Key risks and their mitigation Demand risk Reduced product off-take could affect business

sustainability Risk mitigation y India continues to be second largest sugar producer; it is also the
largest consumer of sugar in the world. Sugar consumption is increasing year-by-year, albeit at a
nominal rate, due to country’s demographic advantage. y India’s per capita consumption of sugar is
lower than the global average, which leaves headroom for growth. y The Central Government
intends to raise ethanol blending in petrol to 20% by 2030, generating adequate demand for
ethanol. y Power is sold to the State grid under a long-term PPA. Technological obsolescence
Inefficient processes can lead to cost overruns Risk mitigation y The Company has been proactive in
making investments in the latest technology. It has the latest plants and follows best possible agri-
practises; it maintains plants in a good condition through continuous upgradation. Climatic risk
Excessive, deficient or untimely rain and other advesre agro climatic conditions could affect the
quality and quantity of sugar cane Risk mitigation y The Company’s manufacturing facilities are
located in the natural sugar cane producing region, which also possesses relatively better irrigation
infrastructure compared to Western/ Southern India. y The cane development team of the Company
actively monitors the planting/growth of sugarcane and disease infestation programme so that
timely action can be taken to avoid or minimise damage