Dear Stakeholders,

The year 2021-22 will be remembered as the year when the world began to slowly but steadily overcome the pandemic’s challenges. Despite the pandemic, AIA Engineering’s performance remained stable as the economy recovered. We were able to take advantage of our market-leading position, and it was our Company’s primary emphasis area to ensure that our customers’ supply of our products and services were not disrupted. We are pleased that our travel has prompted more dialogues with our clients, leading to the accomplishments we have made in a challenging year. The customer base grew, giving us the assurance that we are on the right track.

The fight against Covid-19 is far from over. As the economy settles and adjusts to the ‘new normal’, we expect mining and cement industries to pick up the activity and in turn drive requirements for our products. Our Company and our tenacious workforce have accepted the ‘new normal’ and have successfully adjusted, ensuring that AIA’s operations and services are not disrupted. With widespread immunisations and stringent Covid-19 protocols in place, the world is considerably more prepared and has learned to meet all challenges head-on.

The mining bid was harmed as a result of the volume reductions from Canada and South Africa. In accordance with the steep rise in commodity prices, we have experienced considerable increases in our input costs and freight. In response to the price increase, our Company has made efforts to pass on these costs to the customers.

We are pleased to announce that the brownfield expansion for grinding media which was on hold owing to Covid-19, has been restarted. With an extra outlay of ₹200 Crores, we are now seeking to add 80,000 tonnes of capacity. This is within our regular capital expenditure range. This type of addition will not only expand our capacities but will also help us earn recognition globally. The mill lining facility is in the trail phase and almost ready to go into production. The current capacity of 3,90,000 MT is expected to reach 5,20,000 MT post the successful expansion of our mill lining capacity and grinding media capacity. Given the huge scope for development that lies ahead of us, we will continue to develop fresh Capex plans for capacity expansion

Sustainability is one of our Company’s non-negotiables, and we actively contribute to the Social, Economic, and Environmental Development of the community in which we operate through our sustainable measures. We ensure the community’s socio-economic development through a variety of participatory and need-based initiatives, such as providing quality education, ensuring that they are digitally literate, and providing healthcare, all of which are in the best interests of the poor and deprived sections of society, allowing them to become self-sufficient and build a better future for themselves. We also ensure the long-term viability of the environment by preserving biodiversity, protecting and regrowing endangered plant species, and lowering our carbon footprint.

In the end, I would like to thank all our stakeholders for standing by us during the unthinkable situation happening around the globe. During the year, we also focused on improving productivity and employee morale. Going ahead, we will continue to focus on developing comprehensive solution capabilities through our large and well-equipped R&D team. We promise to deliver value to all associated with us through ethical, sustainable and profitable means.

Best Wishes,

Bhadresh K. Shah

Managing Director

AIA Engineering Limited