Nuvoco Vistas Corporation Ltd

Dear Members,

It gives me great pride to present Nuvoco's Integrated Annual Report for FY 2024-25. This year brings a renewed sense of optimism and resolve as we deepen our engagement with India's evolving and inspiring growth narrative. At Nuvoco, we are proud to be active contributors to this journey driven by our commitment to innovation, sustainable practices and long-term value creation for our stakeholders.

The global economy in FY 2024-25 operated in a complex and uncertain environment, shaped by heightened geopolitical and trade tensions, moderate inflation and uneven pace of recovery across regions. Conflicts in the Middle East disrupted energy flows and global shipping corridors, leading to higher logistics costs and volatility in crude oil prices. While the Eurozone grappled with stagnation and weak industrial output, overall global trade remained subdued, reinforcing the fragility of interconnected economies and highlighting the urgent need for agile business practices.

Amidst this volatility, India's macroeconomic landscape remained resilient which helped the country maintain its growth momentum. In a significant milestone, India became the world's fourth-largest economy in 2025, with its GDP crossing the USD 4 trillion mark. The economy posted a robust 6.5% growth for FY 2024-25, reinforcing India's position as a key player on the global stage.

The growth momentum was also visible in the cement sector especially in the second half. The Government's unwavering focus on infrastructure creation and affordable housing is evident in the Union Budget's capital expenditure outlay of f 11.21 lakh crores for FY 2025-26, equivalent to 3.1% of GDF Allocations under the Pradhan Mantri Awas Yojana (PMAY) were enhanced by 64%, and state-level capital expenditure rose by 17%. These planned investments across housing, urban development, transportation and industrial corridors would ensure sustained demand visibility for the building materials industry.

Reinforcing this positive trajectory, India has emerged as the world's second-largest cement producer as of March 2025, contributing over 8% of global installed capacity of ~ 700 MMTPA. The sector is poised to capitalise on the nation's infrastructure expansion supported by revamping business policies, abundant limestone reserves, and strategically located manufacturing hubs. Additionally, regional development initiatives strengthening infrastructure linkages laying a robust foundation for sustained and inclusive growth across the cement industry.

The cement industry continued to experience wave of mergers and acquisitions primarily driven by the pursuit of economies of scale. Recognising the value of such strategic expansion, we achieved a landmark milestone with the NCLT approval of our Resolution Plan for acquiring Vadraj Cement Limited. This pivotal acquisition marks a significant leap in our growth journey, boosting our installed cement capacity by over 20% to approximately 31 MMTPA. This move not only consolidates our position as the fifth-largest cement player in India for long term but also deepens our market presence across the states of Gujarat, Maharashtra, and Northern India.

As we integrate this milestone into our growth story, our long-term vision of Building a Safer, Smarter and Sustainable World continues to guide us and shapes every decision we make, from strategic expansions to operational practices, as we strive to create lasting value for our stakeholders.

Aligned with this approach, our Integrated Annual Report for FY 2024-25 is themed Driven by Trust. Committed to Growth. A reflection of the confidence placed in us by our stakeholders and our continued pursuit of growth aspirations.

Nuvoco delivered a resilient performance in FY 2024-25, marked by strategic progress, operational discipline, and a continued focus on value creation across all our business verticals.

Our manufacturing footprint remained a key driver of operational efficiency and growth. With 11 strategically located cement plants and 2 more set to be added in near future, our network is well-optimised to ensure proximity to critical raw material sources and high-demand markets.

To ensure long-term resource security, we acquired three additional limestone blocks near our Nimbol Cement Plant. These strategic assets reinforce our self-sufficiency of raw material supplies and bolster our long-term operation. Furthermore, our upcoming railway siding in Odisha is expected to significantly reduce logistics costs and improve market access across the Eastern Markets.

A key development during the year was the commencement of Nuvoco Duraguard Microfiber production at our Haryana Cement Plant. This has enabled us to strengthen the availability and market reach of our premium product across the Northern states. In FY 2024-25,

India experienced the world's largest spiritual gathering in Prayagraj, Uttar Pradesh - Mahakumbh. This once in a century event gathered almost 60 crores attendees from across the globe. Complementing this global event, Nuvoco designed the ‘Sarthi Programme' at MahaKumbh 2025 offering an immersive brand experience for devotees and valued Channel partners, including dealers, sub-dealers, and influencers through strategic engagements & personalised services to visitors.

Additionally, key marketing campaigns such as ‘Sabse Khaas Pehelwaan' and ‘Sabse Khaas Sarpanch', focused on brand positioning and rural engagement, significantly contributed to performance. These efforts supported the Company in achieving cement volumes of 19.4 MMTPA, with premium products accounting for 40% of total sales.

Our Ready-Mix Concrete (RMX) and Modern Building Materials (MBM) businesses continued to showcase growth potential. Our MBM business continued to demonstrate a promising opportunity to deepen customer engagement by leveraging existing cement distribution channels. During the year, we launched a range of integrated, value-added solutions under the brand Zero M, further enhancing our premium product portfolio.

In FY 2024-25, we remain strategically committed to unlock long-term value through operational excellence and cost optimisation. The Company reported its highest-ever quarterly consolidated EBITDA in Q4 FY 2024-25 and achieved the lowest blended fuel cost in 14 quarters, reinforcing Nuvoco's position amongst the industry's lowest in power and fuel costs.

Sustainability continues to be a core pillar of our strategy, and we are proud to be doing our part, as the Indian cement industry charts its journey toward net-zero emissions by 2070, under the Decarbonisation Roadmap. Through our Alternate Fuels and Raw Materials (AFR) programme, we coprocessed nearly 69,000 metric tonnes of plastic waste this year reducing our dependence on conventional fuels and lowering our environmental footprint. We also achieved a year-on- year reduction in carbon emissions, with our C0₂ intensity improving to an audited figure of 453.8 kg per tonne of cementitious material.

Beyond our environmental efforts, we remained steadfast in our commitment to social responsibility. Our social initiatives have positively impacted over 150,000 lives through focused interventions in Skilling & Livelihood for Women and Youth, Education, Healthcare, Rural Infrastructure, and Natural Resource Management.

Nuvoco's vision of Building a Safer, Smarter, and Sustainable World is anchored in a foundation of empowered employees. Recognising its people as one of its most valuable assets, the Company strives to create a strong value system through its core values framework-IECCO (Integrity, Entrepreneurship, Collaboration, Care, and Operational Excellence), enabling employees to deliver customer-centric service powered by cutting-edge technology.

Looking ahead, the outlook for the cement industry remains positive, with demand expected to grow by 7-8% in FY 2025-26, driven by ongoing infrastructure development, improved rural consumption, and a favourable monsoon forecast.

FY 2024-25 marked a defining chapter in Nuvoco's growth story, a year where performance was anchored in a strategy that was executed with clarity. In line with this evolution, we rearticulated our Mission to: “Trusted Building Materials Company Creating Value for our Stakeholders.” This renewed mission reaffirms our commitment to earning trust through disciplined execution and creating long term values for our valued stakeholders.

As we chart our course forward,

Nuvoco is well-positioned to accelerate its transformation into a future-ready and digitally enabled Company. A key milestone in this journey will be the successful integration and operationalisation ofVadraj Cement Limited by Q3 FY 2026-27, significantly expanding our geographic footprint in the key markets of Gujarat and

Maharashtra.

In conclusion, I extend my heartfelt gratitude to each and every one of our stakeholders. We deeply value the strength of our partnerships, which continue to inspire collaboration, innovation, and shared success.

The journey ahead is filled with both opportunities and challenges, and I am confident that with your continued support, we will achieve our aspirations.

Together, let us strive for a future that is prosperous, sustainable, and inclusive-for all our stakeholders and the communities in which we operate.