Aarti Industries Ltd — AGM Information 2021

Sep 28, 2021

To, Listing/Complianpce Department BSE LTD. Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001.

BSE CODE -524208

Dear Sir/Madam,

To, Listing/Compliance Department National Stock Exchange of India Limited "Exchange Plaza", Plot No. C/1, G Block Bandra-Kurla Complex, Sandra (E), Mumbai - 400 051. NSE CODE:AARTIIND

Ref: Regulation 30 of the SEBI (LODR) Regulations, 2015

Please find enclosed herewith presentation made to the shareholders of the Company at the 38 1h Annual General Meeting held today i.e. September 28, 2021.

Kindly take the same on record.

Thanking You,

Yours faithfully, FOR AARTI INDUSTRIES LIMITED

i . a e. ~

~ E C n S I c M l. . N A O s A a 1 b 55 o 2 v 6

www.aarti-industries.com I CIN: L24110GJ1984PLC007301 Admin. Office : 71, Udyog Kshetra, 2nd Floor, Mulund Goregaon Link Road, Mulund (W), Mumbai - 400080, INDIA. T : 022-67976666, F : 022-2565 3234 I E : info@aarti-industries.com Regd. Office : Plot No. 801, 801 /23, lllrd Phase, GIDC Vapi-396195, Dist- Valsad. INDIA. T : 0260-2400366.

Annual General Meeting of Shareholders

28th Sept 2021

AARTI INDUSTRIES LIMITED may, from time to time, make written and oral forward looking statements, in addition to statements contained in the company's filings with BSE Limited [BSE] and National Stock Exchange of India Limited [NSE], and our reports to shareholders. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the AARTI INDUSTRIES LIMITED.

All information contained in this presentation has been prepared solely by AARTI INDUSTRIES LIMITED. AARTI INDUSTRIES LIMITED does not accept any liability whatsoever for any loss, howsoever, arising from any use or reliance on this presentation or its contents or otherwise arising in connection therewith.

About AIL

• A leading Speciality Chemicals company in Benzene based derivatives with integrated operations and high level of cost optimization.
• Pharma operations spanning APIs, intermediates and Xanthene derivatives
• Established by first generation technocrats in 1984
• Strong R&D capabilities 4 R&D facilities; dedicated pool of about 400+ engineers & scientists; IPRs for developing customized products.
• Plants located in western India with proximity to ports: 15 for Speciality chemicals; 5 for Pharma (2 USFDA and 3 WHO/GMP)

Overview Key Metrics 20 Manufacturing Plants 7,000+ Employees 200+ Products 400+ Global Customers 700+ Domestic Customers 16 Zero Liquid Discharge Plants

AIL COVID Response

Stakeholders	COVID - 19: Health Crisis
Employees	-Annual increment given out in first quarter itself to all employees.-Continued the new recuritment as committed by us.-Mobilize resources with full safety precautions
Customers	- Support to Customers by Better service & logistics support- Exploring new markets and optimizing product mix- Agro/ Pharma/ FMCG account to 60% of revenues
Vendors & Suppliers	-Minimum Daily wages/ Sustenance Wages provided to contractors-Payment to Suppliers continued unaffected
Society	- Donated 20+ Cr to PM Cares Fund, CM Relief Fund and NGO's throughout thenation by Aarti group, Promoters, Directors and Employees
Financial Institutions	- All financial commitments have been honoured timely.

AIL COVID Response

45k+ Touched & Enhanced lives of people

10.7

Crores INR donated for Covid-19 Relief 97% Number of Employees

Vaccinated

98% Number of contract workers Vaccinated

Key Highlights

• Provided adequate medical and financial assistance to COVID-19 infected contract workmen, AIL employees and their family members
• Extended our CSR efforts during COVID-19 pandemic, we distributed food grains to daily wage workers in the nearby communities
• Identified appropriate healthcare facilities for COVID care for our employees and designated points of contact to facilitate timely and hassle-free medical care.
• Supported healthcare facilities and frontline workers by providing Ventilators, Oxygen Generating units, Sanitizers, PPE kits, oxygen cylinders, etc.
• Setup dedicated Covid care centre at Vapi

Q1 FY2021-22 Highlights (Consolidated)

PAT

Key Highlights:

• Re-iterated guidance of over 25% growth for FY22.
• Strong momentum in Q1, continuing from the second half of FY21, driven by rising demand across various products.
• Higher contribution from domestic demand as the local manufacturing ecosystem continues to progress.
• Capex of Rs 295 crore during Q1, expected spending of about Rs 1500 crore during FY22.

Q1 FY2021-22 Highlights (Consolidated)

Amount in INR (Cr)

Financials - Consolidated

Robust Revenue Growth Strong EBITDA Growth Strong PAT Growth CAGR 11% INR (Cr) INR (Cr)

Significant Capex Undertaken

EBITDA =Profit before Tax + Interest Expense + Depreciation – Other Income; EBIT = EBITDA-Depreciation; Capital Employed= Net Worth + LT Debt+ ST debt+ current maturity of long term debt- cash; Capital Employed adj for CWIP= Capital Employed -CWIP; ROCE= EBIT/(Average of Capital employed of current & previous year ); ROCE (exc CWIP) = EBIT/(Average of Capital employed adj for CWIP of current & previous year); ROE = Net Income/Average of Net Worth of current & previous year; D/E = Total Debt/ Total Equity; Net Debt/EBITDA = (Gross Debt- cash)/ EBITDA

10 Years Highlights

CAGR 23%

Key Strengths

Global Player in Benzene based Derivatives with Integrated Operations

• Strong/Leadership position in key products and processes
• Integrated operations across product chain of Benzene and Toluene
• Ability to effectively use co-products and generate value-added products

Well Diversified Across Multiple Dimensions • Diversification provides significant de-risking • Multi-product, multi-customer, multi-geographies & multi- end-user industry Pharma – Significant growth with diversification • API & Intermediate market (domestic & exports) expected to witness strong growth • Xanthine Derivatives are expected to continue the growth momentum Strong Return Profile despite Significant Capex • Expanded capacities and diversified into new products while maintaining return profile • New capacities are still ramping up providing operating leverage Well placed to benefit from Industry Tailwinds • Significant opportunity for exports arising from environmental related shutdowns in China • Structural drivers in places for a robust domestic demand growth Strong Focus on R&D and Process Innovation • Focus on downstream products through processes like high value chlorination, hydrogenation, etc Thrust on Sustainability • Significant capex done in SH&E, which provide long term benefits • Continuous efforts to enhance on ESG Initiatives.

ESG for AIL

Our Strategy : Growth with Sustainability for a Sustainable Growth

ESG factors are core part of our decision making process.

Environment

• GHG & atmospheric Emissions
• Water
• Effluent Management
• Cleaner Technologies
• Materials
• Waste

• Energy • Noise Pollution Social

• Bio Diversity/Green Carpet • Health & Safety
• Community relations
• Labor management
• Product safety & quality
• Supply chain sustainability

Governance • People and talent development

• Compliance
• Board composition and Independence
• Business Ethics
• Management Evaluation and track record
• Disclosures and shareholder relations

Recognition on ESG

Responsible Care' is the global chemical industry's commitment to drive continuous improvement and excellence in Environment, Health, Safety & Security Performance. It represents self imposed ethical commitment for better EHS&S performance and responsible management of chemicals.

AIL awarded Gold Award by EcoVadis

EcoVadis is the world's most trusted business Sustainability Ratings, used by 75000+ global companies across 160+ countries. The Award places AIL among top 5% of the global companies assessed by EcoVadis.

CRISIL independently evaluated top 225 companies across 18 sectors based on their ESG assessment framework (as per publicly available information). AIL was placed at 3rd position in chemical sector (amongst 15 chemical companies).

Well placed to benefit from sector tailwinds – Global

Global Speciality chemicals market size and region-wise share USD Billion

Significant opportunity of growth for Indian specialty chemicals markets

Global Speciality chemicals market size and region-wise share 2020

4-6%

India has grown a critical mass and several Indian Companies are eager to Invest creating global sized plants to cater to growing domestic and global demand Thrust to manufacturing via Make in India, cut in Corporate Tax rates and Tax reforms, PLI Schemes, etc will boost the growth in the sector. Indian Currency Depreciated against USD and CNY strengthening Cost Position for Indian Products in Exports Markets Global multinationals need alternate sourcing destinations from China to de-risk their supply chain. India is a best fit in this case. Inherent CAPEX and labour cost advantage as compared to the West / Developed nations. Advantage India

Major Projects: FY19 - FY23

Future Growth Projects: FY22-24 (Driven by R&D & Innovation)

Highlights

• Adding new chemistries and Value added products
  • 40+ products for Chemical
  • 50+ products for Pharma
• EBIDTA margin ~ 25% 30%
• Capex of about
  • Rs 2500 3000 crs for Chemical
  • Rs 350 500 crs for Pharma
• Site development work to commence on 100+ acre land at Jhagadia. Also acquired over 120 acres land at Atali, Gujarat.
• Environmental Clearances obtained / in process.
• Construction from FY22 FY24.
• Will drive the growth from FY25 and beyond.

Growth Estimates

Expecting Robust Growth fuelled with aggressive Capex Investment

Qualified Institutional Placements (QIP)

1200 Cr

QIP raised in June 21

5000 Cr

Capex plans over three years

Key Highlights

• The company has raised the QIP in June 2021 @ Rs 855 per share.
• Raise equity by over 4%.
• Received an overwhelming response from investors. Book was oversubscribed with healthy demand from FIIs & Insurance Companies.
• Long term investors account over 72% of the book size.
• Caters to the Growth Capital needs of the Company

Pharmaceuticals – Exposure to multiple segments & products with strong growth opportunities, Demerger Proposal.

Pharma - Significant Top Line and Margin Growth…

Rationale for Demerger Proposal

The Proposed demerger of Pharma Undertaking will facilitate a focused approach to the growth opportunities into respective segments, also enables the segment take strategic calls as may be needed to capture onto these opportunities to grow.

Contributing for Social Development

Cluster & Rural Development Education & Skill Development Childcare & Healthcare Facilities Water Conservation & Environment Together for prosperity 'Nearly 260 million people who are below the poverty line have to join mainstream of a good life.' - Late Dr. APJ Abdul Kalam COVID-19 Efforts

THANK YOU

Email: investorrelations@aarti-industries.com