Excel Industries Ltd

Dear Valued Stakeholders,

It gives me great pride to present the 64th Annual Report of Excel Industries Limited for FY 2024-25.

As one of India's pioneering chemical companies, we take immense pride in our legacy, built on innovation, operational excellence, and responsible growth. Since our early days, we have introduced breakthrough products through unique in-house processes, mastered the use of complex and hazardous raw materials, and supported emerging market needs in a newly independent India. We have always believed in being a fair and ethical partner, earning the trust of both suppliers and customers through consistency and integrity.

While many of our earlier innovations have since become industry standards, our purpose remains unchanged. We continue to lead with deep expertise in phosphorus chemistry, guided by a strong commitment to sustainability, disciplined execution, and longterm thinking. Our ISO-certified systems, 'Zero Harm' safety culture, and empowered leadership foster resilience and reinforce stakeholder confidence. As we navigate a dynamic global landscape, this year's theme reaffirms our commitment to delivering long-term value through high-impact solutions that balance performance with environmental and societal responsibility.

The financial year 2024-25 unfolded amid continued global economic turbulence, shaped by a complex mix of geopolitical tensions, inflationary pressures, shifting trade dynamics, and evolving supply chain structures. Over the past five years, the business landscape has undergone a dramatic transformation, driven by the pandemic, regional conflicts, and rising competition among global powers, ushering in an era of unprecedented uncertainty.

A key aspect influencing global markets has been China's dominance across sectors over the last 25-30 years. As a non-market economy with state-supported subsidies and large- scale capacity creation, China remains a formidable competitor to both India and us. Yet, over time, we have developed the resilience and strategic flexibility needed to navigate such challenges effectively.

In the chemical industry, and particularly in the agrochemical space, cyclical headwinds like global destocking and overcapacity have impacted pricing and demand. Trade disruptions such as the Red Sea crisis further hampered global logistics, extending lead times to key markets such as the US and Europe. In addition, evolving trade policies and tariff shifts between major economies are reshaping the landscape of international commerce.

Amidst these global headwinds,

India has emerged as a beacon of stability. Over the past decade, the country has strengthened its standing as a democratic, dynamic, and fast-growing economy. Its abundant reserves of feedstock, an advanced scientific and industrial base, rising income levels, and deep digital penetration uniquely position it as a preferred global sourcing and manufacturing hub, particularly in strategic sectors like chemicals and specialty additives.

At Excel, we have remained a steady performer through these disruptive times. Our focus on operational excellence, supply chain agility, and market diversification has enabled us to adapt and thrive. Importantly, our limited dependence on Chinese raw materials, especially phosphorus, underscores our commitment to de-risking operations. With global phosphorus pricing no longer solely dictated by China, our strategic independence further strengthens our long-term resilience.

Meanwhile, a broader global shift is underway, emphasising the need to balance economic growth with environmental stewardship. The consequences of overproduction and rampant consumerism have led to increasing climate-related disruptions, prompting a renewed focus on ESG, corporate responsibility, and sustainability across industries.

We see these trends not merely as challenges, but as opportunities. The convergence of digital technologies, IT, and electronics with age-old sectors like agriculture, dairy, fisheries, and poultry is creating demand for innovative products, processes, and applications. India's unique access to essential feedstocks and rich talent pool empowers us to turn these emerging needs into meaningful solutions for both domestic and global markets.

During FY 2024-25, we delivered a strong financial performance, marked by substantial growth in both revenue and profitability. We witnessed signs of steady recovery following two years of global inventory correction and industry-wide destocking. While the broader environment remained marked by volatility, particularly in pricing and demand, our strategic foresight, operational discipline, and customer-centric approach enabled us to navigate this landscape with confidence and agility. What makes this performance especially meaningful is that we achieved it while staying true to our core philosophy, balancing the needs of people, the planet, and sustained profits. This alignment of financial strength with responsible growth continues to define our journey forward.

At Excel Industries, environmental responsibility is deeply embedded in our operations through the globally recognised Responsible Care framework. We take a comprehensive approach to sustainability, ensuring 100% scrubbing of gaseous emissions, safe disposal of hazardous waste, and extensive recycling of key materials, including solvents and sulphur. Our manufacturing sites continue to prioritise water stewardship-most notably, our Visakhapatnam facility operates as a Zero Liquid Discharge (ZLD) unit, while others implement rainwater harvesting, wastewater recycling, and watershed management. We have charted a structured roadmap for carbon reduction, backed by long-term investments in energy efficiency, waste heat recovery, and green chemistry. Nearly 48% of our electricity requirements are now fulfilled through renewable sources, enabled by solar infrastructure and green power purchase agreements. These initiatives are underpinned by ongoing R&D focused on advancing green chemistry and delivering innovation aligned with environmental sustainability.

Our commitment to people and communities remained a foundation of our approach during the year. Internally, we upheld a safe, healthy, and inclusive work environment, achieving a milestone of zero losttime injuries. We continued to strengthen our occupational health systems and ensured fair working conditions along with comprehensive insurance coverage across our workforce. In the communities around our operations, we deepened our impact through focused CSR initiatives. These included efforts in water security, sustainable agriculture, health and education, and livelihood generation, touching the lives of thousands in rural areas. Our preferential procurement from local and marginalised groups further exemplifies our belief in inclusive growth and equitable development.

As we continue to build on our legacy in established segments, we are also actively exploring these new frontiers, leveraging our expertise and capabilities to create value in the evolving landscape of tomorrow. This journey is enabled by the continued support of our stakeholders. I extend my heartfelt appreciation to our employees for their commitment, our customers and partners for their trust, our shareholders for their confidence, and the communities we serve for their collaboration. Together, we will continue building a future that is inclusive, resilient, and sustainable.

Best Regards,

Executive Chairman