Dear Shareholders,

With immense pleasure, I present to you this year's Annual Report of your esteemed Company. It brings me great joy to share our remarkable achievements and progress made during the year.

I am delighted to announce that we have successfully delivered on our promise to expand the capacity of our clinker plant, a significant milestone that aligns perfectly with our goal to achieve long-term growth of our Company. This accomplishment is a testament to the dedication and hard work of our entire team.

All this was achieved amidst the global volatile and challenging times of persistent inflation, supply chain disruptions and rise in construction costs due to increase in energy prices. India, as an exception, has demonstrated resilience and strengthening its position among the world's fastest-growing large economies. The promising opportunities abound in our nation, supported by progressive policy reforms, surging investments, and a burgeoning consumer base, pave the way for a future brimming with robust growth prospects.

Cement Industry

In the first half of the last year, the cement industry encountered growth challenges due to higher input costs. However, the industry's growth graph took an upward curve during the second half of FY23, driven by robust demand from urban housing, government-led infrastructure projects, and a renewed focus on rural development. The cement demand in India was around 380 million tonnes in FY23, indicating an impressive growth rate of more than 12% y-o-y.

The cement sector will only continue its upward growth trajectory with the constant support of favourable conditions. As initiatives like the ‘PM Gati Shakti-National Master Plan (NMP)' and ‘National Infrastructure Pipeline (NIP)' gather momentum, the industry is poised for sustained expansion. Moreover, with ongoing initiatives like ‘Housing for All' driving housing demand, the cement sector will play a vital role in the nation's development, solidifying its position as a key contributor to India's economic growth.

Our Performance

Over the past few years, our Company has focused on expansion project, reflecting our commitment to sustained growth. This year, we successfully completed trials of our main project, the 4000 TPD clinker plant.

This project has been designed and implemented keeping in mind our long-term sustainability goals. It is one of the unique clinker plants wherein a Waste Heat Recovery System (WHRS) has been installed along-with the main plant itself. A common control system for clinker line and WHRS, a robotic lab for online testing ensuring best quality product, energy optimiser and latest energy saving equipment and controls, make this plant highly energy efficient.

Our acquired limestone mines have been a valuable asset, allowing us to expand and diversify our product portfolio. From a strategic perspective, our plant in Odisha offers us a competitive advantage, as it provides access to limestone deposits in Eastern India, particularly in Odisha. This ideal positioning empowers us to consistently deliver high- quality clinker to JSW Cement grinding units at Jajpur and Salboni, further strongly holding our position in the market.

Embracing our Social Responsibility

At Shiva Cement, we are committed to making a positive impact on the communities and society we serve. This year, our CSR initiatives revolved around crucial areas such as education, healthcare, and livelihood promotion. The initiatives around livelihood, like organic farming, mushroom farming and fishing created an impact on local women, giving them access to sustained income and financial independence.

Our commitment to social upliftment is derived from our belief in creating a sustainable and inclusive future for all. We will continue to drive meaningful change, touching the lives of those we serve and leaving a lasting, positive impact on society.

Our Forward

Looking forward, we plan to stablize the operations of new clinker line and achieve rated production levels in FY24 and enhance the efficiency of our clinker plant and further undertake initiatives to enhance mechanisation of our supply chain and make it more responsive and cost efficient. Over the next two years, our direction is clear-to establish a cutting-edge, cost-efficient, energy-efficient, and environment friendly clinker plant that sets new industry standards.

I extend my sincere gratitude to our shareholders for their continuous support, our dedicated team for their relentless efforts, and our valued customers for their trust in our products and services.

Best,

Manoj Kumar Rustagi

Whole-Time Director