Dear Shareholders,

The financial year 2023-24 has been a remarkable and exciting journey for Ambuja Cements, filled with growth, innovation, and continued commitment to excellence. Our growth blueprint implemented in the previous year towards capacity- building, operational efficiency, and decarbonisation measures are yielding excellent results. As a Company with robust fundamentals, we are reshaping industry standards, creating new benchmarks, and positioning ourselves uniquely as the lowest- cost cement manufacturer. As India forges ahead, Ambuja Cements takes pride in being integral to the nation's growth story.

First and foremost, I would like to express my gratitude to our esteemed shareholders for their continued support and trust in our Company. Your confidence has been driven our success, and we remain steadfastly committed to delivering long-term value and sustainable growth.

We continued strengthening our position as a leading player in the cement industry. Our robust financial performance is a testament to the resilience and adaptability of our business model as we emerged stronger than ever. Ambuja Cements has been recognised among the ‘Top 100 Most Valuable Companies in India’ by Business Today.

Delivering a Resilient Performance

In the face of a challenging global economic scenario, the Indian economy remains a bright spot, showcasing remarkable resilience. Sustained government capital expenditure and improved household spending have catalysed the country's growth. The real estate sector, experiencing an extraordinary phase in FY 2022-23, witnessed sales reaching new highs across residential, office spaces, shopping malls, and industrial, and warehousing segments in FY 2023-24. We reported 8.1% growth in volumes during FY 2023-24, translating into a revenue of I 33,160 crore. Operating EBITDA for the year stood at I 6,400 crore, with a PAT of I 4,738 crore. Operating EBITDA per tonne of CLC grew by 60%.

Our resolute focus on reducing costs across energy, freight, and other segments has been pivotal. Initiatives such as waste heat recovery systems, increased investments in renewable power generation, and securing coal supplies aim to enhance self- sufficiency, reduce reliance on fossil fuels, and shrink our carbon footprint.

We adopted a three-pronged approach to reduce freight and forwarding costs, optimising lead distances and warehouse operations, and increasing direct dispatches. Our detailed route planning, renegotiation on commercial terms, and technology applications helped reduce logistics costs to
` 1,352 per tonne in FY 2023-24.

Following the strategic acquisition of Sanghi Industries Limited, we are optimising infrastructure to swiftly transform it from negative EBITDA to positive EBITDA. The signing of the master supply agreement has catalysed improvements in utilisation levels – a belief shared by our valuable shareholders as well.

We are committed to contributing to the country's growth agenda of 'Viksit Bharat' and supporting the development of national infrastructure. Adding to the strength, we were the lead cement provider for constructing the iconic Shri Atal Bihari Vajpayee Trans Harbour Link, a 21.8 kilometre-long engineering marvel showcasing India's engineering excellence.

Winning bids for coal and limestone mines ensure self-sufficiency, with coal mines in Dahegaon-Gowari and the existing Gare Palma coal block catering to 40% of Ambuja’s coal requirements. Successful bids for 24 new limestone mines with a reserve of 587 million tonnes further strengthen our capabilities.

Reaffirming our commitment to sustainable practices, we continuously increase the share of alternative fuels and green power. With an investment of over ` 10,000 crore in green power projects, we aim to power 60% of our expanded capacity through 1 GW of solar and wind power and 376 MW of waste heat recovery system by FY 2027-28, offering compelling economic advantages.

Unleashing Innovation

In our relentless pursuit of excellence, we recognise the immense power of digitisation as a significant multiplier in our cement growth strategy. It has become the driving force behind transforming our entire value chain, from quarry to lorry. By ingraining technology as a fundamental aspect of our culture, we have embarked on a journey that leverages cutting- edge technologies and applications such as Industry 4.0, artificial intelligence, mobile platforms, global positioning systems, and data analytics, enabling us to make informed decisions daily.

We have established a state-of- the-art cement and concrete R&D facility to ensure continuous evolution and innovation. This facility is a guiding light of progress, primarily focusing on new product development, enhancing productivity, and reducing energy consumption and environmental impact. These pillars serve as major drivers, propelling us towards a sustainable, efficient, and environmentally responsible future

Committed to Sustainability

One of the year's key highlights was our unwavering focus on innovation and sustainability. We firmly believe that a responsible and sustainable approach is crucial for the long-term success of our company and the communities we serve. In line with this vision, we have invested in cutting-edge technologies and processes to enhance operational efficiency, reduce our carbon footprint, and promote a circular economy.

Our modern plants exemplify efficiency by leveraging the highest productivity at the lowest cost, making us one of the most competitive and sustainable cement producers. With more than 85% of our production in blended cements, our commitment to eco-friendly practices remains unwavering, solidifying our strength in green cement manufacturing. We envision adding around 40 MTPA of new clinker capacity, employing around ten new clinker lines and ~27 new grinding units, each designed with an eye on sustainability and efficiency.

At Ambuja Cements, we have set our sights on setting industry benchmarks by upholding unparalleled environmental, social, and governance standards. We have set a bold target of achieving net zero emissions by 2050, with our near-term targets validated by the Science Based Targets initiative. This commitment demonstrates our dedication to combatting climate change and creating a greener future.

Our responsibility extends beyond business success. We strive to create societal value for over 7 million people by contributing to healthcare, education, employment, and sustainable livelihoods within the communities we operate. Through our efforts, we have established ourselves as leaders in water governance, achieving 11x water positivity. Additionally, our commitment to environmental stewardship is evident as we have achieved 8x plastic negativity through the innovative co-processing plastic waste in our cement kilns.

Recognising the urgent need to combat deforestation and preserve our natural resources, we have pledged to plant 8.3 million trees by 2030, in line with Adani Group's ambitious plan to plant 100 million trees by 2030. This commitment reflects our dedication to nurturing the environment for future generations.

Embracing the principles of the circular economy, we actively harness a diverse array of alternative fuels and raw materials, reducing our dependency on finite resources. This approach not only ensures sustainability but also promotes innovation within our operations.

Industry leaders have recognised our efforts, as we have been honoured among 'India's Top 50 Most Sustainable Companies' across industries by BW Businessworld. This acknowledgement is a testament to our commitment to sustainable practices and responsible business operations.

Lastly, we take immense pride in being recognised as 'India's Most Trusted Cement Brand' in the esteemed TRA Research's Brand Trust Report. This recognition highlights the trust and confidence that our stakeholders place in us.

As we reflect on the past year's achievements, we remain steadfast in our commitment to driving sustainable growth, creating value for our stakeholders, and leaving a positive impact on the world around us. With a clear focus on excellence, we are well-positioned to shape a brighter and more sustainable future for all.

Looking Forward to an Exciting Future

Ambuja Cements is placed in the ‘Good’ category by Institutional Investor Advisory Services (IiAS) in the Indian Corporate Governance Scorecard (2023).

As the Indian economy enters a virtuous growth cycle, Ambuja Cements remains committed to growth with goodness. Our pan- India manufacturing presence, diverse product portfolio, deep distribution network, and sustainability leadership position us to capitalise on growing sectoral opportunities. We will continue to expand capacities, invest in sustainable initiatives, and leave a better planet for the next generation.

I would also like to acknowledge our people's unwavering dedication and hard work. Their relentless pursuit of excellence and commitment to our core values have been instrumental in our success. I am immensely proud of our team, whose passion and expertise continue to drive our growth and position us as an industry leader.

Looking ahead, we remain optimistic about the future. The infrastructure development projects and government initiatives in the countries we operate in present significant growth opportunities. We will continue to leverage our strengths, foster innovation, and explore new avenues for expansion to drive sustainable growth and deliver value to our stakeholders.

In conclusion, I sincerely thank our shareholders, customers, business partners, and dedicated employees for their untiring support. Together, we will continue to build on our achievements and create a brighter future for Ambuja Cements; beyond being a cement manufacturer, we are a builder of a sustainable and prosperous future.

Regards,

Ajay Kapur

Chief Executive Officer