Deepak Nitrite Ltd

Dear Stakeholders,

It is with great pride and optimism that I present to you the 54^th Annual Report of Deepak Nitrite Limited for the Financial Year (FY) 2024-25. This year?s report is not just a reflection of our performance, it highlights Deepak?s resilience, our relentless pursuit to innovation and our unwavering commitment to sustainable growth in an increasingly challenging ever-evolving, evolving, dynamic global landscape.

STRATEGIC PROGRESS & MILESTONES

You all are aware that the Board of Directors of Deepak Chem Tech Limited (DCTL) had formally approved a strategic investment plan aggregating an investment outlay of Rs. 8,500 Crores aimed at expanding our core chemical operations which involves setting up of new production capacity for Phenol–Acetone and further integrating downstream into Polycarbonate (PC) resin manufacturing. These developments advocate our commitment to advancing value-added solutions and strengthening our position as a global integrated chemical player. Also, this is in line with our MoUs signed with the Government of Gujarat.

Our roadmap remains anchored in delivering long-term value through import substitution, thereby contributing meaningfully to the vision of Viksit Bharat and reinforcing our leadership in India?s chemical sector. The proposed projects encompassing Cumene–Phenol–Acetone, Polycarbonate resins, and their compounds represent a landmark in integration – positioning Deepak as the only player with such a comprehensive value chain, globally. These upcoming facilities will establish a world-class manufacturing hub for advanced materials in India. We take pride in asserting that this initiative will place Deepak alongside the world?s leading benchmarks for quality, scale, and strategic alignment with national priorities.

Deepak is slated to be maiden and first mover in Polycarbonate manufacturing in the Country. Towards this, Deepak has entered into agreement with Trinseo PLC., for acquiring their plant at Stade, Germany along with Technology and to relocate them to India for setting up Polycarbonate Plant. This agreement has also given access to Trinseo?s product trademark. Trinseo is a global material solutions provider which manufactures plastic, latex binders and synthetic. Its products have end use in new-age industries such as semiconductors, defence, aerospace, medical devices, EVs etc.

Another strategic move is the new state-of-the-art R&D Centre at Savli, Vadodara, which is expected to be commissioned soon. This 5-acre large complex is envisioned to be a world-class innovation center. Once operational, Deepak will have an edge in R&D and innovation, which will lead to development of new products and technologies. It is designed to house essential resources including large R&D team, advanced laboratories, dynamic analytical facilities, engineering unit, piloting unit and polymer unit to name a few.

GLOBAL ECONOMIC OVERVIEW – NAVIGATING UNCERTAINTY, UNLOCKING OPPORTUNITY

The global economy in FY 2024-25 is navigating a cautious yet resilient path. Growth remains uneven where advanced economies are stabilizing at lower rates, while emerging markets, especially in Asia, continue to drive global momentum.

While inflation is moderating and monetary policy remains tight, geopolitical tensions out of skirmishes across countries including the oil majors – continue to impact energy, trade, and investment flows.

Yet, amid these headwinds, transformative breakthroughs in AI, clean energy and digital infrastructure are driving structural shi_s and productivity gains. Looking ahead to FY 2025-26, global growth is expected to gradually strengthen, contingent on geopolitical stability, climate resilience, and coordinated global action.

INDIA?S ECONOMIC ASCENT – LEADING WITH RESILIENCE, SHAPING THE FUTURE

India continues to shine as the world?s fastest-growing major economy. With projected GDP growth of 6.2% in FY 2024-25 and 6.3% in FY 2025-26 (Source: IMF, April 2025), our nation is outpacing global peers. Domestic consumption – contributing nearly 60% of GDP (Source: World Bank, 2024) – remains a powerful engine, supported by infrastructure expansion and rapid digitalization.

While global uncertainties, ranging from geopolitical tensions to volatile financial conditions pose risks, India?s macroeconomic fundamentals remain sound. Easing inflation and a growth-supportive policy stance from the Reserve Bank of India are further reinforcing demand. Strategic investments in renewable energy, manufacturing, and human capital are laying the groundwork for long-term competitiveness.

As India looks toward FY 2025-26 and beyond, sustaining this trajectory will depend on deepening reforms, fostering inclusive growth, and navigating global shi_s with strategic foresight. More than just a growth story, India is emerging as a central force in shaping the global economic landscape.

GLOBAL CHEMICALS LANDSCAPE

The global chemical industry is expected to reach $6.32 trillion by FY 2024-25, growing at a steady 2.3% annually, led by robust demand in Asia-Pacific. While growth remains moderate, the sector is undergoing a strategic shi_ toward sustainability, digital innovation, focus on high-value specialty chemicals and enhanced supply chain resilience. (Source: MarketsandMarkets, 2025)

INDIAN CHEMICAL INDUSTRY – CATALYSING GROWTH AMID GLOBAL SHIFTS

India?s chemical industry remains a cornerstone of the nation?s manufacturing and economic landscape, contributing approximately 7% to the GDP and providing employment to over 2 million people. As of FY 2023-24, the sector is valued at around $250 billion and is projected to reach $300 billion by FY 2024-25, reflecting a robust CAGR of 8–9%. India ranks as the 6^th largest global producer of chemicals and 3^rd in Asia, supported by a diverse portfolio of over 80,000 commercial products spanning bulk chemicals, specialty chemicals, agrochemicals, and petrochemicals. Notably, the specialty chemicals segment is gaining significant momentum, with India?s global market share expected to rise to 5.5% by FY 2024-25. (Source: IBEF)

Chemical exports have shown remarkable growth, reaching $45 billion in FY 2023-24, up from $29 billion in FY 2021-22, and now contributing 7% to India?s total merchandise exports. The industry has also attracted cumulative FDI inflows of $22.87 billion between April 2000 and September 2024, demonstrating robust international trust in India?s chemical expertise. (Source: Indian Chemical News)

This growth trajectory is reinforced by proactive Government policies and strategic infrastructure initiatives. Programs like the Production Linked Incentive (PLI) scheme, the Vision 2034 roadmap, and the establishment of dedicated Petroleum, Chemicals, and Petrochemicals Investment Regions (PCPIRs) aim to strengthen the sector?s competitiveness and self-reliance. At the same time, India?s emergence as a preferred destination under the global "China+1" strategy is attracting fresh investment and positioning the country as a reliable alternative in international supply chains. Coupled with rising domestic consumption driven by urbanization, industrial diversification, and a growing middle class, India?s chemical sector is poised to evolve into a global hub, driving innovation, exports, and sustainable growth.

VISION 2030 - FORGING THE FUTURE OF CHEMICAL EXCELLENCE

At Deepak, our journey over the next five years is aimed at positioning the Group as a globally recognized leader in high-performance chemicals. We envision a future driven by innovation, sustainability and operational excellence, where we harness technology, expand our market presence and lead in Speciality as well as Performance Chemicals. By focusing on these core areas, we will continue to unlock new growth opportunities, both domestically and internationally, while remaining committed to our values of integrity and sustainability.

1. Becoming a Global Force in High-Performance Chemistry

Our vision is to be the partner of choice for customers seeking innovative and high-quality chemical solutions across various applications. By expanding our specialty chemicals portfolio, particularly in pharmaceuticals, agrochemicals, and advanced materials, we plan to cater to a larger share of high-growth markets through various upstream and downstream products which help in deeper integration across our business and strengthening our competitive edge. Over the next five years, we shall continue to focus on expanding our R&D capabilities to bring cutting-edge, application-specific products to market, ensuring we remain ahead of industry trends. We aim to grow revenue from our specialty chemicals segment by capitalizing on rising demand for sustainable and tailored solutions that address the needs of an increasingly complex global market.

2. Unlocking Global Markets & Strategic Collaborations

In line with our goal to expand our global footprint, we are strengthening our international presence in key growth regions such as North America, Europe, Southeast Asia, and Latin America among others. This will be achieved through a combination of enhanced export strategies, direct market penetration, and collaboration with global players that align with our values and business objectives. By building strategic collaborations and entering high-potential markets, Deepak is poised to further strengthen its position as a trusted, global partner for chemicals, renowned for reliability, quality, and sustainability.

3. Embedding Sustainability as a Strategic Imperative

Sustainability is integral to our future growth, and we are committed to making it the foundation of our operations. Deepak will continue to invest in clean production technologies and green chemistry to reduce environmental impact. Our efforts will continue to focus on energy e_iciency, reducing carbon emissions, and advancing circular economy principles across our manufacturing processes. We are also committed to adhering to the highest ESG (Environmental, Social, and Governance) standards for better tomorrow.

4. Leading Through Digital Intelligence & Operational Excellence

As we continue to scale, digital transformation will play a pivotal role in improving e_iciency, reducing costs, and enhancing decision-making capabilities. Over the next five years, Deepak is investing substantially in smart manufacturing, predictive analytics, and AI-driven process optimization to streamline our operations and improve safety standards across all plants. With the integration of Industry 4.0 technologies, we aim to create an agile, responsive organization that can adapt quickly to market shi_s and regulatory changes.

5. Fostering Human Capital & Innovation Culture

Our people are the backbone of our success, and over the next five years, we will continue to invest in building a future-ready workforce. By focusing on leadership development, technical training, and diversity and inclusion, we aim to create a culture that fosters innovation, encourages collaboration, and ensures that every employee is empowered to contribute to the company?s cause and growth. Additionally, we are strengthening our partnerships with academic and research institutions to attract top talent in chemical engineering, material science, and sustainability Our goal is to cultivate a dynamic innovation ecosystem where creative ideas flourish, leading to the development of new products, advanced technologies, and sustainable solutions that meet the needs of both our customers and society.

In the ensuing five-year block, Deepak will continue to be a driving force for positive change in the global chemical industry. By enhancing our focus on high-value chemistry, expanding our global reach, embedding sustainability in every aspect of our operations, and investing in digital transformation, we will not only achieve growth but also become an industry leader that shapes the future of chemicals. With a strong commitment to innovation, operational excellence, and sustainability, we are poised to achieve our Vision 2030 and continue to deliver unparalleled value for our customers, employees, and stakeholders.

DEEPAK: A LEAP TOWARDS CHEMICAL SELF-SUFFICIENCY AND GLOBAL LEADERSHIP

In line with our growth strategy, we have already announced a significant investment of Rs. 8,500 Crores to establish a state-of-the-art manufacturing complex. This facility will produce essential products like phenol, acetone, and isopropyl alcohol and Polycarbonate resin addressing critical supply gaps and reducing India?s dependency on imports. The expansion reflects our commitment to strengthening the domestic supply chain and enhancing our capabilities in high-value chemical segments.

As we look to the future, Deepak is focused on expanding the global footprint by establishing new chemistry platforms and products through strategic partnerships and market penetration in high-growth regions. Our dedication to sustainable practices, digital transformation, and talent development ensures that we are well-positioned to lead in the global chemical industry, delivering long-term value to our stakeholders and contributing to a promising and sustainable future.

VOTE OF THANKS

On behalf of the entire team at Deepak, I would like to extend my deepest gratitude to all our stakeholders – shareholders, investors, and partners – whose unwavering trust and support continue to propel us forward. Your belief in our vision and mission has been a cornerstone of our success, and we are truly thankful for your ongoing commitment.

I would also like to recognize the invaluable contributions of our dedicated employees, whose passion, hard work, and dedication have been key to turning our ambitious goals into reality. Additionally, the strategic guidance and insights of our esteemed Board members have been indispensable in helping us navigate both challenges and opportunities with clarity and confidence.

Looking ahead, we remain optimistic about the future, fuelled by the vast opportunities before us. Our resolve to drive sustainable growth, foster innovation, and stay agile in the ever-evolving landscape of our industry is stronger than ever. Together, we will continue to lead with excellence and create long-term value. Once again, thank you to everyone who has been part of our journey –your support has been instrumental in our shared success.