Resilient
Foundations. Designed for a
Sustainable Future.

At our ACL-Dachepalli plant, we have taken a major step towards smarter and more energy-efficient manufacturing through the installation of a modern 6-stage In-Line Calciner (ILC) preheater, replacing the earlier 4- and 5-stage preheater, enabling higher clinker output while significantly improving energy performance across the pyro-processing line.

The project was executed with exceptional operational discipline, completing it in 117 days, ahead of schedule, with zero accidents or safety incidents. Sustainability was embedded into the construction process itself, with 100% Portland Pozzolana Cement (PPC) used during construction, helping avoid approximately 1,660 tCO2e of emissions.

Operational gains from the upgrade have been substantial. Clinker capacity increased from 5,600 TPD to 7,000 TPD, strengthening the plant's production capability. At the same time, energy efficiency improved markedly. Kiln specific power consumption declined from 29.0 to 18.0 kWh per tonne of clinker, while specific heat consumption reached an efficient 729 kcal/kg of clinker. Additional efficiency gains were realised with preheater fan power consumption reducing from 13 to 5 kWh/t of clinker, and overall clinkerisation power consumption declining from 62 to 49.5 kWh/t of clinker.

Several engineering innovations supported these improvements, including the use of reinforcement rebar couplers to enhance structural efficiency and the installation of a new energy-efficient burner to optimise fuel utilisation and process stability.

The Dachepalli preheater upgrade demonstrates how advanced pyro-processing technology and sustainable construction practices can be seamlessly blended to deliver higher output, lower energy intensity and reduced carbon emissions - reinforcing our commitment to efficient, future-ready cement manufacturing.

We continue to strengthen our environmental management practices through recognised sustainability frameworks. During the year, the Bayyavaram plant successfully completed its GreenCo renewal assessment conducted by CII-Green Business Centre, retaining the prestigious Platinum rating. The GreenCo certification evaluates industrial performance across parameters such as energy efficiency, resource conservation, waste management and environmental responsibility. During FY 2026, the Jeerabad plant also initiated the GreenCo certification process for the first time, marking a step forward in strengthening environmental performance practices across operations. By maintaining one of the highest certification levels and expanding sustainability frameworks across locations, we continue to demonstrate progress in operational sustainability. These efforts reflect our commitment to adopting best practices that enhance resource efficiency while reducing environmental impacts across our manufacturing operations.

An analyst and investor visit to the Dachepalli plant was organised to provide deeper insights into the operational transformation achieved at the plant after its acquisition. The visit offered stakeholders a first-hand view of the technological upgrades, efficiency improvements and process enhancements implemented across the facility.

We installed a 6 MW solar power plant at our Dachepalli unit in Andhra Pradesh to enhance our use of clean energy and cut carbon emissions. Started in July 2025, this project uses advanced “bifacial” solar panels that receive sunlight from both sides, making them more efficient than standard panels. The plant generates about 21.17 MWh of energy every day—covering around 7.75% of the Dachepalli factory’s power needs—and will cut CO₂ emissions by about 5,487 metric tonnes every year.

With this asset we now have 36 MW of Renewable and Green energy capacity installed across plants.

Sagar Cements partnered in building Gasification facility for India’s first commercial use of Syngas in preheater, produced from Biomass. The gasification facility is being installed at the Mattampally plant and is expected to convert cotton crop residues into syngas and biochar through an integrated biomass processing system.

Sagar Cements Limited and ‘Sow & Reap Chara’ Pvt. Ltd. have signed a 10-Year Offtake agreement for setting up this Gasification facility. Ankur Scientific is the technology provider of the gasification process, Cula Tech, Germany-based dMRV provider, Puro Earth, the Carbon Registry, and last but not the least, the vital part of the project are the local farmer network. The syngas produced will substitute fossil fuel in the cement manufacturing process, while biochar will be returned to farmers as soil-enriching manure. The initiative is expected to reduce approximately 6,000 tonnes of CO₂ emissions annually. By transforming agricultural residues into clean energy, the project reduces open-field burning and supports rural economies.

To reduce emissions from internal logistics and material handling operations, we have integrated electric vehicles (EVs) into our operational fleet. During the year, the Company deployed EV loaders at Mattampally, one EV loader at Bayyavaram and one EV loader at Jeerabad, increasing the total number of electric loaders and trucks across operations to eleven vehicles (11 EVs).

These vehicles are supported by a network of high-capacity charging stations and data analytics systems that help monitor performance and optimise usage. By replacing conventional diesel-powered equipment with electric alternatives, the initiative reduces fuel consumption, lowers greenhouse gas emissions and improves operational efficiency, reinforcing the Company’s commitment to cleaner industrial mobility.

Launched on 21^st January 2026, the Group Energy Excellence Forum 2026 was introduced as a quarterly virtual platform to strengthen energy management across SGC operations. Attended by 20 crossfunctional participants, the initiative brings together inter-plant teams and energy experts to enable collaborative learning and drive group-wide alignment on energy efficiency.

The forum facilitates structured knowledgesharing through virtual sessions, covering plant-level initiatives, best practices, and strategies to reduce energy intensity. It also serves as a capability-building platform, mentoring young engineers and preparing them for formal energy management certifications.

To ensure optimal solar power generation while conserving water, the Gudipadu plant implemented automated robo cleaning technology for its solar installation comprising.

The system has significantly improved water efficiency at the plant. Specific water consumption for cleaning panels declined from 0.175 m³ per table in May to 0.109 m³ per table in August, representing a 37.7% reduction in water use. Robo cleaning has also enhanced operational consistency by ensuring uniform cleaning across modules, and maintaining panel efficiency even during high-dust conditions.

We hosted an inter-plant training programme on the GCCA Water Positivity Tool at the Dachepalli plant. With experts from the Global Cement and Concrete Association (GCCA) India, the programme brought together teams from multiple plants to build a shared understanding of the tool for implementation across plants.

The session covered the GCCA Water Positivity Protocol, including methodologies for calculating water credit, debit and site-level water balance. Participants gained practical insights into applying the tool to improve water accounting, monitoring and conservation initiatives across operations. By strengthening internal expertise and knowledge sharing, the programme supports SGC’s broader commitment to responsible water management and its long-term water positivity ambitions.

We undertook an organisation-wide HR transformation through the deployment of HRMS platform across all plants, departments and divisions. The platform centralised employee data, automated routine workflows and strengthened communication across the organisation. The solution was customised to organisational requirements and integrated seamlessly with existing systems, ensuring continuity of operations while enhancing efficiency and scalability of HR processes.

This year, we conducted a two-day online workshop on sustainability reporting aligned with the Global Reporting Initiative (GRI) Standards. The programme was facilitated by SGS India Pvt. Ltd., Hyderabad, with participation from five representatives across safety, electrical, environmental, quality, engineering, HR, and operations functions.

The workshop aimed to build practical understanding of GRI Standards and strengthen internal capability for structured sustainability disclosures.

The workshop was extended to participants across multiple functions, ensuring consistent understanding and application of GRI Standards across locations.

We conduct an annual employee engagement survey to assess workplace experience and identify opportunities for continuous improvement. In FY 2025, the survey recorded 88% gave response and indicating strong employee willingness to contribute feedback.

• Fully anonymous online survey
• Combination of scored and open-ended questions
• Analysis across locations, departments and tenure
• Identification of trends and improvement areas

• Workplace facilities and amenities
• Training and skill development
• Career growth and advancement
• Cross-functional collaboration
• Work culture and environment
• Communication and transparency
• Safety and health
• Recognition and appreciation

The survey recorded an overall engagement score of 4.28 out of 5, reflecting a positive employee experience. Insights from the survey are being translated into targeted actions.

At Sagar Cements, the safety of drivers who support our logistics operations remains a critical priority. We introduced a Driver Safety Management System at our Dachepalli plant as a pilot to strengthen safety awareness, accountability and operational discipline, implemented in alignment with the Global Cement and Concrete Association (GCCA). Following its implementation at Dachepalli, the system has been progressively expanded across our plants. The system ensures that every driver operating within our premises is adequately verified, trained and assessed before undertaking activities at our plants.

It includes:

• Driver Verification: Validation of driver credentials including age, eligibility and experience.
• Medical examination: Comprehensive health checks.
• Mandatory training programmes: Plant induction, defensive driving and operational safety procedures.
• Competency assessment: Knowledge tests and ride-along evaluations conducted by plant transport officers.
• Driver passport issuance: Driver Passport issued only after successful completion of all checks and training.
• Disciplinary action for non-compliance: Enforcement of safety standards across plant premises.
• Periodic renewal and continuous guidance: Ongoing training and reassessment to maintain compliance and awareness.

Safety awareness is strengthened through engagement and collective participation. During FY 2026, we observed the 55th National Safety Week across our Corporate Office and plant locations under the theme “Engage. Educate. Empower.”, reinforcing awareness, preparedness and responsible behaviour.

The initiative engaged employees, contract workmen, students and homemakers across locations. At the Corporate Office, 60 employees participated in safety awareness sessions. Mattampally engaged 506 employees and workmen through safety assessments and Permit to Work and LOTO training. Gudipadu involved around 450 participants through student-led safety skits. Dachepalli engaged nearly 400 participants through quizzes, competitions, short films and awareness programmes on road safety, fire safety and emergency preparedness. Bayyavaram involved 254 participants through National Safety Week engagement activities. Jajpur, Odissa engaged 152 participants through awareness initiatives, while Jeerabad involved 70 participants through emergency response activities, including a fire hydrant competition focused on firefighting skills and preparedness.

These initiatives reinforced safety as a shared responsibility across our operations and value chain.

Sagar Cements treats safety in high-risk zones as a nonnegotiable priority. Through rigorous training, strict procedural protocols, and mandatory specialised protective equipment, we ensure our workforce is fully prepared and protected. At Gudipadu, we made constant efforts to ensure safety in day to day operations and achieved Zero Accidents, 15,55,052 Safe Manhours, and 7,271 Training Manhours.

A structured safety framework was established prior to the development of a 4.35 MW Waste Heat Recovery (WHR) project at Gudipadu. To ensure safety, the project focused on workforce readiness, equipment discipline and controlled material handling. Key installations such as the A.Q.C boiler, preheater boiler, TG building and ACC building was developed as part of this initiative. During the entire construction and installation of project no reportable incidents were recorded.

We continue to support education in communities through merit-based scholarships for Class 10 students studying in government schools. The initiative was undertaken across locations around the Company’s plants to commemorate the birth anniversary of our founder, Late Sri Sammidi Veera Reddy Garu.

The programme recognises meritorious students and provides financial support to realise their educational goals. By promoting access to education and rewarding academic excellence, the initiative aims to create opportunities for young learners from neighbouring communities and strengthens the Company’s commitment to inclusive community development.