Denta Water & Infra Solutions Ltd

C. Mruthyunjaya Swamy

Chairman and Executive Director

At Denta Water, our pioneering DBOT model and governance enable us to deliver sustainable groundwater-recharging infrastructure - transforming water systems, empowering communities and safeguarding India's water future with unwavering integrity and expertise.

My dear shareholders, partners, and friends,

It is with a profound sense of purpose and genuine enthusiasm that I address you as we reflect upon Denta Water's remarkable journey and look ahead to the opportunities that lie before us. As your Chairman, I would like to share our perspectives on the economic and industrial landscape, our company's enduring philosophy, our robust strengths, and our ambitious outlook.

We operate within an Indian economic environment that continues to demonstrate remarkable resilience and dynamism. India is growing at nearly twice the pace of the world economy, with projections for our real GDP to expand by 6.2% in FY25 and 6.3% in FY26, significantly outpacing global forecasts. This robust momentum is underpinned by strong domestic demand, policy continuity, and a sustained push for infrastructure development, particularly in rural and semi-urban areas. Furthermore, the India Meteorological Department has forecasted an above-normal monsoon for 2025, which promises to bolster agricultural output and rural incomes. The government's strategic allocation of capital expenditure, which has tripled over the past four years and is expected to increase by a significant 11.1% in the next fiscal year, underscores its commitment to infrastructure growth, a sector in which we are deeply embedded.

Within this thriving economic backdrop, the global water and wastewater treatment market faces structural challenges, with demand projected to exceed supply by as much as 40% by 2030. This urgency highlights the critical nature of our work. The Indian water and wastewater treatment market is projected to grow significantly, at a compound annual growth rate of 6.20%, from approximately USD 13 billion in 2023 to approximately USD 23.8 billion in 2033, with South India expected to command a substantial share. Our nation, with 16% of the global population yet only 4% of its water resources, faces intensifying water scarcity.

It is indeed a sobering fact that 600 million people in India face high water stress, and a significant portion of sewage remains untreated, directly impacting water quality. Flowever, this challenge presents an immense opportunity for Denta Water, as government initiatives, such as the "Jal Jeevan Mission" and the "Atal Bhujal Yojana", are consistently creating a robust pipeline for water infrastructure projects.

Our philosophy and purpose at Denta Water are deeply rooted in addressing these pressing water challenges. We believe in providing sustainable infrastructure solutions that revitalise water systems and enhance groundwater sustainability across India. We specialise in the intricate process of groundwater recharging, particularly through the innovative use of recycled water, a field in which we are true pioneers. Our vision is clear: to be a leading provider of infrastructure solutions, making a tangible difference in communities and the environment.

At the heart of our operations lies a commitment to strong governance and the wellbeing of our people. We have meticulously established a structured corporate governance framework that adheres to the highest standards, complying rigorously with the Companies Act and SEBI Listing Regulations. Our Board of Directors is a balanced assembly of experienced professionals, bringing diverse perspectives to our strategic deliberations, supported by various key committees, including Audit, Nomination and Remuneration, Stakeholders Relationship, CSR, and IPO committees. We are committed to cultivating a responsible business mindset, ensuring strict adherence to environmental standards, promoting workplace safety, and fostering transparent relationships with all stakeholders. Our greatest asset, however, remains our people. With an exceptionally low employee attrition rate of 3% to 4%, our dedicated team is the bedrock of our execution capabilities. We continually invest in their training and skill development, and offer competitive remuneration to ensure their sustained well-being and productivity.

The profound impact of our work is evident in the way we are positively impacting both nature and humans in a rapidly growing India. Every project we undertake creates a positive ripple effect, generating multiplier benefits that extend far beyond immediate delivery. Our involvement in the pioneering KC Valley project, for instance, has played a substantial role in cementing Bengaluru's reputation as the second- largest city globally in terms of treated wastewater capacity. Global leaders, including the President of the UN General Assembly, have lauded this achievement. Through our active participation in pivotal government initiatives such as the "Jal Jeevan Mission", where we have executed 32 projects and have 11 more in our order book, we directly contribute to securing India's water future. Our unique Design-Build-Operate- Transfer (DBOT) model further ensures the long-term effectiveness and sustainability of our projects, often including a 3 to 5-year operation and maintenance component.

In closing, we extend our sincere gratitude to all our stakeholders, our diligent employees, our valued clients, our supportive shareholders, and our steadfast partners, for your continued trust and belief in Denta Water.

Your support is instrumental as we continue to build a sustainable and profitable future, delivering essential water infrastructure solutions that benefit our nation. We are deeply confident in our strategic direction and our ability to create long-term value for all.

Thank you.

Yours faithfully,