Manorama Industries Ltd

CHAIRMAN AND MANAGING DIRECTOR'S

We operate in a transitioning global economy marked by trade barriers, policy shifts, and uneven capital flows. Global GDP growth is projected at 2.8% in 2025, with a modest recovery in 2026.

Dear Stakeholders,

Our journey has been defined by purpose, progress, and people. From our roots in Chhattisgarh to our growing presence across global markets, we have emerged as a distinctive player in the specialty fats and butters industry, driven by innovation, anchored in sustainability, and deeply connected to the communities we engage with.

Our founding vision was bold: to create high-value, globally relevant products from underutilized forest resources, while uplifting the livelihoods of millions of tribal and rural collectors.

Today, that vision has evolved into a resilient, science-backed, and socially responsible business model built on market relevance and long-term impact.

We operate in a transitioning global economy marked by trade barriers, policy shifts, and uneven capital flows. Global GDP growth is projected at 2.8% in 2025, with a modest recovery in 2026¹. While advanced economies face weak demand and inflation, emerging markets contend with tighter financial conditions.

India, however, continues to lead global growth with projected GDP growth of 6.5% in 2024 25 and 6.6% in 2025 26. Domestic consumption, rural incomes, digital adoption, and policy support are driving broad-based growth across sectors.

Globally, the specialty fats and butters industry is shifting from commodity to value-added ingredients. Demand for clean labels, sustainable sourcing, and performance is fueling growth in Cocoa Butter Equivalents (CBEs), non-lauric fats, and plant-based lipid solutions.

The global CBE market is valued at USD 1.23 Bn (2024) and is expected to grow at a 6.1% CAGR through 2033². The broader specialty fats market is set to reach USD 31.2 Bn by 2034³. India mirrors this trend with over 8% annual growth, driven by food processing, personal care, and chocolate applications.

CBEs are emerging as the fastest-growing category, aligning well with our integrated business model and growth ambitions.

2024 25 marked a watershed moment in our journey, our strongest year to date, driven by robust demand, expanded capacities, and disciplined execution. We delivered record revenue of 771 crore, reflecting a 69% year-on-year growth, propelled by higher volumes and strong exports. Our Profit After Tax nearly tripled to 112 crore, supported by a healthy PAT margin of 14.5%, while EBITDA surged 2.6x to

191 crore, signaling increased operating leverage and a richer product mix. Importantly, these gains were achieved without compromising financial prudence, with ROCE at 33%, ROE at 24.3%, and a conservative Net Debt-to-Equity ratio of 0.83:1, underscoring our ability to grow responsibly while preserving balance sheet strength.

This performance is part of a consistent multi-year trend. Between 2020 21 and 2024 25, we delivered industry-leading CAGRs of 40% in revenue, 54% in EBITDA, and 65% in PAT a testament to the strength of our differentiated business model and the growing global relevance of our specialty offerings.

One of the most defining milestones of 2024-25 was the successful commissioning of our new 25,000 MTPA fractionation facility in Birkoni,

Chhattisgarh. This takes our total installed capacity from 15,000 MTPA to 40,000 MTPA, nearly tripling what we had just a few years ago. While our original plant continued to operate at nearly 100% utilization, the new plant ramped up swiftly, reaching ~50% utilization within the year.

This scale-up has been strategically planned to capitalize on an opportune time. As global demand for ethical, palm-free, and high-performance ingredients rises, the added capacity provides us with the platform to meet growing demand. Looking ahead, we anticipate overall utilization to reach 75 85% in 2025-26.

To support this growth, we are planning the following strategic investments:

Setting up a new seed processing extraction facility to streamline and enhance our upstream operations

Establishing an integrated setup in Burkina Faso to further strengthen our backward integration in Shea sourcing and processing

Together, these initiatives will enable tighter control over the value chain, reduce input cost volatility, and enhance our ability to innovate at scale.

But scale alone is not our story. What truly differentiates Manorama is our globally distributed and anchored supply chain. Our newly incorporated subsidiaries are strategic extensions of this ecosystem:

Manor ama at West securesAfrica and processes Shea nuts at the source across Ghana, Nigeria, Benin, Togo, Burkina Faso, and Ivory Coast, and improves quality control

(UAE) acts as our regional trade and client engagement hub across the

Middle East and North Africa

Manor ama Latin America

(Brazil) opens access to the rich biodiversity of Latin America, helping us explore markets

Together, these platforms not only enhance sourcing resilience but also build proximity to customers, enable faster go-to-market, and position us well for future backward and forward integration.

Our strategic expansions are powered by innovation. At the heart of our product development lies the MILCOA Research and Development Centre, recognized by the Department of

Scientific and Industrial Research (DSIR), Government of India. In 2024 25, our innovation pipeline yielded several high-impact launches:

Milcocream 1059 (all-round filling fats)

Milcocream 1068 (bake-stable fillings)

Milcolin R11 (for frozen desserts)

Milcocream^TM FF69 (Wafer cream LLC filling

These innovations cater to evolving client needs and consumer preferences for ethically sourced, palm-free, and LTDA application-specific ingredients.

As we look ahead, our R&D is also guiding our integration strategy. We are also actively exploring forward integration into industrial chocolates and CBA (Cocoa Butter Alternative) manufacturing, and backward integration with upcoming seed processing and extraction facilities in

Raipur and Burkina Faso. These steps will enhance profitability, value capture, and sustainability across the chain.

Beyond innovation, our commitment to sustainability defines who we are. Our approach to business begins with sustainability, shaping how we source, operate, and grow. Our operations are zero-liquid-discharge, powered in part by biomass fuel, and aligned with global frameworks. We maintain a strict ‘No Deforestation, No Peat, No Exploitation' (NDPE) policy across sourcing.

What makes our impact unique is the direct empowerment of over millions tribal and rural women across India and Africa. We procure Sal, Shea seeds, Mango, and Kokum through thousands of decentralized centers ensuring traceability, fair pricing, and financial inclusion. All payments are digitally transferred, ensuring transparency and dignity of labor. Our parallel initiatives in skill training, health, and education further reinforce this commitment.

Strong internal governance, robust financial controls, and ethical conduct are non-negotiable foundations of our long-term success. Our systems and SOPs are continually audited and reviewed by an experienced Board and Audit Committee. As of March 2025, we employed nearly 500 individuals, and were proud to be recognized as a

‘Great Place to Work^?' in the mid-size enterprise category.

We are equally proud of our efforts to ensure fair representation of women, enforce an Equal Remuneration Policy, and uphold international health and safety standards (ISO 45001).

With strong momentum behind us, we are poised for our next leap forward. As we step into 2025 26, we aim to scale new heights. We are targeting over 1,050 crore in revenue, with improved profitability through better capacity utilization, richer product mix, and higher CBE contribution. Our expansion plans, integration initiatives, and global client partnerships will continue to drive strategic momentum.

Over the next five years, our vision is to firmly establish Manorama as a trusted global supplier in every country and a preferred partner for the world's leading chocolate and cosmetic brands, all while staying rooted in our values of community empowerment and environmental stewardship.

Lastly, I express my heartfelt gratitude to all our stakeholders, forest collectors, employees, partners, customers, shareholders, and the communities we serve. Your trust has enabled us to build something truly exceptional, a Company that creates global value from forest wealth, uplifts lives at the grassroots, and champions sustainability at scale.

Our journey is a testament to what is possible when business and purpose align. The next chapter promises to be even more exciting, and together, we will write it.