Supreme Industries Ltd Management Discussions

The net turnover (including other income) of the Company for the year under review was R 10,559.07 Crores (including R 72.77 Crores by way of trading in other related products) as against R 10,251.98 Crores (including R 58.23 Crores by way of trading in other related products) during the previous year.

6,74,510 tons of Plastic products as against 6,39,701 tons of Plastic products in the corresponding period of previous year, reflecting growth of 5% in product turnover by volume.

The Company exported goods worth US $ 26.70 million as against US $ 24.29 million during the corresponding period of the previous year. Profit before interest, depreciation and exceptional items and taxes during the period under review have been at R 1,545.56 Crores as against R 1,666.32 Crores during the previous year.

3. COMPANY STRENGTH AND GROWTH DRIVERS

During the year under review, the Company’s 30th state of art facility at Malanpur (M.P.) to manufacture Industrial & Ball Valves has become operational with effect from 01.09.2024.

The Company is now operating from 30 manufacturing sites across 13 States including Union Territories. Pan India geographical spread of manufacturing facilities provides excellent support in servicing the customers efficiently and economically. Work for 31st state of the art facility at Kanpur (Uttar Pradesh) to manufacture PVC profile windows & doors is in full swing and likely to go into operation during second quarter of 2025-26. Brownfield expansion at all the new sites has become operational during the year under review. The Company is continuing to fully optimize its potential. Two new greenfield plants for Plastic Piping Division at Jammu & Bihar to expand its manufacturing reach near to the market shall be taken up for execution in next financial year 2026-27. Land at these locations is in Company’s possession and detailed plans for products & capacities are being worked out.

The Company is successfully increasing its reach in various parts of the country where it is less represented. Each of the business divisions of the Company is working out an extensive plan and strategy to reach such areas by appointing new channel partners, increasing the connection between retailers and influencers and also creating awareness and promotional campaigns. The Company’s active Channels Partners strength increased to 5658 Nos as on 31^st March 2025 as compared to 5060 Nos as on 31^st March 2024. The Company has also been participating in various national and international exhibitions and remains focused on increasing its export business. Presently the Company’s products are being exported to 54 countries and efforts are being made to reach more countries and also new customers in existing countries.

The Company continues to open more Depots & fabrication facilities to provide value-added services in a cost-efficient manner to its customers. The Company has a total of 33 Depots and 9 Fabrication facilities for its various product groups.

The Company has spent on brand awareness a sum of R 126 crores to strengthen its brand and influencers engagement. The Company is judiciously spending on promoting its products on various media platforms including national and regional TV channels, OTT platforms during popular events and also popular trade magazines.

Keeping pace with the digital revolution in society, the company continues to ensure a robust digital presence. The company website is the first interface for receiving details for various divisions and product offerings, and the company maintains its sanctity and hygiene dedicatedly. The company undertakes dedicated digital campaigns to promote products to customers via Google SEM activity. In addition, the company is active on various social media platforms like Facebook, LinkedIn, Instagram, and YouTube. Supreme Corporate as well as various businesses like Pipes, Furniture, MHD, and PPD have their dedicated social media pages where products as well as business updates are posted. In addition to digital promotions, the company undertakes TV promotions at regular intervals. During the General Elections in 2024, the company had done an extensive Pipe TVC campaign on 6 national news channels as 23 regional news channels. During IPL edition of 2024, the company had done a Pipe TVC campaign on OTT channel. The Company also promotes its products through various trade magazine by way of advertisements and/or editorial write-ups. For B2C products like Furniture, the company has also done promotions through social media influencers. The company participates in various national and international exhibitions for its various divisions. Influencers, consultants, business partners, and end consumers are reached through these exhibitions. The company also undertakes many initiatives for knowledge upgradation. For imparting knowledge on best plumbing practices, the company has set up 5 Knowledge centers. In addition, programs like professional plumbing training programs and plumbing workshops are conducted across the country. During 2024-2025, the pipe division conducted the highest ever plumbing workshops. In the year, the pipe division conducted 322 plumbing workshops and trained nearly 15,490 plumbers. The company also runs a dedicated loyalty program via WhatsApp chatbot for plumbers and retails, which has gained good momentum this year. The Company has further strengthened its efforts in dealing with the menace of counterfeit products sold by certain unscrupulous players in a large way particularly in the Pipe Segment and getting encouraging results. Continuous monitoring & vigilance in the marketplace is resulting in a positive outcome. Company is determined to deal with such malpractices in the best possible manner by engaging teams of professionals to take suitable measures to overcome this continuous and recurring problem.

Restoring the Earth: Our Responsibility and Commitment

Every year, World Environment Day on June 5 serves as a global reminder to protect and preserve our planet. At Supreme Industries, we align our initiatives with this global call to action by adopting innovative practices and strategic policies to restore ecosystems and minimize environmental degradation. From tackling global warming to reducing pollution and conserving resources, our goal remains steadfast—building a sustainable and thriving planet for generations to come.

Supreme Industries has reaffirmed its commitment to climate action by submitting emissions reduction targets aligned with the Science-Based Targets initiative (SBTi), covering Scope 1, 2, and 3 emissions.

We are conducting Climate Risk Assessments across all our PAN India units. These assessments identify both transition and physical risks and leverage scenario analysis to quantify the financial impacts of climate-related risks and opportunities. This initiative supports long-term value creation and builds organizational resilience.

Enhancing ESG Transparency and Reporting

To improve transparency and drive ESG excellence, we are submitting disclosures to the Carbon Disclosure Project (CDP) and participating in the Dow Jones Sustainability Index (DJSI) Corporate Sustainability Assessment. These efforts are aimed at improving our ESG ratings and reinforcing our standing as a responsible industry leader. Life Cycle Assessment -

We have conducted Life Cycle Assessments for additional 5 products such as Furniture, Crates, Capcell, ABF Film, EPE Foam. These assessments help us compare environmental impacts and offer customers sustainable alternatives, reinforcing our commitment to a circular economy. Transition to Renewable Energy and Emissions Reduction

Supreme Industries has significantly scaled its renewable energy investments in FY 2024–25:

• On-site Solar Capacity: Rooftop and ground-mounted solar installations now total 35.65 MWp.

• 3rd-Party Power Purchase Agreement (PPA): 2.50 MW Hybrid PPA in Gujarat will generate 1.18 crore units annually.

• Captive Solar Supply from O2 Renewable Energy started from Feb-25 for our six locations in Maharashtra.

Green Energy Use: Our year-on-year increase in green energy consumption contributes to a notable reduction in Scope 2 emissions.

Energy Celebration Week (December 11 to 16, 2024)

• Promote awareness of energy conservation in daily life.

• Encourage efficient energy use to reduce consumption and prevent losses.

• Supreme Industries remains committed to energy efficiency as part of its Science-Based Targets strategy:

• 16 plants are EnMS ISO 50001 certified, underscoring our dedication to continuous energy performance improvement.

Key operational controls have been implemented related to housekeeping, operations, and energy-efficient equipment procurement.

Certified Green Products

Eleven of our premium products have been certified by the CII GreenPro Council. These include our innovative green foam solutions—Insu Sound, InsuShield, Insu Melafoam which help reduce the environmental impact in construction and manufacturing.

Water Stewardship and Conservation Measures

Water is a critical resource for our operations, and Supreme is deeply committed to its responsible use. Through a network of flowmeters and piezometers, we monitor both consumption and groundwater levels.

Key Initiatives:

• Conducted detailed water audits at eight high-consumption plants.

• Adopted the 3Rs Philosophy—Reduce, Recycle, Recharge.

• Implemented leak arrest systems, sensor-based fixtures, waterless urinals, and efficient irrigation setups.

• Introduced temperature-based controls for cooling towers and mesh installations to reduce evaporation losses.

• Sustainable Wastewater Management

Aligned with SDG 6 (Clean Water & Sanitation) and SDG 12 (Responsible Consumption & Production), we have expanded wastewater treatment capacity at five facilities. Treated water is reused for non-potable purposes such as flushing and landscaping.

Rainwater Harvesting Success Stories:

• Kharagpur & Jadcherla: Rainwater used for cooling tower replenishment.

• Talegaon: Rainwater stored and utilized during monsoon operations.

These initiatives contributed to app 6% reduction in specific water consumption from FY 2023-24 to FY 2024-25. Digitized ESG Monitoring and Value Chain Assessment

We have adopted the Updapt SaaS platform to streamline ESG data collection and enable real-time monitoring across facilities.

We also launched a Value Chain Assessment Program to engage both upstream and downstream partners as part of our compliance with Business Responsibility and Sustainability Reporting (BRSR).

Recognitions & Awards

Supreme Industries has received multiple accolades for its sustainability leadership:

• National Energy Conservation Award (BEE, Govt. of India) – Jadcherla Plant

• CII 25th National Energy Management Awards – Jadcherla & MP PVC

• Grow Care India Excellence Award – Corporate Level

• IRIM Silver Award – Manufacturing Excellence, MP PVC

• Best Groundwater Management Practitioner – Jadcherla

• Rainwater Harvesting Champion – CII-SR Award, Jadcherla

• GreenPro Certification – Supreme Lifeline CPVC Pipes & Fittings

• SEEM Silver Award – Energy Conservation, Jadcherla & Kharagpur Looking Ahead: A Sustainable Future

As we move forward, we remain focused on embedding sustainability into every layer of our operations—from reducing emissions and conserving water to promoting responsible production and fostering innovation.

Supreme Industries is committed to enhancing ESG performance, delivering long-term value to stakeholders, and building a resilient and sustainable future for all.

4. OPERATIONAL PERFORMANCE

The Company remained focussed on its business of Plastic Pipe System Business Vertical and continues to grow. The Company provides high quality products and professional services to customers. Company is a leader in the segment and has the largest portfolio of products. Company continues to expand its product portfolio with additional SKUs & systems for various applications as required by the growing economy. The Company has remained steadfast in executing a prudent Business Strategy, focussing on five key Pillars: Innovation, Smart Manufacturing, Relationship with Channel Partners, Effective Servicing and Depth of reach across country. During the year under review the Company achieved volume growth of about 6% in Plastic Piping System Vertical made from different plastic materials. Overall the Company sold 5,31,133 Tons of Pipe System compared to 5,01,001 Tons in the preceding year. PVC is the predominant raw material in the Company’s Plastic Pipe business. During the year 24-25 the prices of PVC were literally in roller coaster mode. The prices of PVC were rising from 1^st April ’24 till 1^st July 2024. Thereafter every quarter the trend was in reversal mode compared to previous quarter with overall reduction of R 21.5 per kg i.e

R 22% and 14 times change in prices. On account of this, the entire distribution network went into huge de-stocking mode and became unstable with such frequent variations in Product prices. The Company has main business through distribution net work and there the business volume growth was seriously affected. Further unusual rains in many States affected overall business growth. The Country experienced growth of around only 5% in PVC resin consumption in piping application for 24-25 as against 7.7% during 23-24. Due to very low growth in infrastructure spending by Central and State Governments, the Country had a de-growth of 6% by volume in Plastic Piping System, against which our Company had a growth of around 5.5% in this application. The Government at the Centre and States have taken several initiatives, like focus on Jal Jeevan Mission, Swatch Bharat Abhiyan, Sanitation, affordable housing, smart cities and many more. However, overall monies spent on infrastructure were much lower than 2023-24. Thus the Company’s business for infrastructure supply had a negative growth compared to last year.

The Company incurred a Capex of R 514 crores in this division during the year against R 453 crores during last year. Capex was incurred in its various plants to build higher capacities and increased range.

The total product portfolio in Plastic Pipe System Business Vertical has reached 14,642 nos., thus adding 754 new products to the range of various Plastic Piping System, over the preceding previous year. The Company has plans of introducing additional varieties in the existing systems as well as the addition of new systems during the year 2025-26. The manufacturing at new plant at Perundurai, District Erode, at Tamil Nadu was working in full capacity servicing effectively the Tamil Nadu, Kerala and part of Karnataka markets. The Company increased the capacity of PVC Pipes, Roto and Blow Moulded Tanks, PE and DWC pipes to service South Region market in a cost competitive manner.

The plant at Kharagpur is fully operational with increased capacities. The Company has finalised purchase of another approx.. 5 acres of land for expansion. The due diligence and various Government approval process is underway and the Company expects to complete the acquisition by June’25. Further capacity expansion is planned of DWC pipes, Moulded Fittings and Water Tanks at this site and will be implemented during the year 2025-26.

The production of Double Wall Corrugated HDPE Pipes continues from Gadegaon and Kharagpur plants. The Company also started the DWC Pipes production at Kanpur plant for Northern market and at Erode plant for Southern market with necessary BIS Certification. The Company has also launched suitable DWC Pipe for Cable Ducting application to cater to market requirements for this application. The Company is in process to educate various user departments about the benefits of putting in place a quality DWC Pipes with latest technology and using certified virgin raw materials in terms of performance and longer life. The Company is also promoting successfully the DWC Pipe requirement of private Building societies through Channel Partners mainly on merit of quality of DWC Pipes supplied by the Company. The company had a growth of approx. 19% for DWC Pipe during the year 2024-25.

The Company now has eight plants producing HDPE Pipes in West, East, South and North Zones to cater to these markets cost effectively. However, due to Infrastructure and Water Sanitation spending were on hold and non-release of funds by Central and state governments, where major applications are for HDPE Pipes, the Company had a de-growth of 27% by volume of Plastics Pipe System from HDPE material. The Company now manufactures Water tanks in all the four geographies of the country viz., North, South, East and West to service these markets cost effectively. This business grew by 16% in volume and grew by 17.6% in litres during the year under review over the preceding year. Company’s Premium range of Water Tanks "Weather Shield" with added features such as superior thermal insulation etc., from three locations has received good market response. The Company also developed economical Weather Shield successfully for selected market. The Company had also launched Copper Shield Water Tanks having feature of Copper Tanks in terms of no Bacteria and no Algae formation over a period with good market feedback. The Company also introduced overhead Water Tank with Self-cleaning feature. Overall, now the Company is producing Tanks at eight different locations which will enable it to service customers more economically. To cater to economy range of Water Tanks market the Company had started manufacturing of Blow Moulded Water Tanks at Erode. The product has been well accepted in the respective serviced markets and had good business. The company therefore also started manufacturing of Blow Moulded Water Tanks at Gadegaon and has plans to launch Blow Moulded Water Tanks from other plants. New facility of Blow Moulded Water Tanks at Sangli will start production from May’25. The Company manufactures the cPVC Pipes at four of its manufacturing locations and cPVC Fittings at two of its manufacturing locations with all necessary BIS certification. The Company now has multiple sources to get increased volume of cPVC resins. The cPVC system sales during the year under review grew by 20% in volume over preceding year.

The Company has almost doubled the capacity of cPVC Pipes at Gadegaon. The Company has received the NSF testing process for cPVC Pipes and Fittings at all its plants. The Company’s all Plants are already tested for NSF 61 and NSF 14 for cPVC Pipes and Solvents (for PVC & CPVC). The Company has started manufacturing Braided and Plain Hoses at Guwahati, Gadegaon, Erode and Cuttack Plants. The products were well appreciated by markets and the Company had 126% growth in volume. Over a period, the capacity expansion and also several varieties of Hoses are planned to meet high performance Hose requirement in the Country.

The Company had introduced e-lite brand of PEX pipe Systems. These are composite pipes i.e., PEX/AL/PEX which withstand high temperature and pressure. Keeping environment in consideration the company has decided to move out of PEX raw material as it cannot be recycled efficiently. Company has therefore launched PERT Pipe System with similar properties for respective applications as it is recyclable. PERT pipe system along with Pert/Alu/Pert composite pipes are very well received in the market. The Company has developed metal fittings suitable for this application. The fittings are offered in Two varieties i.e. Compression and Crimping type. The Company intends to launch plastic based fittings which can withstand high temperature for this application. High rise building and premium villas will require this type of system which is presently catered only from imports.

Your Company has produced PE/AL/PE pipe for house service connections. These types of pipes are now part of house connection design approved for "Nal se Jal" scheme. The Company’s product line has procured BIS certification. The compression type fittings for these pipes are also developed to offer complete system of Pe/AL/Pe Pipes applications. The Company has successfully launched Electrofusion Olefins fittings and compression molded fitting with a portfolio of 639 Nos. The Company plans to increase the range by adding another 75 new products during the current year. With Electrofusion Olefin fittings, Company has entered into Industrial piping system, which offers new business opportunities.

The Company is now adding range of PPR pipe system for industrial applications including 3 Layer PPR Pipes at Gadegaon Plant and it would be launched to all markets by May’25. Your Company has launched Cable shield conduit system. The conduits are made at Gadegaon, Cuttack. Kanpur and Erode factory. The fittings for the systems are made centralized at Kharagpur unit. The quality of product is very much appreciated by all the markets and Electrical consultants. The Company is servicing only selected markets for focused working. The Company expects a good business growth in this system.

Company has taken in hand to offer Gas Piping System. The necessary machines have been installed, BIS certification is received and the production has also started. The Pipes are designed to withstand environmental stress, including extreme temperatures and ground movements. With lightweight construction, high corrosion resistance, the PE gas piping system is an ideal solution for conveying Natural gas, Propane, LPG, Bio-gas, and other gases or liquids fuels.

The Company has plans to introduce PP Silent pipe system during the year from its Gadegaon plant which will have improved sound damping capability. There is large growth in demand for Silent pipes system due to high rise buildings being constructed across the Country with an advanced drainage system. The Company has become a licensee of reputed European manufacturer named M/s Poloplast GmbH & Co KG, Austria for the system. Required machines to manufacture Silent PP Pipes systems have been received and the Company has established the production. The Company expects to launch the system across the country when range of suitable fittings also will go in production internally. The Company has started manufacturing variety of Specialized Valves such as Butterfly Valves, Swing Check Valves, Ball type non-return Valve etc. at newly Commissioned plant at Malanpur (MP). These Valves have been designed for different applications and are made of specialized materials to ensure reliability & longer life and also to meet best of global standards. The Company has received positive response from the market. The Company intends to increase the range of Valves for Industrial usage in the current year, to manufacture Ball valves, the Company has installed capacity of One and half Million number of ball valves per month at this plant.

The Company had acquired undertaking of M/s Parvati Agro Plast, at Sangli, Maharashtra with two major objectives i.e., to add a new Product category OPVC Pipes i.e., Oriented PVC Pipes and effective servicing of Western Maharashtra and North Karnataka. The OPVC Pipe system helps in safe water supply with high durability for high pressure water distribution as an alternate to Duct Iron (DI) Pipes being presently used. The OPVC Pipe system has cost advantage for Water Distribution Pipes System compared to (DI) pipes. The Company has planned substantial capacity expansion for OPVC Pipes at Sangli, Cuttack as well as at Jadcherla for which required equipments have been ordered.

The Company has 45 plastic piping Systems in the division and plans to add five more systems in the current year related to handling water.

The Company’s business to Export market during the year had a de-growth both in value and volume due to project execution getting slowed in middle east. The Company is continuously trying to increase its export business of Piping Systems in several overseas markets.

The Division’s Value-Added Products share in total sale was 44% compared to 41% in the previous year. Further, the sales of Value-added Products grew by 17% in volume. The Company has established a nationwide sales network and has also developed long-term strategic partnerships with 1730 independent and exclusive first-tier Channel Partners that enable timely and efficient supply of comprehensive, quality products and professional services. During the year 2024-25 the Company has added 87 new Channel Partners. The Company continues to expand its reach by appointing new Distributors in areas where there is a gap in servicing. The Company has also categorized Channel Partners in two categories based on their distribution model into Distributor and Direct Dealer and the break-up at the end of year is Distributor as 736 and Direct Dealer as 994 numbers. Further there are 255 Channel Partners in our Bath Fittings business. Hence the total Channel Partners for Plastic Piping System business becomes 1985 in numbers.

The Company has set up multiple Knowledge Centres across the country to train Plumbers and interact with Farmers, Architects and Plumbing consultants in respective zones. Currently, they are functioning at Gadegaon, Kochi, Malanpur, Kharagpur and Erode. The Company expects to start such centre at Jadcherla also during this year. With the help of specialists, the Company has embarked upon a new activity with nomenclature as "Plumbing Workshop" which is a full day session with Plumbers, to improve their skill in installation of Plastic Pipe System. The Company shares latest Plumbing techniques along with applications of new products introduced by the Company in the recent past in it’s range to the Plumber fraternity. The markets have well appreciated it and there is pressure on Company to increase the Plumbing Workshop numbers substantially. The Company conducted 322 Plumbing Workshops during the year 2024-25 and trained 15430 plumbers. The Company plans to conduct large numbers of Plumbing Workshops during the year 2025-26. There are now more than 2,40,000 Plumbers connected with the Company. Flame Guard cPVC pipe system made by the Company is considered as a safe material for the use in fire sprinkler system in the country. Unlike plumbing system, a fire sprinkler system requires multiple approvals. Much awaited revision in Indian standard IS-15105 has been completed and revised standard has been published. Now CPVC has been considered as a superior material than metal system for use in Automatic fire sprinkler system. As system is approved in Indian standard more customers have started exploring this system as an alternate material to traditional metal system.

Maharashtra, Karnataka and Gujarat have already started the use of CPVC Fire Sprinkler system. The Company is proud to share that it’s FlameGuard system is installed in modern coaches of all "Vande Bharat Express" trains. Apart from Vande Bharat express, installation of the system has been started in other fast trains. Company is getting good response from Aspirating Smoke Detection system (ASD). The system is being used in Data Centres and railway coaches. Product installation training for this system is a mandatory requirement before the actual installation starts to avoid mishaps. The Company provides the technical support and also offers value engineering to reduce the cost without compromising the quality of the installation. The Company has registered a growth of 76% in volume for FlameGuard system over previous year. Development of local solvent cement has helped to increase the sale as well as competitiveness in the market. The Company has planned to cover several other states such as Kerala, Tamil Nadu, Odisha and West Bengal for activities to develop Flame Guard cPVC System business. The Company expects a good business growth in this segment in coming years. The Company is manufacturing Solvent Cement for PVC and cPVC Pipes. The solvents are well accepted in the market in terms of superior adhesion properties. The Company has planned expansion of its capacity and also to expand the range with new varieties of Solvent Cement. With all the Capex planned in place, total installed capacities of Plastic Piping System Business is about 8,70,000 MT per annum by 31st March, 2025 as against installed capacities of 7,40,000 MT per annum as on 31st March, 2024.

The Company has entered into Memorandum of Understanding with Orbia Advance Corporation S.A.B. de CV (BMV: Orbia), a global leader in pipes and fittings. As per the agreement, Company will acquire Orbia Wavin’s pipes and fittings business in India and will have exclusive access to Orbia Wavin’s leading Piping technologies in India and SAARC countries. The acquisition of Wavin would inter alia result in increasing the capacity of the Piping Division by 73,000 M.T. per annum being operated from three manufacturing sites situated at Banmore (M.P.), Hyderabad (Telangana) and Neemrana (Rajasthan). The acquisition will facilitate catering to districts/area of North and South India economically and efficiently.

Combining Orbia Wavin’s technologies for water management and Company’s manufacturing and distribution strengths, The Company is poised to secure India’s water management needs with advanced solutions. This strategic initiative will expand Supreme’s leadership position and accelerate its participation in the robust growth of India’s building and infrastructure industry. The Company expects to complete the acquisition by end of June 2025.

The Company has deferred work on two new manufacturing units during 2024-25 viz., for Piping System and other products, one near Jammu and another near Patna at Bihar. Necessary land has been purchased and Company expects that both these units will be commissioned now during 2026-27. The Bathroom fittings division showed robust growth of 100% during financial year 24-25. The Company has now a dedicated new product development team in Pune Supreme Design Centre working only for development of new and innovative products for Indian toilets and kitchen. The Company intends to increase the SKU from present 729 to over 1000 in the financial year 25-26.

Durgapur plant which now is the second location, after Puducherry, where bathroom fittings are produced and it got dedicated injection machines for bathroom fittings production.

The sanitary products developed under licensee agreement with SATO Lixil is being produced from Durgapur and launched in Indian market through our existing distribution network. Company is happy to share that significant amount of basic sanitation units like Orissa Pan, Taps etc. were exported through UNICEF and MSF to Gaza. Company is receiving encouraging response for these products from humanitarian sector.

The division was successful in bringing bathroom showers and establishing its own in-house production facility. In the FY 25-26 this segment of showers will be expanded with a wider product range and strong marketing push.

Company started its own inhouse surface coating facility through green environment friendly technology. The Bathroom segment has also started to focus on export potential and planned to export its products.

The plant in Puducherry is in many ways unique where more than 80% workers are Ladies from nearby villages. The plant is a model for women empowerment as close to 300 ladies are engaged in the factory. The plant has put in place the inventory control digital making dispatch quick, smooth and flawless.

The Bathroom fittings division plans to grow and have widest plastic based product range in bathroom / kitchen segment to achieve leadership position throughout the Country in near future. Windows and Door Business

The Company has taken in hand to put up a Windows making unit at 34 acres new site at Kanpur Dehat. Initial capacity will be 5000 tons per annum. The Company will be making varieties of PVC profiles for large range of windows. Initial window making capacities will be installed at same site. The Company expects to start selling standard off the shelf and customised windows from July’25. The total capex with working capital will be around R 200 Crores.

The Company remained focused on development of its Furniture Business. However, the Company’s furniture business did not show any growth both in value and volume terms. Despite, lack of growth, the Company managed to hold on to the top line as well as bottom line. This could be achieved due to development of institutional business. The Company received a large order for supply of furniture to a state government education project which helped in balancing the decline in retail sales.

The Company has taken up measures to build institutional business specially from education sector. In line with the same, the Company is introducing new variety of furniture catering to this segment. The Company’s new model Academy Dual Desk has been highly appreciated by various trade partners and the Company hopes to generate a good volume business from this model and other new models specially designed to cater to education sector in 2025-2026. The Company has listed its products on GEM portal which is used for procurement by various Govt agencies and Public Sector undertakings for their purchases. The Company is actively working on developing its business through GEM for its channel partners, suppliers and directly to capture the market potential of Govt Business.

The Company achieved a milestone of being the first Plastic Furniture Manufacturer to be given ISI mark & BIS license for its Plastic Moulded Chair. The Company got the First All India License for BIS standard of Plastic Chairs. This achievement showcases Company’s commitment to manufacture of high-quality products meeting various standards for their performance. The overall demand for Plastic Chairs is witnessing a stagnancy which is affecting the growth in Plastic Furniture industry. Further, the competition from unorganized manufacturers who use reprocessed polymers continues to grow and has been impacting business of branded manufacturers. However, the Company is optimistic for growth in 2025-26 from its institutional business and due to unique proposition offered by it as it is one of the very few manufacturers offering combination of Injection Moulded, Blow Moulded and Roto Moulded Furniture. The Company plans to focus on growth from its Almirah Range as the penetration of this segment is still low and offers opportunity for growth. The Company introduced a new almirah series named ASPEN in last quarter of 2024-25 which should help in generating volume growth in 2025-26 due to its unique size.

The Company introduced 20 new models during 2024-25 which helped in maintaining the total sales. The Company recently introduced chair model Dallas, which is a premium model, has been well appreciated by the market due to its modern design. The Company plans to launch Eight new models in first quarter of 2025-26 which may result in overall growth in volume during 25-26. The Company continues to focus on improving visibility of its products for its customers and better shopping experience. In line with the same, the Company has been focusing on developing retail showrooms displaying large range of our furniture for ease of the customer. The Company added 40 such showrooms during the year and plan to add another 60 during 2025-26. The Company continues to increase its reach by adding retailers & channel partners in unrepresented markets. The Company added 26 direct channel partners during the year taking the total to 1519.The Company’s furniture is now available through 14,579 retail outlets and the Company plans to add another 1000 outlets during 2025-26. The Company has taken several initiatives for promoting its furniture through social media such as Facebook, Instagram, Twitter etc which has been bringing regular customer enquiries on it’s website as well as on it’s online portal. The Company’s SEO and SEM activity has also been scaled up to ensure that the Company is listed amongst top 3 listings in Google search results. The Company’s own online portal www.supremefurniture.co.in is also being promoted to bring customers to the site for exploring it’s wide range of products and order from the comforts of their home. It is also helping retailers in increasing their business as it reinforces the price levels of the products for the customer. The Company’s furniture is also sold through various resellers and channel partners on shopping sites such as Amazon, Flipkart etc.

The Year, FY 25 started with the optimism in overall demand scenario in most Segments where your Company operates. The Division witnessed good growth in its recurring revenue at nearly 14%. However, overall revenue growth for the division remained at about 6%. Automotive sector Commercial Vehicles showed muted demand whereas it was better in Passenger Vehicle Segment. Similarly, in Appliances Sector, Air – conditioning and Coolers Segments witnessed good growth though Washing Machine Segment witnessed subdued demand.

The division has made a breakthrough and just executed one major order for Defense sector through a new customer which nearly constituted 2.5% of Sales Revenue of the Division.

The execution of initiatives taken under ‘Transformational Strategies’ are in the process of further Consolidation. The focus of these initiatives remained mainly to spread the sector and customer base for Business growth & mitigate the dependency risk on few large customers. Cost optimization and efficiency improvement strategies are continuous one to improve operating margins of the business. It has started yielding good results. Strategy to develop business in the sectors where the company was not having presence, yielded development of few customers in sectors like, Telecom, Infrastructure, Construction, Defense, Machine building, EV Batteries, Drones etc. On Operational front, the Company accelerated its efforts to improve Productivity, Quality, Energy Conservation, Cost reduction, People development etc. These initiatives helped to keep various costs in check despite rising inflation. This helped the division to retain its margins and still pass on Year-on-Year cost benefits to the customers. This also has helped the division not only retain the business but also manage to expand in the case of some customers.

Looking at the positive demand scenario in various sectors, the company is investing judiciously for capacity balancing and expansions. However, continuous re-orientation of Business Models by the customers, particularly in Appliances Sector, may create some turbulence and may force Company to relook its business model in this sector. The company expects medium- and long-term scenarios to remain bullish, due to various reforms of Government and upbeat in the overall economy. The Company has planned need-based capacity augmentation to service projected increased demand going forward. The company is investing in machines with the latest technology, Energy efficiency, Robust designed processes for Excellence, high Quality and Repeatability.

The Division works continuously on Sustainability as a part of the Company’s various initiatives.

The Company continues to enjoy "Excellent’ rating by its customers for Quality, Delivery, Cost and Development parameters. The division is continuously trying to excel in Operational Parameters. It helps the company to remain cost efficient in this fiercely competitive Supply Chain to OEM customers.

For the Material handling products division of your Company, the year has been a mixed bag for results. Performance has been reasonably well in Industrial customers segment, however did not do well in Bulk Customers segment. Resultantly the Division witnessed a drop of 4% in revenue terms and 3% in Volume.

In industrial crates which primarily service Automobile, Engineering, White goods, FMCG, including the customized solution offered to mainly Automobile OEMs and Auto components suppliers, the business has been quite satisfactory and grown by 8% in value and 9% in volume terms. Constant focus on customer reach, education to first time users and meeting the quality standards have helped the division in retaining its share and registering a growth of 6% in revenue and 9% in volume in its Industrial Pallet segment. These pallets include both one time use export pallets and multiple repetitive use pallets. There is an intensified competition from regionally grown brands in pallets segment of the business in various parts of the country. These brands put regional competition with an edge on local logistics. Your Company is committed to improve its regional footprints with operations from south and eastern part of country with selected pallet models. The team is confident to outpace the competition effectively once logistic hindrance is evened out.

The division is also constantly engaging with its diverse Industrial customers to gauge their industry specific applications and needs of automated warehousing.

Development of two pallet models which are specific to automated warehousing has been completed and shall be available for use in 1st quarter itself. Roto moulded Pallets are being supplied to customers especially to pharma, and FMCG sectors and doing satisfactorily. The division is committed to improve its coverage and relationships in western and central regions with pharma companies and hopeful of good growth. Dairy segment is growing steadily in India and the division has been able to retain its trusted customers and register growth of over 40% in revenue and volume.

Coastline areas of Odisha, West Bengal and to some extent Andhra Pradesh, were badly affected by two successive sea storms in July and September resulting in a substantial hit to the Fisheries sector business of the Country. The business was also adversely affected with regime change in Bangladesh, division’s Fisheries Jumbo crates suffered a dent in volume but there has been an uptick in demand in March in AP coastal areas. Company is confident of en-cashing this demand based on quality and service which is much appreciated. With most of the usually demanded models of Injection moulded Dustbins now available with the division, Company is doing well with bigger size dustbin models in Northern and Eastern zone and making all out efforts to do better in southern and western regions too during the current year. Fruit & Vegetable (F&V) Crates business of the division was adversely affected by environmental and seasonal issues in Himachal Pradesh and Jammu & Kashmir resulting in lower harvesting of Apples. However, the division managed the business of F& V crates with a modest growth of 2% in Volume.

The major flip side to the prospects of Material Handling Products Division has been due to the steep drop in Bottle crates business when compared to previous year. Business in the soft drink industry was lower by 56% in volume affecting overall performance of the division from otherwise a healthy one.

The Company is hopeful of continuous better performance and is highly focused to constantly improving the quality and uplifting the level of timely deliveries of its products to its customers. Apart from continuously introducing new models in Crates, Pallets and dustbins, it is also expanding the production of selected crates and pallets models from other MHD units of the Company in different geographies to facilitate the logistics, timely and economical customer service.

The division remains constantly engaged in improving its customer coverage and reaching out to unrepresented areas by strengthening its sales force numbers and channel network.

The Composite Cylinder Division experienced a challenging year, with performance falling short of expectations. Business from Company’s major customer, M/s Indian Oil Corporation Limited (IOCL), did not materialise to the expected levels. To popularize its composite cylinders, the Company in association with IOCL conducted several dealers’ meet across the country and made the dealers aware of this new generation cylinders through interactive seminars and meetings which helped to clear their myths and misunderstandings. Positive outcome and results of these campaigns are expected in current financial year. The Company remains optimistic about receiving additional orders from IOCL. The Company has participated in the tender process of the other leading Oil Marketing Company, M/s. Bharat Petroleum Corporation Limited (BPCL). This year your Company anticipates higher capacity utilization levels with more enquiries from overseas customers. Discussions for new common designs are in advanced stage for the most popular 14.2 Kg standard size cylinder to be introduced by Oil Marketing Companies (OMCs) as they explore incorporating composite cylinders into their product portfolios.

The Company is expanding its customer base in Middle East and Russia, which is expected to utilise the increased production capacity to a reasonable level.

The division has retained its valued international customers and business continued during the year. Furthermore, the Company has obtained certifications for high-pressure cylinders for CNG application making it the second company in India to offer Type IV high pressure cylinders. These efforts position the division for significant growth moving up the value chain.

Performance Films Division achieved 3.5% value growth, with total volumes remaining steady at 9970 MT. Growth was driven by strategically curated Product Mix offerings. Export: Division achieved 18% volume growth reaching 3195 MT compared with 2698 MT in the previous year. Expansion into new markets has contributed to both volume & value growth.

Building upon this momentum division is leveraging its existing base to deepen market penetration and explore additional opportunities. To support its global expansion strategy, division is actively participating in International exhibitions showcasing its capabilities & reinforcing brand visibility. As part of the strategy, the Company remained focused on Performance Based Product offerings emphasizing high barrier segment penetration. Key drivers of demand include Dairy Products, Processed Food, & Industrial applications. Division’s high barrier Packaging solutions enable extended shelf life & aroma protection. Leveraging its expertise, division continues to deliver solutions for demanding applications. With a strong focus on end user needs, this division offers a customised product portfolio designed to meet demanding application requirements. Its products meet international compliance standards enabling successful market entry into global territories.

In line with evolving Regulatory Compliance, the Company has successfully registered under EPR (Extended Producer Responsibility) guidelines reaffirming our commitment to sustainability & compliance. This registration enhances its qualification to engage with both local & global end user markets reinforcing trust & credibility. This compliments sustainable product offerings by the division and aligns seamlessly with the Company’s sustainability initiatives ensuring responsible growth across segments.

Customer retention and business growth are paramount and the division remains committed to be a preferred partner in customers growth. Division remains optimistic for sustained business expansion supported by an increasing customer base across India & International markets. Its dedication to Quality Commitment and service excellence will propel both volume & value growth in the coming year.

PPP: Sales turnover was 16% higher in FY2024 - 2025 as compared to FY2023 - 2024. Volume was higher by 12% in the year under review compared to the previous year. PROTEC

Protec vertical grew by 18% in value terms and 14% in volume on y-o-y basis. The fabrication business grew 74% in value. A total of 40 new customers were added in FY 2024-2025.

Civil business grew by 6% in value in the year under review as compared to previous year. The corresponding growth in volume was 11%.

The Insulation business grew only by 3% in value in the year under review as compared to previous year. Some of our XLPE production in Malanpur was diverted to Packaging business hence, there was reduced growth in Insulation. With the new line in place, the Company expects a good growth in this year.

Consumer Products : Retail Business Vertical

Consumer Product vertical of the division has achieved 18% growth on y-o-y basis which includes business with decathlon.

The division has added 28 new Distributors now totaling 233 distributors with additional 1050 retailers. Now Company’s total Retailers strength stands at 7236 numbers. Business in government sector (Anganwadi) has been started through government supplier which has contributed to significant business in FY 2024-25.

The Division has started business with Canteen Stores Department (CSD) in the year 2021 with 4 SKU’s. Products supplied have been well accepted. The Division has also received approval for further 11 SKUs. Business for four SKU started from August 2023 and balance SKU orders will be received from CSD from June 2025.

The Division has started retailing on Ecom platforms such as Amazon, Flipkart and Myntra through OEM format – contributed to significant business in FY 2024-25. The product quality is well accepted by end consumers as per these customers’ internal feedback. Division expects this to grow well in the coming years.

EXPORTS

Export sales of degrowth of 8%. While most customers grew, two of Company’s major customers in US had a de-growth due to slow down in US real estate market. New Product Development (key products)

• Last year the division developed a new variant of Capcell antistatic for electronic item packaging, grades like ESD black and C-conductive.

• NBR yoga mat: new modified variants of reinforced NBR yoga mat have been developed in existing NBR line.

• Several Capcell grades were developed for sports related products.

• Several Capcell grades were developed for language and tape industries.

• A new Capcell grade was developed for shoe sole application.

• Various retail products developed like various types of Yoga mats and others yoga accessories and puzzles mat.

• Fabricated products developed for Defence and Drone sectors.

• Malanpur: The new XLPE line installed with modified designed to improve productivity with low manufacturing Cost. A new EPE Line commissioned to achieved low density products with improved productivity with low manufacturing Cost.

• Jadcherla: Expansion of Capcell 2 additional press with mixing line was installed to meet increasing demand.

• Hosur: KAO press Successfully installed, and input material production started for Ball and Yoga Bricks.

• Kharagpur: Modified EPE extruder transferred from Malanpur, and production started.

• Urse: New line of Netting installed fruit packaging application.

• Others: Two new fabrication units; commercial production started at Coimbatore & Baroda (Halol).

Way Forward: New Initiatives and Expansions Jadcherla

• The Division expects to start a new NBR line and XLPE line to meet the growing requirements in South. production will be started from in 1st quarter of this year.

• One more Capcell press under installation and commissioning and will be started from May 2025.

• Plans to install XLPE line to meet the insulation demand of the Eastern market (one line transferred from Malanpur).

• PU expansion: Project approved, and project expansion initiated.

• The division expects to add one more unit in Western region which is planned at Khopoli and land acquisition under progress. Production to start in Year 2026. Products line for new expansion at Khopoli would be P.U., XLPE, NBR, IXPE & Capcell to meet the increased demand from domestic market as well as cater to increased export opportunities.

The Business of Cross Laminated Film & Products registered a 12.99% increase in volume and a 16.28% increase in value during the year under review. This growth was largely driven by the return of significant Government business, secured after a gap of five years.

The Government regularly procures large quantities of tarpaulins and fumigation covers—tarpaulins being essential for protecting harvested crop from rain, moisture, sunlight, and dust, while fumigation covers are used to safeguard food grains like rice and wheat from pests and insects. In recent years, this business had been impacted by low-quality, look-alike products offered at low prices. Encouragingly, demand is now shifting back to us, reflecting growing recognition of the Company’s superior quality and reliability. With substantial production capacity and a strong track record for timely delivery, the Company is well-positioned to meet the stringent requirements of Government contracts and expects continued business in this segment.

The 2025 above normal monsoon forecast by IMD is expected to positively impact agricultural production and the broader farm sector. This, in turn, will likely boost demand for the Company’s products, which are extensively used in agriculture-related applications.

After years of consistent growth, sales of made up fabricated products declined from 835 MT in the previous year to 710 MT during the year under review. To counter this, the Company has undertaken strategic initiatives including aggressive marketing, competitive pricing, and the import of new machinery to automate parts of the fabrication process. These upgrades are expected to enhance product quality, reduce costs, and lessen dependence on manual labour triggering a recovery in sales in the coming year.

Bag business has grown from 378 MT to 450 MT, reflecting stronger demand and improved market reach.

Export volumes grew up marginally from 1,691 MT to 1,702 MT, despite ongoing global uncertainties. The Company now has a footprint in 36 countries. Continued efforts will be made to expand into new geographies and develop newer applications for its product range.

All equipment required for the manufacture of Cross Plastics have been installed, and trial production is underway. On site customer trials are expected to commence shortly. Given that Cross Plastics is a highly specialized product, additional time is being invested to ensure quality stabilization and consistency before full-scale launch.

1. A brief on Liquidity Surplus and Key Financial Ratios is given hereunder: -

1.1 The company continues to demonstrate a resilient financial position, marked by zero debt, strong net worth and healthy liquidity levels. This robust financial foundation enables the company to effectively support its strategic initiatives, including large capital expenditure for capacity expansion and exploring organic and inorganic growth avenues.

1.2 The Company continues to remain debt-free and ensures availability of sufficient cash reserves to meet both operational and strategic requirements. Surplus cash flows continue to be prudently deployed in secure and tax-efficient investment instruments, generating optimum returns and ensuring adequate safety, security and liquidity at short notice, as per the laid down Treasury Policy of the company.

1.3 The company’s financial strength is further validated by CRISIL’s reaffirmation of its credit ratings for the year at ‘CRISIL AA+/Stable’ for long-term facilities and ‘CRISIL

A1+’ for short-term facilities. These ratings underscore the company’s strong market leadership, operational efficiency and financial discipline.

2. Working Capital Management

2.1 During the year under review, the Company continued its association with leading banks in its Multiple Banking Arrangement, to secure cost effective working capital requirements. Bank lines of R 1861 crores, including

Fund and Non-fund based limits sanctioned to the Company, were moderately utilized.

2.2 The Company efficiently manages its working capital by optimizing procurement, ensuring timely collections and constantly negotiating favourable vendor and customer terms, minimizing costs & risks from raw material fluctuations and logistic costs.

The volatility in polymer prices particularly in PVC resin persisted most part of the fiscal year under review.

In anticipation of the levy of Anti-dumping duty on PVC Resins from beginning of 2^nd Half of the year, the Company has procured the raw materials from domestic and international markets, from time to time, based on its requirements and after keeping adequate buffer to mitigate anticipated increase in raw material prices. Therefore, the level of Inventory remained at an elevated level and resultant increase in working capital requirements, especially during the 2^nd half of the year.

2.3 Although rupee depreciated only by 2.48% at the end of the year compared to the beginning of the year, it witnessed extreme fluctuations (6.04%) during the year as indicated by the following data-:

Depreciation in Rupee started from October 2024 triggered by various global and local factors. There was a major outflow from equities by FII mainly due to sharp Rupee depreciation, which continued to affect the US$ returns for offshore investors. Although a sharp recovery in Rupee value was witnessed in March 2025 (mainly due to the central bank intervention), uncertainty for the currency remains due to the ongoing trade / tariff war among the major nations & fear of global recession. In line with its prudent & proactive hedging strategy, the Company substantially mitigated the adverse impact of foreign exchange volatility, which enabled the Company to safeguard its financial performance from adverse currency movements, while optimizing its overall hedging costs.

3. Dealers’ Finance

With two banks providing Dealers’ Finance scheme ("DFS") and both the banks rationalizing their terms of offer, the channel partners have an option to select any one bank as per their suitability and convenience. More and more channel partners are joining the DFS, in view of affordable rates of interest and other favourable terms of the banks. Seasonal/peak business requirements are also being serviced by the bank, by providing ad hoc incremental limits, as per the Dealer’s business growth with the Company. Normal/additional/enhanced working capital requirements have become helpful to them, in meeting full potential in their business.

4. Capital Expenditure

During the year under review the Company has incurred capital expenditure (capex) of 672 crores entirely funded from internal accruals. The Company plans to spend about R 1100 Crores towards capex during

F.Y.2025-26 including carry forward commitment of preceding year and acquisition of Building and Infrastructure business of Wavin in India. Details of the various capital expenditure plans have been elaborated by each business division in the earlier part of the Management Discussion and Analysis (MDA). The Company will continue to fund all its Capex requirements from its internal accruals.

5. Overview

Looking ahead, the Company aims to sustain its strong revenue growth, improve margins and optimize capital utilization and continued focus on efficiency in working capital management.

The key focus areas include :- (i) Digital transformation - enhancing operational efficiency through adoption of new-edge technology, (ii) Cost optimization - Implementing austerity measures for better profitability, (iii) Working capital management – Strengthening monitoring mechanisms to improve cash flow cycles & (iv) Prudent treasury management – Investing in high rated, secured instruments for maximum returns.

The Company has adequate and effective Internal Financial Control System (IFC), which ensures that all its assets are safeguarded & protected against loss of unauthorized use and all its financial transactions are authorized, completely recorded and reported correctly in a timely manner. The key Internal Finance Controls have been documented and embedded in the respective business processes to mitigate risks in operations, reporting and compliance.

The Company provides policies & procedures that are aligned with (a) Standard Operating Procedures (SOPs), (b) adherence to local statutory requirements for orderly & efficient conduct of business and (c) detection and prevention of fraud. It also identifies opportunities for improvement and ensures that good practices are imbibed in the processes that develop and strengthen the IFCS and enhance the reliability and timely preparation of financial statements.

The Company’s Enterprise Resource Planning ("ERP") system of SAP S/4HANA is well implemented for ensuring day-to- day accounting transaction and financial reporting. Its ERP along with allied information technology solutions provide a strong technology architecture for financial reporting controls. The Company’s investment in Advanced Automation system and its Centralized monitoring of all the key activities enable automated accounting and financial closing procedures in various areas, which has resulted in better accuracy and faster financial reporting with lesser manual interventions. The financial statement preparation has been automated to ensure end-to-end system driven reporting and reducing the scope of manual errors. The Audit Committee of Directors in its periodical meetings reviews the adequacy of IFC and procedures and suggests areas of improvement. Independence of the Audit Committee and compliance is ensured by direct reporting of the Internal Auditors to the Audit Committee of the Board. Both Internal Auditors and Statutory Auditors independently evaluate the adequacy of IFC and assess the need for increase in the scope of coverage in specific areas. Based on the Audit observations and suggestions, sustained remedial measures are being taken.

To ensure effective IFC, the Company has laid down the following measures :(i) SOPs : Operations are being executed through Standard Operating Procedures (SOPs) in respective functional activities for which key manuals have been put in place. The manuals are updated and validated as and when required.

(ii) Authorisation Matrix : Approval of all the transactions is ensured through a pre-approved Authorisation Matrix, which is reviewed periodically by the management and compliance is regularly checked and monitored by the auditors.

(iii) Strengthening of Internal Audit Function: Based on the Risk Criteria the Management and Directors’ of Audit Committee Meeting (ACM) review the significant Audit observations and suggestions of the respective Internal Auditors of the respective units and corrective measures are taken by the process owners in their respective areas. Quarterly updated Compliance Report is submitted to the Audit Committee. Stock Audit is conducted on quarterly basis. Fixed Assets Verifications are done in phased manner of respective Units. Physical verification of cash is regularly done.

(iv) Comprehensive Risk Management Framework: The company has a comprehensive risk management framework which is evaluated by the Audit Committee & Risk Committee periodically.

(v) Regulatory Compliances: Functional heads are responsible to ensure regulatory compliances and also for the policies and procedures laid down by Management.

(vi) Risk Control matrices (RCM) : The Risk Assessment and Control Matrix devised by the Company for all key processes involved in financial reporting are being tested for its design and operating effectiveness. No reportable material weakness, either in their design or operations were observed.

(vii) Secretarial Audit : Compliance of Secretarial functions is ensured by way of Secretarial Audit.

(viii) Cost Audit : Compliance relating to Cost records of the Company is ensured by way of maintenance of cost records, which is verified by the Cost Auditors. (ix) Vigil Mechanism/Whistle Blower Policy : The Company has in place a well defined Vigil Mechanism/ Whistle Blower Policy.

(x) Travelling and Reimbursement Claims : Travelling & reimbursement claims are being lodged through Darwin Box and process for initiation and approval are also being made through this system.

(xi) Internal Business Review : Company lay down well thought out business plan for each year and from the annual business plan, detailed budget for revenue & capex for each quarter are determined. The Internal Business Review of the respective segment are discussed along with future plans in Quarterly Review meetings.

7. KEY RISKS & MITIGATION STRATEGY

Risk management is a holistic, integrated, structured and disciplined approach to managing risks with the objective of maximizing shareholder’s value. It aligns strategy, processes, people & culture, technology and governance with the purpose of evaluating and managing the uncertainties faced by the organization while creating value.

In today’s challenging and competitive environment, strategies for mitigating inherent risks in accomplishing the growth plans of the Company are imperative. The common risks inter alia are : regulations, competition, business environment, technology, investments, retention of talent and expansion of facilities. As a matter of policy, these risks are assessed and steps as appropriate are taken to mitigate the same.

Company adopts systematic approach to mitigate risks associated with accomplishment of objectives, operations, revenues, Financial, – regulations and sustainability. Company believes that this would ensure mitigating risks proactively and help achieve stated objectives. The Company’s objectives can be viewed in the context of four categories : (1) Strategy, (2) Operations, (3) Reporting and (4) Compliance. Company considers activities at all levels of the organization, viz. (1) Enterprise level, (2) Division level, (3) Business Unit level and (4) Subsidiary level, in risk management framework. These components are interrelated and drive the Enterprise wide Risk Management with focus on key elements, viz.(1) Risk Identification (2) Risk Assessment; (3) Risk Prioritization (4) Risk Response ( (5) Risk Monitoring and Reporting.

The Risk Governance Framework includes the Board of Directors of the Company. The Board shoulders the ultimate responsibility for the management of risks and for ensuring the effectiveness of the internal control systems. The Board’s responsibility includes a review of the Audit Committee & Risk Management Committee’s report on the risk matrix, significant risks, and mitigating actions. A regular review is conducted of any systemic weaknesses identified and addressed by enhanced procedures to strengthen the relevant controls.

The Board is supported by the Committees viz Risk Management Committee and Audit Committee which helps to evaluate the design and operating effectiveness of the risk mitigation program and control systems. This analysis and mitigation measures, reviews the robustness of the framework at an individual business level and maps progress against actions planned.

The Business Responsibility and Sustainability Committee of the Company reviews the sustainability-related risks. At the Business Segment level all Business heads are responsible to identify and review risks relevant to their respective businesses. The Business heads are responsible to inform the Managing Director/Executive Directors about the probability, impact and mitigation measures of risk identified by them.

The Senior Management team and Plant Heads are responsible for identification, review, management and mitigation of Risks of their respective departments and

8. HUMAN RESOURCES

The Company emphasizes to build a culture that provides well being of the employees and encourages them to attend and participate in various conferences/Seminars/development programmes/training which will enable them to learn and develop, being crucial to it’s long term success.

The Company believes that fostering a diverse and inclusive workforce is fundamental to sustaining and advancing it’s competitive advantage. Diversity and Inclusion drive Company’s commitment to a brighter future by eliminating any discrimination. The Company is continuously working to create an environment of empowerment through well-defined policies that reflect empathy, celebrate meritocracy, and provide ample professional and personal development opportunities. The Company focuses on a growth-oriented culture built over the years by providing a work environment that fosters collaboration, lateral thinking, and innovative ideation for employees to create value. Career development opportunities are provided at all levels across the entire functions of the Company. Industrial relations at all the units remained cordial during the year

Statements in the Management Discussion and Analysis describing the Company’s objectives, expectations or predictions may be forward looking within the meaning of applicable securities, laws and regulations. Actual results may differ materially from those expressed in the statement. Important factors that would influence the Company’s operations include cost of raw materials, tax laws, power cost and economic developments and such other factors within the Country and the international economic and financial developments.