Chemkart India, incorporated in 2020 and headquartered in Mumbai, is entering the SME IPO market with a hybrid issue of 32,29,200 equity shares. This includes a fresh issue of 26,00,000 shares and an Offer for Sale (OFS) of 6,29,200 shares by promoters Ankit Mehta and Parul Mehta. The IPO is priced in the range of INR 236 to INR 248 per share, aggregating to a total issue size of INR 76.21 to INR 80.08 crore.
- Fresh Issue Proceeds: INR 61.36 – 64.48 crore
- OFS Size: INR 14.85 – 15.60 crore
The IPO opens on 7 July 2025 and closes on 9 July 2025. Shares are proposed to be listed on the BSE SME platform with allotment finalisation on 10 July 2025 and listing scheduled for 14 July 2025.
Chemkart IPO analysis will give you an in-depth overview of how the IPO intends to leverage the company’s growth trajectory and expand operations in the increasingly competitive nutraceutical and health supplement distribution sector. Chemkart operates a 28,259 sq. ft. processing and warehousing unit in Bhiwandi, Maharashtra, with blending and grinding capacities of 450 and 540 metric tons per annum, respectively.
#1 Chemkart IPO Analysis: Industry Overview
India’s nutraceutical industry is currently valued at approximately USD 10.5 billion and is expected to reach USD 18 billion by 2025, growing at a CAGR of 20%. The sports nutrition segment alone is growing at over 30% annually, while the amino acid sub-segment is anticipated to grow at a CAGR of 14–16% globally. The Indian dietary supplements market, which includes proteins, vitamins, and minerals, was valued at INR 38,000 crore in FY24.
Key growth enablers include:
- Increasing urban population with higher disposable income
- Rising health consciousness post-COVID-19
- Penetration of online and D2C wellness brands
- Supportive regulations by the FSSAI and Ayush Ministry
Chemkart, with FY25 revenue of INR 203.28 crore and a CAGR of 24.39% from FY23–FY25, is growing slightly ahead of the industry average, primarily due to its bulk trading volume and diversified B2B product offerings. The company services finished product manufacturers across India and overseas, offering amino acids, sports nutrition ingredients, and custom blends.
However, while the industry is shifting toward brand-led, IP-driven formulations, Chemkart’s 4.12% revenue from processed/customised products indicates underutilised potential in high-margin verticals. Its warehousing and processing facility in Bhiwandi, with blending and grinding capacities of 450 and 540 metric tons, respectively, can serve as a launchpad for in-house formulation expansion.
In conclusion, Chemkart’s growth trajectory mirrors the industry’s surge, but to outperform the market sustainably, it must scale value-added offerings, build B2B stickiness through formulation services, and tap into D2C platforms, especially as competitors with branding muscle gain market share.
#2 Business Overview
Chemkart India is a Mumbai-based nutraceutical ingredients supplier with a business model focused predominantly on B2B trade. Established in 2020, the company operates across India and internationally, targeting manufacturers of dietary supplements, sports nutrition products, and health formulations.
Product Segments: The company’s product catalogue spans seven key categories:
- Amino Acids: Glycine, L-Glutamine, L-Arginine, L-Leucine Instant, L-Histidine
- Sports Nutrition: Creatine Monohydrate, BCAA 2:1:1, Whey Protein Concentrate
- Vitamins and Antioxidants: Inositol, NAC (N-Acetylcysteine), Glutathione
- Other Categories: Health Supplements, Herbal Extracts, Nucleotides, and Proteins
Chemkart reported revenue of INR 203.28 crore in FY25, up from INR 132.03 crore in FY24, reflecting a YoY growth of over 54%. Amino acids and sports nutrition together contributed approximately 65% of total revenue, indicating a strong product concentration. Processed and custom-blended goods contributed 4.12% of FY25 revenue.
Processing Infrastructure: The company operates a 28,259.16 sq. ft. facility in Bhiwandi, Maharashtra. This includes:
- Blending capacity: 450 metric tons per annum
- Grinding capacity: 540 metric tons per annum. This facility enables Chemkart to supply customised ingredient blends, particularly for amino acid mixes and sports formulations, though it currently represents a small fraction of total sales.
Clientele and Operations: Chemkart serves domestic and international markets through 40 employees and a wide network of third-party logistics partners. It relies on imports from China, the US, and Europe to source high-demand ingredients. While the company’s top clients account for a major portion of revenue, it maintains repeat order cycles and strong customer retention.
Revenue Streams:
- Trading Revenue: INR 193.75 crore in FY25 (95.3% of total)
- Processed Goods: INR 8.37 crore in FY25
- Other Income: INR 1.16 crore
Chemkart’s trading-heavy model offers scalability and low fixed capital requirements. However, the high dependence on imports, limited branding, and low IP ownership may cap long-term margin expansion unless processed product share increases significantly.
The company’s ability to evolve from a commodity-style supplier into a formulation partner with niche expertise will be key to sustaining competitive differentiation in a maturing sector.
#3 Chemkart IPO Business Model Analysis
Chemkart India operates on a primarily trading-based, asset-light business model that capitalises on the rising demand for health and wellness ingredients. The company’s core competency lies in the sourcing and B2B supply of nutraceutical ingredients, without engaging in large-scale manufacturing or brand ownership.
Key Characteristics of the Model:
- High-Volume Trading: Over 95% of Chemkart’s revenue in FY25 (INR 193.75 crore) was derived from trading commoditised ingredients such as amino acids and sports nutrition additives.
- Low Asset Intensity: With no significant investment in manufacturing infrastructure, Chemkart has kept its capital expenditure minimal. The operational model benefits from working capital efficiency rather than capex-led growth.
- Import-Driven Supply Chain: Raw materials are procured from international suppliers (mainly China, USA, and Europe), and then distributed to B2B customers across India.
- No B2C/D2C Presence: The company has not ventured into direct consumer sales or proprietary branding. All customer touchpoints remain wholesale-oriented.
Strengths of the Model:
- Scalability: Minimal fixed infrastructure allows for faster geographic and volume expansion.
- Flexibility: Low dependency on manufacturing assets provides agility in adjusting to shifting demand and product preferences.
- Working Capital Leverage: Strong top-line growth is driven by efficient import-to-sale cycles.
Limitations and Strategic Gaps:
- Margin Compression: Absence of branding or proprietary formulation limits Chemkart to thin trading margins, especially in competitive amino acid and vitamin markets.
- No Pricing Power: Being a reseller, the company has limited control over product pricing and faces risks from foreign exchange volatility and import restrictions.
- Low Entry Barriers: The asset-light, trading-heavy model is susceptible to competitive entry, both from local players and global distributors.
- Underutilised Capacity: Despite having a custom blend infrastructure, less than 5% revenue is realised from value-added services.
Opportunities Ahead:
- OEM/Private Labelling: Offering formulation and packaging services to supplement brands could significantly boost value capture.
- B2B Contract Manufacturing: Using existing infrastructure to blend proprietary mixes under client brands can improve margins.
- Brand Development or Partnerships: Creating a branded line (or white-labeling for D2C players) could open a new revenue vertical.
In conclusion, Chemkart’s business model has effectively captured volume-led growth but now requires a strategic shift toward formulation-led solutions to achieve sustainable margin expansion and competitive insulation.
#4 Risk Factors
- 56.97% to 77.71% of sales came from Maharashtra, Gujarat, and Delhi (FY23–25). Regional disruptions may severely impact revenue, with only 0.75% exports in FY25.
- Top 10 customers contributed up to 54.61% revenue (FY23), but no long-term contracts exist. 336–445 customers discontinued annually, exposing the company to customer concentration risks.
- Operating cash flow was negative in FY24 (INR -2.34 lakh), investing cash flows were consistently negative, risking growth and financial stability from weak internal fund generation.
- No cases against the company, but 3 tax matters (INR 80.11 lakh) against directors. Legal liabilities or future litigation may impact business, reputation, and operational performance.
- The company owes INR 3.90 crore in unsecured loans to promoters/directors, repayable on demand. Sudden recalls may strain liquidity, forcing refinancing at unfavourable terms.
- Subsidiary WOS ERMPL and VBPL posted losses of INR 12.68 lakh and INR 10.96 lakh in FY25. Persistent subsidiary losses could affect the parent company’s stability and stakeholder confidence.
- ERMPL’s collaboration with SRIFIR may inflate costs due to integration, regulatory, and market risks, possibly impacting overall goodwill and operations if misaligned or delayed.
- ERMPL, PNPL, and MLPL (promoter group firms) operate in a similar nutraceutical space, leading to potential conflicts of interest and competition with the company.
- 73.52% of FY25 revenue came from Amino Acids and Sports Nutrition. A dip in demand or market shifts in these categories could significantly hurt revenue.
#5 Financial Performance
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Revenue | 131.38 | 132.03 | 203.28 |
| Expenses | 121.17 | 112.87 | 172.86 |
| Net Income | 7.66 | 14.52 | 24.26 |
| EBITDA Margin (%) | 8.41 | 15.84 | 16.12 |
| ROE (%) | 52.84 | 50.04 | 45.52 |
| ROCE (%) | 43.00 | 51.00 | 49.00 |
| EPS (INR) | 8.06 | 15.28 | 25.54 |
| NAV (INR) | 15.26 | 30.55 | 56.10 |
| Debt/Equity Ratio | 0.78 | 0.43 | 0.32 |
#6 Objects of the Offer
Fresh Issue Proceeds Allocation:
- INR 15 Cr: Augmentation of working capital
- INR 4 Cr: General corporate purposes
- INR 2 Cr: Issue expenses
Final Verdict
Chemkart offers strong financial growth, attractive margins, and modest valuation. However, investors should monitor product and customer concentration, and limited manufacturing depth. Success depends on Chemkart’s ability to scale value-added operations and diversify post-listing.
Best suited for investors looking for:
- High-growth SME IPO exposure
- The nutraceutical sector plays
- Near-term listing gains
Avoid if you require strong branding/IP presence or full vertical integration
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