AGI Greenpac Ltd

Dear Shareholders,

I am proud of the consistent progress we have achieved in over the past fiscal years. Our commitment to operational excellence and strategic investments has positioned us at the forefront of the industry.

Operating Landscape

Despite global challenges and geopolitical tensions, the Indian economy demonstrated resilience, emerging as the world's fastest- growing major economy.

Substantial government investments in infrastructure and progressive economic reforms have created a favourable environment for businesses.

Evolving consumer preferences, increased disposable incomes and changing lifestyles are leading to a surge in demand for premium packaging, particularly glass, which is valued for its sustainability and aesthetics. The expansion of the food and beverage sector, especially spirits and beer, coupled with the premiumisation of cosmetics and perfumes, has further stimulated demand for high-guality, aesthetically appealing packaging. Moreover, the increasing focus on sustainability has prompted consumers and companies to seek packaging options that minimise environmental impact.

Performance during FY 2023-24

The year saw us deliver steady financial performance. Revenue from Operations expanded by 6% to reach Rs.2,421 crore. EBITDA reported a Y-o-Y growth of 21% to Rs.588 crore, boosting the EBITDA margin by 290 bps to 24%. PBT increased 12% Y-o-Y to Rs.340 crore from Rs.304 crore, despite the higher interest and depreciation costs, owing to the commissioning of our new specialty glass manufacturing plant. Investments in advanced manufacturing, operational excellence and product mix supported our growth and market expansion strategy.

Our commitment to operational excellence enabled us to achieve -95% capacity utilisation. Effective cost management and optimised resource allocation contributed to increased daily production and maintained profitability, despite a planned furnace relining shutdown.

I am proud of the recognition our Company has received through numerous awards, including the prestigious 'Supplier of the Year' Award from Diageo India for the second consecutive year. These accolades recognises our positioning as a preferred partner for our customers in the industry, a testament to our team's commitment to delivering exceptional value.

Progressing Responsibly

We remain steadfast in building a sustainable future with a vision to achieve net zero emission operations by 2050. To realise this, we have established clear milestones for 2030.

We have expanded our renewable energy portfolio, including a 2.8 MW rooftop solar plant at the Hyderabad unit, which will increase our installed solar power capacity to 19.56 MW by 2025. In FY 2023-24, this transition to renewable sources has resulted in an annual reduction of ~22,970 tonnes of CO₂ emissions.

To further minimise our environmental footprint, we have implemented various initiatives. These include installing electrostatic precipitators to remove SOx and particulate matter, investing in R&D for innovative glass, and setting targets to increase cullet (broken glass) utilisation and reduce product returns. Additionally, we have adopted sustainable practices such as rainwater harvesting, zero liquid discharge policies and water conservation measures.

Our commitment to sustainable waste management is evident in our dedication to reusing 100% of production waste and recycling ~2.0 lakh tonnes of cullet annually.

We aim to achieve 100% recyclable packaging by 2030 and further increase recyclable cullet utilisation to 50% by 2027.

Our commitment to excellence and sustainability has been recognised by the industry. We received the Total Cost Management Award in the Manufacturing Champion category at the 22^nd CII Cost Congress and the 'Energy Efficient Unit' award from CII at the 24^th National Awards for Excellence in Energy Management 2023 for our Bhongir plant.

Digitalisation

Innovation is at the core of our digital strategy. AI-driven insights have transformed operations, enabling us to optimise production, predict maintenance needs, and make informed decisions in real time.

We integrated advanced AI tools, including the Production Planning and Control (PPC) tool to streamline production, Sales Force Automation (SFA) for deeper marketing insights, a low-code platform to accelerate digitisation, Social Intranet to increase employee engagement, streamlined New Product Development in PLM for customer alignment and satisfaction through feedback integration and implemented AI-based computer vision technologies to identify and rectify defects. By harnessing technology, we will continue to elevate customer experiences, expand our market reach, and solidify our position as an industry leader.

Giving Back to the Community

We are dedicated to creating a positive impact on the communities where we operate.

Our CSR initiatives extend beyond philanthropy, focusing on sustainable development through rural upliftment, healthcare, education, and environmental conservation.

By partnering with local stakeholders and NGOs, we empower individuals, from farmers to youth, through programmes like skill development, infrastructure support, and healthcare initiatives. The plantation project in Telangana is a prime example of how we create value by supporting local farmers.

People-centricity

Our success is built on the foundation of our dedicated workforce. We cultivate a culture of collaboration, innovation, and continuous improvement, where every individual is empowered to reach their full potential. By investing in comprehensive development programmes and leveraging technology, we create a dynamic and fulfilling work environment.

Way Forward

As a trusted partner of our customers, we consistently meet their evolving demands and are well-positioned for growth. We are strengthening our leadership position in the beverage sector, expanding our presence in the pharmaceutical and food segments, and diversifying our product range to include higher-margin offerings.

We are committed to optimising our operations through a focus on efficiency and cost reduction.

By identifying and eliminating bottlenecks within our plants, we are streamlining production processes. Additionally, we are leveraging Industry 4.0 technologies to enhance our lean manufacturing principles, further improving productivity and reducing lead times.

The state-of-the-art specialty glass plant, which commenced commercial production in 2023, is a cornerstone of our growth strategy. We are expanding our product portfolio to include higher value-added offerings for cosmetics, perfumery and premium alco-bev segments. We are also actively exploring export opportunities and targeting new market segments to leverage the full potential of this strategic investment. I thank our dedicated team members for their hard work and our valued partners for their continued support.

I am also grateful to the shareholders and Board of Directors for their ongoing trust and guidance. With a strong foundation and a clear strategic direction, I am confident in our Company's ability to thrive in the coming years.

Regards,

Chairman and Managing Director.