Oriental Aromatics Ltd

Dear Stakeholders,

It is with great pleasure and pride that I present to you our Annual Report growth, with sales increasing by 15%for FY 2023-24. This year at Oriental

Aromatics has been another significant year of resilience and optimism, made possible by the coherence of challenges, our team and the support of our stakeholders. We continue our journey of innovative and sustainable creation, excelling in fostering generational relationships with our customers worldwide.

Today, Oriental Aromatics proudly stands as a leading fully integrated global enterprise, excelling in the manufacturing of fragrances, flavours, specialty aroma ingredients, and camphor. Continuous capacity expansion, process re-engineering, and creativity in fragrance creation are at the core of our strategy. Sustaining and enriching our generational relationships with both long-standing and new customers empowers us to elevate our Company to new heights, despite the challenges we face in the market. Through expanding our capabilities, diversifying our product portfolio, and entering new markets, we have solidified our position and are poised to elevate our achievement Company to during this yeareven greater heights.

The tireless dedication and exceptional performance of our passionate team have been crucial in understanding client needs, exploring innovative solutions, and delivering performing formulations. We extend our heartfelt appreciation to all the stakeholders for their steadfast commitment and outstanding contributions towards achieving the goal of sustainable growth across all our divisions. We also express our gratitude to our stakeholders for their ongoing support.

Here, we come together to acknowledge the challenges we have faced and the measures we have taken to overcome them. It is a time to celebrate our achievements, share insights, and embrace the opportunities that lie ahead.

Over the past year, we have observed a global scenario marked by overstocking and reduced demand. However, there are positive signs of recovery in our specialty aroma ingredients segment. Our specialty chemicals vertical faced challenges of price erosion and demand fluctuations early in the year but made a notable comeback in the latter half, achieving a remarkable 12% sequential improvement in EBITDA over the last two quarters. Demand remains robust in our Fragrance & Flavour division, driven by the strong consumption trends in India.

In FY 2023-24, our Fragrance & Flavour segment recorded

-significant on-year. Meanwhile, the camphor and turpene chemical markets continue to pose significant especially in the camphor powder sector. Despite competitive pressures, particularly in India, strategic adjustments in our portfolio management helped us optimise profitability. Although the first half of the year was challenging due to global price declines, our focus on operational efficiencies and portfolio enhancements positions us well for positive outcomes in the coming quarters.

In FY 2023-24, despite economic challenges, we maintained a resilient operational stance. Our consolidated operating revenue was C 836 crore, with a decline of 1.5% year-on-year. EBITDA stood at C 47 crore, reflecting proactive efficiency measures, albeit a 13% decrease. hasThe most significant been the generation of operating cash flow to the tune of

C 142 crore, resulting in improvement of our net debt-to-equity ratio, which stood at 0.30x as of 31^st March 2024, compared to 0.34x in the previous year. This improvement is particularly noteworthy as it was achieved despite our ongoing investments in capital expenditures (CAPEX). It reflects our disciplined approach to financial management and underscores our commitment to maintaining a strong balance sheet amid evolving market conditions.

The Company has successfully completed its ambitious five-year programme, investingapproximately C 250 crore in expanding new plant capacities, which began in 2020. Our products launched in the specialty space over the past five years have been well-received by customers, with a continuous growth in demand for these products. To support our growth ambitions, we?ve made substantial investments in expanding our manufacturing capabilities.

Moreover, our Brownfield project for hydrogenation in Baroda is set to commence commercial production from H1-FY 2024- 25, aimed at enhancing our capacity in specialty aroma chemicals. The Greenfield project in

Mahad is progressing well, with trial runs of commercial lots underway for full-scale production, reinforcing our commitment to meeting growing global demand.

As we continue our journey, our Company remains committed to achieving success through innovation, efficient customer base. By embracing innovation and enhancing operational efficiency, we strive to create enduring partnerships. To mitigate risks and enhance the raw material strategy by diversifying our raw material sources and exploring alternative technologies, we aim to reduce dependence on specific inputs and build a resilient supply chain for seamless operations.

Sustainability is at the heart of everything we do.

We?re committed to reducing pollutants in our effluent discharge, safeguarding local ecosystems, and achieving Zero Liquid Discharge (ZLD) within coming years at our Bareilly & Vadodara facility. Our facilities in Ambernath market and Mahad are in full compliance with ZLD standards. In Ambernath, we are currently implementing a Sewage Treatment Plant (STP) as part of this initiative, which not only reduces our environmental impact but also enhances our operational

We?re proud of our progress in cutting greenhouse gas emissions, recognised with the EcoVadis Gold Medal for our dedication to sustainability. Our investments in green chemistry and effluent our commitment to a sustainable future. Environmental and social sustainability are key components of our development strategy, and we have implemented various internal programs to meet these objectives consistently. To address environmental challenges, we have set ambitious targets to reduce carbon emissions, minimise waste, and conserve natural resources. Through energy-efficient practices such as Continuous Process Re-engineering (CPR) and the adoption of renewable energy sources, we have made substantial progress in reducing our environmental footprint.

On the social front, we prioritise the well-being and development of our employees, ensuring a safe and inclusive work environment. In governance, we have strengthened our corporate governance practices to ensure transparency, accountability, and ethical behaviour. Our board of directors and management team uphold the highest standards of integrity, ensuring fair and responsible decision-making. By addressing ESG challenges, setting ambitious targets, and achieving tangible results, we are committed to building a sustainable future for our Company, stakeholders, and the communities we serve. supply chain management, and expanding its

value and foster

Looking ahead, we are cautiously optimistic about the steady revival of demand, supported by reduced input raw material prices. We anticipate maintaining steady production across our existing product lines, leveraging our plant capacities efficiently. Additionally, with the upcoming hydrogenation products and Mahad project expansions, we are actively engaging with customers.

We are confident and new products assuming a stable demand-supply scenario in the aroma chemicals sector.

Oriental Aromatics is delighted to share that we are on course to establish ourselves as a global supplier in all our operational areas, holding a significant across our product offerings. This strategic initiative aligns with our growth vision and enables us to fortify our global network, thereby enhancing our ability to serve our customers more effectively. We highly value the strong relationships we have cultivated and actively engage with. our customers to understand their needs and provide bespoke solutions.

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We extend our heartfelt gratitude to all our stakeholders for accompanying us on this journey of value creation and express our sincere appreciation to the Board of Directors for their invaluable guidance and direction. I sincerely thank each of you for your continuous support and trust.

Your confidence has been crucial in driving our efforts towards sustained growth and success. We deeply value your partnership and collaboration, pivotal in navigating challenges and seizing opportunities. Your insights have guided our decisions, contributing significantly to our achievements. Looking ahead with optimism, we are committed to upholding excellence, innovation, and sustainability. Together, let?s forge ahead, achieving new milestones and creating shared value.

Warm regards,

Chairman & Managing Director