-enabled platforms, RACE is uniquely positioned to bridge the formal-informal divide. We provide actionable, scalable and traceable solutions that empower companies to:

S Stay ahead of compliance curves

•S Integrate sustainability into the core of their operations •S Strengthen the integrity and impact of their value chains

In a world demanding greater transparency, responsibility and shared value, RACE stands as a trusted partner - not only helping businesses adapt but thrive in a new sustainability-driven economy.

This is the future. And its being written now.

Together, lets move beyond box-ticking and toward real transformation. Lets reimagine value chains as networks of shared purpose. Lets turn compliance into leadership.

Because at RACE, we believe when sustainability becomes systemic, progress becomes unstoppable.

Industry Outlook

Indias Plastic Waste Generation

Indias growing economy and industrial expansion have driven a sharp increase in plastic waste generation. Sectors like manufacturing and retail heavily rely on plastic packaging, while the booming e-commerce industry has significantly added to plastic consumption, especially in logistics and delivery packaging. In healthcare, plastic remains irreplaceable due to hygiene and safety standards.

India generated 17.60 million tons of plastic waste in 2023, growing at a CAGR of 11.16% from 2017 to 2023. The market is projected to reach 31.66 million tons by 2029, with a projected CAGR of 10.28% during 2023-2029, emphasizing the need for robust waste management systems.

Indias Waste Plastic Recycling Market

The plastic recycling sector in India is gaining momentum, driven by population growth, rapid urbanization, & increasing environmental awareness. Government initiatives, policy support and infrastructure investments are further propelling the industry. Additionally, the demand for recycled materials across sectors is aligned with circular economy principles, presenting both ecological and economic opportunities.

Indias waste plastic recycling market reached 10.80 million tons in 2023, growing at a CAGR of 13.43% from 2017 to 2023. It is expected to reach 23.71 million tons by 2029, at a projected CAGR of 14.00% during 2023-2029.

Indias PET Waste Generation

India generated 2.04 million tons of PET waste in 2023, growing at a CAGR of 7.80% between 2017 and 2023. The market is expected to reach 4.24 million tons by 2029, registering a strong CAGR of 12.97% from 2023 to 2029. This highlights the pressing need for structured PET waste management and recycling systems.

Indias PET Waste Management

Approximately 90% of Indias total plastic waste undergoes recycling. Within this, the share managed by organized players has increased from 36% in 2017 to an estimated 45% in 2024. This shift is driven by tightening regulations, increased sustainability efforts, growing consumer awareness and the efficiency of formalized systems. The role of organized players is expected to further grow due to global sustainability commitments and national policy enforcement.

Indias PET Bottle Consumption Market

The Indian PET bottle consumption market reached 1.14 million tons in 2023, growing at a CAGR of 6.42% from 2017 to 2023. It is projected to reach 2.34 million tons by 2029, at a CAGR of 12.69%. Growth is fueled by rising demand for packaged beverages, growing middle-class consumption, convenience of PET bottles and increasing usage in industries like personal care and pharmaceuticals.

Indias Biomass Industry Outlook

As per Transparency Market Research, Indias biomass industry was valued at USD 1.7 billion in 2019 and is projected to reach USD 4 billion by 2030, growing at a CAGR of 8%. The Ministry of Power revised its biomass policy in June 2023, mandating 5% biomass co-firing in thermal power plants from FY 2024-25, rising to 7% from FY 2025-26. Benchmark pricing for pellets has also been introduced to support a sustainable biomass ecosystem, enhance farmer participation and reduce stubble burning.

Compressed Biogas Blending Obligation (CBO)

To accelerate the adoption of green energy, the Indian government has introduced mandatory blending of Compressed Biogas (CBG) in CNG and PNG networks. The obligation starts at 1% in FY 2025-26, increases to 4% in FY 2027-28 and reaches 5% from FY 2029 onwards. This policy aims to promote domestic biogas production and consumption while reducing dependence on fossil fuels.

Business Model

We operate an integrated circular economy platform that transforms waste into value through our four strategic business segments. Our comprehensive approach encompasses the systematic collection and supply of recyclable waste materials to authorized recyclers, while simultaneously manufacturing and marketing premium recycled products under our proprietary brands. This diversified business model reinforces our commitment to sustainable resource management while creating multiple revenue streams across the waste-to-value chain.

We are one of the largest plastic waste aggregators in India, with an average monthly collection and supply capacity of approximately 7,943 metric tons. In FY25, we successfully aggregated nearly 95,318 metric tons of plastic waste, representing a robust 25% year-on-year growth.

Standalone revenue from this segment reached INR 432.65 crore, reflecting a strong 48% increase compared to the previous year. While PET bottles remain our primary focus, we are actively exploring opportunities to diversify into other plastic waste streams.

Backed by a favourable regulatory environment for plastic packaging materials, we are strategically positioned to scale up to an annual run-rate of 150,000 metric tons of plastic packaging waste iaggregation in the near future.

Biofuel

Our company supplied approximately 25,840 metric tons of biomass to prominent clients including Reliance, CEAT, Orient Bell, PepsiCo, Ultra-Tech and others. Despite our continued efforts, the segment witnessed a decline of 51% year-on-year in our tonnage. Our performance during the year was impacted by disruptions in the biomass procurement value chain. Hence, prompting the management to initiate comprehensive restructuring of the biomass procurement ecosystem to address these challenges.

Revenue from biomass stood at INR 18.71 crore, contributing around 4% to our total revenue for FY25 (on standalone basis). However, this represents a significant drop in both revenue and profitability compared to the previous year, due to the aforementioned reasons.

While FY25 was a challenging year, we are implementing targeted interventions to rebuild our supply chain resilience and are confident in restoring the growth trajectory in upcoming quarters.

Our Biofuel Clientele

Recycling and Circular Economy

Restore

Our commitment to environmental stewardship extends through our "Restore" brand, under which we manufacture and market premium recycled products including bags, cushions, curtains and table mats across India and international markets. This sustainability-focused division demonstrates our dedication to circular economy principles while creating meaningful value for stakeholders.

While the Restore division currently contributes approximately 2% of our standalone revenue, it represents one of our most dynamic growth engines. In FY25, this segment delivered exceptional performance with revenue surging nearly four-fold from INR 2.34 crore in FY24 to INR 8.94 crore in FY25-a remarkable 282% year-over-year growth that marks both market demand for sustainable products and the strength of our execution capabilities.

Washed PET Flakes

In a landmark move to strengthen our position in the circular economy, we entered into a transformative joint venture with Ganesha Ecosphere, establishing Ganesha Recycling Chain Limited. This strategic partnership represents a significant milestone in our commitment to sustainable manufacturing and environmental stewardship.

Our collaboration focuses on launching multiple state-of-the-art washing lines across India, designed to transform post-consumer PET bottles into premium recycled PET (rPET) flakes. This initiative addresses the rapidly escalating demand for recycled PET materials in India, driven by stringent ESG mandates and evolving regulatory requirements that prioritize sustainable packaging solutions.

The partnership marks a significant forward integration of RACEs business operations, strategically positioning us for higher-margin opportunities in the PET waste value chain. The setup and installation of washing lines is currently progressing as planned, with commercialization of operations expected in the forthcoming quarters.

Financial Statement Analysis

The financial results presented below reflect our strong growth trajectory and demonstrate our continued ability to deliver exceptional value to stakeholders. Our performance across key metrics reinforces confidence in our strategic direction and establishes a solid foundation for sustainable future growth.

Standalone Income Statement

INR Cr

Particulars	FY22	FY23	FY24	FY25 A
Revenue from Operations	157.21	269.08	338.50	460.30
Operating Costs	157.03	267.00	332.97	451.92
Operating Profit (EBITDA)	0.18	2.09	5.53	8.38
Other Income	1.62	0.85	0.67	1.11
Finance Costs	0.42	0.70	2.84	4.05
Depreciation and amortization	0.33	0.44	0.66	0.68
Profit Before Tax (PBT)	1.06	1.79	2.70	4.76
Less: Tax expense	0.14	0.48	1.13	1.01
Profit After Tax (PAT)	0.92	1.30	1.57	3.76

With the vision of "Organising the Unorganised," we embarked on our journey in the waste management sector in FY21. Since then, we have demonstrated strong and consistent growth, achieving a CAGR of approximately 43% over the past three years.

FY25 marked a year of exceptional financial performance, with our company delivering robust top-line growth. Standalone revenue reached ?460.30 crore, representing a strong year-over-year growth of 36% compared to ?338.50 crore in FY24. This impressive revenue expansion demonstrates the resilience of our business model and our ability to capitalize on emerging environmental opportunities.

Our bottom-line performance showcased improvement, with standalone Profit After Tax (PAT) more than doubling from ?1.57 crore in FY24 to ?3.76 crore in FY25-an exceptional 140% year-over-year increase.

The PAT margin expansion from 0.46% in FY24 to 0.82% in FY25 reflects our focused efforts on optimizing operational efficiency and maximizing value extraction from our core business activities. The convergence of strong revenue growth with accelerated profitability improvement is resulting from our strategic focus on organizing the waste management value chain.

Consolidated Income Statement

INR Cr

Particulars	FY24	FY25
Revenue from Operations	347.48	555.10
Operating Costs	341.71	545.40
Operating Profit (EBITDA)	5.77	9.70
Other Income	0.70	0.90
Finance Costs	2.94	4.24
Depreciation and amortization	0.80	0.87
Share of Profit / Loss in Associate Companies	0.00	0.06
Profit Before Tax (PBT)	2.73	5.55
Less: Tax expense	1.18	1.35
Profit After Tax (PAT)	1.55	4.19

Consolidated revenue from operations surged to ?555.10 crore in FY25, marking a robust 60% year-over-year growth from ?347.48 crore in FY24. This impressive top-line expansion was achieved through our subsidiaries Vasundhara Envirogreen Private Limited and Silverline Eco Thrive Limited, showcasing the synergistic benefits of our diversified operations across the environmental solutions sector.

Our consolidated performance delivered bottom-line improvements with Profit After Tax increasing by 170% from ?1.55 crore in FY24 to ?4.19 crore in FY25 with Operating Profit (EBITDA) growing by 68% to ?9.70 crore.

These consolidated results reflect the effectiveness of our integrated business approach, where our subsidiaries contribute meaningfully to overall growth while maintaining operational efficiency. The strong financial performance across our consolidated entities positions us well for continued expansion and value creation in the evolving environmental solutions marketplace.

Demerger

"Way Ahead For Race"

To enhance operational focus and improve capital allocation, the Board of RACE has proposed a strategic demerger of its existing business segments into three distinct entities. As part of this process, shareholders will receive shares in two additional listed entities alongside RACE.

Potential Benefits of the Demerger:

Unlocking Segment-Specific Value

Each business segment will operate independently, allowing for sharper strategic direction, increased operational efficiency and clearer market positioning. This structure empowers each entity to pursue its unique goals with agility, revealing the true potential of every business vertical.

Improved Capital Allocation

With separate entities, capital can be deployed more effectively based on the specific growth prospects and financial reguirements of each business. Tailored investment strategies will enhance value creation across all segments.

The Board firmly believes that this demerger will establish a solid foundation for long-term growth and value generation. We are excited about this transformative step forward and seek your continued support and confidence as we move ahead. A

Organic Growth

Race Eco Chain and Ganesha Ecosphere Join hands together to form J.V.- Race and Ganesha Race Eco Chain and Ganesha Ecosphere have come together to form a strategic joint venture Ganesha Recycling Chain Pvt. Ltd. This Joint Venture aims to set up multiple PET flakes washing lines across India, addressing the rising demand for high-quality rPET flakes used in B2B manufacturing. By combining the expertise in collection, processing and recycling, the two industry leaders are committed to strengthening the circular economy and meeting the evolving needs of sustainable manufacturing.

Benefits of the Joint Venture:

Increased Production Capacity

Establishing multiple washing lines will significantly boost the supply of premium-grade rPET flakes to meet growing industrial demand.

Nationwide Footprint

The collaboration enables rapid expansion across key regions in India, improving access to raw materials and optimizing logistics.

Quality Assurance

Leveraging Ganeshas technical know-how and Races collection network ensures consistent, high-quality output aligned with global standards.

Sustainability Leadership

The JV strengthens both companies commitment to sustainability by promoting closed-loop recycling and reducing plastic waste.

Business Synergy

The partnership merges Races efficient collection infrastructure with Ganeshas proven recycling capabilities, creating a scalable and future-ready model.

In-Organic Growth

1. Race Acquires Vasundhara Envirogreen Pvt. Ltd. for Strategic Growth

RACE Eco Chain Ltd. has successfully acquired Vasundhara Envirogreen Private Limited, a prominent supplier of recyclable materials based in Uttar Pradesh. This strategic acquisition is a significant step toward strengthening our nationwide plastic waste management network and aligns with our long-term vision of building a more robust and integrated circular economy.

Key Benefits of the Acquisition:

• Enhanced Collection Capacity: Vasundharas established presence in northern India will significantly boost our waste collection volume, helping us meet the growing demand from recyclers and brand owners.

• Operational Synergies: The integration of Vasundharas operations with RACE will enable process optimization, leading to improved efficiency and reduced costs across the value chain.

• Improved Profitability: By streamlining logistics and leveraging scale, the acquisition is expected to contribute to higher margins and sustainable profitability.

• Expanded Market Reach: Vasundharas strong local network will provide RACE with deeper market penetration in the region, enabling faster growth and broader impact.

• Stronger Value Chain Integration: This move supports our goal of creating an end-to-end ecosystem, from collection to recycling, under a unified, traceable and ESG-compliant framework.

This acquisition marks a vital milestone in our journey to become Indias most trusted and efficient waste management platform and we are excited about the opportunities it brings for growth, impact and value creation.

In-Organic Growth

2. Race Invests in Silverline for Strategic Expansion:

RACE Eco Chain have done strategic investment in Silverline, a leading supplier of recyclable materials based in Tamil Nadu. This investment is a key step in our long-term vision to strengthen and scale our plastic waste management infrastructure across India, particularly in the southern region.

Key Benefits of the Investment:

• Strengthening Regional Presence: The partnership enhances our footprint in South India, allowing us to tap into one of the most dynamic recycling markets in India.

• Boosting Collection Efficiency: The investment will significantly increase Silverlines operational capacity for plastic waste collection, enabling more streamlined and efficient aggregation from the source.

• Establishing New Bale Centers: This collaboration will facilitate the setup of multiple company-owned bale centers, improving material handling, traceability and logistics.

• Expanding the Exclusive Baler Network: With an expanded network of exclusive balers, we aim to create a more organized and consistent supply of quality recyclable material.

• Accelerating Circular Economy Goals: By building robust infrastructure at the grassroots level, this partnership will contribute directly to our mission of creating a circular economy and supporting EPR compliance for brand owners.

This strategic investment reflects RACEs continued commitment to building a future-ready, sustainable waste management ecosystem across India.

3. Ganesha Ecosphere Acquires Stake in Race Eco Chain- Ganesha Ecosphere Limited

RACE Eco Chain Ltd., Indias leading PET waste aggregator, has entered into a transformative strategic alliance with Ganesha Ecosphere Ltd., the Indias largest PET waste recycler. As part of this collaboration, Ganesha Ecosphere is making a strategic equity investment in RACE, reinforcing a shared vision to revolutionize Indias plastic waste management landscape.

Strategic Initiatives & Key Benefits

Reimagining the Waste Management Supply Chain

This alliance brings together two industry pioneers to transform and streamline Indias fragmented waste management system. By integrating our expertise in collection with Ganeshas advanced recycling capabilities, we aim to create an efficient, scalable and sustainable value chain that meets the increasing demand from brand owners for eco-friendly solutions.

Setting Up Dedicated Collection Centers:

We plan to establish dedicated collection centers exclusively for Ganesha Ecosphere, following a similar model to our collaboration with Rudra Ecovation. These centers will be built to meet strict Environmental, Social and Governance (ESG) standards, ensuring full traceability and responsible waste handling.

Driving Compliance and Sustainability:

With Extended Producer Responsibility (EPR) mandates now in effect from FY25 and SEBIs ESG regulations impacting the entire value chain, there is an urgent need for organized and compliant waste management systems. This partnership positions us to efficiently support brand owners in meeting their regulatory commitments while enhancing overall sustainability.

Unlocking Value-Addition Opportunities:

The strategic tie-up opens new avenues for growth and innovation within RACE. By aligning our operational strengths with Ganeshas recycling leadership, we can unlock synergies that enhance competitiveness, expand our service offerings and explore innovative recycling models.

Strategic Initiatives & Key Benefits

Reimagining the Waste Management Supply Chain

Bridging the Sustainability Gap:

A significant portion of Indias waste supply chain remains unorganized, contributing to inefficiencies and environmental impact. This collaboration aims to bridge that gap by building a structured, traceable and sustainable waste ecosystem, fostering a more circular economy.

Attracting Demand from Brand Owners:

With increasing regulatory pressure, brand owners are seeking reliable partners to fulfill their EPR obligations. Our organized infrastructure and strategic partnership with Ganesha Ecosphere make us a preferred choice, creating a strong demand-pull effect for our services.

Boosting Operational Performance:

We anticipate significant structural improvements in our operating performance through shared resources, enhanced scalability and process optimization. This will drive long-term profitability and solidify our leadership in Indias sustainable waste management industry.

RACE Mobile App

A Landmark in Digital Transformation

As part of RACE Eco Chains ongoing digital transformation journey, we are proud to announce the launch of our new mobile application-a significant milestone that reflects our commitment to innovation, efficiency and sustainability. This powerful digital tool is designed to modernize the waste management supply chain by organizing unstructured processes and streamlining waste transactions across India.

Strategic Objectives

The launch of this mobile app marks a critical step in RACES evolution as a tech-enabled sustainability leader.

Our key objectives include:

Driving Operational Efficiency:

Digitizing workflows to reduce manual processes and improve turnaround time.

Enhancing Traceability:

Promoting greater visibility across the waste supply chain to support ESG compliance and EPR reporting.

Boosting User Satisfaction:

Delivering a seamless, intuitive experience that caters to the real-time needs of users and partners.

Organizing the Unorganized:

Empowering informal sector stakeholders by integrating them into a transparent, traceable digital ecosystem.

RACE mobile application is not just a new digital tool, its a strategic asset that propels RACE toward its mission of building an efficient, transparent and sustainable waste management infrastructure. As we continue to expand our digital capabilities, we look forward to unlocking new opportunities, creating greater value for our stakeholders and setting new benchmarks in the circular economy.

Operational Highlights & Strategic Imperatives:

The past year was defined by a series of high- impact initiatives that directly address market opportunities and enhance our competitive advantage.

Strategic Expansion: The acquisition of

Vasundhara Envirogreen Private Limited was a pivotal move. This not only expanded our collection capabilities but also unlocked crucial synergies, leading to increased profitability and a larger market share in Uttar Pradesh.

Collaborative Growth: Our joint venture with Ganesha Ecosphere to form Ganesha Recycling Chain Pvt Ltd is a game-changer. This collaboration addresses the growing demand for high-quality rPET flakes and will establish multiple washing lines, creating a more robust supply chain for the B2B sector.

Infrastructure & Network Growth: We successfully established new collection centers in Jharkhand, Noida, Bangalore and Gorakhpur. These new hubs are the nerve centers of our operations, significantly boosting our capacity and reinforcing our commitment to organizing the unorganized waste supply chain.

Talent & Diversification: We strategically on-boarded new talent to increase our focus on high-growth segments like Copper, Biomass briquettes and Industrial plastic waste. This diversification reduces risk and opens up new revenue streams, strengthening our position in the broader resource recovery market.

Community & Brand Building: The launch of our Reverse Vending Machines (RVMs) in colleges and the execution of a large-scale Waste Collection Drive are key to our brand-building efforts. These initiatives are crucial for promoting sustainable habits and building a positive brand image among the next generation of consumers.

Recycling and Circular Economy

The Market Landscape

Opportunities and Challenges

The Indian waste management sector presents a dynamic landscape characterized by significant growth, evolving regulatory frameworks and a critical need for formalization. RACE Eco Chain Ltd. is strategically positioned to capitalize on these trends.

Indias Waste Management Market Dynamics

Indias economic expansion and industrial output have driven a substantial increase in plastic waste generation, reaching 17.60 Million Tons in 2023. Concurrently, the Indian waste plastic recycling market has shown robust growth, achieving 10.80 Million Tons in 2023 with a 13.43% Compound Annual Growth Rate (CAGR) from 2017-2023. This market is projected to nearly double, reaching 23.71 Million Tons by 2029, with an anticipated 14.00% CAGR.

Within this, the market for PET waste generation is also expanding rapidly, reaching 2.04 Million Tons in 2023 (7.80% CAGR 2017-2023) and projected to more than double to 4.24 Million Tons by 2029, exhibiting a 12.97% CAGR. Similarly, Indian PET bottle consumption, which stood at 1.14 Million Tons in 2023 (6.42% CAGR 2017-2023), is expected to grow significantly to 2.34 Million Tons by 2029, with a strong 12.69% CAGR, driven by rising demand for packaged beverages and various industrial applications. A notable trend is the gradual formalization of the sector, with the share of waste handled by organized players increasing from 36% in 2017 to an estimated 45% in 2024. Beyond plastics, the Indian biomass industry is also experiencing substantial growth, valued at around US

1.7 Billion in 2019 and projected to reach US 4 Billion by 2030, at an 8% CAGR.

Favorable Government Policies and Regulatory Environment

Government policies and regulatory shifts are acting as powerful catalysts for the organized waste management sector:

SEBIs Business Responsibility and Sustainability Reporting (BRSR) Framework: SEBIs intensified focus on sustainable business practices has made BRSR reporting mandatory for the top 1,000 listed companies. The BRSR core framework now mandates reasonable assurance on disclosures and extends reporting requirements to value chain partners (on a comply-or-explain basis for top 250 listed entities from FY25).

Mandatory Plastic Recycling Targets (Extended Producer Responsibility - EPR): The government has implemented stringent EPR targets for Producer, Importer and Brand Owners (PIBOs), obligating them not only to meet recycling targets but also to ensure the sustainability of their value chain.

FSSAI Approval for Recycled Plastics: The Food Safety and Standards Authority of India (FSSAI) has permitted the use of recycled plastics as food contact materials. This crucial development is expected to structurally shift the demand for recycled plastic upwards by opening new application areas.

Biomass Co-firing Mandate: The Ministry of Power has mandated a 5% biomass co-firing in Thermal Power Plants (TPPs) from FY25, which will increase to 7% from FY26, creating a guaranteed demand for biomass fuel.

Compressed Biogas (CBG) Blending Obligation (CBO): The government has announced mandatory blending of CBG in Compressed Natural Gas (CNG) and Piped Natural Gas (PNG), starting from 1% in FY26 and escalating to 5% by FY29.

Budget 2024 Support for Biomass: The Union Budget 2024 allocated Rs 150 crore in financial assistance for the procurement of machinery to aid in biomass collection, further bolstering the sector.

These regulatory changes are not merely supportive policies but rather mandates and obligations that fundamentally alter market dynamics, creating a structural, compulsory demand for organized, traceable and ESG-compliant waste management solutions. RACEs business model and strategic investments, such as the Ganesha Ecosphere joint venture for rPET flakes and the Vasundhara and Silverline acquisitions, are perfectly aligned with these regulatory drivers. This indicates that the company is not just benefiting from general market growth but is strategically positioned to thrive from a regulatory push that compels the market towards its core strengths. This alignment is likely to accelerate its market share gains and enhance profitability by capturing demand that is now legally mandated.

RACE Eco Chains Strategic Positioning & Competitive Advantage

RACES strong ESG-focused mindset strategically positions it to bridge the existing sustainability gap within the waste management sector, aligning its operations with evolving market demands. The company is explicitly committed to organizing the currently unorganized waste sector and ensuring end-to-end (E2E) traceability. This commitment allows it to capitalize on the significant emerging opportunities driven by regulatory changes and industry demand. RACEs strategic initiatives are progressively strengthening its market dominance, making it an increasingly preferred choice for both existing and potential customers and recyclers. This translates into improved bargaining power and better yields.

RACE offers a comprehensive suite of solutions, including a vast Pan India supplier network, strategically located regional collection centers, a strong ESG focus, plans for setting up washing plants, the innovative RACE App and future integration of Al and blockchain-based solutions for waste management.

While the research explicitly states that the majority of Indias recycled waste is handled by the informal sector, which often lacks adherence to health, safety and governance standards, this fragmentation is a significant challenge for overall market efficiency and sustainability. However, RACEs stated mission is precisely to "organize the unorganized waste market" [User Query]. Its core initiatives, such as the RACE App for digitization and the establishment of dedicated collection centers, directly address this fragmentation. The observed increase in the organized sectors share, from 36% in 2017 to an estimated 45% in 2024, confirms that this formalization is already underway. While the fragmented nature of the market presents operational complexities, it simultaneously represents a massive, untapped opportunity for a company like RACE that is systematically building an organized, traceable and ESG-compliant supply chain. This strategic focus positions RACE to consolidate market share and become an indispensable partner for large corporations and FMCG companies that are increasingly pressured by regulations, such as BRSR for value chain, to ensure sustainable waste procurement. ,

RACE operates across plastic recycling, biomass and recycled products. The plastic recycling market is booming due to EPR and FSSAI approvals. The biomass market is also experiencing significant growth driven by co-firing and CBG blending mandates. The "Restore" recycled products division, though smaller, complements the plastic recycling efforts by transforming waste into consumer-ready goods. The proposed demerger into these three distinct entities suggests a belief in their individual growth potential while collectively addressing diverse needs within the circular economy. This integrated approach positions RACE as a comprehensive solution provider, rather than a single-product or single-waste-stream player. By leveraging different waste streams for various end-products, the company enhances its resilience against market shifts in any one area. This holistic strategy can broaden its appeal to a wider range of industrial clients and consumers, solidifying its position as a key enabler of Indias circular economy transition.

Future Outlook

We are entering the next fiscal year with a clear and ambitious roadmap. Our focus will be on integrating our recent acquisitions and joint ventures, optimizing our expanded network of collection centers and leveraging our technological edge to drive further efficiencies. We anticipate continued growth, fueled by strong demand, favorable regulatory policies and our unwavering commitment to innovation. We are not just preparing for the future; we are actively shaping it, ready to embrace the challenges and capitalize on the opportunities that lie ahead.