Igarashi Motors India Ltd

I am pleased to present the 33^rd Annual Report of Igarashi Motors India Limited for FY 2024-25. This year, our Company has navigated an evolving global landscape with agility, resilience and strategic foresight, strengthening our position in both global and domestic markets. Despite the challenges, we have continued to expand our portfolio, on-board new customers and drive profitable growth, all while upholding our commitment to sustainability and operational excellence.

Dear Shareholders,

I am pleased to present the 33^rd Annual Report of Igarashi Motors India Limited for FY 2024-25. This year, our Company has navigated an evolving global landscape with agility, resilience and strategic foresight, strengthening our position in both global and domestic markets.

Despite the challenges, we have continued to expand our portfolio, on-board new customers and drive profitable growth, all while upholding our commitment to sustainability and operational excellence.

The global automotive industry faced a dynamic environment in FY 2024-25, shaped by shifting geopolitical factors, evolving trade policies and technological advancements. While demand remained resilient, the sector experienced the impact of tariff changes and supply chain realignments. Notably, the increasing push towards hybrid vehicles along with efficiency improvements in Internal Combustion Engines (ICEs) continued to define the industry's trajectory.

Meanwhile, the Indian automotive market sustained its growth momentum, driven by strong domestic demand, policy support and increasing localization. The rise in domestic sourcing (local-to-local) has been a key trend, reinforcing India's position as a strategic manufacturing hub.

During FY 2024-25, we delivered strong performance across key financial and operational parameters. Our revenue grew by 16%, supported by robust demand across multiple segments, new product launches and deeper customer engagements in Europe and Asia. Our Profitability (PAT) grew by 153%, reflecting our focus on efficiency, backward integration, value-added solutions and product portfolio expansion.

A significant highlight of the year was the successful launch of multiple new customer programs, including Electric Parking Brake (EPB) and Trunk Opening Closing Device (TOCD) and the onboarding of key Korean automotive players. Additionally, we expanded our applications portfolio to include Seat Motors, Gearbox Actuators (GBA) and Park Lock Actuators (PLA), reinforcing our commitment to technological diversification and customer-centric innovation.

We would like to thank our parent company – Igarashi Japan – under the leadership of Mr. Keiichi Igarashi for extending support in expanding into the new-gen Body Application and leveraging East Asian customer relationships for Safety Application.

• Reduced product concentration for one application (ETC) from 90% to ~75% with inclusion of other Engine Air Management

Applications such as EGR, WGA, VGT, CCV and other Body and Safety Applications

Expansion into tech-neutral Auto applications, namely Body and Safety Applications, non-Auto ECD applications

• Deeper penetration into the domestic market with domestic revenue share rising from 17% to 46% and Actuator's domestic revenue share increasing from 1% to 24%

Diversification into Non-Auto applications (ECD), increasing revenue share from 1% to 20% of overall revenue

This was possible due to the extensive efforts and able leadership of the top management under the Managing Director, Mr. R. Chandrasekaran.

I extend my appreciation and congratulations to the entire team.

The evolving global trade environment – marked by rising tariffs, geopolitical tension and supply chain disruptions – is

Our team achieved an impressive milestone by developing the EPB actuator, a technology-neutral motor, within a 9-month period. This product marks our strategic entry into the East Asian market. prompting a strategic realignment in global sourcing. OEMs and Tier-1 suppliers are increasingly re-evaluating their dependency on massive global supply bases, seeking resilient, agile and cost-effective manufacturing alternatives. India has emerged as a preferred destination in this transformation, supported by its robust engineering talent, improving infrastructure and stable policy environment.

Our Company is actively aligned with this trend, enabling global customers to diversify their supply chains by offering localized, high-quality actuator and motor solutions that meet stringent international standards. This shift is further reinforced by India's strengthening trade relationships, including its position as the top contender for a forward-looking Free Trade Agreement (FTA) with the United States. This strategic alignment is expected to offer long-term tariff benefits and solidify India's role as a critical node in the global automotive supply chain, presenting significant opportunities for sustainable growth.

During the fiscal leveraging our internal capabilities on sustained growth and expanding horizons to increase our market share within the domestic automotive sector. We focused on technology integration, scalable manufacturing (backward integration),quality assurance, team skill development, streamlining operations, semi-automation in manufacturing and building finished goods inventory to ensure sustained growth and embrace upward market potential.

We collaborated with 12+ top Tier-1 customers globally and domestically to develop over 25 new Engine Air Management programs with an approximate yield capacity of ~27 million motors over the next 3-4 years.

Simultaneously, we engaged in 15 plus applications programs in Safety and Body systems, expected to yield around 45 million motors over the same period, partnering with 10 Tier-1 customers both in India and worldwide.

Our team achieved an impressive milestone by developing the EPB actuator, a technology-neutral motor, within a 9-month period.

This product marks our strategic entry into the East

Asian market. Highlighting our commitment to broadening our product applications and providing innovative solutions to our esteemed partners, our development team continues to be actively involved in strategic we initiatives. After the successful launch of series production for 3 programs in FY 2024-25, they have continuously engaged in12 new programs in partnership with 5 renowned Tier-1 customers both internationally and domestically.

This progress is projected to yield a total cumulative volume of 20-21 million motors over the next 3-4 years.

Additionally, we have been awarded by a top Tier-1 global customer on a GBA actuator, forecasting the production of 3-4 million units in the upcoming four years. The product has successfully completed testing at the customer's facility with full-scale production scheduled to begin by second half of FY 2025-26.

Under ‘Minus China' strategy, a leading Global Tier-1

Customer has worked closely with our Company to achieve the successful launch of 1 new program under the New Generation TOCD product under serial production during FY2024-25 for the European Market. This milestone was reached within an unprecedented timeframe for commercial launch in FY2024-25, supported by our parent company, Igarashi Electric Works Ltd, Japan. Additionally, we have 6 new application programs with an anticipated cumulative volume of ~20 million motors over the next 3-4 years focused on body applications currently with our development desk.

The electronics R&D division of your Company has successfully created products spanning standard, premium and super-premium segments within the ceiling fan category. These products emphasise voice recognition, smart sensing technology and BLDC motors designed for water pump applications.

Our development team has also designed competitive PCB controllers for Domestic Exhaust fans and Table/Pedestal/Wall (TPW) fans, poised for launch upon the introduction of mandatory star ratings for TPW applications by the government, expected within the next 12 months.

Sustainability remains a core pillar of our strategy. As we have integrated Environmental, Social and Governance (ESG) principles into our operations for the past couple of years, we remain focused on responsible manufacturing, energy improving stakeholder welfare and reducing our carbon footprint. Aligned with our ESG roadmap, we are actively working on expanding green energy adoption, optimizing resource utilization and strengthening our corporate social responsibility (CSR) initiatives.

As we move forward, our strategic priorities remain clear – enhancing our technological capabilities, deepening customer relationships, expanding our domestic and global footprint and driving sustainable, profitable growth. With a strong foundation in place, we are confident in our ability to achieve sustained growth and expand horizons to create long-term value for all stakeholders.

I extend my sincere gratitude to our shareholders, customers, employees and partners for their unwavering trust and support. Our progress is a testament to the dedication and hard work of our teams and I am confident that, together, we will continue to achieve new milestones in the years ahead.

Warm Regards,

Chairman