About Chemkart India Limited

BUSINESS OVERVIEW

Chemkart India, based in Mumbai, is a one-stop destination for a wide range of nutritional, health, and sports supplement ingredients. The product portfolio focuses on functional food ingredients that deliver both nutritional value and health benefits.

The company offers a diverse assortment across seven core categories: Amino Acids, Health Supplements, Herbal Extracts, Nucleotides, Proteins, Sports Nutrition, and Vitamins. This positions Chemkart India strategically to meet the rising demand for nutrition-enriched food and supplement products.

The business operates on a B2B model, supplying raw materials used in the production of sports supplements, vitamins, protein formulations, and other health products. The emphasis lies on variety, quality, affordability, and customer-centric solutions.

Chemkart India has established strong relationships with customers and suppliers, enabling efficient supply chain management. The in-house processing and blending facility handles raw materials like L-Leucine Instant, L-Isoleucine, L-Valine, L-Histidine, L-Lysine HCL, DL-Methionine, L-Threonine, L-Phenylalanine, and L-Tryptophan.

Operations include blending, where ingredients are combined per custom formulations, and grinding, which involves particle size reduction using specialized mills to produce fine, consistent powders ready for further processing.

This integrated model provides deep insight into raw material characteristics, enhances understanding of customer needs, and supports a growing geographical footprint across India. As on, March 31, 2025, the company have employed 40 personnel at their warehouse facility and Registered Office. The Banker to the company is ICICI Bank Limited.

INDUSTRY ANALYSIS

Indian Manufacturing Industry: An Engine of Economic Growth

India's manufacturing sector is rapidly becoming a vital pillar of the nation's economic expansion. Contributing 16–17% of pre-pandemic GDP, this sector has been propelled by key industries like automotive, engineering, chemicals, pharmaceuticals, and consumer durables. With digital transformation and automation taking center stage, the industry is embracing Industry 4.0.

The machine tool sector, once the backbone of Indian manufacturing, is now evolving with technological advancements driving innovation and efficiency. Increasing automation is expected to significantly enhance productivity and competitiveness.

Key Highlights

• PMI Surge: India’s HSBC Manufacturing PMI hit a 16-year high of 59.1 in March, reflecting robust growth in output, new orders, and job creation.

• Export Potential: India is aiming to export $1 trillion worth of goods by 2030, positioning itself as a global manufacturing powerhouse.

• Government Initiatives: The National Manufacturing Policy targets a 25% GDP share from manufacturing by 2025. The PLI (Production-Linked Incentive) scheme, launched in 2022, continues to attract major investments.

• FDI Growth: Foreign Direct Investment in manufacturing reached $165.1 billion, up 69% in the past decade. Total FDI inflows over five years stood at $383.5 billion.

• Job Creation: The mobile phone manufacturing sector is expected to generate 1.5–2.5 lakh new jobs in the next 12–16 months, fueled by expanding operations from companies like Apple and Dixon Technologies.

Market Insights

• Record Exports: In FY23, manufacturing exports reached an all-time high of $447.46 billion, growing by 6.03% YoY.

• Smartphone Surge: Exports jumped 42% in FY24 to $15.6 billion, with the US as the top market.

• Economic Contribution: The sector contributed $770.08 billion in GVA (Q1 FY24) and is projected to hit $1 trillion by FY26.

• Capacity Utilisation: RBI data shows 76.8% utilisation in Q3 FY24—indicating strong recovery.

• Startup Growth: Indian startups raised $596 million in one week, with nearly $10 billion raised in 2025 YTD, supporting innovation in manufacturing technologies.

Future Outlook

India is poised to become a global manufacturing hub, leveraging improved digital and physical infrastructure. Initiatives like SAMARTH Udyog Bharat 4.0 and industrial corridors aim to enhance competitiveness. The government also plans to offer incentives of ₹18,000 crore ($2.2 billion) across sectors like chemicals, vaccine inputs, and shipping containers. India’s manufacturing GVA was estimated at $110.48 billion in Q1 FY24, and its middle class is projected to hold the second-largest global consumption share (17%) by 2030.

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Indian Trade Industry: Expanding Global Footprint

Overview

India has emerged as a pivotal player in the global trade ecosystem, driven by strong GDP growth, export expansion, and supportive government policies. In Q3 FY24, India's GDP reached ₹75.49 lakh crore (~$915.04 billion), reflecting a 10.1% YoY growth.

Trade Performance

• Annual Exports (2023–24): Reached $776.68 billion, up slightly from the previous year.

• March 2024 Figures: Exports stood at $70.21 billion, while imports were at $73.12 billion.

• Sectoral Growth: Positive export growth in 17 of 30 sectors including handicrafts (128.39%), spices (51.01%), electronic goods (23.12%), pharmaceuticals (12.73%), and engineering goods (10.66%).

Strategic Outlook

The PLI schemes are central to reducing import dependency and boosting value-added exports. India's evolving trade policy includes:

• Rupee Trade Mechanism: Introduction of Rupee Vostro accounts for international settlements.

• Wider Adoption: Over 35 countries have shown interest in rupee-based trade, aiming to internationalize the currency and reduce forex volatility.

With advancing infrastructure and bilateral trade deals, India is building a strong foundation to grow its share in the global market.

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Indian Nutraceuticals Industry: Fusing Tradition with Innovation

Overview

Valued globally at $400 billion, the nutraceuticals market integrates food, pharma, and biotech. India, backed by Ayurveda and biodiversity, is uniquely positioned to lead this space but currently holds less than 2% market share due to limited classification and sectoral support.

Strategic Developments

The Nutraceutical Task Force, formed by CSIR in 2021, includes key ministries and industry leaders. Major reforms and initiatives include:

• HSN Code Introduction: Streamlining trade classification.

• PLI Scheme Launch: Supporting large-scale production.

• Industry Panel Formation: Under SHEFEXIL for export promotion.

• RoDTEP Benefits: Exporters now receive tax and duty remissions.

India’s Advantages

• Rich Ayurvedic heritage and 1,700+ medicinal plants.

• Strong pharmaceutical base ensures quality standards.

• Presence of 52 agroclimatic zones supports diverse crop cultivation.

• Active startup ecosystem and incubation hubs like NIFTEM-Kundli and AIC-CSIR-CCMB.

Looking Ahead

With government support, infrastructure development, and global promotion, India is aiming to become a leading global supplier of nutraceuticals. Ongoing collaborations with the Central Board of Indirect Taxes and Customs (CBIC) are facilitating easier exports, and the first Nutraceutical Centre of Excellence in Kerala further reinforces this growth vision.

BUSINESS STRENGTHS

a) Diversified Product Portfolio

A strong understanding of customer requirements and product capabilities has led to a comprehensive nutraceutical portfolio, spanning seven core categories: Amino Acids, Health Supplements, Herbal Extracts, Nucleotides, Proteins, Sports Nutrition, and Vitamins, along with additional health products in various packaging sizes. This diversification supports a broad range of customer preferences and applications.

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b) In-House Processing & Warehousing Capabilities

Equipped with a dedicated processing unit and hygienic warehouse, the company provides blending, grinding, and packaging services for select nutraceutical ingredients. Trained staff and skilled contract labor ensure efficient handling of bulk quantities while maintaining quality and safety standards.

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c) Strong Value Proposition for Customers

Focused on the B2B segment, the company benefits from a widespread customer network. Emphasis on long-term client relationships, built on trust and consistent delivery, strengthens its position in the nutraceutical sector. This approach enhances customer retention and creates a sustainable value-driven business model.

BUSINESS STRATEGIES

a) Backward Integration to Meet Global Nutraceutical Demand

Positioned as a one-stop destination for nutritional, health, and sports supplement ingredients, primarily focused on functional food products with health benefits. Operating out of Mumbai, the company offers a diversified portfolio across seven key categories—Amino Acids, Health Supplements, Herbal Extracts, Nucleotides, Proteins, Sports Nutrition, and Vitamins—enabling responsiveness to growing nutritional awareness in food products.

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b) Product Innovation and Portfolio Diversification

Continued investment in R&D, advanced technology, and skilled workforce aims to support innovation and expand offerings. Plans include the introduction of tablets, capsules, jars, and sachets via a proposed manufacturing facility equipped with high-precision machinery and quality assurance systems to meet global standards.

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c) Strengthening Financial Stability through Improved Debt-Equity Ratio

As of March 31, 2025, the debt-equity ratio stands at 0.32. Planned loan repayments are intended to improve the ratio, enhance financial stability, and facilitate access to future working capital and term loans, boosting operational efficiency and reducing long-term liabilities.

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d) Leveraging Market Expertise and Relationships

Focused on enhancing customer satisfaction and business growth by capitalizing on industry relationships and market insights. Strategic emphasis on timely order fulfillment, customer retention, and supplier engagement supports sustainable expansion and strengthens market positioning.

BUSINESS RISK FACTORS & CONCERNS

1. High Dependence on Chinese Imports
A significant portion of product procurement is from China, contributing 76.04% (FY25), 75.43% (FY24), and 70.20% (FY23) of total purchases. Any disruption in supply due to geopolitical, regulatory, or logistical challenges in China could adversely affect procurement, revenues, and operations.

2. Limited Operational and Manufacturing History
Established in 2020, Chemkart India and its wholly-owned subsidiary Easy Raw Materials Pvt. Ltd. (ERMPL) lack a long-standing track record and manufacturing experience in the nutraceutical sector. This may pose challenges in regulatory compliance, R&D capabilities, product development, and market forecasting.

3. Geographical Concentration of Sales
A major share of revenue is concentrated in Maharashtra, Gujarat, and New Delhi, contributing 56.97% (FY25), 66.55% (FY24), and 77.71% (FY23) of domestic revenue. Adverse regional developments could significantly impact sales performance and operational results.

4. Customer Concentration and Absence of Long-Term Contracts
Revenue is dependent on a limited customer base, with no long-term contracts, relying instead on purchase orders. Customers may cancel, delay, or modify orders, increasing exposure to demand fluctuations and customer attrition risk.

Chemkart India faces risks from supply chain dependency on China, limited operational history, regional sales concentration, and reliance on a small set of non-contracted customers. These factors could impact the company’s ability to sustain growth, maintain compliance, and manage operational stability.