ICE Make Refrigeration Ltd

PROPELLING SUCCESS THROUGH DIVERSIFIED GROWTH

In alignment with India's vision of achieving Net Zero emissions by 2050, we strive to set a global benchmark in sustainability-focused initiatives. Our iMGreen Plant, hosting a 50 kW PV Module Solar System, embodies this drive, enabling us to cut down our monthly electricity consumption by up to 30%.

Dear Shareholders,

As we navigate this transformative journey at Ice Make Refrigeration Limited, I am deeply grateful for your persistent support. Our recent accomplishments inspire a renewed sense of purpose and responsibility within us. Our ongoing success is a reflection of our firm commitment to excellence, strategically guided by our expansion efforts, diversification initiatives, and deep consumer insights.

Understanding the Broader Economic Landscape

Over the past year, we expanded our market share and successfully deepened our presence across diverse sectors. Despite the global economic headwinds, including the geopolitical tensions and inflation, the Indian economy stood its ground with remarkable resilience, buoyed by robust investment and strong consumer spending. Amid this dynamic landscape, we experienced a substantial rise in the demands for our products, placing us on a higher trajectory of growth. The levers, driving this surge, include the increase in global population, intense urbanization, the E-commerce boom, enhanced consumption of packaged food, implementation of food security initiatives, and upwardly mobile demand from industries.

Embracing Industry Optimism

India is the largest producer of milk and the second-largest producer of fruits and vegetables in the world, alongside having significant outputs in marine and poultry products. However, these encouraging features also make the nation heavily dependent on precise temperature control across the storage and transportation, necessitating the rapid development of an extensive cold chain infrastructure across the country. Cutting-edge technologies, including blockchain, augmented reality (AR), and the Internet of Things (IoT) are revolutionizing cold chain monitoring systems, presenting significant advancement in logistics technology. Offering predictive alerts and enhanced management across warehousing, transportation, and delivery processes, these innovations open up new frontiers of growth and opportunities. Going forward, the technological evolution is poised to usher in unprecedented growth in India's cold storage market. Moreover, the growing consumer preference for processed foods, coupled with enhanced Government initiatives to boost food processing capabilities via strategically built mega food parks, highlights the thriving outlook for the cold chain industry in India. Additionally, continuous thrust on technological advancements and evolving market dynamics further augment the prospect of the industry.

Strategic Goals and Performance

We, at Ice Make, are poised to generate significant revenue growth from a host of segments, including dehydration, ammonia-related products, and continuous panel solutions in the years to come. Our Company is prioritizing automation within our commercial vertical, complementing the existing operations. The strategic focus of Ice Make encompasses a varied range of domains including cutting down post-harvest losses, augmenting shelf life, and guaranteeing product safety through robust cold chain solutions, cementing our steadfast stance of quality excellence. Furthermore, we continue to expand our client base, as evident from the remarkable contract we secured from the West Bengal Livestock Development Corporation Limited, valued at Rs. 65.48 Crores. This new development further reafirms the trust and confidence our customers bestow in our brand and solutions. Our most ambitious growth plan till date, involving a Rs.200 Crores capex, announced last year, is well underway. With approximately Rs. 100 Crores already earmarked for projects like continuous Puf panel, Visi Cooler, and Chest Freezer, among others, we plan to utilise the remaining Rs. 100 Crores in the next one or two years. Furthermore, this expansion is aimed at boosting our production capacity, empowering us to exceed our long-term revenue target of Rs. 1,500 Crores. We have set our immediate goal for 2024-25, eyeing to surpass the turnover target of Rs. 500 Crores, as we stay on track for achieving a revenue of 1,000 Crores by 2027-28. Additionally, we are all geared up for navigating fresh opportunities through geographical expansion, by setting up new production units or warehouses.

Financial Highlights

This year, we achieved a remarkable topline of Rs. 379.00 Crores, an increase from Rs. 313.32 Crores, signifying a surge of 20.96%. Our net profit rose to Rs. 26.13 Crores, up from _ 20.80 Crores registered in the last fiscal, representing an uptick of 25.63%. Our EBITDA grew by 10.92% on a year-on-year basis, from 10.61% in 2022-23. Moreover, we are confident of achieving a growth range of 20-30% in overall profitability, coupled with a steady EBITDA margin of 9-11%. Our strategic priority lies in aggressively amping up our topline, while maintaining a consistent PAT margin of 5-7%. In a nutshell, our outstanding results speak volumes of our prudent initiatives and consistent focus on operational excellence, accentuated by the committed drive of our invaluable team.

Greenfield Capex and Innovation

We are delighted to announce the expansion of our manufacturing capabilities at the Kolkata facility of Icebest Private Limited in 2023. Additionally, we are also setting up

a new manufacturing unit in Bavla, Ahmedabad, Gujarat, focused on producing continuous PUR/PIR PUF panels, chest freezers, and visi coolers. This strategic move is set to cater to the burgeoning demand for bespoke, large-scale, and multi-storeyed temperature-controlled infrastructure from diverse sectors. With these endeavors, we continue to deliver on our commitment to innovation, while fulfilling the diverse requirements of our esteemed clientele.

Sustainability Initiatives at Ice Make

We, at Ice Make, prioritize sustainability in every aspect of our operations. In alignment with India's vision of achieving Net Zero emissions by 2050, we strive to set a global benchmark in sustainability-focused initiatives. Our iMGreen Plant, hosting a 50 kW PV Module Solar System, embodies this drive, enabling us to cut down our monthly electricity consumption by up to 30%. In addition, our ISO 14001 certification across global operations assures of stringent standards of environmental management throughout the entire lifecycle of our refrigeration solutions, encompassing design, manufacturing, installation, and servicing. These concerted endeavors highlight our proactive stance on sustainability and our persistent drive to create a meaningful impact on a global scale.

Commitment to Quality, Innovation, and CSR

We, at Ice Make, stay committed to excellence, as reflected in the prestigious certifications we receive and the continuous investments we incur in fostering a culture of quality and innovation. Our dedication to Corporate Social Responsibility (CSR) drives us to make a positive impact on society, as we continue to derive strength from our philosophy of giving back.

We are committed to nurturing a supportive workplace environment and foster employee well-being through a range of initiatives. By actively engaging in CSR activities, including organizing annual blood donation camps and tree plantation drives, we remain rooted in our cause of uplifting communities. By supporting local schools through sponsorships and providing for children's clothing and other essential needs, we demonstrate our dedication to nurture the next generation and aid in educational progress.

With this persistent effort, we aim to create enduring value for our stakeholders and communities alike.

In Gratitude

As we conclude another remarkable year, I would like to sign off by expressing my deepest gratitude to our esteemed stakeholders, distinguished Board members, diligent team and valued clientele. Your persistent trust and enduring support are fundamental to our success. As we set forth for another promising year, I am optimistic that together, we will continue to make a lasting impact on the cold chain industry, playing the role of a key enabler in advancing our nation's prosperity.