Chairman Message

Dear Shareholders,

It is with immense pride and heartfelt gratitude that I address you today, reflecting on Arrow Greentech Ltd.'s remarkable journey through the financial year 2024 - 25. This year has been nothing short of transformative - marked by record-breaking achievements, bold innovation, and steadfast resilience in the face of global headwinds.

As we continue to evolve in a rapidly changing world, Arrow Greentech has not only demonstrated its ability to adapt but has also reaffirmed its commitment to shaping a more sustainable and secure future. Our performance this year is a testament to the strength of our vision, the dedication of our people, and the trust you - our valued shareholders - have placed in us. Together, we are building a company that is future-ready, purpose-driven, and globally relevant.

Record-Breaking Performance: Strengthening Our Core

FY25 marked a significant step forward in Arrow Greentech's growth trajectory. We achieved our highest-ever revenue of Rs. 2,434 million, a 64% increase over the previous year, reflecting strong demand across both our high-tech and green product segments. Profit After Tax more than doubled to ₹630 million, supported by improved operating leverage, better product mix, and tighter cost controls. Our EBITDA margins expanded meaningfully, underscoring the effectiveness of our efforts to streamline operations and enhance manufacturing efficiency.

This performance is the outcome of deliberate strategic choices - prioritizing innovation-led growth, investing in scalable technologies, and reinforcing our supply chain capabilities. We have focused on building a resilient business model that can withstand external volatility while continuing to deliver consistent returns. Our financial results this year validate our approach and provide a strong foundation for future investments in product development, capacity expansion, and market diversification.

Our subsidiary, Avery Pharmaceuticals, has expanded its portfolio to 54 approved nutraceutical products, with encouraging traction in contract manufacturing and exports. The repeat orders we received validate the commercial potential of our Novel Drug Delivery Systems (NDDS) and open up new opportunities for growth in regulated markets.

We remain aligned with national priorities such as Atma-Nirbhar Bharat and Make in India, actively participating in government tenders and import substitution programs. The acquisition of land in Dahej-II Industrial Estate is a strategic move to support future capacity expansion, particularly in green technologies, and positions us well for long-term scale-up.

Innovation and Sustainability: Building Long-Term Differentiation

Innovation continues to be a core driver of Arrow Greentech's growth strategy. In FY25, our high-tech product segment delivered a 79% year-on-year growth, led by increased adoption of advanced security solutions and anti-counterfeit technologies. The grant of a new US patent for our Dual-Color Shift Security Films - strengthens our intellectual property portfolio and reinforces our position in niche, high-value markets. These developments reflect our focus on creating differentiated products backed by proprietary technology, enabling us to compete effectively in global markets.

Parallelly, our green product segment - anchored by Water Soluble Films - maintained strong momentum. As India’s largest manufacturer of these eco-friendly materials, we continue to benefit from rising demand for sustainable packaging and industrial solutions. Our manufacturing capabilities, combined with process know-how, allow us to deliver consistent quality at scale.

Our subsidiary, Avery Pharmaceuticals, has expanded its portfolio to 54 approved nutraceutical products, with encouraging traction in contract manufacturing and exports. The repeat orders we received validate the commercial potential of our Novel Drug Delivery Systems (NDDS) and open up new opportunities for growth in regulated markets.

We remain aligned with national priorities such as Atma-Nirbhar Bharat and Make in India, actively participating in government tenders and import substitution programs. The acquisition of land in Dahej-II Industrial Estate is a strategic move to support future capacity expansion, particularly in green technologies, and positions us well for long-term scale-up.

Operational Excellence: Enabling Scalable and Resilient Growth

To support this growth, we have focused on building scalable, resilient operations that can adapt to evolving market demands. Operational discipline remains central to our ability to scale efficiently and respond to external challenges. In FY25, we continued to strengthen our manufacturing excellence. We have advanced our capabilities through focused process optimization and automation. These initiatives have not only enhanced product consistency but also significantly reduced material wastage and improved overall throughput. As a result, we are better positioned to deliver high-quality, sustainable solutions to our global customers while maintaining efficiency in our operations.

Our focus on supply chain risk mitigation and cost control has helped us navigate inflationary pressures and global disruptions. By building redundancy in sourcing, improving inventory planning, and maintaining stringent quality standards, we have protected margins while ensuring reliable delivery to customers.

These efforts have translated into stronger EBITDA performance and improved operating leverage. More importantly, they have created a scalable platform that supports future growth in both domestic and international markets. As we expand our product portfolio and enter new geographies, our operational capabilities will continue to be a key enabler of sustainable and profitable growth.

Global Reach and Market Leadership: Expanding Horizons with Purpose

Arrow Greentech continues to solidify its position as a global leader in sustainable and high-security materials. Our international footprint has been significantly enhanced through wholly owned subsidiaries in the United Kingdom and the Netherlands - strategic hubs that enable seamless access to key markets across Europe, Asia, the Americas, and Africa. These locations serve not only as operational bases but also as gateways for innovation, customer engagement, and regulatory alignment, allowing us to deliver tailored solutions to a diverse and expanding global clientele.

Our commitment to innovation is deeply embedded in our growth strategy. With 27 patents granted across jurisdictions including India, the UK, USA, South Africa, Europe, and Eurasia, we have built a formidable intellectual property portfolio that reflects our pioneering work in green technologies and high-security applications. These patents safeguard proprietary advancements in Water Soluble Films, anti-counterfeit security systems, and other specialized materials - reinforcing our technological leadership and creating high entry barriers for competitors.

This strategic blend of global presence and innovation excellence positions Arrow Greentech at the forefront of industry transformation. As sustainability and product integrity become non-negotiable imperatives for businesses worldwide, our solutions are increasingly recognized for their reliability, environmental impact, and technical sophistication.

Roadmap for FY26

As we look to FY26, Arrow Greentech is entering a new phase of strategic acceleration - driven by innovation, global expansion, and deeper integration of sustainable technologies.

We will accelerate the next-generation anti-counterfeit and security solutions, leveraging new patents and an expanding intellectual property portfolio. Our Water Soluble Films division will drive growth through process innovations and targeted new applications. Avery Pharmaceuticals will scale up its Novel Drug Delivery Systems by forging global partnerships and broadening regulatory approvals.

We plan to expand our international presence in markets demanding sustainable and secure packaging, supported by strategic alliances and strong client relationships. Continued investment in R&D will focus on sustainable green technologies and novel materials to maintain our innovation leadership.

FY25 has been transformative, reinforcing our role as pioneers in green and high-security technologies. As we enter FY26, we remain dedicated to innovation, operational excellence, and sustainable growth - delivering superior shareholder value while supporting India's vision of self-reliance and environmental stewardship. With this strong foundation, Arrow Greentech is poised to shape the future of our industries.