Sumitomo Chemical India Ltd

Dear Stakeholders

It gives me great pleasure to present to you the Annual Report of Sumitomo Chemical India Limited (SCIL) for the financial year 2024-25. Despite a backdrop of global uncertainty, evolving regulatory environments, and volatile macroeconomic conditions, SCIL has delivered a strong performance.

As part of the Sumitomo Chemical Company (SCC) group, SCIL continues to uphold a legacy of excellence, innovation, and integrity. FY25 was yet another testament to our ability to adapt and stay resilient in the face of challenges. Our strategic focus remained clear - protect margins, optimise pricing, and preserve profitability.

The recent announcement by the United States of varied reciprocal tariff on exports from various countries has added to the prevailing uncertainties in global markets. At this juncture, we do not anticipate any material impact on SCILs business. However, such developments could lead to volatility in raw material prices, and in the event that these tariffs are extended specifically to Indian exports of technical-grade pesticides, some degree of impact cannot be ruled out. It is worth noting, however, that the U.S. has levied significantly higher tariffs on exports from several other countries. This evolving global trade dynamic may, over time, bolster India's relative cost competitiveness in the international agrochemical industry.

The operating environment during FY25 tested the resilience of agrochemical companies, with persistent pricing pressures and a supply overhang impacting global market sentiment. Despite these headwinds, SCIL remained agile in its response realigning procurement strategies, refining channel inventory management, and adopting a more disciplined pricing approach.

Our diversified product portfolio, strong manufacturing backbone, and farmer-centric initiatives helped us maintain a steady performance. Rural demand, too, demonstrated resilience, supported by strong agricultural output and continued government support. Our sustained focus on product innovation, customer engagement, and on-ground farmer outreach has further strengthened SCILs positioning as a trusted and responsive partner to India's farming community. As global agrochemical demand gradually normalises and domestic field conditions improve, we believe SCIL is well-positioned to leverage emerging growth opportunities both in India and in the international markets.

Innovation remains central to our strategy. With a robust R&D pipeline and a balanced portfolio of proprietary and generic products, we continue to respond to evolving market dynamics. We are also investing in digital capabilities and rapidly evolving technologies such as artificial intelligence to pursue future-ready, technology-enabled growth.

At SCIL, we are deeply committed to responsible growth that creates lasting value not only for our stakeholders but also for society at large. By creatively combining environmental, social, and good governance (ESG) principles in our strategic thinking and operations, we ensure that we contribute meaningfully to a more sustainable future for our nation.

On behalf of the Board, I thank all our staff, customers, business partners, shareholders, and other stakeholders for their continuing trust and support. Together, we look forward to pursuing the next phase of growth for SCIL which will be resilient, responsible, and future-focused.

FROM THE MANAGING DIRECTOR'S DESK

It gives me great pleasure to present to you the Annual Report for FY 2024-25 of Sumitomo Chemical India Ltd (SCIL), a company that continues to be at the forefront of transforming Indian agriculture with sustainable, innovative, and inclusive solutions.

This year marks a significant milestone for SCIL as we celebrate 25 years of incorporation—a journey of growth, resilience, and purpose. While the silver jubilee brings much to be proud of, FY25 was also a year that tested the mettle of the agrochemical industry. From delayed monsoon withdrawals impacting key Kharif crops like cotton, soybean, and chillies in certain regions, to persistent global headwinds, the operating environment remained challenging.

Yet, adversity often reveals strength. Recognizing the dynamic and volatile market conditions, we realigned our strategies and focused on what mattered most - volume growth and customer engagement. Through agile decision-making, close monitoring, and suitable corrections in both purchase and sales pricing, we successfully preserved stable profitability across the year.

The forecast of a normal monsoon in 2025 brings renewed optimism to the agriculture input sector. Timely and well-distributed rains are expected to drive healthy sowing and improved application of crop nutrients and crop protection products. While domestic farm activity remains largely insulated from global trade tensions such as the ongoing US-led tariff war, industry players continue to face pricing pressures due to high global inventories and excess supplies, particularly from China, where export prices have dropped to decade-lows. These conditions have created short-term headwinds for our sector. However, early indications suggest a moderate recovery in volumes in the upcoming Kharif season, which we expect will support liquidation of inventories.

The global crop protection industry is expected to have grown by 2.2% in 2024, offering positive tailwinds for sector players. On the domestic front, the sectoral outlook remains encouraging. The domestic crop- protection chemicals market is projected to rise from 61,097 tonnes in FY20 to 89,170 tonnes by FY36, underscoring the sector's long-term structural potential. With our robust product pipeline, farmer engagement, and innovation-driven strategy, SCIL is well-positioned to benefit from these trends.

At SCIL, we take pride in our deep-rooted farmer connect. Our signature initiative ‘Every Day Farmer's Day' (EDFD), initially planned as 100-day long campaign but now further extended, once again stands testament to our unwavering commitment to the farming community. This initiative not only fostered deeper engagement but also significantly enhanced product awareness and on-ground adoption.

We remain deeply committed to both Green Transformation (GX) and Digital Transformation (DX). Our investments in solar and wind energy are already paving the way for cleaner, greener operations. We aim for a future where a majority of our energy needs are met through renewable sources—minimizing our environmental footprint while enhancing operational efficiency. Our DX journey is also progressing at pace—through advanced analytics, phygital engagement formats, and integrated ERP and CRM platforms, we are building a future-ready SCIL.

Our manufacturing infrastructure has also seen substantial strengthening. With two new plants operational and commercial sales already initiated, our near-term focus remains on ramping up volumes from these facilities. Meanwhile, our strategic land

acquisition at Dahej and receipt of environmental clearances reflect our medium-to-long-term commitment to capacity expansion.

As always, we remain firmly rooted in our core values— trust, integrity, and long-term sustainable growth. Our guiding belief remains: business must benefit not just the Company but also society at large. Every decision we make is evaluated with that lens.

I extend my deepest gratitude to every member of the SCIL family—our employees, partners, distributors, customers, investors, and communities. Your trust and support continue to inspire us. As we look ahead, our vision is unchanged to emerge as the market leader in the Indian agro-solution sector and we are more determined than ever to achieve it with responsibility, agility, and purpose.