Shera Energy Ltd Management Discussions

The global non-ferrous metals industry occupies a foundational role in modern civilization, enabling innovation and supporting countless facets of daily life. From the wiring that powers cities to components in smartphones and

transportation systems, non-ferrous metals like copper, aluminum, and brass are ever-present yet often go unnoticed in their ubiguity. The sectors significance extends beyond basic manufacturing as it underpins global transitions in energy, digitalization, and sustainable development.

The global non-ferrous metals industry underpins the I infrastructure of modern society, from the expansive grids j powering cities to the intricate circuits in smartphones and I electric vehicles. This sectors materials copper, aluminum, I and brass play fundamental roles across renewable energy, \ transportation, construction, and packaging. As of 2024, the global non-ferrous metals market is valued at approximately $1,183.9bil I ion and is expected to reach $ 1,75tril I ion by 2033, underscoring not only its size but also its inherent resilience and adaptability to global trends.

In recent years, market growth has been driven by rapid urbanization, investments in green infrastructure, and policy-led pushes towards sustainability and circularity. The recycling market is forecast to surpass $225billion in 2025, as innovations in resource recovery and environmental mandates reshape industry practices. However, the industry also faces pressing challenges. Constraints in mining expansion, ore guality, and environmental regulatory compliance contribute to supply- side uncertainty and price volatility. Moving into 2025, the global sector is forecast to transition from recent supply contractions toward renewed demand and supply recovery, standing firmly at the intersection of industrial progress, sustainable development, and economic growth.

Moving into 2025, analysts anticipate a period of recovery and renewed momentum. While market volatility is expected to persist, the sectors vital role at the crossroads of technology, infrastructure, and sustainability positions it as a longterm enabler of innovation and prosperity. Businesses and governments alike are recognizing that investment in non- ferrous metals is not only an economic imperative but also crucial to the global sustainability agenda.

Within India, the non-ferrous metals industry has emerged not just as an economic powerhouse but also as a microcosm of the nations wider aspirations for modernization and global influence. Serving as a backbone to critical industries power, construction, automotive, and electronics non-ferrous metallurgy stands out for its strategic relevance and employment generation capacity.

Indias non-ferrous metals market is valued at $38.7billion in 2024 and is projected to surpass $61 billion by 2033, charting

a path of expansion driven by proactive government policies and vibrant domestic consumption. Electrification, renewable i energy projects, and a surging digital economy ensure strong I annual demand growth, forecast at nearly 10% for FY2025. This f impressive growth is underpinned by bold government initiatives, robust FDI inflows, and a youthful, ambitious workforce. Indias blueprint for a self-reliant economy (Atmanirbhar Bharat), along with persistent electrification efforts and a digital push, continue I to fuel industry momentum.

Indian industry achievements are not merely confined to I numbers. On the ground, modern plants blend tradition and technology, engineers strive for higher product standards,

and skilled workers innovate to solve real-world challenges. The sectors vibrancy is reflected in stories of small towns transformed by metals clusters and in flagship engineering marvels powered by copper, aluminum, and their alloys. From airport terminals to renewable power installations, evidence of this progress is visible throughout the nation.

booking forward, Indias non-ferrous metals sector is poised for a period of multi-dimensional transformation. As policy and investment converge, industrial challenges such as raw material security and adherence to world-class ESG norms are being met head on. With strong domestic demand, an expanding export base, and policymakers supporting sustainable practices, prospects remain luminous for years to come.

Copper, regarded as the pillar of electrification, commandingly shapes industrial progress worldwide. In 2024, the global copper market was estimated at $241,88billion and is set to grow to $339.95billion by 2030, at a CAGR of 6.5% (2025· 2030). This projected growth reflects the huge demand from renewable energy grids, expansion of electric vehicles, and infrastructure megaprojects·particularly in China and India, who together drive more than half of world demand. The market is also influenced by persistent supply risks, including slower mining development and declining ore grades, which can trigger price volatility and shape the sectors global supply chain.

Behind these developments is a story of adaptation and resilience. Producers grapple with supply-side constraints such as depleting ore grades and restricted new mine development which adds a premium to high-guality copper stocks and reshapes trade flows. Meanwhile, recycling is ramping up, offering new sources and reducing environmental strain. As the world pivots to greener infrastructure, these dynamics will continue to play a defining role in shaping the industrys direction.

The Indian copper industry was valued at approximately $26.24billion in 2024, with forecasts indicating impressive growth to $38.3bilI ion by 2030, at a CAGRof 7.2%. Indias domestic demand is projected to rise by 12% in 2025, propelled by a surge in renewable energy installations, expansion of electric vehicle manufacturing, and robust investments in power and infrastructure connectivity. While domestic mining and smelting activity is ramping up, India continues to import a sizable share of raw copper, reinforcing the importance of supply chain resilience and recycling. As the sector intensifies focus on technological modernization and downstream integration, India is set to become an increasingly influential node in the global copper value chain.

Aluminums unmatched versatility, recyclability, and lightweight strength keep it at the forefront of the non-ferrous domain. In 2025, the global aluminum market is projected at $281.1 billion and is on track to reach $498.5 billion by 2032, with a strong CAGR of 8.5%. Growth is propelled by the transformation to electric mobility, energy-efficient buildings, sustainable packaging, and the continued momentum in urban development. The sectors performance is closely tied to trends in energy pricing, environmental regulation, and rising demand for guality-intensive, value-added aluminum products. Market observers predict a dynamic 2025, with growth benefiting from fresh investments and the global realignment of supply after recent disruptions. However, price sensitivity due to energy market fluctuations and policy interventions, especially regarding production guotas in major economies, remains a key concern.

In India, the aluminum industry reached a valuation of about $12.6 billion in 2024, and is projected to grow to approximately $ 19.5 bil I ion by 2030, registering a CAGR of 7.5%. The sector thrives on strong domestic consumption, large-scale infrastructure builds, and an expanding global export portfolio. Strategic government support, targeted capacity expansions, and the embrace of energy-efficient technologies are notable strengths. Indias commitment to advanced, value-added downstream products is anticipated to further bolster its international competitiveness and sectoral resilience.

Shera Energy Limited, incorporated as"Shera Energy Private Limited" and subseguently converted into a public limited company, has established itself as a prominent player within Indias non-ferrous metals sector. Headguartered at Jaipur in Rajasthan, Shera Energy is engaged in the manufacturing and export of a wide array of copper, aluminum, and brass products, tailored to serve power generation, transmission & distribution, electrical, infrastructure, and engineering industries.

The Companys product portfolio includes copper strips, rods, wires, profiles, aluminum wires, strips and conductors, and brass wires, catering to the needs of both Indian and international clients. By leveraging advanced manufacturing technologies, stringent guality management systems, and globally recognized certifications (such as ISO 9001:2015, ISO 14001:2015, ISO 45001:2018), Shera Energy has positioned itself as a supplier of reliable, value-added, and innovative solutions across markets.

The Companys financial statements are prepared in accordance with the Indian Accounting Standards (Ind AS) prescribed by the Ministry of Corporate Affairs under Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended), and other generally accepted accounting principles in India.

Shera Energy Limited has instituted a comprehensive internal control framework that is meticulously aligned with the nature, size, and complexity of its operational landscape. These internal financial controls are systematically designed to uphold the integrity of financial reporting and are deemed both adeguate and effective for the preparation of the Companys financial statements. Throughout the financial year, the Companys control mechanisms have undergone extensive review, and no material weaknesses in their design or implementation have been identified.

The Internal Auditor maintains direct reporting responsibilities to the Audit Committee of the Board, thereby ensuring the independence and impartial oversight of all internal control matters. This structure promotes diligent monitoring of the Companys processes and timely implementation of corrective actions where necessary.

Shera Energys internal financial control (IFC) environment is periodically evaluated, with regular enhancements and refinements adopted to ensure strong financial discipline, precise reporting, and sound risk management practices. Documented standard operating procedures (SOPs) support the safeguarding of assets, the prevention and detection of fraud and errors, completeness and accuracy of accounting records, and the proper authorization and documentation of every transaction.

The Companys Statutory Auditors, M/s. Keyur Shah & Co., Chartered Accountants, have audited the financial statements included in this Annual Report and provided an attestation report on internal control over financial reporting, as mandated under Section 143 of the Companies Act, 2013. Additionally, M/s. Mohata Baheti & Associates, as Internal Auditors, are engaged to independently assess and monitor the Companys systems and controls. The internal audit function remains well-aligned with Shera Energys operational reach and risk environment, focusing on the continual review of internal controls, evaluation of business risks, and ongoing process improvement across all core functions.

At Shera Energy Limited, employees are regarded as the cornerstone of the Companys sustained performance and growth journey. Human capital is not only pivotal for operational success but also forms the core of Shera Energys organizational culture, shaping its agility, innovation capability, and market competitiveness. The company is committed to fostering a people-centric work culture that values diversity, collaboration, and empowerment at every level. Every

team member, regardless of role or designation, is seen as an essential partner in Shera Energys ongoing evolution and longterm objectives.

Shera Energy invests in its people far beyond remuneration ! alone. The Company offers ongoing learning avenues, structured I skill upgradation, and leadership development opportunities I designed to nurture talent, fuel professional progression, and j encourage entrepreneurial thinking. Employee engagement is I bolstered through participative decision-making, recognition I programs, and a culture that champions innovation and ac- 1 countability. The organization prioritizes internal selection and

structured succession planning as critical strategies for knowledge retention, seamless leadership transitions, and the preservation of corporate values. Continuous focus on grooming high-potential employees ensures a robust talent pipeline to support present and future growth aspirations. As of 31st March, 2025, Shera Energy Limited proudly reports 233 permanent employees on its payroll.

Shera Energys relentless pursuit of operational excellence is firmly supported by its ongoing investments in information technology. The Company maintains a strong emphasis on digitally optimizing and future-proofing its processes and systems, making technology a catalyst for business efficiency, innovation, and resilience. Integrated software platforms and harmonized IT infrastructure facilitate seamless communication across departments, real-time access to operational

data, and strong process controls. This unified digital environment has enabled Shera Energy to respond swiftly to market changes, make data-driven decisions, and maintain transparency and accountability across its value chain, laying a strong foundation for scalability and competitive advantage in a dynamic industry environment.

Shera Energy Limited is strategically poised to capture a variety of opportunities emerging from the rapid expansion and modernization of infrastructure, both within India and globally. Indias ambitious focus on renewable energy, electrification, urbanization, and manufacturing localization has resulted in surging demand for high-guality non-ferrous metals. The Company is positioned as a vital supplier to these sectors, amplified by its growing international footprint especially in Africa, the Middle East, and Southeast Asia through its innovative export strategy and the establishment of subsidiaries like Shera Zambia Ltd.

Opportunities abound as the Company diversifies into advanced, value-added product segments, harnesses automation and digital manufacturing, and leverages its extensive guality certifications and established reputation among blue-chip clients. The ongoing emphasis on "Make in India," infrastructure investments, and green transition projects create strong growth avenues for Shera Energys copper, aluminum, and brass solutions.

However, the sectors growth prospects are not without threats. Heightened competition from global and domestic players, persistent fluctuations in input costs, and global macroeconomic volatility could affect market share and pricing strategies. Regulatory and compliance changes particularly around environmental and labor standards reguire vigilant adaptation. Technological advancements by competitors, potential trade barriers, and shifting customer expectations add further complexity to the competitive landscape.

Shera Energy Limited operates in a dynamic global landscape, and the Company is constantly vigilant in identifying and navigating varied risks that could impact its business and performance. One of the primary risks remains volatility in commodity prices for copper, aluminum, and brass, which can directly affect input costs and margins. Global supply chain disruptions, geopolitical uncertainties, and fluctuations in foreign exchange rates further amplify this pricing risk, impacting export competitiveness and procurement costs.

Stringent environmental, safety, and regulatory compliance reguirements, both in domestic and international markets, are another area of focus. Changes in environmental laws or lapses in adherence can have operational and reputational conseguences. As a company deeply invested in manufacturing excellence and guality, Shera Energy is also exposed to risks related to product guality, process disruptions, and the reliability of raw material suppliers. Disruptions in the procurement or logistics chain could lead to production delays or guality compromises.

Additionally, the rapid pace of technological change and evolving customer reguirements demand continual innovation and upgradation of manufacturing capabilities. Failure to keep pace with emerging automation, digitalization trends, or advancements in product standards poses a risk to long-term competitiveness. Human resource risks, such as attrition of skilled employees or gaps in talent development, can also disrupt operations and growth plans.

To mitigate these and other identified risks, Shera Energy undertakes rigorous process controls, robust guality management, continuous investment in research and development, and prudent financial management. Periodic risk assessments and a strong focus on sustainability, compliance, and safety ensure that the Company stays agile and resilient in an evolving global environment.

Statements in this report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be "forward looking statements" within the meaning of applicable securities laws or regulations. These statements are based on certain assumptions and expectations of future events. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and domestic demand supply conditions, finished goods prices, raw material cost and availability, changes in Government regulations, tax regimes, economic developments within India and other factors such as litigation and industrial relations. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subseguent developments, information or events.