In 2024, RAIN experienced a significant realignment of finished product and raw material pricing, which had been out of sync since the commodity super cycle began in 2022. This cycle initially benefitted us by driving finished product prices up much faster than raw material costs, resulting in improved margins for the Company. However, as with all cycles, these prices and margins eventually fell and needed to stabilise before returning to a more typical operating range. In the second half of 2024, prices and raw material costs began to realign, ending a period of compressed margins and signalling a return to the Company’s normal margin range.

From a volume perspective, we saw an increase in the Carbon segment’s calcination business, while the Carbon segment’s distillation side of the business, as well as the Advanced Materials segment, faced challenges from the lack of raw material availability. Despite these challenges, our plants operated efficiently and with the lifting of six years of import restrictions on GPC and CPC into India, we have begun ramping up production at our Carbon segment’s calcination facilities.

Several key factors impacted our revenue, profitability and operational efficiency in 2024. The realignment of pricing and costs stabilised our margins, our strategic investments in production technologies and locations helped us adapt to market conditions and our robust logistics and blending network provided helped us adjust the flow of raw materials and products. Looking ahead, we remain cautiously optimistic about our ability to navigate future market volatility and potential risks.

RAIN’s diverse array of business segments serves as a strategic advantage, allowing us to effectively mitigate performance risk. Our Cement segment, which operates domestically within India, depends on the impetus provided by public and private infrastructure, housing and development. We continuously aim at lowering our production costs and enhancing our positive impact on the environment and the communities around us.

Our Carbon and Advanced Materials segments operate on a global scale, capitalising on the upcycling of byproducts from other industries. These segments experience fluctuations influenced by commodity cycles, logistics costs, regional and global growth and stability and regulatory trends in our markets.

Despite these similarities, RAIN’s three segments utilise different logistics modes, each subject to distinct market movements. Additionally, the three segments are impacted by the cycles of different commodities, which do not always move in the same direction. Though each segment may experience independent fluctuations — sometimes in tandem and sometimes not — RAIN’s diversified structure provides a robust foundation for risk mitigation. By leveraging the unique dynamics of each segment, we are well-positioned to navigate market volatility and capitalise on opportunities for growth.

In 2024, conflicts in Europe and the Middle East impacted logistics flows and the locations of raw material supplies and finished product sales across all three of RAIN’s segments. However, our longstanding focus on fostering strategically strong relationships with a global array of raw material suppliers and logistics partners allowed us to bring materials to other RAIN sites as economically as possible.

The year 2024 was also characterised by the relaxation of the six-year-long raw material import restrictions in India. As new industries competed for traditional Carbon raw materials, we optimised sourcing of new raw materials and blend components, reinstating our global blending strategy and thus increasing capacity utilisation in the Carbon segment. Our R&D teams also made significant strides in 2024, continuously enhancing our production technologies.

In light of the recent market dynamics, RAIN has taken decisive and sometimes difficult actions to maintain cost competitiveness. Our commitment to adaptability and swift decision-making has been instrumental in our ability to thrive amidst constant change.

In our Cement segment, the landscape is evolving due to ongoing consolidation, with several market participants — from Indian subsidiaries of multinational cement groups to India-only producers — opting to sell their operations. Despite the trend, RAIN has maintained a strong presence in the South Indian cement sector through our well-regarded ‘Priya Cement’ brand.

There was also continued pressure for consolidation in 2024 among several competitors in two other segments – Carbon and Advanced Materials, RAIN’s extensive global footprint, logistical flexibility and expertise to utilise alternative raw materials are helping us to remain globally competitive.

Our focus on operational optimisation and cost control in all three segments has been pivotal to our continued success. Strategic investments in energy efficiency have been a cornerstone of our approach, enabling us to stay competitive amid industry consolidation.

In 2024, RAIN embarked on several strategic improvement initiatives, with satisfactory progress across our segments.

In our Advanced Materials segment, our strong R&D efforts enabled the Company to begin utilising several new raw material streams, significantly enhancing our Hydrocarbon Resins (HCR) product portfolio. Our Hydrogenated Hydrocarbon Resins (HHCR) plant in Germany achieved improved reliability, boosting our throughput and lowering per-tonne production costs.

In the Carbon segment, the long-awaited relaxation of raw material restrictions in India had positive impacts. Both of RAIN’s Indian Carbon plants were able to increase their utilisation rates gradually. This also reopened our unique global blending strategy, resulting in lower logistical costs globally and increased capacity utilisation outside India. Notably, our Carbon plants in the US will see improved capacity utilisation, enabling some optimisation of our production costs.

Furthermore, 2024 marked a new phase of logistical cooperation between our Cement and Carbon segments in India, leading to efficiency gains for both segments.

At RAIN, sustainability is deeply integrated into our operations and product offerings. Each site is closely linked to the group’s Sustainability team, leveraging unified systems, standards and methodologies to collect and report site-specific sustainability-related data. This data is then consolidated, audited and reported by RAIN’s Sustainability team, enabling us to accurately calculate the carbon footprint and conduct lifecycle assessment for each product.

This interactive, cohesive strategy guarantees that each site is an integral stakeholder and active participant in RAIN's sustainability programme. This fosters a sense of ownership and pride as each site meticulously benchmarks its operational and sustainability metrics. Our centralised, in-house methodology guides our R&D and raw material procurement processes. This allows various segments to thoroughly evaluate the sustainability impact of both traditional and innovative raw materials, including bio-based and recycled options, across our entire product line.

By leveraging this comprehensive framework, RAIN can market certain products for their sustainability advantages, spotlighting the lower carbon footprint of our production processes, the higher circularity of certain raw materials and the favourable product lifecycle analyses.

In 2024, we launched several strategic initiatives in line with our sustainability agenda. All three of RAIN’s segments undertook significant efforts to lower their carbon footprint, including increased trials and use of recycled and bio-based raw materials to improve the circularity within our ISCC PLUS-certified line of NOVARES® eco resins. We also utilised a greater share of lower-emission energy sources. We also continued with our ongoing, multi-year programme to identify and implement improvement measures to reduce the overall footprint of RAIN’s operations at each site.

Noteworthy highlights from 2024 include the replacement of a distillation oven with a more energyefficient model in Germany, the commencement of our 2026 steam electrification repowering project in Canada and the trademarking of our StabilsoilTM and StabilgroTM beneficial-use lime byproducts in the US for agricultural and road construction markets.

Our Cement segment undertook its first-ever EcoVadis Sustainability Review and took the necessary steps to sign the UN Global Compact in early 2025, which our Carbon and Advanced Materials segments had done in 2023. One of our Cement segment’s two sites also completed a GreenCo Assessment in India, winning a prestigious Gold Award. Our second cement site will undergo this assessment in 2025. These new initiatives in our Cement segment mirror successful reviews and assessments undertaken at several Carbon and Advanced Materials segment locations around the world.

In 2024, we published RAIN’s second annual Sustainability Report, covering the Carbon and Advanced Materials segments. Our aim is to release a Sustainability Report for our Cement segment, followed by a group-wide Sustainability Report. We further strengthened our sustainability position under the EcoVadis scheme at our sites in Europe and North America by adding new enhancements, data and certified documentation. These efforts resulted in several new gold medals despite EcoVadis raising its scoring standards in 2024.

Innovation has been a cornerstone of RAIN’s longevity and success. As our markets evolve, our strength and experience in innovation have become more crucial to stay ahead of competition. At RAIN, innovation manifests in several ways – from identifying new raw materials and blends, implementing cutting-edge technologies, developing more efficient ways to operate our existing technologies, to optimising logistics and creating innovative new finished products.

In 2024, we continued this trend by launching several strategic initiatives. Our R&D teams continued to identify and utilise new raw materials, including recycled and bio-based options, enhancing the sustainability and circularity of our product offerings. Innovation also meant the adoption of lower-emission energy sources, reducing our environmental footprint.

As pointed out earlier, new raw materials enhanced our Hydrocarbon Resins portfolio in Advanced Materials, while our HHCR plant in Germany improved reliability, boosting throughput and reducing costs. In Carbon, relaxed raw material restrictions in India increased capacity utilisation and optimised blending, lowering costs. In our Cement segment, we initiated a new phase of innovative logistical cooperation with the Carbon segment in India, leading to efficiency gains for both segments.

RAIN’s ability to innovate extends to our approach to sustainability, with each site liaising directly with the Sustainability team and utilising unified systems and standards to collect and report sustainability-related data. This ensures proactive participation and a sense of ownership and pride in the sustainability agenda of our Company.

In 2024, RAIN made significant strides in product development and improvements across the Carbon and Advanced Materials segments. A noteworthy highlight was RAIN’s announcement of our new research and development laboratory and demonstration plant in Canada for Energy Storage Materials and Battery Anode Materials. This exciting new centre merges RAIN’s extensive expertise in raw materials, products and applications from both our Carbon and Advanced Materials segments into the high-growth area of energy storage. RAIN also announced several government funding grants and joint development partnerships with other players in this sector.

In our Advanced Materials segment, we successfully utilised new raw material feedstocks at two of our plants in Germany to produce entirely new products using our existing production units. This included both bio-based raw materials and new formulations that allow us to produce the same high-quality products in a more efficient manner. These efforts have increased RAIN’s sales volumes, lowered costs through improved production capacity utilisation and boosted returns.

Additionally, we further expanded our highly sought-after ISCC PLUS-certified NOVARES® eco product portfolio. In the Carbon segment, we have identified and qualified new raw material sources, which scaled in 2024 and will expand further. We continue advancing R&D on bio-based and low-carbon materials, alongside filing unique patents.

In 2024, RAIN achieved significant milestones in both safety and employee culture. As part of RAIN’s phased implementation of the United States Occupational Safety and Health Administration (OSHA) guidelines across all segments, 2024 saw the Cement segment adopt OSHA guidelines. While RAIN sites continue to follow local safety regulations, the adoption of OSHA guidelines enables RAIN to fully leverage the benefits of standardised procedures and comparative statistics globally. We are proud to announce that RAIN’s first-ever, group-wide OSHA Total Recordable Incident Rate (TRIR) for 2024 was an impressive 0.13, cementing our position as ‘best-in-class’ for industrial operators worldwide.

Another major milestone was the implementation of the SAP-SuccessFactors Human Resources (HR) tool, which has so far been used only in some RAIN locations. The Group-wide adoption of the tool allows RAIN’s HR team and management to efficiently support and manage employees locally and globally, streamline and standardise processes while making it possible to get comprehensive statistics and information on our entire global workforce at the touch of a button. Key modules implemented include the digitalisation of common recruiting, onboarding, employee training (including safety training) and offboarding tasks. RAIN has adopted the name ‘myRAIN’ for our customised SAP-SuccessFactors system.

By combining myRAIN with our now-global OSHA safety initiative, RAIN ensures that all employees are equipped with the necessary tools and training to be effective and safe in the workplace.

At RAIN, we are eagerly looking ahead with a deep sense of optimism and confidence. The year 2024 certainly brought challenges. Nevertheless, our unwavering focus remains on continuously revisiting and optimising our cost structures, ensuring we remain competitive on the global stage. Despite the increased competition for raw materials, we believe in our unique strengths and adaptability to grow our margins. We are enthused by the recent lifting of import restrictions in India, which allows us to optimise our capacity utilisation and reduce raw material and logistics costs.

RAIN’s management and colleagues at all levels are committed to maintaining stringent cost discipline across all areas of our business. By successfully enhancing its cost-competitiveness in the short-, medium- and long-terms, RAIN will be well-positioned to reduce its long-term debt and achieve successful refinancing as our earnings and market conditions align.

The rapid acceleration of R&D into our processes, raw materials and product lines positions RAIN as a significant player in the burgeoning electric vehicle and energy storage industries. We are building on our experience in serving this sector globally and our commitment to innovation and excellence continues to be our guiding light.

Looking forward, our strategic priorities are centred around sustained profitability and long-term growth. We remain dedicated to implementing cost-effective measures that optimise our operational efficiency and drive financial resilience.

The dedication and hard work of our teams are paving the way for sustained success and growth. We also deeply value the ongoing support of our investors and are confident that our disciplined approach and proactive strategies will pave the way for continued success and enduring growth.