Jubilant Ingrevia Ltd

I must tell you my story of my connection with this company. It was 1979, I just passed out as a chemical engineer from IIT Delhi. By the way, our CEO is also from IIT Delhi. So, and, my brother at that time was trying to set up a new company, which was known as VAM Organic at that time. He was just starting the business plan, that was the licence raj, and we got the approval to build the end product, assumed was Vinyl Acetate Monomer and with all the intermediates like acetic anhydride, acetaldehyde, acetic acid, ethanol, starting from molasses. So, it was a unique concept in late 70’s put together.

Technology was brought in from different places to really create the first total bio-Vinyl Acetate Monomer. Every product, the starting raw material was molasses, it was quite unique from that point of view. Today, the value of bio- products is much more than what it used to be in 70’s. At that time, the feed stock was cheapest for us to make these products. So, when I joined, my first job was to go and buy, we had an almost, in Gajraula we have almost 460 acres. So, my first job was to go and buy land from farmers. So, I used to be sitting in Hasanpur tehsil and negotiating with farmers to buy, so we bought 100 acres at that time and then we expanded it to almost 5 times. So, I am deeply attached to what Jubilant Ingrevia is today because I have seen my own career growth and the growth of Jubilant Ingrevia and really, this was the starting point for us to build the pharmaceutical company which is now known as Pharmova and even Jubilant industries was part of one large VAM Organic Chemicals which became LifeSciences. I think it was 2021, we decided that we will kind of, break LifeSciences into 2 divisions, because the idea was to really transform what we were trying to do in Chemicals.

And that’s where the journey of transformation started to really bring more focus in the group to what we are doing in chemicals. We also changed management in terms of leadership, Deepak joined, we have new leaders like Varun, many of our team members joined when this transformation started to movie it from chemical intermediates company to more of building a specialty portfolio. And in the Specialty Chemicals also, our effort is to even look at higher end products. Our products go into cosmetics, which is applied on skin for nutrition and different other applications. It goes into hair care, personal care products.

So, you can imagine that for us it is a major transformation now focusing the company more and more towards Specialty. And if you want to be a Specialty company, and I believe 60% profits comes from Specialty portfolio, you have to be very customer centric. And I think in the last few years, that’s been a major change, not to be inward looking, because if you are an intermediates company or a commodity based company, then the customer centricity is not taken that seriously. But I think in Specialty, we need to work very closely with our customers. Sometimes, they come with the problems to us and we need to solve them. If you want to be a CDMO, you want to do Contract Development and Manufacturing, then it requires strong partnership and also

strong trust, because they are handing over some of their most important molecules to manufacture.

So, I must tell you, there has been a C change in the way we partner with our chemicals and I’m sure Deepak will share a lot in his presentation on the transformation that has happened in the different parts of our Specialty business. And of course, with specialty, we were always strong in some of the chemistry platforms but I think we are adding more capacity in research.

We added research in Greater Noida, we already have pilot facilities and research facilities at our manufacturing locations. And the other part was, if you look at our infrastructure, the 4 main facilities, which total amounts to almost 1,000 acres, Gajraula is 460 acres, Bharuch is 310 and a lot of them are still, the infrastructure we have built has a lot more capacity to be added there. It has the potential to almost double if you look at the kind of infrastructure that has been built, and with that infrastructure we have recently worked on, I’m told, almost 200 digital interventions and Jubilant Ingrevia won the prestigious World Economic Forum – Lighthouse Network Award, being the only chemical company globally in the 2024 cohort. This is a solid achievement, using data and analytics for improving productivity is really outstanding and not only our Bharuch facility we are now working across all our facilities to improve productivity.

You know, if you are a chemical manufacturer and if you are not safety-first, you are not sustainable. Outstanding job has been done by our team across all facilities. Deepak can share the outcome of that but I am so pleased that we are acting for environment, people and safety, all across is one of the highest level that I have seen in the last many years. Sustainability remains at the core of our operations; we were ranked the top 5% of global chemical companies with ECOVARDIS gold rating and among the 2 top Indian chemical companies in the ESG score. Also, under the Dow Jones Sustainability Index of Corporate Sustainability Assessment of 2023, we achieved a ranking of 93%ile. This really requires a lot of work and also it builds trust with our customers, they see that we are a long-term sustainable operation.

As Deepak has shared before, his ‘Pinnacle345’ journey, which aims for 3 times revenue growth and 4 times EBITDA growth in the next 5 years. At the end, I must tell you, that personally at the board level, we are superbly excited about the transformation that is going on and some of the stories you will hear now, in the presentations later on.

Thank you again for coming tonight and listening to our story, and I look forward to interacting with you tonight. Thank you.

Good afternoon, everyone. Thank you very much for coming over and welcome once again for Investor Day. It’s a privilege to have all of you in the room and share our story, not just from last 1 and a half years but also talking about what we are aspiring to do in the coming years and how, step-by-step, we are building out that story.

Before I introduce the agenda, I just wanted to quickly introduce myself because I met many of you individually and in smaller groups but just very quickly in 2 lines. I joined Jubilant Ingrevia as CEO and MD about 1 and a half years back and before that I was with Bain and Company, Senior Partner,

leading the Chemicals and Industrial practice of Bain in Asia-Pacific and had the privilege of working with several of the chemical companies and leaders in India and in the region with, and of course with Jubilant Ingrevia and when I took over this role 1.5 years back and met Mr Bhartia first time, his first few words for me were that Deepak this is a true transformation, as he just explained here and the number one thing I want you to work on is customer centricity to the organisation. So, I am very happy with whatever Mr Bhartia said and the hard work that all of us has done, we can already see moving in the right direction. We will talk about how it is impacting our business and what we expect to get out of it over the coming years but we have started to take the first step towards it and I’m quite confident that in the coming years you will see many achievements and accolades coming on the back of all the hard work our team is doing.

What we are going to do today is, we are going to talk about, I’ll take the first 20 minutes or so to talk about our company, to talk about the Pinnacle 345 and what we aspire to do but also share the progress from the last 3 or 4 quarters in which we have started to take the baby steps towards the Pinnacle 345 journey and the outcomes of those baby steps have given us the confidence that we are taking the right journey, we of course have a lot of work to do in coming years, which the whole team is committed. The leadership team sitting in this room, whom you will interact with today is fully committed behind that vision, so we are going to talk about that. Some of the leaders from the leadership team will come and present specific BUs plans as well as progress on 345. We will also talk about our operations - how we are transforming them, the safety aspect, the sustainability aspect and many more things we are doing in the company to ensure that the right enablers and foundations which are needed to deliver on this Pinnacle 345 aspirations are in place in a very foundational and robust manner.

Varun will touch over the financial plan and discipline while a lot of focus is on putting in the right inputs and hard work into the business, of course, the outputs matter and one of the things that is needed is to have the right financial ecosystem, the team, the tools to ensure that we measure what we are doing with the right metrics and at the right time and take the course correction as and when it is needed. Varun will talk about all of that, and I will round up by sharing the overall investment thesis.

Before I get into the details, perhaps we will play one more video on Jubilant Ingrevia for a couple of minutes and then we can just dig in into the details.

Gaurav, can we have the video please. Thank you.

So, let’s jump in. I think Mr. Bhartia already covered the story of how was Ingrevia created, and how in 2021, we came out of, we were together in Pharmova, known as Jubilant Lifesciences until late 2020, early 2021, and that’s when the split happened between Ingrevia and Pharmova. Ingrevia literally means ‘Ingredients for Life’. It is a combination of 2 words and we are truly and fundamentally an ingredients company which supply different kinds of ingredients into Lifesciences sectors such as Pharma, Agrochemicals, Cosmetics, now, even Semiconductors and many others, and we’ll talk about that more. And the fundamental objectives behind this split was number one, to unlock shareholder value and we have seen the magic of that happening over the last 4 years when both the companies have done extremely well and have grown more value for their respective shareholders.

We created separate companies. We were very clear that Pharmova had more business on the pharma and healthcare side while Ingrevia was focused on intermediates, which was fuelling different sectors as I said. So, it was critical to bring lot more focus, lot more investments in those businesses and that’s exactly what has been happening over the last 4 years or so when we invested in the business of some Rs. 2,000crs, created new R&D centres and hired and grew the team over the last few years. And of course, as I think most of you know, chemical sector has provided so many new opportunities, especially in the last 4 or 5 years since the macro- economic sectors turned in favour of India with China plus one and the trade wars playing out and just capitalizing on those opportunities was very critical and hence it was required to have a very different kind of focus on those opportunities which is what Ingrevia has been doing over the last 4 or 5 years.

The whole story, I think you saw glimpses of it in the video as well, can be divided into 4 major chapters. Of course, we got created as VAM Organics in 1978 and that’s when we focused on VAM chemistry, the acetic anhydride and the whole acetyls portfolio. In the second chapter which played out over the next 2 decades, we added Pyridines and we are very proud of the Pyridines chemistry and we are globally number one and we will talk about in our Specialty portfolio, how it is helping us identify and capitalize on the new opportunities, but in the next 2 decades, we expanded our acetyls portfolio but also added Pyridine as our core chemistry.

Starting 2011, we started moving forward into the Pyridine value chain particularly and added almost 3 dozen Pyridine derivatives and we are number 1 in almost, actually 35 out of 50 odd Pyridine derivatives that we do today. We also forward integrated in Picoline value chain to add Vitamin B3, so chapter 3 was more into forward integrating Pyridine and Picoline value chains and what we call now, which, probably, in my view, the most exciting chapter of Ingrevia’s history is the transformation into the specialty leader, which is what Mr. Bhartia alluded to in the beginning. We are doing several changes, the whole journey started after the split in 2021 but in last couple of years we have given a new momentum and acceleration to that journey in multiple ways. Of course, we continue to focus on our core businesses of acetyl and Pyridine, particularly Pyridine, adding more and more products in the forward part of the value chain. We have added Diketene as a new platform and we already have around half a dozen products in our portfolio, and we are hoping to add another half a dozen in the next 12 months.

We have gotten our CDMO business off the ground over the last 4 years and you will see later on in the presentation, that is going to be the biggest driver of our growth and profitability in the coming years. We have already announced some big contracts in the last 2 quarters and there’s many more achievements and announcements to come in the next few quarters. Our specialty business in the nutrition side beyond Vitamin B3 has started to pick up pace and will drive the future growth. So, this is just the start of the transformation we were talking about in getting big in scale in Specialty which I will talk about in subsequent slides with the rest of the team.

How we look at the business today, there are 3 parts which is what we share with all of you every quarter. We have the Specialty business, which is the biggest part of our business, about 42% of our portfolio. We are globally

number 1 in bio-pyridine, in beta-picoline and many other derivatives of pyridine, almost 3 dozen of them, as I said. Within Specialty, we have 3 businesses units, we have CDMO business, we have Fine Chemicals and we have Pyridine and Picoline. We will talk about each one of them in far more detail, even more in detail that we have talked about in our IR presentations over the years.

The second pillar of our business is the Nutrition business, which is where we have Vitamin B3, we are globally number 2 and we have just commissioned our cosmetics grade and food grade B3 plant and once it fills up its capacity, we are hoping that we will catch up with number 1 position very soon. We are domestic leader in choline, vitamin B4 and we are expanding that portfolio and adding more specialty products into it as well.

Chemical intermediates which is our acetyl business, we have some world leading products there, we have acetic anhydride. We are world number 1 or number 2 in merchant market capacity, depending on which year you talk about, and we are continuously expanding share in international markets, like Europe, and we have maintained our 75%+ market share in the domestic market. And likewise, in ethyl acetate, we are very skilled, we are the biggest players in ethyl acetate in the country, acetaldehyde, bio acetic acid and many more products that we have in our acetyls portfolio. And that’s how we look at our portfolio today. I think the one underlining thing in our core products, whichever chemistry products that we have picked up. We have invariably made a leadership position for ourselves and that defines our aspirations on anything new that we are doing. Some of the new aspects of our business, the growth factors we will talk about in the next half an hour, you will see the starting aspirations, Diketene being the prime example, our aspiration is to be in the top 3, in not just in India, but globally and that’s what all the investments are about, all the portfolio we are developing, the products which are in R&D phase, will help us get there in coming years.

This is the current profile of the business, business wise I have already talked about the specialty chemicals almost 43%, the biggest business, acetyl still remains big and is fundamental to our business, it’s a core business. It gives us the threshold level of, the scale which helps all other businesses. It also seeps into other businesses, Nutrition almost 20%. By application and fairly diversified application, which helps us even in the tough times like we saw in the last 2 years. Pharma is almost one-third of our business, Nutrition is growing very fast, almost 22%. Agro varies between 20 to 25%, Agro has not been very good market wise over the last couple of years, so the relative share has come down to 20% but in stable times, it touches almost 25%. And then industrial and consumer, consumer is also picking up on the back of some if the investments that we are making in cosmetic related products and haircare and some other areas where some of our core products as well as some of the CDMO opportunities we are getting. Geographic wise, India is almost half our business but what is driving our growth going forward is the international business. I’ll talk about it, our business in the US and Europe have grown substantially in the last 1 year and despite the fact that the growth has been slow in the western world, I’ll show that data. But, going forward, we expect exports to be almost 70% of our business in the coming years.

Facilities, we already talked about, you saw it in the picture, so I won’t repeat but there are 2,000+ people that work in our organization. We are making

some changes in the organization, we will talk about the team as well. We are hiring the talents in areas where we need to strengthen our capabilities to deliver on the growth vision that we have painted which we will discuss in a few pages.

I think R&D is one area which, in all honesty, I think we have, historically, we have under invested and only in the last few years, with the advent of the new R&D centres, we have created, the one picture you can see on the left hand side of this page, is our newly built R&D centre in Greater Noida. It houses almost 1,000 engineers across our group and almost 150 of them are dedicated to Ingrevia. Some of the cutting-edge work, especially in our fine chemicals, CDMO and Nutrition portfolio is happening in the R&D centre. We also have R&Ds in our big plants and we are investing, somebody was asking me outside, what is our R&D spend as the percentage of revenue, I said it’s still very low. The good companies in India have caught upto 2.5% in chemicals R&D spend. At a company level, we are probably less than 1% but even if I take acetyl out, which skews it, still we are on the lower side and we expect to double it up in the coming years because that is the kind of innovation that is needed to fuel our growth aspirations.

This is the leadership team, as you can see, with the green dots on the page.

Most of them are in the room today. Some of you have interacted with them at the booths, so please, find them, interact with them. You will know what their aspirations are. As a leadership team, one of the things that you will see, almost 50% of the leaders from this page have taken up these roles in the last 1.5-2 years. So, we have gone through a real change in the organization as well, starting right from the top. On one side, we have several members of the team like Yuvraj, Anurag, Amit Saini, Sumit and many more, who have been in the Jubilant system for many years, to understand our core capabilities, chemistries and understand what we bring to the table and are able to explain it to the customer but also are able to deliver on the expectations of the customer at the same time. But at the same time, we have brought people from the outside, be it Ambrish, now Vishal has just joined us last week for our Nutrition portfolio. Himanshu came in a couple of years back. Vijay came from outside, Varun just joined 6 months back, Rajiv joined some 4 months back. So, wherever we felt that the organization needs a different way of working to deliver on the expectations of the customer, Specialty customer has a very different kind of expectation. We have tried to bridge those gaps. We are still going through some changes in the lower layer of the organization, we have moved to a culture where we are doing a lot of changes from the perspective of what is not going to work from future growth perspective and accordingly bringing in new teams, bringing in new members to bridge those gaps.

Of course, the quality systems and the world class accreditation are just, I would say, table stake and it’s good to see some of the work and effort over the last 1.5 years, getting even externally acknowledged. I think again, Mr.

Bhartia talked about it, this is one of the unique things that exists with Jubilant as a group and not just for Ingrevia. For the last, almost 20 years, we have been ESG focused. We started focusing on ESG in early 2000s. We have been part of ECOVADIS, Dow Jones and several other ratings for almost a decade and we have maintained our top 2-3 positions over the years and every year, now, we keep looking for initiatives that help us just move ahead in that journey. This year, you saw in the video, we have signed 2 new

contracts with O2 renewable power just as an example, which will take our power composition to almost 35% renewable and we are not going to stop there, we will keep looking for more areas which can help us become more and more green in coming years.

So, that was a quick snapshot of what we are as Ingrevia, what changes we have made in recent past and how we are structured. Let me also talk about Pinnacle 345, I think the video also explained, what I call the hardware part of it, which is the number - 3x growth, 4 times EBITDA in the next 5 years.

But, I think the heart of Pinnacle 345 is what I call the compass. This is the vision we have as the leadership team, as a Board, we aligned on it 1.5 years back, what do we want to become? We want to be the leader provider of innovative solutions in our core chemistry. I think the key words here, to focus on are ‘innovation’ and ‘core chemistry’. As a company with almost 45 years of history, there’s probably no chemistry which we have not worked in. So we have a lot, but we also have one of the core chemistry that you might have seen on the booths outside, almost 12-15 of them, which is where we get the bulk of our business and those chemistries and their potential is tremendous.

We have not tapped it fully. So, the idea is to continue to focus on those chemistries and to obviously come with more and more innovative solutions on the back of it.

The second thing of this is the middle part of which we call the 4 pillars. I think Mr Bhartia covered many of them in the opening remarks. Customer centricity being the very first one. The world class operations, you should visit the booth, Vijay can explain you the kind of initiatives we are taking there, including the completely revamped safety programs that we launched 1 year back and it is already showing a very good progress. Innovation and technology, I already talked about in R&D. ESG I already talked about, people focused, we are already going through transformational changes culturally within the organization and that starts from the way, each one of us, from the leadership team, how we engage with our team, how quickly we respond to our customers, how quickly we respond to our internal requirements and what message we send down to the organization. So, almost on every aspect, we are working on and the hardware part I already talked about and what it means in terms of numbers is that, if you take 2024, the trailing 12 months, we are about Rs. 4,200cr in the topline, we hope to get to Rs. 12,000cr. In all honesty, we have a bottom up plan which takes us to almost Rs. 10,000cr, we have a gap of Rs. 2,000cr but still that vision. We feel that we will be able to figure out how to bridge that gap through inorganic opportunities or by finding new platforms along the way. But based on the current products, platforms, visibility we have, we feel that we are confident of delivering organically, at least Rs. 10,000cr through that bottom-up plan.

The bulk of the growth, I will show on next page, will come from Specialty and Nutrition part of the portfolio which eventually means our profile will improve significantly. You have already seen over the last 4-5 quarters, it has moved by almost 1% point every quarter from 9.5% to 14% in the last quarter and a lot of it has come from new, high margin growth areas but some of it has also come from lean and cost effective areas which again we will explain down the line. But on the back of all these efforts, the portfolio shift towards high margin segments and the cost improvement efforts, we have embarked to get to Rs. 2,000cr EBITDA and ROCE, I mean, it has improved over the last 4 quarters from 9-10% to almost 12%, we have a path to take it to 17- 20%, obviously we’ll keep investing in the business, so sometimes the ROCE

number gets skewed by what we call the whip capex but adjust it so that every investment we are making in the company has a business case which is banking on a 20%+ ROCE and hence, majority of the future portfolio, most of it, I mean, all of it will be 20%+ ROCE.

This will require some fundamental shifts and already a lot has been talked about, so I won’t deliver the points on this page but this is the true transformation in making and we have taken the first few steps, as we said in the beginning, given our confidence that we are on the right track, we’re on the right journey but the Specialty will increase, the customer centricity of course, some of you speak to our customers also and we feel very happy when we hear the feedback of the customers through some of you.

Whenever I meet any of you, I think some of you know, the very first question you hear from me is what are the customers saying about us, please tell me, right, transparently. So, that’s always a very good filter to look back into the mirror and see if we are doing the right things to the customers and the external stakeholders or not. Innovation technology, ESG, world class operations, digital and of course cohort systems and culture are all changing significantly and I would, somebody asked me outside - are you done with all the changes? I said that I won’t be done by the time I’m running this company because change is the only constant and world is moving very fast and we need those change and we will keep making those changes. And wherever we hit the wall, we will of course bring something new to de-bottleneck that problem.

I think this is Pinnacle345 summarized in one page and apologies on the small font. I will touch up on some of the key points but my team members will dig deeper into some of them, one-by-one, vertical by vertical. If you can just look at the few areas which you will, and hopefully have started to notice in some of our quarterly results. If I start with Specialty, I think Pyridine and Picolines are number 1. We are very proud of that. We have almost 25%+ share globally. we are the only scaled non-Chinese player left in Pyridine chemistry and we are still a big and growing chemistry. There are many new products coming up, in our portfolio as well as to supply the building blocks to many of our customers and we will maintain our leadership position, be it at scale but also at cost. And we have the cost leadership here despite the fact the Chinese companies are very competitive but one metric which I often quote is, the world has excess capacity with only 50% capacity utilized today in Pyridine. We have not planned that 80%, we are de-bottlenecking the plant this year to increase the capacity of Pyridine because we are running our plants at 80% and that just shows that despite all the competition, price drop from the Chinese competitors, we are still competitive versus them and to an extent that they run their plants at 30-40% utilization and we are running at almost 70-80% consistently. So, that will remain our focus, we have to protect our leadership position, and we will protect our leadership position and in Pyridine. The new opportunities coming in Pyridine portfolio is oil field chemicals. This is a segment which started to grow. It's a by-product of Pyridine value chain. We have built a reasonably scaled business over the last couple of years in oil field chemicals and will continue to push there and it will scale up significantly.

In Fine Chemicals, there are three parts to our Fine Chemical business. We have the Pyridine derivatives. These are all downstream derivatives of Pyridine. As I said, we do almost 50 of them and almost three dozens of them.

We are globally number one and we will maintain that position. We are pushing hard. We are growing them. That portfolio, as Ambrish will show in a few minutes, is still growing at 15% plus every year.

Diketene derivatives, this is a platform we created two years back. It's not a new chemistry for us, by the way. It comes from Ketene chemistry, which is linking back to our acetic acid and acetic anhydride groups. We are very familiar with this chemistry. We have created the portfolio of this chemistry organically over the last few years. The traction we have gotten in the first two years is just amazing. We have created a reasonably scaled business within the last two years, which is growing at almost 50% every year. Again, Ambrish will show some of that data.

And the third part, which again Mr Bhartia alluded to, the cosmetics part, we have almost half a dozen products in our portfolio which go into skincare and haircare industry. We have very strong relations with some of the leading and marquee names of customers in the cosmetics space. We feel that it is the right time to leverage all those strengths, be it on the products side, or supply side or customer side to scale up this portfolio and this is something we have only recently decided and of course, we have a set of products existing for several years, but we are going to capitalize on them and grow their portfolio.

The third part is the CDMO business which I know a lot of you are very excited about and it is the most exciting part of the portfolio for us also because of the growth we expect to get out of it. Again this has 3 parts, the Agro part of it, we have been providing several Chemical Intermediates to agrochemical innovators for almost 3 decades. Now it’s time to capitalize on those strengths and covert many of those relationships into CDMO oriented relationships and that we announced 2 quarters back. One of which runs into hundreds of millions of dollars. I think you have the details of some of them.

That contract we signed in October and announced to all of you. The construction is in full swing and will be ready hopefully by October, November this year so that we can start getting benefit of revenues coming from that project starting Q4 of FY26.

The second one also, we have to modify one of our multipurpose plants. So that is also ongoing and that will start kicking in and giving revenues as I announced I think couple of quarters back in the investor call by middle of this calendar year. So both of those are on track and there are many more which again Ambrish will explain how we are speaking to our customers. So on Agro there are more discussions we are doing with the innovators and hopefully in coming quarters we will be having more good news to share with all of you.

On the Pharma side we have been doing Pharma CDMO for almost 5-6 years.

We have a handful of customers and reasonably scaled business there.

Recently last 6 months or so we accelerated and doubled down on that pipeline. I think I had mentioned that on the investor call again. Within last 6- 9 months we have doubled our funnel size and there are almost 12 molecules which are confirmed by the customers. Of course Pharma pipeline moves at a relatively slow pace. So, we have to be patient and let that funnel grow up naturally as our customers volumes grow up.

Semiconductor is again we announced about a year back. We started focusing on it and within a year we have been able to build a pipeline of

almost 8-10 molecules where customers have already confirmed at least kg volumes and we have already started supplying samples to almost 3-4 of them. So we are quite, quite is a bad word, reasonably happy with the progress we have made in the first year of semiconductor. We can do a lot more and the traction we are getting from our customers will help us hopefully open up that funnel. As I mentioned in one of the investor calls, semiconductor for us is going to be a multi-year journey because the customers are still just gradually opening up to outsourcing idea unlike what has happened in Pharma or Agro over the last one decade. Semiconductor Chemicals customers will take few more years before they can start outsourcing in a big way, but we feel we are one of the early movers here and on the back of all the traction, partnership we are getting with our customers, we feel that portfolio will continue to grow in the coming 3-5-7 years.

So that's on Specialty, on the Nutrition similarly, we have 2 parts, animal nutrition and vitamin B3 is our core product. We will consolidate our leadership position there with the new plant, sorry, the new plant will be focusing more on Human Nutrition but even in the Animal Nutrition side, we will continue to gain share and some of the markets are still lesser penetrated for us like US, we are doubling down on them. B4, choline chloride - that’s the core products for us and also the rider products for some of our Specialty portfolio we have created for the Indian markets and the neighbouring markets in South-East Asia. So, we are doubling down on them and we see huge growth potential in those businesses.

On the Human Nutrition side, we are relatively small today, but we are putting a lot of trust. We recently had Vishal, who is here in the room, and you should meet him in the booth outside, he comes with a very rich experience of Human Nutrition development product. So we will be doubling down on it on the back of 2 products which we already have in the portfolio, which is Vitamin B3 food grade, for which we just commissioned a new plant and choline chloride which we just announced in the market and getting good traction. So, these are the products for the Human Nutrition portfolio but on the back of it, we have plans to get in the premixes and some of the formulations which we are just starting the journey on and will hopefully grow in coming years.

Chemical intermediates, if I have to summarize the strategy, it’s about sweating the assets with a lean cost structure. So, we have huge capacity, we are running most of the capacity at 70% utilizations even in tough times like these. We believe that with the leadership positions and the cost structures we have and the global presence we have in these products, we should be able to push more volumes in the coming years and take those utilizations up to at least 85-90% in the coming years. So, most of the incremental growth in this portfolio will come from the back of existing capacities. We don’t have any plans to invest more to increase the capacity in the Chemical Intermediates portfolio which just started and obviously we are working continuously on the cost structure and we have already turned at least 10 different initiatives to optimize the cost structure of our acetic anhydride, ethyl acetate, acetaldehyde and other products portfolio and we will continue to work on that.

So, that hopefully gives a bird’s eye view, we will talk about some of them in detail in subsequent pages. Obviously, there are a bunch of enablers in the bottom which I already mentioned, I will not repeat what I said on them. How it will look in terms of the portfolio shifts is summarized on this page. If I talk in terms of the business units, today, as I said, Specialty is almost 40%, Nutrition is almost 15-18%. These two businesses will become almost 75-80% of our portfolio in the next 4 or 5 years with Specialty taking almost 60% share and largely growing on the back of all the investments we are making in CDMO and Fine Chemicals portfolio. Like I said, exports will become almost 60%, 65% of our portfolio and you can see how fast America is already growing. We expect America to become almost 20-25% of our portfolio in coming years. In terms of end application mix, the mix is not going to change significantly because these are core sectors particularly Pharma, Agro, Nutrition have been our top 3 sectors for a while.

The Agro share is increasing on the back of some of the big contracts we are signing in agro. As I said in the beginning, it's anyway even stable times almost 25% of our portfolio so it will remain 25-30%. So pharma, agro, and nutrition will thrive and consumer will become relatively bigger on the back of what I said on the cosmetics and hair care space. So that's we are doubling down on.

We believe we will deliver on this strategy because of a few reasons. Number 1, if you look at the markets we are in, the end application and this is just market data for global market growth from some of our core segments.

Irrespective of short-term challenges, all those markets are growing quite well.

In the global context, those of you who follow the global chemical industries, 5-6% growth is a very healthy growth, and all these segments are high growth segments. Of course, there are some short-term volatilities but take that out.

The secular growth in all these sectors is very robust and strong and when you translate it into what gets outsourced to a country like India, the growth becomes almost 3-4x. So, while these sectors will grow at let's say 5% on an average over the next 5, 10, 15 years, when it gets translated to what comes to India for manufacturing will be at least 15% if not more. So that is our addressable market. The TAM or SAM, serviceable market for us, will be growing at least 15% in any of the domains or all the domains where we are present. So that was reason number one for our confidence or belief in this Pinnacle 345 strategy.

The reason number two is if you take the last one year and with all the changes we have made, the baby steps that I explained in the beginning we have taken, that has led to some meaningful outcomes for all of us which actually has been on one side heartening and second time morale booster for all of us as the leadership team that what we are doing is right and hopefully will help us build out the kind of portfolio we want to build over the next five years. So, I will not again talk everything out of this page. You have seen it in our quarterly presentations. But be it our USFDA, that was our first USFDA for a Chemical company to go through USFDA process. If you have not done it, the simplest word would be nightmare. The kind of preparation and changes you have to do and I know Vijay, myself, and many other members of the team spent several sleepless nights to just ensure that we deliver on the expectations. It was for a food grade product. It was not pharma in all honesty. But still, it was a big test for us, and we were very happy when we cleared it with 0 483 observations in the month of April and

it gave a different kind of confidence to our teams that yes, we are ready for some of the challenges which are coming ahead in this journey.

WEO Lighthouse has been talked about multiple times, so I will not repeat. I think this is a constant endeavour from all of us to bring digital and new interventions. Vijay will talk about it. Almost 200 plus interventions we have made across our plant, supply chain, even front end and have started to yield results. The big CDMO contracts, it took a lot of hard work. Almost one and a half years of continuous hard work with several of us just doing calls and meetings with the customers almost on a weekly basis and giving them the comfort that we just, of course, we have the capabilities, and chemistry stands which they are looking for, but we will be responsive and we will deliver on what they expect us to deliver.

So, like that, there are several other achievements from the past one year which has given us the confidence and that has overall improved the quality of our portfolio in several ways. Now again, I will not, some of these points we have already talked about, but you look at whichever way, whether the business mix today, the percentage share of profits coming from Specialty and nutrition, you look at the customer mix, you look at how fast our CDMO and some of the new businesses are growing, you look at the composition of the leadership team, you look at the product mix, the kind of incremental growth. One thing I did not mention is in Pyridine, when one of our international competitors closed down in the US, within six months we grabbed 70% of their volumes. So that's the speed at which we had to move to capture that market because otherwise Chinese would have taken it from us. Ambrish and Amit, I know they spoke to all the customers. We mapped out the customers, we reached out to each of the customers and Ambrish will again share the stories, but almost 70% of those volumes we captured within six to probably nine months and then we have those customers now, hopefully for future as well.

So, likewise we have several such examples which gives us the confidence and the overall mix of the quality of portfolio, moving in the right directions along the lines of what we envisaged it to be in a few years as a part of Pinnacle345 journey. And obviously, financial results are just one outcome, the last 4 quarters have again given us the confidence that we are on the right track, obviously it is a result of hard work in terms of both growth, particularly volumes growth because some of the volumes growth got wiped off due to the decline in the market, but that’s something we cannot control.

But at least, if I look at our growth journey over the last few years we have seen volume growth, profitability has improved, as I said in the beginning, based on the 2 key drivers - no 1 is the portfolio shift we are doing and no. 2 is the cost imperatives which has helped us take out almost Rs. 100cr+ from our cost structure. This data, again, we have shared in the quarterly presentation. The Specialty portfolio has grown 20% in the first 9 months, the profitability has improved significantly, Nutrition similarly has grown 8%, part of it grew more because of the price. In terms of volume, we have grown probably 15%. EBITDA, of course, has improved. The one area where markets are still troubling us, and we are not out of the woods completely, is the acetyl business. That business, particularly our anhydride business, is driven by what happens in paracetamol and acetate, which is a big agrochemical molecule. Both these markets have gone through tough times in the last, I would say, six or eight quarters, to an extent that most of our

customers are either not running their plants, or even if they are running, they are running them at 40% to 50% utilization only. From the analysis we have done, where we have mapped out the inventory in the system for each of our customers, and based on the discussions with the customers, we feel things have bottomed out. The de-stocking is done there, and hopefully in the next couple of quarters, the volumes will start to come back there as well. And gradually, with a couple of more quarters, we'll start to see a price movement upwards as well. So we are hopeful that Chemical Intermediates will start to come back, but that's a relatively commodity product, and we'll have to live with those commodity cycles. But we are well prepared by focusing on cost and by pushing on some of the products where we still see room to gain market share, which Himanshu will explain in a few minutes.

So, all of that has helped us in just, again, ensuring the overall quality of the portfolio moves in the right direction. As I said in the beginning, the U.S. and Europe have grown very significantly for us. Just to give you a sense, the U.S. used to be 4% to 5% of our portfolio. Today, last quarter results, almost 9%, and we are on track to hopefully, by FY27 itself, it should become 15% plus, and obviously in the next five years, we want to make it 20%, 25%.

Europe also grew almost by 30% in the first nine months of this year, and we are hoping with the confidence that the European and American customers have shown us, we'll continue to grow this.

And the only other point I would say on this slide is Japan is a market where we are investing now. We have hired somebody recently, and Japanese customers take time, but when they open up, they open up in a big way. So we have just started our journey in Japan in the last few months. I have personally travelled there. Senior members are traveling almost every three months. So, we are hoping in a, if not in a few quarters, definitely in a couple of years, from the rest of the world, we'll be able to carve out Japan separately with all the push and hard work we are doing in that market to open it up. So that was, I think at an overall level, what Pinnacle 345 is and what the journey has been in the last couple of quarters since we defined and announced the Pinnacle journey.

Let me now invite a few of my leadership team members one by one to talk about some of the details. I think the key points I have already covered, but it will be good for you to hear from them also directly. So let me start by inviting Ambrish. Ambrish will introduce himself. He joined us a couple of years back, brings very rich experience in CDMO and Specialty Chemicals, and will take us through the Specialty Chemicals presentation.

Thank you everyone, thank you Deepak. It is my privilege to be here and let me introduce myself, I am Ambrish Dixit, I am heading the specialty chemical business as a President – Specialty Chemicals, around 24 years of experience, out of that, almost 18 years with Specialty Chemical, 3 years in API, sales earlier. Out of 18 years, 2 years with Jubilant now. I’ve taken this role in May 2023 and 10 years with SRF in their Specialty Chemical business, 6 years I was running a small company called Paushak in Phosgene specialty chemical.

So, pleasure to be here and, no, really, thank you Deepak for introducing lot of stuff about out company, about our businesses. I will try to give you some

more glimpse, how we have been operating, how we have been doing and what the future plans are. And, here, we operate 3 businesses in Specialty Chemical business, starting with Pyridine and Picoline, starting way back in 1991, you know, we have been the largest player globally for last couple of years, you know, this marketplace has been invaded by Chinese. Despite the invasion we have been firm and today we are the largest producer of these materials in the world.

Followed by, we have Fine Chemicals where it was started as a downstream for Pyridine and Picoline, you know where we forward integrated, started supplying and this story is also linked with our growth in the pharma market in early 2003, demand started coming up in pharma, especially on the API side for Pyridine derivative and it is further being diversified. Here, we have more than 50 products, out of this, 36 products are globally number 1. There are a couple of products which, you know, are coming from China, and a couple of products which are manufactured by a few small companies in India.

So, we have a very strong global position on these products. Then, Deepak has talked about, we have also identified opportunities in Diketene, we entered a couple of years back, we have aspirations to become top 3 in the globe. We are not looking to dominate only in India, what we are looking for is to dominate the world. And based on today’s relationships, the kind of connections we are making, we are confident that we would be able to achieve one of the top 3 positions in the world in very near future, not too far.

Another area, you know, which we have identified is Semiconductors and, you know, cosmetics, which we have started working since last 4.5 years only. We believe that these are the new growth areas that can put us in a different map. But obviously, our primary driver would be coming from Pharma and Agro for next 3-4 years. Then, we are also looking for inorganic growth opportunity which fits into chemistry capability help us to offer more ancillary creating opportunity in the area we are operating in. Typically, we have been operating in 3-5 steps of chemistry, so can we go 10 step for that, you don’t require 1 chemistry, you require a couple of other chemistries to

add in. So, we have 35 chemistries platform as on date, we do bromination, we do chlorides, you know, we do ethers, etc etc. But then we are looking to add further chemistries so that we can make way to offering more robust services to our customers. We are not looking to see products now. What we are looking to sell more and more is services which can help us to grow more with the customers.

So, with this, I will talk about our Pyridine and Picoline, which is our legacy business which if you can see, we have been able to grow our volumes by 150%, we have been able to grow our beta-picoline, other than our captive, 10%, so, these are all merchant sales where we have more than 25% market share. We have, you know, Vertilabs, which was a US company that got closed around end of 22-23 and then we have been able to capitalize all those accounts, so rather than the Chinese getting intrigued by the margins, we have been able to sell, we have been able to capture 75% of those accounts which has also helped us to sell more volumes in markets.

I think, Deepak also talked about oil fields, so we also sell certain pyridine derivatives in oil fields, and we believe that the kind of relation we have with the large players across the globe, US, Middle East, etc., we would be further diversifying launch in these 2 regions. So, for our PNP business whose relations will become our backbone, and we believe that we will be focusing on this in the near future. And then, obviously, Vijay will talk about, we have a lot of cost initiatives and 80%+ capacity utilization which will make sure that we remain present in the market. And, last but not the least, PNP will continue to have very high captive demand from our business in FC and CDMO which will allow us to optimize on the other margins.

Coming to Fine chemicals, you know, Fine Chemicals again, I could say that there are 2 parts running this business, one is PNP derivatives which is the forward integration. Here, we have 36+ products where we are the number 1 in the globe, we have typically from 50%+ to 75% market share average to 55%, we have 5 new products we wrapped up in last 1 year. We are also further exploring talking to innovators or any new molecule which is in the pipeline will definitely come to us due to our unique position of being non, the only non-Chinese player who can play large.

Then we have Diketene which we launched a couple of years back. Now, here, we had initial tipping issues and we have been scaling up. We have 6 products, 4 we will be launching this year. We are actually you know, 70% of our plants already being utilized, we have launched 2 new plants within last 1 year, we are scaling up further. We are also planning to multipurpose our various products for Diketene. So, Diketene as a chemistry, we have been doing acetic anhydride which is primary Ketene and Diketene has been a natural extension, so based on these extensions, we believe that acetic anhydride, we have been handling ketene chemistry for the last, since 1980, for 40 years+, diketene for last few years but we can play this game really, for a really long time and we are pretty confident that we will be able to grow this existing business almost 2 times in the next 4-5 years.

Again, for Fine Chemicals, there is an attractive market, we have existing products, we have relationships in place and we have chemistries differentiation in the capability, in terms of the various other chemistries which are required to sell this product and that is a reason we have this belief that

we would be able to achieve these targets with dedicated teams of Anurag, or Yuvraj or Amit, who have been running business, who have been with us since last 10 years+, they know this chemistry, the team which are handling this Pyridine and all its derivatives have been with us for a number of years.

So, with this we should be able to grow our existing business by at least 2 times.

Now coming to the CDMO, you know, which is a buzz word. Everybody talks about CDMO, everybody talks about whether CDMO is good or whether catalogue products are good, or a mix of both of them is good. So, if you see all big players in Indian market, very few are CDMO players, many of them are having their own products where they have global positions and then there are certain products who are offering those services as an extension of those capabilities. So, I think Jubilant is very unique in that sense where we have global positions and along with the CDMO business we can see ourselves as a global leader in those set of products. CDMO, again, we have further bifurcated in 3 parts. One is Agro, we have been on that space for long but more selling of our own products, second is Pharma and third is Semicon which we just initiated rolling of.

I think CDMO Agro, Deepak has already talked about, we have signed a $300mn contract, we have another contract with another innovator. So, out of top 10, 7 are our big customers. We have that relationship, we have been able to forward that pipeline, we have been able to extend our relationships to our customers, couple of months we had multiple roadshows, we had multiple visits to the customers. I think, I, along with my team has travelled at least thrice to US, many more times to Europe, China, Japan. We have somebody in Japan, we have a China office, we are hiring and moving some of our internal talent to Europe or further accelerating the touch base with our customer. In US, we have offices, and we are further expanding those offices with great talent. So, we are increasing the touch base with the customer on the CDMO as well as on the Fine Chemicals side, which we believe will help us to infuse this pipeline. And then, Vijay will talk about, we have proved our executions, so, in terms of the capex which should take about 20-22 months, we are now targeting let’s say 12 months or 14 months all put together.

Coming to the pharma side, you know pharma has been a backbone for Jubilant in a very long time. Here, as I already shared, we have more accelerated our efforts to hire more resources, we have 9 molecules under development, we have already known some certain innovators for a very good long time. We believe the kind of relationship, the kind of trust, will help us to grow further. We have some more discussions happening. So, all put together, Pharma and Agro, we have a strong belief that the kind of relations will definitely help us to multiply the business to come.

Semicon is an area everyone is talking about, semiconductor, one is the Indian supply chain which will take some time to evolve. So, what we have done, we have gone to the US, we have gone to Japan and Taiwan, we have, to understand what kind of synthetic chemistry has been asked for, and here we have been further able to identify certain molecules which are under discussion. We believe, you know, we thought we helped the revenues come a little early but definitely there are more challenges in terms of chemistry capabilities or purification etc. But we believe that we should be able to have some good revenues very soon, starting from next year onwards.

Then, you know Pyridine and Picoline, we have been selling for a number of years and there is also an application in semiconductors, electronics side.

Where we are also in the process of working out and launching this molecule where there should be reasonable volume coming in. And then, this requires capex, this requires specific plants, specific labs, which we are also working on and so Deepak will the one sharing the news in terms of when we are going to get it approved. So, with all this, what we are looking for, and good part for our CDMO business, we are looking at least 5x growth in the next 2 years. And I’m very pleased to share that we have already clarity for more than 70% of the POs in hand, so technically 3.5x anyways it will happen and then we are talking about taking it to another 2x. So, all put together, by FY30, it would be something like 7x growth happening and what we are hoping aggressively and so we are hoping with multiyear contracts happening with the Agro innovators which is not only just for existing molecules, we are getting into new molecules. One of the new molecules that we launched commercially and we believe that it would be one of the blockbusters in the world, so we’ll also grow with the innovators, as it grows.

We are further increasing efforts to take it to the next level, the kind of molecules that we are getting, will help us further increasing these numbers.

So, on the CDMO side we are confident with the kind of infrastructure we are putting in, the kind of capex we are putting in, the kind of relationship we have, or we are increasing, we’ll ensure this kind of growth coming in.

So, with this, I will take a pause, really appreciate your time for hearing me out and then I would like to invite my colleague Ashish to talk about nutrition. Thank you very much.

Thank you Ambrish. So, I am Ashish Sinha, I handle Animal Nutrition and Health Solutions business. I have been with Jubilant for the past 6 years and before that I was with Reckitt Benckiser, GSK Consumer, Novartis Consumer, ITC and Diageo. Before I take you through the nutrition and health solutions growth plan, I would request each of you that there is a QR code kept on your table, so you can scan the QR code and send the questions, if you have any, to us.

So, in Nutrition and Health Solutions business, we have a very strong presence in animal and human nutrition. We have a very robust portfolio spanning across animal and human nutrition. So, in animal nutrition we are globally number 2 in niacinamide which is vitamin B3, and we are domestic leaders in choline chloride, which is vitamin B4. Apart from this, we also have more than 18 branded formulations, so, these formulations go into feed additives, so poultry feed, pet food, dairy feed, aqua feed, swine feed, it goes into that. So, it basically enhances the performance of the animal by increasing the nutritive value in the feed. So, this is the product that we have in animal nutrition.

While in human nutrition we have choline salts, which is like vitamin B4, in the form of choline chloride and choline bitartrate which goes in pharma as well as nutritional products. We also have niacinamide for food application as well as cosmetic application, which goes into human application. This apart, we are planning to foray into pre-mixes which goes into nutraceuticals

and nutritional powders. Apart from that, we are also planning to identify some more straight nutritional ingredients to get into that.

So, in terms of geographical revenue, we have around 74% of our revenue coming from our export markets and balance coming from domestic markets.

So, our customers is very robust and so we have around 400+ customers globally who have been associated with us for a long time and in terms of split between animal and human nutrition, so, 69% of our business comes from animal nutrition and balance comes from human nutrition.

So, in terms of the pinnacle vision for the business, nutrition and health solutions business, so, our vision is to triple the revenue by FY30 and almost double the bottom line, so almost current 12% EBITDA margin, we want to take it to 18-20% and how we will do this, the growth drivers that you can see on the right hand side of the slide. So, the first is niacinamide cosmetic grade, so we have already commenced production for the newly commenced plant for the niacinamide cosmetic grade that we will double down and ramp up the niacinamide cosmetic grade and food grade from there. That we are doubling down on human nutrition, so on human nutrition we are focusing on pre-mixes, we have already launched choline chloride and choline bitartrate, which goes into human nutrition and pharmaceuticals, we are ramping up those values.

We are also to go ahead with the capex, we are working on green filed GMP plant for choline chloride and choline bitartrate, and the third one is speciality formulations, now speciality formulations, these go into animal feed, these are like vitamins, minerals pre-mixes, emulsifiers, herbal formulations which go into feed which has more higher margin and more stickiness with the customer and which has more traction in India and the neighbouring markets.

So, we will double down on this also. While doing this, so there will be a fundamental shift in the entire portfolio which we have currently. So, currently if you see, 33% of our revenue in nutrition and health solutions segment comes from food, cosmetics and speciality pre-mixes. This year, this will increase to 36%, with increased focus on the speciality formulations and the food products which we have on our portfolio. By FY30, we will take it to 67%.

Now, as I have said, how will this grow? This will grow with increased focus on doubling down and focusing more on human nutrition pre-mixes.

We have also deployed a dedicated team for leveraging the full potential on human nutrition, as Deepak has said. Vishal has joined us and leading the human nutrition efforts for us. Then, we are pushing on CC CBT, which is the choline chloride and choline bitartrate, vitamin B4, and as I have said, we are planning to take a capex for that for Green Field GMP manufacturing facility for that. Then niacinamide which has already been commissioned for food grand and cosmetic grade, we are ramping up the volumes for that and very soon we will take up the leader board and number 1 position in niacinamide globally and we are adding more pre-mixes in the feed additives segment.

So, that’s the whole chart on how we want to achieve this aspirational growth numbers as well as the higher bottom line. So, with that, I’ll call my colleague Himanshu, who heads the chemical intermediates business to tell the chemical intermediates plan.

guys and happy to take you through all acetyl or the chemical intermediates business. So, you might have already heard from Mr Bhartia, or Deepak, chemical intermediates being the building block not only for Ingrevia, but from where our name comes, you know, chemicals for life, ingredients of life, truly, this encompasses the true meaning of that with the variety of application of what we have. Our chemical intermediates business touches all through the applications, you know, and it gives us that relationship which all of us talked about, in terms of customer base, huge customer base, in terms of application, most variety you could see in pharma, agro, nutrition, consumer, industrial, everywhere this product goes. So, what does it create? It creates a customer base, it creates a relationship, it creates a strength which can sometimes be used to even open the doors for the other products. So, we are there to serve those segments.

How we are split in terms of our business? We are almost 70-30, 70% domestic business and around 30% export business, primarily led by Europe and you could see that in the bulk business we have really pushed our capabilities, and we are among the top 2 players in acetic anhydride, globally.

And, in this market, in this scenario considering the global players around, this is significant achievement in terms of how we place and prove ourselves in the market over the years. Ethyl Acetate, we still remain a very significant player in the market and some of you, one of you did call me out outside that where we are on this product. Sir, we are still there, and we are still a significant player in the market and we will continue to be a significant player in this business. We have other products, and we continue to run that, be it acetaldehyde, be it bio - acetic acid, be it formaldehyde, be it Propionic- Anhydride, so we are in this business.

How we have shaped up and how we are going to play a role going forward in our Pinnacle 345 strategy. So, what we are looking or what we are proposing. As such, we are looking at an increase by 1.5 times in the topline, currently we are somewhere around Rs. 1700cr of the topline with around 8% of EBITDA. So, what we are looking at, by FY30, we should be atleast Rs. 2500cr for chemical intermediates division with 10-12% EBITDA, which is a normal, standard % in our kind of business. And how we are going to achieve that is a critical question.

The critical role is that we will maintain our market share and we will grow our market share, we will maintain our market share in a market like in India, and we will grow our market share in a market like Europe, and we will also enter into new markets which we have either not touch based or not focused on in the past, where South-East Asia being a market, US being a market, Turkey being a market for that matter, in all those areas. How we are going to do that is not only by efforts in the market but by also improving the cost positions. So, I’m sure Vijay will take you through all the initiatives we are taking but then it’s a very significant progress that we have done in terms of the initiatives we have launched. How to make our business more sustainable by looking at the cost structure and where we can improve those processes. And, of course, as we move along, the margins will increase and then we could again see the 10-12% EBITDA levels.

Acetic anhydride, I know many of you also talked about acetic anhydride because, within our portfolio, one of the major components, we have had challenges, yes, we have had challenges in India in terms of demands

projection, certain applications in India, if you have seen the challenges, you know that the demand in India has gone down. But I can assure you that we have not only maintained our market share, we have increased our market share even in this depressed market. So, we are around 74% market share in India despite all the challenges and we are looking at Europe market at, you know, in Europe, you have already seen, because of the Ukraine war, it has been a challenging involvement overall, but there also we have been able to maintain our market share. In fact, we have also grown our market share, if I leave India and Europe outside, we have significantly grown our share in the RoW market. And that’s a mandate that we have, we have to focus on these markets, grow our footprint and probably, you know, as you move along, knock the doors of the customers, gain those entries and again be back as the number 1 producer of acetic anhydride globally.

Other key products, you know, what we have in this time, apart from focusing on acetic anhydride, we have grown almost 30% of our ethyl acetate business. Like I said, someone was asking me outside that why we are vacating this space, no sir, we are not, we are coming more stronger in this.

Propionic-Anhydride, we have increased our business in this, acetaldehyde, you know, almost 180% we have increased and this product we have not only increased in India, we have also started exporting this product. So, we are also focusing on all other areas in this product portfolio where we have a space to grow ourselves, where we have a space to grow the product availability we have with us, to capitalize on the enormous customer base we have built over the years because of the other products, and we hope we can continue to do that.

With this, I’ll call on Deepak to take us through this exciting journey. Thanks.

So, hopefully that gave you a good glimpse about the bottom-up work that is happening in each of our business units. Now, of course the businesses cannot perform unless we have a strong foundation of all the enablers helping them. There are 6 of them that I showed in the pinnacle strategy phase. The first one, I’ll just quickly talk about them and invite Vijay to come over and explain them in detail. The first one is about customer first approach or customer centricity as I explained. I think last year we took the big initiative here of key account management.

We mapped out our big customers, identified almost 30-35 of them, some of them came from acetyls as well, as Himanshu explained, what acetyls portfolio does is that it gives us access to the big customers and on the back of those relationships, we have been able to open up conversations to talk about our broader portfolio and newer opportunities. So, for these 30+ customers, we did a bottom-up mapping of all opportunities across our portfolio of 130+ products that we have today but also studied what their priorities are. Many of them are listed so they have announced their strategies, they have announced what they are going to do and many of them have specifically talked about what they are planning to do in India and how they are looking for new partners so when we leverage all of that groundwork and went out to meet all the customers, as Ambrish was mentioning, all of us were on the road last year between March and September-October, went and met almost 120+ customers right at the senior most level, discussed with them what we bring to the table, reintroduced the new Jubilant Ingrevia, our new strategy and what we bring to the table and of course talked to them

about some of the potential hooks we had in our armour for them and that generated a conversation of new opportunities which runs into 100s or possibly 1,000s of crores. Now, of course, not all of those will materialize because some of them are just ideas at this stage but what it does is a very clear sense of potential opportunities and areas where our customers are focusing on and we are now in a focused way speaking to those customers, following up on our discussion to see if we can convert any of the opportunities into real commercial revenues for ourselves.

The second is on world class operations, I won’t go into the detail of that, I’ll invite Vijay in a minute and he’ll cover each aspect of it in detail and after that R&D, I talked about, we are investing, we will be investing even more, we are expanding our team almost every passing month, we have got some new senior talent also, both in R&D and technology side. We are setting up a new process safety lab because a lot of our customers in MNC space expect us to have even higher standards of safety and processes than we ever had.

So, we are setting up a lab in our Greater Noida facility which we will be focusing just on process safety and that is just one example.

Like, we are creating a technological cell and centers of excellence which Vijay will explain how that will help us create the right infrastructure to deliver on this growth. Digitally, obviously, the surge program that I talked about, which we started couple of years back has really good results, Mr Bhartia talked about it, will continue with that journey. We got lighthouse for one of our facilities, our aspiration is to get it for atleast one more plant within next 2 years and we are working towards that by introducing all these interventions across all the other plants as well.

We have, on the supply chain, Birajeev, who just joined us a few months back. He comes with a very deep experience of looking at supply chain in a different way. He comes from a digital background, so we are re-looking at every aspect of our supply chain, bringing digital intervention, making it more agile, lean, responsive and efficient and that is giving us synergies and some of the savings, Vijay will talk about it in phase 2 of that, I mentioned in the last investor call, it has already started, a significant portion of that will be driven by the supply chain.

And finally on the people side, we have improved the productivity of our plants. I’m not sharing all of that data but a lot of savings in our lean program, not all but a significant portion of that has come from productivity improvement. We have applied our performance management systems with a lot more discipline and wherever we had inefficiencies or lacuna in our organization, we have cleaned that up, we are still cleaning and we are getting new talent, more capable talent into the organization which it needed to not just bridge the gap but to bring in fresh energy and momentum which it needed for this transformation. So, these are the 6 parts, and we will talk about 3 of them. I think the customer one, I have already explained so I will not go deeper into this stage.

But let me just invite now Vijay, who is our chief of operations, and he will talk about some of the initiatives in more detail on how we have done them and what are the benefits we have already gotten, and possibly more benefits are coming in years or next few quarters.

So, in my discussion today, I’ll talk on 4 major elements, cost reduction, then I’ll talk about ESG, safety and digitalization. I’ll talk about what we were able to do so far now and also give you a perspective looking forward, down the line so that you get an confidence of how we are taking the strategy to the next level. This year, as Deepak has already said, we could reduce our cost by Rs. 120cr. The most of these savings are coming from the different initiatives we are taking at plant level, we are focused on renewal power energy and that has helped us to really reduce our cost by improving our efficiency in boilers, we have formed a centre of excellence, we have done an assessment of our boilers compared with the best practices of other companies are following internationally and based on that we have developed a program which has been implemented across the sites and we could gain an efficiency of around 9% in boiler, which is significant.

Second, we feel we are sourcing our power differently, earlier we used to get all our power from grid except Gajraula and this year we have purchased some of the power through exchange and also signed short term contract, we have signed a long-term contract, which Deepak was saying, which will benefit down the line, next year onwards. Productivity improvement, this is an area we continue to work on, I’m also a sigma black belt so once a strategy is made up, I find it, I mean, our team is quite capable to looking into it in detail and have a laser sharp approach to provide a solution to those issues, and that is helping us, I mean, all of this has led to saving Rs. 120cr. We have a line of sight to get additional Rs. 100cr saving each year moving forward. I’ll touch base on this in other slide.

So, these are the kind of 5 main pillars where the savings are coming from.

Energy, as I said, already explained to you, 17% improvement we see there.

Effluent is another area we are working on and, as Deepak was telling, and another colleague that we are working on centre of excellence, so here we have formed a centre of excellence team who is looking at how are we treating our effluents. And we had a major success in one of the big products we are making at our Gajraula site, and that initiative itself has given us good improvement. Now similar project we have built for other product as well and I think this year and next year we will continue to get savings from effluent treatment setup. Our target is to significantly reduce our effluents and when I’m going to talk about ESG initiatives, this will also give us a good benefit there. Today, our, 95% of our total waste we are recycling.

In terms of norms, again we have formed a group who is doing external benchmarking for us, looking at how we are making our product, what are the new technologies happening, not only in chemical, but in other industries and then how do we leverage those technologies in our plant and then drive the improvement, so that is giving us a good saving. The number is 1% for this year but moving forward this will go up significantly. Lean, we have looked at the entire function including operation, supply chain, quality, maintenance, projects and then we identify the pocket where there is opportunity for us to drive the improvement and those are the areas we have

quickly worked on and then reduced the number of people, and thus we see a productivity improvement of 20% coming from there. Digital, so far, 30 high impact initiatives are implemented, and these initiatives are cutting across all other areas, like, we have an initiative in energy, we have put APC in one of the boilers where we are taking a trial on how automatically all parameters of boiler is maintained and it is running efficiently. So, similarly, it is implemented in different functions there.

Now, I’m switching gears, talking about ESG. A company who has a vision to become a world class operation cannot go there if you don’t focus on ESG.

So, this has been a focus area for us. Environment, in the scope 1 and 2 we have achieved a 6% reduction and moving forward, we are expecting another 6-8% reduction in the coming, in the next 2 years’ time. As I was talking about waste here, recyclability - 95%. That’s a big number for a chemical company.

On social part, we have a strong, in our Jubilant-Bhartia group, our CSR activity, we spend a lot of time and energy behind it and so far, close to 1mn lives are being impacted due to the work we do on CSR. 90,000 health consultations have been provided by us. Diversity is another area which we are working on. Currently our diversity is at 6%, we want to take it to 20%, there is a program put in place. Next 3-4 years’ time, that is where we want to take our organization to. In terms of ESG rating, Akash has already talked about it, so I’m not going to touch on this but those are the kind of good reflector that external bodies are recognizing the work we are doing and that’s how those ratings are coming.

Safety, this is a pillar which we wanted to build on. This will not only help us to make sure that we reach to the top but also sustain it. Our focus is on 3 pillars here, one is workplace safety, process safety and then we are working on building a culture. Workplace safety, we have made a good progress on this part and the work progress is coming from there. Process safety, again, we have found a CoE, centre of excellence, we have placed down the best vertical which has to be implemented in the chemical industry and most of these are already, I would not say, matured at the level it should be, but we have implemented it and now our current focus is to build a culture around it, that’s the last 2 parts. So leadership and we have put up an auditing process.

Our intent is, in the Bradley curve, we want to move from reactive zone to the interdependent and this will happen, generally it will take us 2 years to reach there, but we are very confident that we will be reaching there, our safety performance has already started showing significant improvements. I mean, compared to last year, all the data is available but, compared to last year we have improved both in lagging as well as leading indicators.

Digitalization, this is, we believe that this is the game changer for chemical industry. So far, Indian chemical industry has not made significant process, so we are the early movers there and this advantage we want to continue to hold. As Deepak was saying, close to 200+ digital interventions have been already implemented. We have 36+, sorry 26+ CoE who is working at different sites and functions and helping us to make sure that these interventions that we are developing are implemented. Here, 60+ people in the plant, who have formed a team and looking after different initiatives that we are implementing across the sites. We have another 300 interventions in the pipeline with this group of 26+, almost 80 people, they are going to do a

funnel activity, identify the opportunities which we need to take to the next level and that is how the program will be driven throughout.

So, that is pretty much from my side on operations. I’ll invite Varun, our CFO to talk about the financial plan and digitally.

Good evening, everybody, I hope everybody is as excited as me listening about the Pinnacle 345 plans and the transformation that this organization has gone through in the past 12 months. Before I take you through the financial plan, a one liner introduction about me. I joined this company in August last year and prior to that I was with Unilever for 18 years. And last 6 months have been truly exciting, a lot to do, a lot done.

So, all the plans that all the business heads and Deepak have shared, what does it mean financially? So, if I take you to the next slide. One key metric that we keep tracking is our ROCE, from sub 8% last year it has gone up significantly to 12% in this last quarter that we reported, and we intend to take it to 17-20% in the coming years. And there will be key 3 big drivers for that.

One, as the portfolio shifts from Chemical Intermediaries dominant towards speciality business and nutrition business, which is far more profitable. Our return on assets will improve significantly. As Deepak shared, our exports will increase from a current 45-50% to 60%+ in the future and our spread of chemicals will be more than 60% so that’s the one key big driver.

Second, as Vijay mentioned, the savings program that we have unleashed in the organization which is going to consistently deliver Rs. 100cr+ per annum will increase the return substantially. And these savings are not one time savings, these are systematic savings which are taking the cost permanently out of the business. So, our asset returns significantly improves, especially in the utilities areas. Thirdly, the discipline that we have inculcated in our business, especially in the capital allocation that we are going to do, we will be much more controlled. Nothing less than 20% return will be invested in.

So, these 3 drivers will improve the ROCE sequentially, and we intend to reach it sooner than later, 17-20%.

Now, the second key metric that we will be focusing on is the cash conversion and the net debt to EBITDA ratios, and you will see consistent improvements in our cash conversion also. From a sub-90% last year, we are sequentially going to, are delivering 100% cash conversion to EBITDA and we intend to keep it this way for the coming quarters. It will be done through really optimizing our working capital by increasing our credit days and managing our inventory well and the other is releasing the cash from the tapped assets.

The second one is really how do we manage our net debt, so we will try to reduce it from 1.5 and bring it down to the range of 1.2-1.3 by improving our ROCE and profitability ahead of investment plans. So, together with ROCE and better cash management, we see a much better balance sheet and P&L because of the better mix and EBITDA. This will not be possible without the sequential, systematic improvement of our financial processes. We are in journey to automate our end-to-end processes, be it in the procure to pay or in the analytics or putting strong guardrails around our project management or our consolidation and putting the robotic process automation, RPAs, for end-to-end processes. So, idea is to remove all non-judgemental activities and automate it, so that teams can be focused more on business partnering and we can be much more efficient and digitized. So, better return more cash

and more automated services in a business which is more speciality driven and far more profitable, that’s the whole summary.

So, if I have to summarize, what this entire transformation will mean like, we’ll be touching Rs. 10-12,000cr of topline by financial year 2030. and if I have to see if we are on track of it, 4 times on EBITDA from where we started, so, in the range of Rs. 2,000cr by 2030. and if you see this year’s results for the first 3 quarters there’s a big improvement we have done from where we started a year back. ROCE, as I mentioned, from 8%, we are already touching 12% in the last quarter through portfolio mix and better cost savings and more discipline, and the net debt to EBITDA ratios to be in a controlled way in around 1-1.3, these are the 4 key matrices that we will there as a result of Pinnacle 345.

With that, I’d like to hand it over back to Deepak but also, I would like to remind all of you to please scan the QR and put in the questions. I have seen a few questions, pretty interesting ones, I’d like to see more interesting questions coming from all of you. Thank you.

Thank you, Varun. So, I think we have exceeded the time and apologies for that, but I thought it gave you a good, holistic and integrated perspective on what Ingrevia is and what is it doing. Just to round it up, I am an ex-consultant, so the presentation will not be completed unless I present the investment thesis for you guys as potential investors or existing investors.

I think we have a wonderful platform at Ingrevia, we are on the right track.

The end users segment, that I showed the data also are attractive with secular and robust long term growth and higher margins. Number 2, the growth is rapid and we are hoping to touch the Rs. 10-12000 cr in the next 5 years with higher margins closing almost 17-18% atleast, if not more on the back of all the growth drivers we discussed today. Number 3 , increased focus towards high value and specialty segments in our overall specialty portfolio but also in our nutritional portfolio as Ashish showed the mix almost flipping from 67-33 to 33-67.

Creating new growth platforms, semiconductors, cosmetics, human nutrition and to some extent, oil field also which Ambrish talked about, these are the new growth vectors which we can already see and smell the opportunities in these areas, we will invest. Some of them will give meaningfully large revenues in the next 4-5 years, some of them may take longer, but the idea is to create this platform in not just the next 4-5 years but also for the growth that we foresee even subsequent to that. Diversified portfolio, I think I started my presentation by saying this that, look at our portfolio, it is a complex portfolio, even I took 6 months to learn about the portfolio after joining.

We have to keep simplifying it in terms of getting rid of areas which don’t perform or don’t have the potential, but we have already cleaned up quite a bit but still, the portfolio is complex. But what it also does is bring diversity and balance to our portfolio. You just saw this year that acetyl has not done well for us unfortunately, but the other 2 businesses have stood up and held us together and have given us the growth and profitability that we were looking for.

The operations, I will invite those of you who are interested in our operations to visit our plants. Mr Bhartia talked about our 2 big plants - Bharuch and Gajraula. We are doing a lot of changes, some of our plants are old but we are investing in them, we are ensuring that the plants are safe, they are reliable and at the same time we are investing in new plants. We created 6 new plants in 1-1.5 years, and we have plans to create at least 2-3 more in the coming 12 months. Thereafter, we will be investing almost every year, significantly to create more plants, because that is needed for the future growth and finally, you met all the team members and with that I’ll also invite my leadership team on the stage for the Q&A. We have an experienced and energized leadership team. It’s a good balance between the old hands at Ingrevia who know the system, who know the capability but also a lot of fresh blood and thinking in the company which will hopefully take us forward.

So, that’s just a quick summary, let me just invite all the leaders from Ingrevia on the stage so that we can start the Q&A. So please come over and we can take the questions, Pavleen if you and Partha can moderate, we’ll take the questions, atleast some of them. I don’t know how many questions we have but we will try to take as many as possible. Sumit, please come. Vishal, Amit, Yuvraj, Anurag. Some of the members did not present but let me introduce you to them as they come on the stage.

Sumit leads our Vitamin B3 business and has been with the company for 12+ years, or 14 years rather. He knows A, B, C, D, E, F of vitamin B3. Himanshu, you met, I think, where are the other members? Yuvraj, so Yuvraj runs our CDMO business. Vishal has joined us just about 10 days back, is leading our human nutrition business. Anurag leads fine chemicals business, has been there for 12 years. Amit has been with us for a while but took over the pyridine and picoline business, about a year back. Am I missing somebody? Where is Partha? Partha is our strategy head and he is the administrator of this Pinnacle 345 strategy and has done a lot of leg work for this investor day as well and Pavleen also you know.

I think all of us are here to take some questions so Pavleen, you tell us and we will go around. Obviously, all of us are around post dinner and at the booth so please catch us if you have any specific questions.

First of all, thank you everyone for submitting your questions. A couple of interesting questions have come up and we would like to address as many of them as possible. So, we would first start with the question which is for Deepak in which the participant has asked Deepak and promoters have done various road show meetings, various potential customers globally, what has been the key common takeaways from interacting with these customers and how has been your conversion in getting business from these customers?

Sorry Pavleen, I didn’t get the second part of this question.

Second part is what has been your conversion in getting business from these customers?

Okay. Yeah, so good question. I’ll touch upon it briefly. As I said, we have been travelling around. All the businesses, like if I say personally, some of them have done many more trips. I have been to Europe 4 times in the last 1 year, US 2 times, and Japan once and China once and South-East Asia a

couple of times. And obviously, in India we have 50% business so a lot of trips to Hyderabad, to Ahmedabad, to Baroda and Mumbai. But some of the key takeaways I would say, I think the very first thing our customers have appreciated is the new direction and changed Jubilant that we talked about in this room also in the last 2 hours.

What are we changing? Even yesterday, some of our biggest customers were talking about pyridine but in the 2-hour session, we didn’t talk about pyridine at all. Now, some of you won’t even believe that Jubilant going to a customer and not even talking about Pyridine because Jubilant and pyridine are synonymous, but for 2 hours, all we talked about was what were their new molecules coming up, how can we accelerate some of those projects on the CDMO side, we can accelerate and what other areas can we support them on their growth. So, I think, our customers acknowledged that we are changing, we are listening to them, and we are talking a different language than just going and talking about pyridine and pyridine crisis and volumes.

Number 2, of course, with at least 35 of those customers which we are calling, we went with a lot of groundwork and preparation, before seeing them, in terms of identifying their focus areas and priorities and which molecules are they looking to outsource, so, which I explained earlier part of our TAM initiative. So, that led to a more meaningful and constructive dialogue. And in many of those, customers have told us that we should look at their molecules, as I said, we have created a big pipeline on the back of that. Some of that have converted and it will be quite foolish to expect a big proportion of that converting within a year. All of it we are looking as a multi-year journey and relationship, but a few big contracts that we have announced and what you saw coming as an upside blip in our revenue trajectory, gives us the confidence that the conversions will also follow. So, honestly, at this stage, I am not worries about the conversions because we are doing the right thing, customers are engaging, they are opening up leads for us and we are following up and we have the capabilities to convert on them so conversions will happen, if not immediately, then in coming quarters or years.

Thank you, Deepak. The next question is on Pyridine derivatives. How much of the base Pyridine is consumed captively and with expansion of pyridine portfolio, how do you see the mix getting changed over a period of years?

Also, if you can share out of these 36 derivatives, how many of these would be campaign based and the current contribution to specialty chemicals?

What we see today is the new leadership team helping us in the transformation journey and your thoughts on the retention of this talent to achieve your desired goals?

Pavleen, you’ll have to simplify the question.

Okay. There were 2 questions actually, the first one is for Ambrish, and the second one is for Deepak.

So, I think, you know, on the pyridine derivatives side, we have 7 plants which are multi-purpose plants, there are certain streams which are dedicated for certain molecules where volumes are large but these are all multi-purpose plants, then you know, certain products are 24x7x365 days, certain products are on campaign basis, so, it’s a mix of the lot. Now, the other question, Pavleen, was on the?

If you can share out of these 36 derivatives, how many of these would be campaign based and the current contribution to specialty chemicals?

I think when we say 36, it’s a majority I think, almost 80%+ would be where we are market leaders and contributing to our FC sales and our PnP derivatives. Obviously, diketene are also there, which are more dedicated in nature, but it’s a mix of the lot. And it has been pretty old, we have been in these products for almost 20 years, all put together as a derivative journey.

So, these are very strong large products, this is a large portfolio, primarily serving to pharma, agro and industrial, consumer, food, nutrition etc. We are selling across the globe, domestic. US, we sell within China as well, we sell to Japan. Europe sales is relatively large across the globe, other than India. So, it’s a big slot.

Yeah, so, I think part of the question was whether they were campaign based products. So, because there are so many derivatives, and we make them in our multi-purpose plants. We have 7 multi-purpose plants in Gajraula and building the 8th one. So, obviously, these have to be campaign based products, all these are speciality, these are not the bulk volume based products. So, we know, who those customers are, and they give us the visibility and we do the real-time planning and scheduling and production of the products in out multi-purpose plants. So, yeah, these are campaign- based products, but for many of them, for all of them, customers know us for several years and they give us visibility well in advance for us to plan that up.

So, the next question from the same participant is, what we see today is the new leadership team helping us in the transformation journey and your thoughts on the retention of this talent to achieve your desired goals? This is for Deepak.

Obviously, not just for our industry and company, finding the right talent and retaining them is the biggest challenge if you ask me. We have been lucky to find , first retain whatever good talent Ingrevia anyway had and then we as a group are known as somebody who can find and retain the talent not just in this business but in other businesses also, so we obviously had a good start but we also have been very lucky to find some of the new talent, some of them standing here. I think, for me at least, now I am saying as somebody who has been on the other side as a consultant, the biggest thing that helps in retention of the talent is whether we are excited about the mission and the challenge that has been taken. I think I personally feel, and you should interact with the team, and they will talk, I don’t want to speak on their behalf but the energy, the excitement and the focus that I see towards the mission we have defined, gives me the confidence that all of us are charged up and working towards the mission. Obviously, there are other aspects of keeping a team motivated, all of that is well taken care of through our HR systems and our incentives systems.

So, the next question is for Ambrish and Amit. For the Oil field Chemicals and Specialty Chemical Portfolio, could you please share the application areas and also what would be the total addressable market and serviceable market for Jubilant?

So the application area where our current intermediates are getting into is the corrosion inhibition application in the oil field segment. And this particular segment of corrosion inhibition is very wide, there are several alternatives that can be used. But this is one of the key intermediates which gets into the upstream, midstream and downstream side of the oil field. And if you talk about the total keys customers the oil field, it is very wide and we believe it’s about a $13bn industry. And having a got a foothold in the segment, with notable customers in the segment, we are looking at adding new products as we move ahead and specially trying to see where or what those fits could be based upon our expertise and what the customers need.

Thank you. Our next question is for Varun. What is the asset turn that the company is expecting from the speciality chemical business at the maturity when the company achieves the Rs. 6000cr target by FY30?

So, I’ll put it in a different way. Any new capex that we will do should give me a minimum of a 20-25% ROCE and typically in a specialty chemical, be it a CDMO contract the ratio of the asset turnover should be in the range of 1.2- 1.5 at the best. So, that’s how I will put it. As long as my assets are giving me a better ROCE, turnover for me comes secondary from then. They should be more profitable and generating more profits for us. But that’s the typical, 1.2- 1.5 is the ratio that it goes to.

So, another question is also for Varun. Since we are aiming at tripling our revenue by FY30, how do you expect to fund the capex required to achieve this kind of a growth going forward?

A good question for all the analysts building the model here. So, most of it will be funded through our internal accruals as our profitability increases and our cash conversion touches 100, the first port of call will be the growth capexes, and while the timing plays a factor here, most of it, the lion’s share will be through the EBITDA that we generate. Does it answer?

Yeah, I’ll just like to add to that. If you see the last 3 years also and some of you have asked this question during the investor calls also. We have invested almost Rs. 1700cr and our loan is still only at Rs. 750cr, so we have, whatever internal accruals we have generated through the EBITDA and through the efficiencies, we have reinvested and that’s the plan. And if we do it in a disciplined manner, atleast our excel model suggests that we will remain within the asset turnover ratio that Varun showed in his slide, despite the massive growth that will happen in the next 5 years.

So, the next question is, how should one think about the incremental Rs, 100cr savings that we have planned to do and what are the changes that we’ll need to drive this?

Vijay.

Thank you, and the next question is, for the growth roadmap that we have given for Pinnacle 345, is it only the volume growth that we have taken into consideration or certain price increase also that we have planned for the Pinnacle 345 roadmap? Also, what are the key risks for our pinnacle 345?

Let me take that, I think it is a very good question. And we did build out those scenarios. So, first, couple of base assumptions we have made, of course, we expect the market to come back in the near terms. As I said in early parts of my presentation that we are already seeing volumes coming back in the core segments, so we are hoping that atleast from volumes perspective, the market will normalize and whatever the bloodbath which has happened over the last couple of years will subside. And atleast the indicators suggest that assumption is a valid one and the volume recovery will not get delayed any further. On the pricing, in most segments, going in assumption is, that prices have reached a new normal because of the overcapacity in China and we are not expecting the prices to come back anytime soon in a meaningful way.

So, our say is that it will take atleast 2-3 years for prices to show any kind of recovery in all likelihood to, we have come to a new normal. There are products in China where the over capacity is upto 60%-70% and hence the competition will remain and of course it is a very uncertain world. All the tariffs laws happening around the world, no one can predict what can happen, if tomorrow, there are meaningfully large tariffs for one country or others.

But the base case scenario we are building is keeping the prices for most segments where there are marginal uptakes in some segments. Acetyl is the only assumption in that segment because acetyl works in a very different way.

It’s a commodity product; it goes with the cycle. There, we are hoping that as volumes come back, the acetic acid, which is a driver for acetic anhydride, which is our core product, the prices should come back. But again, that’s just an assumption. As Himanshu showed in acetyl business, we are not expecting an exploded growth in the next 5 years, 1.5 times sales based on, largely volume recovery but a little bit price recovery as well.

Thank you, Deepak. The next question is that we have seen significant manufacturing footprint and strong balance sheet for Ingrevia, so what kind of inorganic growth strategies can we see and what kind of growth potential targets that the organization would be interested in?

Partha, do you want to take it?

So, as we look at the pinnacle 345 target and we have laid down the plans by each business unit but we do believe that there is an inorgranic part which will also play a critical role. So, it’s not a gambit, we are actively looking at quite a few assets in the space spread across the business units and we will talk about, you know, as and when it materializes, but it will play a part of our growth strategy.

Yeah, so, I think, one thing I would like to add over what Partha said, our areas where we want to do M&A are very cleanly and neatly defined and sharply defined. We are not going to do M&A just for the sake of doing M&A.

We are very clear and in line with the strategy we share today, where we think there are gaps in our portfolio and were doing something inorganically, whether it’s a full-fledged acquisition or JV or partnership or whatever other

structure we follow. We are very clear where the gaps are and where doing any inorganic move can help us accelerate our journey and bridge the gap that I talked about to reach Rs. 10-11,000-12,000cr. So, organically, we already have a lot to do as you saw in the portfolio, so we of course want to, our first priority is to deliver on that, obviously as Partha is explaining that based on the thesis area that we have defined, we have already started to make a list of potential targets and we are also speaking to some bankers who are helping us, so as and when we find the right target in our thesis area, we will of course, go for it.

Thank you, Deepak. So, the next question is, with the exports remaining a key area for our future growth, how much are we immune to the tariff wars US and other global trades issue and how we see our future revenues’ contribution from US and European region?

Ambrish, you want to take it.

See, I think, right now Trump is our elephant in the room. Nobody can predict it will go in which manner. For our products, there is no manufacturing in the US, we believe even that the tariff comes, we would be competing against China, you know, let's assume. Because of the fact that we are competing with them only. So, in that scenario, if we assume the worst, we still believe that the Chinese tariffs would be higher than the tariffs which will come to India. So, still that delta will allow us to sell more and also that will increase the cost of what we have seen over the time.

If there’s a manufacturing in US, typically they are put at 6-7% of import duties and wherever there is no manufacturing within US, duties have been zero.

So, that delta is large, you now, on forth of every, China has, the government has put some duties on them, 10%+, so if it is 0, then it is 10% and if it is 6.5% then it is 16.5%. So China can absorb to a certain percent but beyond that it would be a challenge. So, we believe that this issue will not much impact on our sales.

Second, during presentation, Deepak has already shown that our focus is to increase in Europe and US both. Now, if you see on the agro side, the major players are based out of Europe, top 3 players are there, there are 2 players within US. We are focusing each one of them in both regions, you know, we are focusing on our Fine Chemicals derivatives which we believe will bring strong value. With the facts fully on the pharma side, the tier-1 CDMOS are based out of Europe itself. On one side, we are trying to work with innovators to increase our sales, second, we are also working with their tier 1 CDMO in Europe where we can increase our sales directly to them.

So, overall, the numbers will double, India will come down as a whole, even nutrition and any other business. We believe that trade tariffs will be there, but we will be able to take it to next level and Deepak already announced and shared the TAM initiative and the matrix we are having. This example of what he shared was of a customer who came, we met yesterday, was a European player, you know. First time, we almost had 100% share in last 20- 25 years and so I think that’s the difference we are making with our services.

So, we have the products, we have improved our services which will give us a premium, you know, and a certain premium on refusal and long term, longevity in all relations, in days to come. Thank you.

Thank you. The next question is, in our CDMO pipeline, what is the % mix of the business that comes from pyridine and Diketene chemistry and also, to reach Rs. 2000cr CDMO revenue target by FY30, what will be the mix like?

Hello. So, typically, if we talk about our CDMO project mix, it’s primarily, in terms of pyridine and Diketene derivatives, but moving forward what we have seen that we are depending upon the kind of chemistry we are working on.

We have shifted this to non-pyridine mix more now. That’s the shift we are looking at and moving forward in the next 5 years as well.

I think we can share that in the next 5 years of our major revenue would be coming from non-pyridine. Just let me put it that way. So, pyridine remains a very core building block to offer our share and I stated earlier we are trying to build multiple chemistries which we can offer in the bundle. It is not only limited to pyridine that we will do, it can be other chemistries. In fact, one of our agro contracts, I can share is not based on pyridine chemistry, it is non pyridine, what we are talking about. So, we are growing and will grow as the specialty chemical company offering multiple chemistries where pyridine is one of them, you know, which, we have expertise but not only limit to pyridine or diketene. 50%+ revenue would be non-pyridine.

No no, I think I would add to that because I think this question has come up several times in the past also. So, while we are very proud of being number 1 in pyridine, our future growth will be from non-pyridine areas, so just from a CDMO perspective, I think what Yuvraj and Ambrish already said, just to put some numbers in perspective in pharma portfolio. Even today, 70% of my business is non-pyridine. In agro, the 2 big molecules we won are, recently which we announced, one is pyridine, and one is non-pyridine, so we hope that ratio will maintain. Semiconductors has some organic chemistries which we are experts in but none of them are led to pyridine. So, no pyridine.

So, what about e-pyridine ?

So, e-pyridine is of course a catalogue product but in our CDMO project there is none of them are pyridine. So that hopefully gives you a sense that what we are leveraging to push hard in our CDMO business is our chemistry capabilities, not necessarily pyridine as a product capability. And when CDMO customers are coming to us, they are saying like hey, we need these 4 steps, how many of them can you do in your plants or how many of them have you done in the past. That is what is clicking with them, for them to speak to us and give those projects. So, obviously, whatever comes in pyridine, we will take it wholeheartedly and then customers also, in all honesty, do not have a too much choice, I say that in humility, beyond China, if somebody wants to come for pyridine, they have no option but to come to us. But bulk of our growth will come from non-pyridine areas.

So, another question, again for CDMO, how would the pharma CDMO of Jubilant Ingrevia be different from the CDMO business of Jubilant Pharmova?

Okay, let me answer that also. Good question again. I think, first, we did not talk too much about Pharmova in this room. So, for those of you who do not know Pharmova, it is the second baby which came out of Jubilant Life

Sciences when the split happened in 2021. Almost 1:1 split. Pharmova handles most of our healthcare and pharma businesses. They have multiple businesses. In fact, they also did their investor day a few days back. Some of you might have attended it. The way we look or split responsibilities across, and I just see Arvind here. So, I will invite him also to add in case I miss out something. But the way, at least on the CDMO side, we split the responsibilities. The intermediates part is with us because that is our core capability. As I explained, the name Ingrevia itself means ingredients for life.

So, all the intermediates in the pharma world, by and large, are then buyers.

Biosys, which is part of Pharmova, thus pharma CDMOs for APIs and some advanced intermediates. So, that is how we split at least the responsibilities or roles. But having said that, obviously, we are sister companies. As and when they get some opportunity where we can help on the intermediate side, we tag team. And likewise, when we meet some customer which is looking for API capabilities as well, beyond just the intermediate strength that we bring to the table, we pull them in into the picture. So, they have more GMP- grade plants for APIs. We have plants more suitable for intermediates.

So, the capex plan for the next few years will be predominantly investments in specialty chemicals as we have outlined, which will include investments in the CDMO in the multi-purpose plants or into a new GMP facility as and when the business will come for CDMOs. We will not shy away from making any investments, as long as it meets the threshold criteria. So, the investments we have made, I believe we have enough ammunition till ’27 to reach our desired top line and bottom line in line with pinnacle 345 and to reach to the Rs. 10-12000cr top line and deliver the bottom line we have just shown, any additional capex will be in predominantly the specialty and nutrition segments.

Yeah, so I think some of you have asked this question in different ways in the past. I think we have invested heavily in the last 3 years, we are hopeful that the peak revenues on the back of those investments will hit in FY27 and a part of it in the market recovery and the slowness in the last 2 years otherwise, ideally, we should have hit the peak in FY26 but nevertheless, all the investments we have made so far, we will hit the peak revenue on the back of that by FY27 but for hitting the numbers we have for FY30, we will need to continue to invest in the business and the quantum could be even bigger than what we have invested in the past, to get that incremental growth in revenue that we are aspiring to get.

So, one last question, that is again for CDMO, what is the mix of early and the late stage commercial projects, and are we doing any development work for the innovators?

To answer this question, we are working for with the innovators from development in-phase molecules as well, and look at our mid as well, we have around 65% of the molecules which are in the in-phase stage of molecules and the rest 35% in the commercial side of it.

We can say that the majority of the CDMO business is with the innovators, we are not mixing it with the generics, it’s directly with innovators, we have been able to create a relationship and we are going deeper and we are

further expanding into the market and we have already shared that we have accelerated BD efforts and we have been recruiting more people in US, Europe and Japan. I think those number of projects will go up, phase-1, phase-2, phase-3 and all we are looking. There is the reason why we are also planning to invest further into a new GMP facility, we have 3 ones already but we are planning to put up more on the operational areas side so that we can produce the volumes of these intermediates, primarily on the pharma side are and agro anyway we have been talking big, so those numbers will continue to grow.

So, this brings us to the end of the Q&A session. And now I would request Deepak to please give his closing comments.

I think that it’s been wonderful having you all. We really appreciate it, we do realize that it’s a Friday evening so you must be having some plans, but you still took time out to join us and hopefully whatever we covered in the last 2- 2.5 hours was helpful. We are around, we will be at the booth and obviously we will have dinner as well, so we invite all of you to join us for the dinner and interact with us and have a great evening and a great weekend. Thank you once again for joining us.