Surya Roshni Ltd Management Discussions

Management Discussion and Analysis report

Company Review

Surya Roshni (referred to as Surya Roshni or the Company), was founded in 1973 as Prakash Tubes Private Limited. Under the exemplary leadership of Mr. J. P. Agarwal it has evolved around a turnover of Rs.7,800 crore presently. For fifty years, Surya has stood as a beacon of innovation, illuminating the path with pioneering advancements in lighting and steel.

Starting as a steel pipe manufacturing unit in Bahadurgarh (Haryana), Surya Roshni expanded its portfolio by venturing into lighting product manufacturing in 1984. Later, in 2010, it further diversified into PVC pipes and expanded into consumer durables, such as fans and home appliances in 2014-15. The Companys brands, Surya and Prakash Surya, are recognised for their exceptional quality and reliability and trusted not only across India but also in over 50 countries worldwide.

In the steel pipes and strips segment, Surya Roshni manufactures a diverse range of products used across agriculture, infrastructure, oil & gas, water and construction sectors. The Companys facilities are strategically located in Bahadurgarh (Haryana), Malanpur near Gwalior (Madhya Pradesh), Hindupur (Andhra Pradesh) and Anjar (Gujarat). A state-of-the-art 3LPE coating line was established at Anjar.

The Company holds the distinction of being Indias largest manufacturer of GI pipes and the largest exporter of ERW pipes. The Companys oil & gas sector offerings have earned approval from the American Petroleum Institute (API).

In the lighting and consumer durables segment, Surya Roshni offers a wide range of products, including LED lamps, LED streetlights, LED battens, general lighting service (GLS) lamps and high-intensity discharge (HID) lamps. Guided by its vision of Lighting Every City Every Home, the Company has experienced remarkable growth, now ranking as the second-largest lighting manufacturing company in India. Surya Roshnis R&D facility in Noida is committed to driving innovation in the LED segment.

The Companys consumer durable business encompasses a variety of fans and home appliances, steadily broadening its footprint in the Fast-Moving Electrical Goods (FMEG) space. Surya Roshnis strong dealer and distribution network extends its reach to customers nationwide, especially in Tier- II, Tier-III cities and rural areas. Furthermore, this network creates value for stakeholders by leveraging strong brand equity, delivering quality products, fostering innovation, maintaining sound financials, ensuring operational efficiency and exercising prudent management practices.

Industry Structure and Developments

The Indian economy is currently experiencing robust growth, showcasing resilience amid global economic uncertainties. Projected to grow at 7.6% in 202324, this marks the third consecutive year of over 7% growth, highlighting the economys strong performance. Additionally, this growth is underpinned by increased public sector investment, a resilient financial sector and substantial expansion in non-food credit.

India has solidified its position as the worlds third-largest fintech economy, following closely behind USA and UK. This achievement, surpassing Hong Kongs claim to the fourth spot in global stock markets, signifies the confidence of both domestic and international investors, supported by sustained IPO activity. Initiatives like the Skill India Mission, Start-Up India and Stand-Up India have been instrumental in catalysing greater womens participation in human capital development, further bolstering the economys growth trajectory.

With its well-established brand and diverse product range, Surya Roshni is strategically positioned to penetrate multiple sectors and markets. This allows the Company to enjoy a significant advantage in terms of its growth potential. Its extensive presence in rural and semi-urban areas enables the Company to reach a wider customer base and expand its market share. Furthermore, with the growing emphasis on infrastructure development, particularly in agriculture, construction and water sectors, Surya Roshni is well-positioned to leverage these growth opportunities through its steel pipes and strips segment. Additionally, with the rising demand for energy efficient lighting solutions, the lighting and consumer durables segment holds significant growth potential. This is further aided by Surya Roshnis strong focus on research & development in the LED segment.

With Surya Roshnis strategic positioning across various sectors, markets and regions, the Company is poised to scale greater heights with strong growth in the future.

As India progresses towards becoming a USD 5 trillion economy and beyond, Surya Roshni has the opportunity to align its growth strategies with the countrys economic trajectory. This alignment can further enhance the Companys market position and drive sustainable growth.

A) Steel Tubes and Pipes

Global Overview

Steel pipes are primarily used for transporting fluids, such as water, oil & gas and are manufactured using low-carbon and alloy steel. They play a crucial role in the downstream, upstream and midstream processing of petroleum and crude oil. Factors such as yield strength, ductility, pressure rating and inside diameter are pivotal in their selection.

Global steel pipes and tubes market was valued at USD 160.6 billion in 2021 and at USD 170.72 billion in 2022. It is projected to reach USD 278.32 billion by 2030, registering a CAGR of 6.3% during the forecast period (2023-30). The market is experiencing steady growth driven by rapid urbanisation and infrastructural development, particularly in emerging economies. Additionally, there is a rising focus on sustainable practices and the use of recycled materials across the globe, along with continuous technological advancements in manufacturing processes.

The global steel pipe and tube market is experiencing significant growth due to various factors. Structural steel, considered a premier green construction material, is witnessing increased use and application, particularly in India, driven by sectors, such as oil & gas, water transportation, firefighting, construction, infrastructure and furniture. Despite challenges like fluctuating raw material prices, the ongoing crisis in Red Sea and Middle east, the steel pipe and tube market is expected to witness steady growth in the coming years. Furthermore, this growth will be driven by increasing demand and ongoing technological advancements.

Indian Overview

The Indian steel pipes and steel tubes market has exhibited robust growth, with its size estimated at USD 32.88 billion in 2023 and projected to reach USD 37.69 billion by 2030, registering a CAGR of 6.43% during the forecast period. This growth is primarily propelled by the increasing demand for oil & gas, a thriving transportation sector and a resurgence in construction activities following the COVID-19 pandemic. Additionally, investments in research & development programmes aimed at fortifying production facilities are contributing to market expansion.

By volume, the market size was estimated at 6.98 million tonnes in 2023 and is expected to reach 7.66 million tons by 2030. The steel pipes and tubes industry contribute approximately 8% to the countrys overall steel consumption. Stringent environmental regulations serve as a significant drivers of the market, prompting manufacturers to embrace eco-friendly measures and incorporate recycled materials to reduce their carbon footprint.

Moreover, the current Governments manifesto for the next term indicates a continued focus on various ongoing schemes and projects, which will continue to significantly contribute to the resurgence and growth of demand for steel pipes and related products. These include initiatives such as Housing for All, Jal Shakti Abhiyaan, Har Ghar Nal Se Jal, AMRUT, Namami Gange programmes, Jal Jeevan Mission and Swachh Bharat Mission, among others. The structural tubes sector is set to benefit significantly from Indias infrastructure modernisation drive, particularly with the transition from Reinforced Cement Concrete (RCC) to structural tubes. Additionally, there will be a positive impact on the demand for API-grade metal, including SAW, ERW and DI Pipes, along with plastic pipes and tubes used in water and oil & gas transportation. These initiatives not only enhance the efficiency and sustainability of infrastructure projects but also present significant growth opportunities for the structural tube industry. However, the impact of geopolitical tensions on the industry can lead to supply chain disruptions and fluctuating steel prices. Therefore, businesses in the Indian steel industry need to adopt agile strategies to navigate these challenges effectively.

Opportunities and Growth Drivers

Water

India is experiencing an alarming water crisis. The country, despite its scarce water resources, is the worlds largest user of groundwater, using more than both USA and China combined. The depletion of groundwater is a critical issue both within India and worldwide, with escalating warnings about its urgency. A United Nations report highlights that regions in the Indo-Gangetic basin have already exceeded critical levels of groundwater depletion. By 2025, the entire north-western region of India is expected to encounter critically low levels of groundwater availability.

Inefficient water management practices, such as wastage in irrigation systems and inadequate maintenance of water sources, significantly contribute to water scarcity. This could lead to a 6% loss in GDP by 2050. The current Government has initiated various sustainable water management initiatives to address these challenges. These include AMRUT, PMKSY, the Namami Gange Programme, Jal Shakti Abhiyan, the National Groundwater Management Improvement Scheme and the Atal Bhujal Yojana. Additionally, the Jal Jeevan Mission has successfully provided Functional Household Tap Connection (FHTC) to 14+ crore families, ensuring rural India has access to a safe and sufficient drinking water supply.

Leveraging opportunities within the water segment could prove highly beneficial for Surya Roshni. With the Companys existing capacities for GI pipes and robust presence in rural regions of India, it is well-positioned to capitalise on this growth potential.

Infrastructure

Infrastructure plays a crucial role in Indias economic development and the country has made it a top priority through several initiatives and projects. Government initiatives like Gati Shakti, the National Infrastructure Pipeline (NIP) and the National Investment and Infrastructure Fund (NIIF) aim to streamline infrastructure planning and funding. These initiatives not only intend to enhance roads, railways, airports, ports, mass transport and waterways but also facilitate their development.

As per the current Governments manifesto for the next term, the railways aim to enhance their infrastructure by adding over 5,000 kilometres of new track each year, alongside expanding the metro network. In the road sector, significant efforts are underway to strengthen the modern road connectivity ecosystem, focusing on enhancing 15,000 kilometres of access-controlled highways. Furthermore, these initiatives are anticipated to stimulate industry growth by attracting private investments and promoting the adoption of sustainable development practices.

Similarly, the Pradhan Mantri Awas Yojana has significantly improved the living conditions of over 4 crore economically weak families (garib parivar). This momentum is expected to persist, with a concerted effort to ensure that every economically disadvantaged family gains access to quality housing, aligning with inclusive development and poverty alleviation goals.

India has made remarkable strides in infrastructure development through partnerships with countries like Japan, facilitated by the Japan International Cooperation Agency (JICA). Projects like the Delhi-Mumbai highway, the worlds highest railway bridge and the UDAN scheme for aviation are anticipated to improve connectivity, reduce travel time and strengthen the supply chain sector. The interim budget allocation for 2024-25 reaffirms Indias commitment to infrastructure development, with about USD 134 billion allocated to the sector. Surya Roshni is poised to meet the growing demand for steel pipes in infrastructure projects. The Companys high-quality steel tubes and pipes position it as a key player in Indias infrastructure growth, thereby significantly contributing to the nations development.

Oil & Gas

The oil & gas sector is a key player in Indias economy, influencing decisions across various sectors. By 2024, the countrys oil demand is projected to grow by 220,000 barrels daily, reaching 5.57 million barrels daily. Diesel is anticipated to drive this growth, fuelled by agriculture, construction and manufacturing activities. Moreover, there has been a rise in Indias gasoline demand due to increased mobility levels. Looking ahead, OPEC projects that Indias oil demand will rise by an average of 228,000 barrels per day in 2025, supported by healthy economic growth and steady manufacturing and business activities. The nations economic trajectory is closely linked to its energy requirements, with forecasts suggesting a doubling of oil demand to 11 million barrels per day by 2045. Overall, the oil & gas sectors role in Indias economy remains crucial, with strong growth expected in the coming years. To address energy security and achieve net-zero emissions by 2070, the Indian Government has proposed several measures. These include establishing coal gasification and liquefaction capacities, mandating the blending of compressed biogas

and providing financial assistance for biomass aggregation machinery. The consumption of LPG has increased, indicating a positive trend in economic activities. The current Governments ongoing initiative to provide piped natural gas connections has already reached over 1.1 crore households and will continue to expand across major cities and towns. This expansion will further drive capex across CGDs (City Gas Distribution) networks and utilities in alignment with the nations regulatory objectives, thereby driving volume growth.

Surya Roshni, a leading player in the steel pipes market, is well-positioned to benefit from the growing demand for steel pipes in the oil & gas segment. The Company offers a range of products to meet this demand, including API, 3LPE coated and spiral pipes. Additionally, the Company has established itself as a premium provider of high-quality products to the City Gas Distribution (CGD) sector. Surya Roshni is experiencing consistent order flow in API pipes and other value-added products, particularly from the oil & gas, CGD and water transportation sectors.

Automobile

In 2023, the Indian automobile industry continued its trend towards premiumisation in personal vehicles, despite facing supply chain shortages, especially in semiconductor chips. The industry posted impressive sales numbers, particularly during the festive season. At the COP27 launch event, the President highlighted Indias potential as the worlds fifth-largest and fastest-growing vehicle market, driven by emerging trends in electric vehicles (EVs) and zero-emission vehicles (ZEVs), which are attracting increased investment in the automotive industry. India has set a target to make zero- emission vehicles, including two-wheelers, three-wheelers, cars, vans and heavy-duty vehicles, the norm by 2030.

The Governments focus on sustainability is evident through initiatives like the PM-eBus Sewa Scheme, viability gap funding for offshore wind power projects and the rooftop solar programme (PMSY Scheme). These efforts reflect its commitment to sustainable development and reducing greenhouse gas emissions.

As per the current Governments manifesto for the next term, there is a push to position India as a global leader in the production and commercialisation of automobile and electric vehicle manufacturing. This goal will be pursued through various initiatives aimed at enhancing production and commercialisation.

Additionally, the Government has increased the budget allocation for the Production Linked Incentive (PLI) scheme to support the domestic production of futuristic vehicle technologies. India is also actively developing a comprehensive national infrastructure for EV charging to encourage the adoption of electric vehicles. Furthermore, there are positive indicators signaling growth in the automotive industry, emphasising the importance of boosting manufacturing and exports. Surya Roshni is well- positioned to serve the sectors specific requirements. The Company provides a narrow range of CR sheet offerings, tailored to suit the industrys unique needs. With the popularity of electric vehicles on the rise, Surya Roshni may consider exploring potential avenues for expanding its offerings within this segment.

Renewable Energy

The renewable energy industry in India is poised for substantial growth and transformation in the coming years. To reinforce its commitment to sustainable energy practices, the Government has introduced initiatives like the Green Hydrogen Mission and the International Solar Alliance. The upcoming budget holds significant importance for meeting these ambitious targets and positioning India as a key player in the global clean energy space. Industry expectations include concrete steps to boost the renewable energy sector, such as extending schemes like Production Linked Incentives (PLI) for renewable manufacturing and funding for battery-based storage systems. There is also anticipation for increased R&D funding for sustainable technology to unlock the potential of biofuels. Additionally, specific policy implementations are expected to accelerate Indias transition to a gas-based economy, aiming for increased capital expenditure and production linked incentives for green initiatives. There is an expectation for measures to boost private sector investment in clean energy as part of efforts to enhance Indias transition to a gas-based economy. Moreover, India is projected to witness a significant increase in investments in renewable energy projects, amounting to around USD 16.5 billion in 2024. Furthermore, this surge in investments is in line with Indias goal of achieving 500 GW of renewable energy capacity by 2030 and its commitment to reduce overall power generation capacity from fossil fuels.

With the growing trend of businesses and homeowners transitioning to renewable energy sources, the solar power industry is experiencing a significant boom. In this landscape, steel piping is poised to assume a pivotal role, presenting abundant business opportunities for the steel tube and pipe industry worldwide. The escalating demand for renewable energy fuels the need for steel pipes within the solar power sector.

Surya Roshni is at the forefront of meeting the requirements of the solar panel industry by offering GI pipes. These pipes not only provide essential structural support but also fulfil transportation needs, catering effectively to the evolving demands of the renewable energy market.

Growing Organised Players

Customers are increasingly preferring organised players in the market due to their larger production capacities and stringent quality control measures. These companies have demonstrated their ability to adjust production volumes according to changing market demands, as seen during the COVID-19 pandemic. The growing dominance of the organised sector is expected to benefit companies like Surya Roshni as the share of unorganised and smaller players decreases. This shift is likely to enhance pricing power and margins, particularly in the ERW segment, which has historically been highly fragmented.

Exports

The export industry for steel tubes and pipes in India is witnessing significant growth, driven by high demand across various sectors and promising growth prospects in key markets like the Gulf region, Europe and USA. Projections suggest that the global steel pipe market will maintain steady growth, with values anticipated to reach USD 278.32 billion by 2030. This growth will be primarily fuelled by the increasing demand for oil & gas production to meet transportation requirements.

To capitalise on these opportunities, Surya Roshni has strategically expanded its presence in international markets. This includes the Middle East, Europe and the UK for infrastructure projects, as well as Australia and New Zealand for its fire-fighting construction and fencing segments. Additionally, the Company has secured approval to supply pipes in Canada.

Indias emphasis on promoting domestic manufacturing through initiatives like Make in India and Atmanirbhar Bharat has positioned Surya Roshni favourably to capitalise on these trends.

B) Lighting and Consumer Durables

Lighting

Global Overview

The global lighting market has been growing, with a value of USD 122.03 billion in 2022. It is further projected to reach USD 169.44 billion by 2030, with a CAGR of 4.4%.

This growth is fuelled by various factors, including the widespread adoption of LED lights. Valued for their energy efficiency and durability, LED lights have become a preferred choice for both residential and commercial applications. They offer a plethora of options in terms of wattages, colours and designs, catering to diverse illumination needs. Moreover, the off-grid solar sector is witnessing significant growth, with LEDs playing a crucial role in solar systems, serving millions of users worldwide.

In the construction industry, the demand for artificial lighting is driving market growth, particularly in developing regions like Asia-Pacific, Latin America, the Middle East and Africa. Increased construction activities, supported by Government initiatives to provide accommodation and ensure safety at construction sites, are boosting the demand for lighting equipment. Additionally, in the industrial sector, decorative lighting elevates the overall ambience and boosts employee satisfaction.

Furthermore, a noticeable trend towards intelligent lighting systems is driven by the necessity for energy efficient and cost-effective lighting solutions. These systems incorporate smart LED fixtures with built-in sensors that automatically adjust lighting levels according to natural daylight and occupancy.

Indian Overview

The Indian lighting market is experiencing rapid growth, propelled by technological advancements and the increasing adoption of LED lighting. The market was valued at USD 3.4 billion in 2023 and is projected to reach USD 8.15 billion by 2029, clocking in a CAGR of 15.7%.

LED lights are gaining prominence over traditional lighting solutions due to their energy efficiency and durability, making them increasingly popular for residential, commercial and outdoor lighting applications.

The shift towards LED lighting is further propelled by Government initiatives, such as the Street Lighting National Programme (SLNP) and the Unnat Jyoti by Affordable LEDs for All (UJALA) scheme. These initiatives aim to promote energy efficient lighting solutions and result in significant energy and cost savings for consumers.

Additionally, the commercial sector is witnessing a surge in demand for smart lighting solutions as businesses seek to minimise electricity expenses. Smart lighting systems, including smart LED bulbs, offer features like automated scheduling, customisable lighting options and energy efficient operation. These qualities make them an appealing choice for commercial buildings, airports and smart city projects focussed on reducing both carbon footprints and operational costs.

Consumer Durables

Fan

The fan industry in India is experiencing a resurgence in demand, fuelled by increased housing renovation activities in both urban and rural areas. As the festive season approaches, the industry anticipates even greater momentum. After witnessing nearly stagnant or slow growth in volumes over the past two fiscal years, the industry is now transitioning towards energy efficiency with star labelling.

The Indian fan market offers a wide array of choices, including ceiling fans, table fans, stand fans and wall fans. According to IMARC Group, in 2023, the ceiling fan market in India reached 42.2 million units, with expectations to grow to 50.9 million units by 2032, exhibiting a CAGR of 2.11% during 2024-32.

There is a growing demand for smart fans that offer additional features, such as lighting, decorative aesthetics, dust and noise control and antibacterial properties. This trend aims to appeal to both high-end and budget-conscious consumers. The market is primarily driven by rapid urbanisation, increasing the construction of new residential buildings. Government initiatives to expand housing projects and develop smart cities, improve electricity availability in rural areas and rising disposable incomes also contribute significantly. However, the growing inclination towards alternate products like air conditioning systems and the intricate installation procedures linked with ceiling fans posed significant restraints for the market.

Domestic Appliances

The domestic appliances market in India has witnessed substantial growth, reaching a value of approximately USD 77.74 billion in 2023. This growth is forecasted to persist, with the market anticipated to clock in a CAGR of 5.70% between 2024 and 2032, ultimately reaching a value of USD 127.07 billion by 2032.

The demand for home appliances is being driven by various factors, including improvements in the standard of living, rising disposable income and increasing urbanisation.

As consumers in India strive for convenience, they are increasingly seeking accessible home appliances to streamline everyday household chores, saving both effort and time. With growing purchasing power, consumers can now afford products that enhance their daily lives. Additionally, increasing urbanisation and improved rural connectivity are expected to further boost the demand for home appliances in both urban and rural areas.

This trend is supported by rising promotional activities and awareness campaigns highlighting the benefits of using home appliances, resulting in increased adoption across various segments. As a result, with a wide range of products available at varying price points, more consumers are investing in home appliances to elevate their overall quality of life.

PVC Pipes

The PVC pipe market in India has experienced remarkable growth, with a market value estimated at USD 177.71 million in 2022. It is expected to register a significant CAGR of over 7.21% between 2023 and 2029. Moreover, this growth is driven by several factors, including the booming housing sector, Government tax incentives and more accessible financing options for homeowners.

Government initiatives like Housing for All, AMRUT and the Prime Minister Agriculture Irrigation Scheme have significantly fuelled the demand for PVC pipes.

PVC pipes are highly favoured for their versatility, especially in plumbing and piping applications. This is due to their ease of transportation and ability to handle both hot and cold-water plumbing needs. The PVC pipe market in India reflects a trend towards innovation, sustainability and adaptability across diverse applications.

The demand for PVC pipes is expected to continue growing due to rapid urbanisation, infrastructure development and the adoption of advanced irrigation systems. This growth presents new opportunities for manufacturers and suppliers in the PVC pipe industry. It positions Indias housing, infrastructure and agricultural sectors for tremendous exponential growth in the foreseeable future.

Heater

The Indian water heaters market, valued at USD 285.85 million in 2023, is expected to experience strong growth in the forecast period, with a projected CAGR of 7.15% through 2029. This market represents a thriving sector within the countrys consumer electronics and appliances industry. Given Indias diverse climatic conditions, the demand for water heaters is substantial, driven by the necessity of hot water for various applications, including bathing, cleaning and kitchen use.

The Indian water heater market offers a wide range of options, including tankless (instantaneous), storage tank, solar-powered and heat pump water heaters. Over the years, the market has witnessed steady growth driven by factors like rising urbanisation, increasing disposable incomes and growing awareness of energy efficient appliances. With a population exceeding 1.3 billion people, the market holds immense potential and is expected to expand further as more households embrace water-heating solutions.

Opportunities and Growth Drivers

Rapid Urbanisation

Indias economic growth and development are driven by rapid urbanisation and the rise of the middle-income class. As more individuals migrate to urban areas and their purchasing power surges, the demand for consumer durables like electronics, appliances and household goods is on the rise. This trend presents a significant opportunity for companies in the consumer durables sector to offer innovative products and services tailored to the needs of urban consumers. However, it also brings forth challenges, including the imperative for infrastructure development to support the growing urban population.

Development of Rural Areas

The recent advancement in electrification coverage across rural India is set to positively impact the countrys economic growth and overall development. With household electrification levels improving significantly, rural households now have access to basic necessities like lights, fans and other consumer appliances through schemes like the Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya). This increased access to electricity is anticipated to drive demand for the consumer durables sector in rural India, presenting a significant opportunity for businesses. Additionally, the enhanced access to electricity is projected to boost economic activity and employment opportunities in rural areas.

Government Initiative

The Indian Governments proactive approach to using LEDs for street lighting and illuminating national monuments has positively impacted the lighting industry. These efforts aim to improve energy efficiency and enhance the visual appeal of historical sites and cities. As the Government continues its promotion of LED lighting technology, there is a growing demand for LED lighting solutions within the industry. This creates an opportunity for companies to offer innovative solutions for Government projects, subsequently boosting demand in both the commercial and residential sectors.

Surya Roshni, a leading player in the consumer lighting segment, has made significant progress in the professional lighting sector. This progress is attributed to the Companys customer-focussed approach and smart lighting solutions.

PLI Scheme

The Indian Governments Production-Linked Incentive (PLI) scheme for white goods marks a significant stride in bolstering the global competitiveness of Indian air conditioner and LED lighting manufacturers. Designed to foster a comprehensive component ecosystem for these industries and make India an integral part of the global supply chains, the scheme offers incentives to manufacturers meeting specified production targets. With a budgetary allocation of Rs.6,238 crore over seven years, it is poised to boost local manufacturing, generate employment and attract targeted global investments.

Operational Review

Steel Pipes and Strips

The steel pipes and strips division of Surya Roshni has established itself as amongst one of the top leader in the industry. The Company manufactures a diverse range of steel pipe products for various rapidly growing sectors, such as construction, infrastructure, oil & gas, water and agriculture. The divisions state-of-the-art manufacturing facilities, located in Haryana, Gujarat, Madhya Pradesh and Andhra Pradesh, enable it to meet the increased demand and explore new opportunities. Marketed under the Prakash Surya brand, these products are exported to more than 50 countries, with a significant share going to the Gulf Cooperation Council (GCC) nations. With a strong B2C presence, the division focusses on value-added products and has a well-established dealer and distributor network, particularly strong in Tier II and rural India. Additionally, participation in industry events like the Tube and Pipe Fair 2023 demonstrates Surya Roshnis commitment to technology and value enhancement, further strengthening its brand presence.

Particulars	2023-24	2022-23
Revenue (Rs. crore)	6,241.78	6,451.89
EBITDA (Rs. crore)	435.89	497.17
EBITDA per Ton	5,401	6,496
Cash Profit (Rs. crore)	4,14.02	457.41
PBT (Rs. crore)	325.42	368.86

Comprehensive Products Range

Government Initiatives Driving Demand

• Har Ghar Nal se Jal

• Smart Cities and Pradhan Mantri Sahaj Bijli Har Ghar Yojna

• Housing for All

• Aatma Nirbhar Bharat Abhiyaan

• Pradhan Mantri Krishi Sinchai Yojana (PMKSY)

• Pradhan Mantri Jal Marg Yojana (PMJMY)

• Ude Desh Ka Aam Naagrik Regional Connectivity Scheme (UDAN-RCS)

• Atal Mission for Rejuvenation and Urban Transformation (AMRUT)

Product Offerings

Electric Resistance Welding (ERW Steel Pipes)

Surya Roshni ERW pipes find extensive use in various construction projects, including scaffolding, casing, bore well tubing and in industries, such as agriculture, water transportation, firefighting, irrigation and greenhouses. They are also utilised for long-distance transportation of liquids like water, gas, oil and chemicals, meeting all national and international quality standards.

Key Strengths

• Leads production of ERW GI pipes in India

• Exports ERW pipes extensively, holding a 60% market share

• Maintains a nationwide presence for GI Pipes, leading in South India and ranking in the top-three in North India

• Ensures a strong presence in the organised segment, demonstrating resilience in challenging industry conditions

• Possesses the ability to serve hilly regions, providing pipes for housing in Jammu & Kashmir, Uttarakhand and Himachal Pradesh, among others

• Manufactures value-added products, such as coated pipes, alkyd pipes, grooved pipes, red oxide primer pipes and heat-treated pipes

• Maintains a track record of delivering high-quality durable pipes to renowned industry players like IOCL, BPCL, BGRL, Gujarat Gas, MNGL and MGL

• Holds accreditation by major PMC committees like EIL and Mecon

• Exports to over 50 countries worldwide, including USA, Australia, Canada, Mexico, the Middle East, Europe and Africa

Key Strategies

• Commissioning a large-diameter section pipe facility (up to 300*300 mm) with Direct Forming Technology in Gwalior to enhance exports of hollow section pipes globally

• Increasing market share in Egypt for small gas paint pipes

• Emphasising export of value-added products like grooved pipes, 30*30 section pipes and blue painted hollow coated pipes

• Pursuing geographic expansion

API Pipes

Surya Roshni manufactures high-quality API pipes, including 3LPE, 3LPP and FBE (single and dual layer), with epoxy coatings for rust resistance and durability. Selmers in the Netherlands provided world-class 3LPE coating plant machinery. These pipes are used in the transportation of petroleum, natural gas, city gas distribution and water pipe. Additionally, the Governments focus on these high-growth areas will benefit the Company in the long run.

Key Strengths

• Produces a diverse range of pipes, including EN, BS, AUSTRALIA and ASTRA GRADE

• Utilises existing offline capacities post-expansion efficiently to achieve cost efficiencies and improved margins

• Boasts accreditations from major PMC, such as EIL and Mecon

• Holds certifications of ISO 9001, 14001 and 18001

• Possesses approximately 10% market share in oil & gas transmission pipes, including Cross Country Land Pipes and City Gas Distribution (CGD)

• Offers higher growth opportunities through water transmission.

• Equipped with world-class 3LPE Coating plant machinery from Selmers, Netherlands

• Installed 3LPE coating facilities covering 27,50,000 sq. mt (external coating)

• Maintains a strong order book for API Pipes

• One of the fastest-growing products of Surya Roshni

• Enjoys higher EBITDA/ton compared to other products

• Value accretive and contributes significantly to the profitability

Spiral Pipes

Surya Roshni manufactures spiral pipes ranging from 18 to 104 with a maximum thickness of 1 (25.4 mm). Internal and external pipe coatings are applied to pipes ranging from 4 to 64 in diameter. These pipes are used in water, infrastructure and oil & gas transportation. The 3LPE coating facility has increased utilisation levels of spiral pipes, particularly for the oil & gas segment, which requires the coating. Surya Roshni actively explores opportunities in the Middle East for larger-diameter API pipes.

Key Strengths

• Diverse product range

• Efficient utilisation

• Export readiness

Cold Rolled Steel Strips

Surya Roshni processes cold rolled steel strips (CR sheets), with a width of up to 720 mm and thickness of 0.3 to 0.6 mm, offering easy formability and a smooth, clean surface. The CR sheets are available in wide and narrow ranges, with the wide range used in downstream operations by large players and the narrow range catering to niche and customised requirements. The Companys narrow range CR sheets are utilised in the production of electrical stamping, which finds applications in motors, cycle and two-wheeler rims, automobile components, furniture, drums and barrels, umbrella ribs and tubes and various engineering applications.

Key Strategies

• Ensures consistent quality for the end-user segment

• Sales across Delhi-NCR and different markets of North India

• Leverages small order sizes for good returns, keeping the unit fully engaged throughout the year

Transition towards Higher Margin

Volume Share

Product	2019-20	2020-21	2021-22	2022-23	2023-24
API and Spiral	11%	12%	18%	17%	17%
GI Pipes	35%	35%	33%	26%	28%
Black Pipes	24%	23%	24%	33%	32%
Section Pipes	19%	19%	13%	13%	12%
CR Strips	11%	11%	12%	11%	11%

EBITDA/MT (?)

Product	2019-20	2020-21	2021-22	2022-23	2023-24
API and Spiral	7,143	7,630	9,136	12,134	10,495
GI Pipes	4,534	4,602	5,456	7,737	6,467
Black Pipes	2,023	2,216	2,884	5,021	4,488
Section Pipes	1,670	1,843	1,611	3,415	1,872
CR Strips	1,586	1,693	2,627	2,846	1,156

Key Developments of 2023-24

• Witnessing 6% volume growth in 2023-24, the steel pipes and strips segment demonstrated strong demand, albeit under 10% pricing pressure due to significant reduction in Steel prices and competitive market conditions.

• Thriving in the global market, Surya Roshnis steel currently boasts orders worth Rs.800 crore particularly in the Oil & Gas, Water Sector and Exports, reflecting a good market presence.

Outlook

The Companys growing steel export business strengthens its positive outlook, driven by significant orders on hand. Additionally, the anticipated increase in the contribution of value-added products is expected to enhance the divisions profitability. Overall, the division is well-positioned for sustained growth, supported by its strong market presence and emphasis on higher-value products.

Lighting and Consumer Durables

Lighting

Surya Roshni entered the lighting segment in 1984, evolving from a market leader in conventional lighting to a major player in LED lighting. The Company operates advanced manufacturing facilities in Kashipur (Uttarakhand) and Malanpur (Madhya Pradesh), along with a cutting-edge R&D centre, the Surya Technology & Innovation Centre (STIC), in Noida. The Company offers a wide range of products, including conventional lighting (GLS, tube lights) and energy efficient LED; lighting (LED bulbs, tube lights, battens, down- lighters and other luminaires) for the consumer segment. Additionally, Surya Roshni manufactures advanced smart LED products for various professional segments, such as street lighting, infrastructure, industry, office and retail.

Value Creation in Lighting

• Achieved consistent growth in sales volumes, revenues and profits

• Expanded the product portfolio with a strong market presence in the organised sector

• Introduced over 200 new products in the last three years.

• Established strong relationships with distributors, dealers and retailers, fostering high loyalty

• Developed a nationwide presence, particularly in semiurban and rural areas

• Built a strong brand presence, recognised both in India and globally

• Implemented energy conservation initiatives, reducing overall energy consumption

Strategies: Winning in B2B - Fagade Lighting Expanding Capabilities

• Strengthening the professional lighting team

• Developing a complete ecosystem with vendors

• Offering customised products tailored to client needs

Developing Products and Solutions

• Introducing integrated smart lighting solutions

• Providing a range of products for infrastructure, monument lighting, airports and bridges

Strengthening Customer Relationships

• Engaging in direct B2B projects

• Focused on delivering high-quality lighting solutions and services

Particulars	2023-24	2022-23
Revenue (Rs. crore)	1,571.94	1,545.17
EBITDA (Rs. crore)	150.42	122.34
Cash Profit (Rs. crore)	148.24	117.25
PBT (Rs. crore)	119.57	90.39

Consumer Durables

Fans

Surya Roshni entered the fan category in 2014, achieving rapid success by reaching the Rs.100-crore revenue mark faster than its competitors. The Company offers a diverse range of fan designs, including designer, BLDC, pedestal, wall, table, ceiling and industrial and domestic exhaust fans. Furthermore, Surya Roshnis product portfolio includes smart premium fans with features, such as anti-dust, anti-bacterial coatings, high air delivery and energy efficiency.

Strengths

• Leveraging a strong brand and distribution network

• Ensuring Pan-India presence for fans

• Facilitating a wide range of products catering to various needs

Home Appliances

Since entering the home appliance market in 2015, Surya Roshni has continued to provide value through its unique product offerings. The Companys product range includes water heaters, room heaters, coolers, dry irons, steam irons, juicer- mixer-grinders and induction cooktops.

Strengths

• Leveraging a strong brand and distribution network

• Offering a wide variety of products to meet diverse needs

• Establishing an ecosystem to capture fastgrowing markets

• Maintaining market-leading product features and quality

Key Developments in 2023-24 Lighting and Consumer Durables

• Exhibited consistent growth, with a revenue increase of 1.7% YoY in 2023-24 while Professional lighting grew by 20% approximately.

• Experienced decent volume growth in various lighting categories, including LED, LED batten, downlighters, decorative lighting and solar lighting.

• The Company has invested in improving its product visibility through packaging, dummies and key product display at more than 20,000 key retailers. It also created innovative merchandise for creating brand shout-out from within more than 100,000 small electrical stores

• Demonstrated good growth aided by the successful introduction of some of the key categories like fans, water heaters, room heaters, iron, kitchen appliances and downlighters. Festival lighting products grew in double digits and delivered excellent performance in 2023-24.

• Greater thrust on advertising and marketing activities enhanced market share and brand visibility. Increased dealer and distributor engagement through various initiatives.

Outlook

Surya Roshni Limited projects a good growth in its Lighting division for FY 2024-25, even as it navigates some price erosion challenges. The Company continues to launch new products in this segment, adapting to the ever- evolving needs of its customers. Additionally, Surya Roshni anticipates strong performance in the Consumer Durables segment, assuming the Indian economy continues on its current growth trajectory. g

Business Growth Enablers

Manufacturing Facilities: Steel Tube and Pipe

Location	Products
Anjar	ERW and Spiral Pipes (GI, Black, Section) and API Pipes with 3LPE Coating
Hindupur	ERW (GI, Black and Section), along with GP Pipes
Malanpur	ERW (GI, Black and Section) Section Steel Pipes - DFT
Bahadurgarh	ERW Pipes (GI, Black, Section), API Pipes, CR Strips and Sheets

The manufacturing plants are equipped with state-of-the- art machinery, including slitting lines, pipe mills, galvanising units, finishing machines and high-pressure hydro machines. These facilities are complemented by efficient handling facilities to streamline production processes. In mid- April 2022, the Company commissioned a large-diameter section pipe facility with Direct Forming Technology (DFT) in Gwalior, adding a capacity of 36,000 MTPA for new product categories. This new facility is expected to enhance the Companys presence in domestic and export markets, particularly in the infrastructure and urban development sectors. Additionally, Surya Roshni is undertaking an expansion project in Hindupur, Andhra Pradesh, to manufacture GP and CR coils/pipes, ensuring the availability of these essential materials at competitive prices in the South Indian market and reducing dependency on external suppliers.

Manufacturing Facilities and R&D Centre of Lighting

Location	Products
	• LEDs (Lamps, Streetlights, Downlighters and Battens)
Kashipur	• HID T5 and Filaments
	• MCPCBs
L	• Drivers
Malanpur	• LEDs (Lamps, Streetlights and Decorative Lighting)
	• Conventional Lights (GLS and FTL)
	• Glass Shells
	• Caps
	• MCPCBs
	• Drivers
Surya	• Innovation Centre for Latest
Technology & Innovation	Lighting Trends
	• Approved by DSIR and NABL
Centre (STIC) at Noida L	• Focus on In-House Development of LED Products

Our Core Strengths

Strong Brand: Surya Roshni has successfully elevated the visibility of its brands, namely Prakash Surya for steel pipes and strips and Surya for lighting products.

Wide Distribution: The Companys products reach across India through robust dealer and distributor networks. These are supported by decentralised branches and depots to ensure quick deliveries.

Diversified Business and Presence: Surya Roshni offers a wide range of products in both verticals, available nationwide and exported to over 50 countries. This ensures long-term sustainability and helps mitigate risks.

Dynamic Team: The Company boasts a diverse team of leaders blending experience with youthful energy from various backgrounds. They transparently drive strategies that align with shared vision and goals.

Financial Performance Metrics

	Standalone		Consolidated
Particulars	For the year ended 31st March		For the year ended 31st March
	2024	2023	2024	2023
Revenue from Operations	7,808.52	7,995.95	7,809.27	7,996.71
Other Income	13.78	5.22	13.89	5.35
Total Revenue	7,822.30	8,001.17	7,823.16	8,002.06
EBITDA	585.92	619.18	586.31	619.51
Finance costs	24.05	44.84	24.05	44.85
Cash Profit	561.87	574.34	562.26	574.66
Depreciation and amortisation expenses	117.27	115.41	117.27	115.41
Net Profit Before Tax	444.60	458.93	444.99	459.25
Tax Expenses	115.74	123.65	115.83	123.73
Net Profit After Tax	328.86	335.28	329.16	335.52
Other Comprehensive Income	(1.31)	(0.43)	(1.31)	(0.43)
Total Comprehensive Income	327.55	334.85	327.85	335.09
EPS (Basic in )*	30.48	31.37	30.51	31.39
EPS (Diluted in )*	30.22	30.81	30.25	30.83

*The Company has completed the sub-division of shares from. Rs.10/- each to Rs.5/- each as per the record date of 6th October, 2023, as approved by shareholders at AGM of the Company held on 15th September, 2023. Therefore, effect of increase in number of shares is considered while calculating Basic EPS and Diluted EPS in above results and previous period figures are also restated for Basic EPS and Diluted EPS in accordance with Ind AS 33 Rs.Earnings per share

The Company maintained its leadership in the manufacturing of ERW GI Steel Pipes and continued to be one of largest Lighting manufacturing companies.

In the fiscal year under review:

• The revenue from the Companys operations was reported at Rs.7,808.52 crore as compared to Rs.7,995.95 crore in the previous year

• EBITDA reported at Rs.585.92 crore as compared to Rs.619.18 crore in the previous year

• Profit before tax stood at Rs.444.60 crore as compared to Rs.458.93 crore in the previous year

• Profit after tax stood at Rs.328.86 crore as compared to Rs.335.28 crore in the previous year

Key Financial Ratios

Particulars	Standalone		% Change	Consolidated		% Change
	2023-24	2022-23		2023-24	2022-23
Debtors Turnover (Days)$	34	34		34	34	-
Inventory Turnover (Days)$$	51	53	(3.77)	51	53	(3.77)
Interest Coverage Ratio&	24.36	13.81	76.39	24.37	13.81	(76.47)
Current Ratio*	3.06	1.92	59.38	3.06	1.92	59.38
Debt Equity Ratio**	-	0.22	(100.00)	-	0.22	(100.00)
Operating profit margin (%)#	7.33	7.74	(5.30)	7.33	7.75	(5.42)
Net Profit margin (%)	4.21	4.19	0.48	4.21	4.20	0.24
Return on Net Worth (%)@	16.34	19.69	(17.01)	16.34	19.67	(16.93)

$ Debtors (including unbilled revenue and non-current receivables) / (Revenue from operations/365)

$$ Inventory / (Revenue from operations/365)

& Interest (Finance cost) / EBIDTA

* Current Assets / Current Liabilities

** Debt (Working capital + Long Term Debts including Current maturity of long-term loans) / Equity

# Operating profit (excluding other income) / Revenue from operation

@ Profit for the year/Average Net Worth

There were significant changes in the below mentioned financial ratios. The detailed explanations are as follows:

Interest Coverage Ratio improved due to substantial reduction in Interest cost with sustained earnings of current year.

Current Ratio improved due to substantial reduction in Current Liabilities in comparison to last year while no major change in Current assets.

Debt Equity Ratio reduced to Nil due to Debt free and Cash surplus.

Risk Management

Surya Roshni is deeply committed to ensuring effective risk management and has implemented a robust approach to achieve this objective. The Company continuously monitors and evaluates potential risks across its operations, developing strategies to mitigate these risks. Internal control systems are in place, tailored to the Companys size and stature. They ensure the protection of Surya Roshnis assets and the prevention and detection of fraud and errors. Additionally, these systems maintain accurate and comprehensive accounting records, producing trustworthy financial information.

Furthermore, Surya Roshnis internal control systems guarantee strict compliance with all applicable laws and regulations, fostering transparency and upholding ethical standards. By adopting this structured approach to risk management, the Company minimises potential risks and maximises value for its stakeholders.

Strategic Risk Management Goals

• Identifying current and future material risk exposures and ensuring they are appropriately mitigated and managed

• Protecting brand value through strategic control and operational policies

• Establishing a framework for the Companys risk management process and ensuring organisation-wide implementation

• Ensuring systematic and uniform risk assessment across different functions through the adoption of best practices

• Promoting a positive approach towards risk management and mitigation, ensuring sustainable business growth with stability

Risk Mitigation Framework

• Identification of risks under various categories (operational, financial, regulatory, technological and human resources)

• Assessment of risks in terms of impact severity and likelihood of occurrence

• Assignment of responsibilities

• Development of value-creating mitigation plans

• Monitoring and reporting

Surya Roshni has an established framework for identifying internal and external risks faced by the Company. These risks include financial, operational, sectoral and sustainability risks (particularly ESG-related risks). The Company ensures appropriate methodology, processes and systems are in place to monitor and evaluate these risks.

The business continuity plan (BCP) is a critical aspect of risk management, encompassing all risks that could affect Surya Roshnis operations. In compliance with regulations, the Company has constituted a Risk Management Committee, which has formulated an extensive Risk Management Policy aimed at developing a continuity device plan to manage disruptions. The Committee defines risk exposures, measures them and implements appropriate actions to control them. This enables timely assessment and management of risks in financial, operational and project-based areas.

Additionally, in compliance with the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, the Board has established a Risk Management Committee. Moreover, this Committee has developed a comprehensive Risk Management Policy aimed at creating a business continuity plan to manage disruptions. Furthermore, Surya Roshni has implemented a mechanism where the Risk Management Committee defines risk exposures, measures them and implements suitable actions to control these risks. This approach enables the timely assessment and management of risks in financial, operational and project-based areas.

No risks were found that could lead to organisational failure. However, Surya Roshni remains prepared to address other potential risks. Here are some of the identified risks along with the corresponding mitigation measures:

Risk Type	Risk Definition	Risk Mitigation
Technology Risk	The ever-evolving nature of technology creates the risk of obsolescence, followed by higher, ineffective maintenance costs.	The Company puts in efforts to stay abreast and equipped with relevant and effective technological know-how for development of new products. This is backed by state of-the-art R&D facilities that is maintained and upgraded from time-to-time.
Financial Risk	Risk arising from interest rate fluctuations.	The Company continuously tracks the changes in benchmark while monitoring and controlling the interest cost by using innovative financial products and utilisation of various facilities from banks linked to MCLR / alternate benchmark rates, reset clauses and pre-payment options.
Regulatory Risk	Non-compliance to stringent regulatory and environment norms may result in liabilities and loss of brand reputation.	The Company strictly complies with all statutes applicable to its operations. There are trained staff members entrusted with regulatory responsibilities which are monitored and reported at the highest levels. The Company also uses services of legal and regulatory consultants.
Forex Fluctuation Risk	The Company deals in exports / imports of products in business which are subjected to currency fluctuations.	For countering exposure to foreign exchange volatility, the Company has formulated a foreign exchange hedging policy to protect the margins in manufacturing and marketing on a fully hedged basis.
Human Resources Risk	Inability to retain the right skills and talent in the business can lead to labour unrest and / or hamper good industrial relations. Ultimately, hindering work and progress.	The Company strives to acquire, retain as well as train manpower to run its operations. Additionally, the Company periodically reviews its senior management team to ensure continuity in leadership.
Commodity Price Risk	Businesses that procure several commodities face increased risk, following price fluctuations that could lead to business losses.	In order to manage the commodity price risk, the Company nurtures flexible channels of supply to better absorb the sudden price change effects. Additionally, a comprehensive risk assessment framework helps to manage the risks and in building a portfolio of value-added products for lowering commodity price risk.
Marketing and Competition	Low EBITDA margins in certain business segments and Inadequate volume growth due to market competition leads to risk of sustained growth and profitability.	The Company has aggressive approach for Growth and diversification though Marketing meets and events for capturing market share and develop new markets for volume growth. Sustained efforts are made continuously for reduction of cost overheads and focus on value added products / SKUs with high margins.
Operational and Credit Risk	There is a risk of non-recovery / delayed recovery from debtors. Mechanism for fixing and adhering to the monetary credit limits requires strengthening.	The Company has strong and defined policies for fixing and changing Monetary Credit Limits and Standard Operating Procedures for consistent follow-up and legal action for defaulters. Further, Channel Financing facilities are availed for customers from major banks, without recourse.

The risk management group has implemented several steps to develop a robust Business Continuity Plan (BCP), including:

• Conducting a business impact analysis to identify the effects of business function and process disruptions

• Making decisions about recovery priorities and strategies

• Identifying and implementing steps to recover critical business functions

• Developing a continuity device plan to manage disruptions

Additionally, Surya Roshni has established a mechanism where the Risk Management Committee of the Board defines risk exposures, measures them and determines appropriate actions to control or minimise the risks.

Internal Control Systems

The Company maintains an efficient internal control system tailored to its size and business nature, an integral component of its corporate governance. An independent internal audit department oversees the evaluation and improvement of internal control and governance effectiveness, with a focus on operational and systems audits. This function is reinforced by recruiting seasoned professionals. The Internal Audit function reports to the Chairman of the Audit Committee to maintain its objectivity and independence. Moreover, the Audit Committee receives regular updates on significant internal audit findings, adherence to accounting standards, risk management and advancements in control systems. Additionally, it evaluates the adequacy and efficacy of internal audit inputs, offering recommendations to strengthen control mechanisms.

The Company has a comprehensive budgetary control system, subject to regular management reviews. Surya Roshni has a well-defined Management Information System, featuring clear organisational structures and authorisation levels for business transactions. The Companys internal financial controls are both adequate and operational, ensuring the orderly and efficient conduct of business. These controls include policy adherence, asset safeguarding, the prevention and detection of fraud and errors and the maintenance of accurate and comprehensive accounting records. Moreover, this process enables the Company to prepare reliable financial information promptly. Surya Roshni extends external audits to its branches and depots and specialised functions like taxation, ensuring the effectiveness of audit and control procedures.

Corporate Social Responsibility

Surya Roshni is committed fulfilling its role as a responsible corporate citizen and recognises the importance of promoting social development. The Company firmly believes that enhancing societal capacity is vital for achieving sustainable growth. Therefore, Surya Roshni focusses on societal well-being and ecological responsibilities as central pillars of its Corporate Social Responsibility (CSR) initiatives.

The Companys CSR policy, outlined in Annexure IV of the Boards Report, delineates its key objectives. Surya Roshni fulfils its CSR responsibilities through the Surya Foundation, engaging in various initiatives. These initiatives include the Rural Development Programme (Adarsh Gram Yojana Project), healthcare promotion (including preventive healthcare) and other projects specified under Schedule VII of the Companies Act, 2013.

Surya Roshnis CSR activities are diverse and include programmes like Swachhata Abhiyan, Teachers Personality

Development Camp (TPDC), TPDC - MP and TPDC - Bhuj, among others. Through its dedicated CSR arm, the Surya Foundation, the Company prioritises health, skill development and education. In the past year Surya Roshni spent Rs.6.37 crore on corporate social activities on a consolidated basis, amounting to not less than 2% of the average net profits over the preceding three financial years. Committed to fostering social development, the Company strives to create a positive impact on society, aiming to make a meaningful difference in peoples lives.

Human Resources and Industrial Relations

Surya Roshni attributes its success to the diligent and dedicated individuals who create a positive work environment through their commitment and hard work.

The Company places great importance on nurturing a dynamic workplace culture that emphasises performance and prioritises candidates and clients at the forefront.

To attract, foster and retain top talent, Surya Roshni has developed an employee value proposition centred around growth. Moreover, the Company provides the necessary support to keep employees motivated and driven to achieve strategic objectives.

Furthermore, the Company acknowledges and rewards high-performing employees through its Surya Parivar programme, an integral part of its rewards and recognition initiative. Surya Roshni has fostered positive industrial relations by promoting increased engagement with workers. To achieve this, the Company has introduced a range of initiatives, including both formal and informal communication channels and training forums. As of 31st March, 2024, Surya Roshni had a total of 3,247 employees on its direct payroll.

Cautionary Statement

This report contains forward-looking statements about the business, financial performance, capabilities and prospects of the Company. Statements regarding plans, intentions, expectations, beliefs, estimates, predictions, or similar expressions for the future are forward-looking statements. These statements should be considered in light of various risk factors and events that could cause actual performance to differ from what is anticipated in the Directors Report and Management Discussion and Analysis Report. Such factors include, but are not limited to, the impact of changes in global oil and steel prices, technological advancements and domestic economic and political conditions. The Company cannot guarantee that the outcomes implied by these forward-looking statements will be realised. The Company disclaims any obligation to update the information provided herein.