Dear Stakeholders,

At AM International Holdings (AM International), sustainability is not just a trend, but a core value that has guided our operations for over five decades. This unique and enduring commitment is evident in the significant progress made by all our operative companies in 2023, demonstrating our leadership in responsible manufacturing and creating lasting value.

Our ESG (Environmental, Social, and Governance) efforts are driven by R&D to reduce emissions, design and manufacturing of low-carbon products, modernising of our infrastructure and promoting operational excellence and solutions. We have forged strategic partnerships, using collaboration to achieve our sustainability goals. Our commitment to ESG enabled us to manage risk and uncertainty, implement strong Diversity, Equity and Inclusion (DEI) measures, and uplift the communities we serve.

Businesses as catalysts for change

We believe that businesses must be a force for good. Our responsible practices, built on a foundation of transparency and accountability, ensure that our actions create a lasting, positive impact for all our stakeholders.

In line with this commitment, our sustainability report highlights the efforts in five key pillars:

Embracing ESG to tackle global challenges

The World Bank has forecast a third consecutive year of tepid global growth, its projections dropping from 2.6% in 2023 to 2.4% in 2024. But the unfolding climate crisis presents even more pressing concerns: 2023 was the hottest year on record, underscoring the acceleration of climate change. As a result, climate-induced disruptions now overshadow traditional economic concerns, causing a seismic shift in global risks. With $16 million in climate-related damages incurred every hour—totalling $2.8 trillion since 2000—the need for collective, decisive action is greater than ever.

Businesses must swiftly address these challenges by implementing sustainable solutions and adopting green technologies. It is, therefore, imperative that we adopt good ESG practices, minimising our environmental impact, improving resource efficiency, and ensuring sustainable production processes. By placing sustainability at the heart of everything we do, AM International operative companies have enhanced long-term profitability while contributing to a positive social and environmental legacy.

Sustainability at the heart of our strategy

An example of this commitment is Tuticorin Alkali Chemicals and Fertilisers Limited (TFL), part of our green solutions business, which produced the world's first green soda ash in 2023. This global milestone reinforced our leadership in ESG practices and garnered recognition at Unilever's Clean Future Initiative.

Our ESG vision-led Tamilnadu Petroproducts (TPL), part of our petrochemicals business, to partner with EY-Parthenon to develop a carbon-neutral manufacturing roadmap aligned with the Science-Based Targets Initiative (SBTi) to reduce CO₂ emissions and drive impactful industry changes.

Clean energy is another key driver of our ESG strategy. The transition made by Southern Petrochemical Industries Corporation (SPIC), our flagship enterprise and part of our fertilisers business, to natural gas as its primary raw material for urea production not only underscores our commitment to cleaner energy but also improves plant efficiency.

Greenam Energy's floating solar power plant at SPIC's Thoothukudi facility, one of India's largest, exemplifies our commitment to renewable energy sources. The plant benefits from the water's cooling effect, enhancing energy generation while reducing water evaporation in the reservoir by 60%, conserving resources and positively impacting the environment.

Manali Petrochemicals (MPL), through its agreement with UK-based Econic Technologies, leverages advanced carbon-capture technology to produce eco-friendly polyols. By incorporating captured CO₂ into MPL's polyol production, we are addressing the growing demand for sustainable, carbon-led products.

At AM International, our ESG approach has led us to successfully harness technology for effective resource conservation. PennWhite, MPL's UK-based subsidiary, addresses customer needs with speciality chemical products that optimise raw material use and minimise environmental impact.

Another innovative ESG strategy we implement is localisation, which fosters efficient, region-focused production. For example, PennWhite and Notedome, MPL's UK-based subsidiaries, have established production capabilities in India, offering a 'near-to-the-customer' experience. This approach reduces transportation distances, simplifies logistics, and cuts costs, while significantly lowering our carbon footprint, as shorter supply chains result in fewer greenhouse gas emissions. Localisation also ensures timely delivery and minimises the risk of delays caused by macroeconomic factors.

Our plants in India are located near seaports, further reducing supply chain emissions. In addition, we source our raw materials locally and collaborate with local vendor partners. These approaches enhance logistical efficiency and deliver cost-effective solutions that align with our sustainability goals.

Creating lasting community impact

Businesses and society are deeply interconnected. Through AM Foundation, we extend our impact beyond financial performance, creating sustained positive change among local communities. Our Corporate Social Responsibility (CSR) initiatives, which take a grassroots approach, address the critical unmet needs of local communities around our plant sites. Cumulatively, our efforts have positively impacted over 1.4 million beneficiaries.

AM Foundation has always prioritised primary healthcare to ensure essential services reach those in need. Since 2019, we have established 18 AM Primary Health Care Centres (AMPHCCs) in Chennai and Tuticorin, serving over 238,000 beneficiaries with essential medical care.

Initiatives like our Dr Mobile clinic, which provides doorstep healthcare access in remote areas, have been crucial in serving communities which lack access to proper resources.

AM Foundation also supports Integrated Child Development Services (ICDS) centres, with facilities such as rainwater harvesting and child-friendly toilets. Each facility supports 25 children and indirectly benefits over 1,500 people. Sanitation is another significant area of focus. We have built gender-inclusive sanitation facilities in government schools across Tamil Nadu in India, providing clean and hygienic lavatories for over 40,000 boys and girls students. The initiative has reduced absenteeism, especially among female students, and created a gender-equitable school environment.

Another initiative by AM Foundation is the Happy Periods Project, which educates school-going girls and boys on menstruation. It addresses cultural taboos and promotes hygienic care. This programme has impacted 135,000 beneficiaries directly and over 700,000 beneficiaries indirectly across 45 schools in Tamil Nadu.

Upholding gold standards of governance

Good governance is the bedrock of our resilience, bolstering our companies' long-term credibility and reinforcing stakeholder trust.

We operate through a federated structure led by skilled business leaders and overseen by an independent board. Family representatives, equipped with professional training and education, contribute at the board level, focusing on stakeholder interests in strategic growth areas and ensuring adherence to compliance.

At AM International, we champion DEI and set a standard in the manufacturing sector. Notably, our Water-Soluble Fertilisers (WSF) plant at Greenstar Fertilizers and the Ammonia plant at SPIC are managed by all-women teams. We foster an environment of equal opportunity, which enriches our workforce and boosts productivity.

Risk management is a fundamental aspect of good governance. In the face of climate change, geopolitical conflicts, and political instability affecting global economies, AM International is focused on cost optimisation and strategic investments to sustainably enhance our value chain.

To enhance our risk mitigation, we prioritise stability and growth through targeted brownfield expansions and opportunistic mergers and acquisitions. Our commitment to fiscal prudence further strengthens our capacity to manage risks and complexities effectively.

Today, we are strategically positioned to navigate challenges, seize opportunities, and pave the way for sustained growth.

A legacy built on responsibility

Since the inception of our first and flagship enterprise, SPIC, in 1969, we have steadfastly upheld our commitment to environmental stewardship, social responsibility, and good governance. From the start, we harnessed the power of science and invested in modern technologies to reduce our ecological footprint.

The development of the SPIC Nagar township alongside our production facilities embodies our holistic approach, recognising that a thriving workforce and happy families are essential for long-term sustainability.

We have instilled these values across all our group companies, propelling them to become leaders in their sectors. I am proud to note that many of our companies now rank among the top three in their fields.

Building a better tomorrow

Over the past five decades, our business has been driven by the core values of sustainable growth, environmental protection, and community care. Guided by these ideals, we are not only addressing today’s challenges but also actively working towards a cleaner and brighter future.

As I conclude, allow me to tweak the timeless marketing maxim of the 5Ps creatively. We are committed to building a business that embodies these principles: People, Planet, Purpose, Probity, and Profits.

Thank you for your unwavering trust and support as we strive towards a sustainable and brighter future.

Warm regards,

Ashwin Muthiah
Founder-Chairman
AM International Holdings