Chemkart India Limited, a leading B2B supplier of raw ingredients for nutritional, sports, and health supplements, has submitted an investor presentation to the Bombay Stock Exchange (BSE) highlighting its strong financial performance and ambitious growth plans. The company, established in 2015 and headquartered in Mumbai, has showcased impressive financial results and announced a significant expansion of its manufacturing capabilities.

Financial Performance

Chemkart India has reported substantial growth in its financial metrics:

The company's Return on Equity (ROE) and Return on Capital Employed (ROCE) for FY25 stood at 46% and 49% respectively, indicating strong operational efficiency and profitability.

Operational Highlights

Chemkart India operates with a diverse portfolio of over 150 ingredients across more than 10 product categories. The company serves over 500 clients and maintains a 30,000 sq.ft warehouse facility in Bhiwandi, Maharashtra. This facility is equipped for blending, grinding, packing, labelling, and sealing operations, with a daily grinding capacity of 1.8 MT and a blending capacity of 1.5 MT.

New Manufacturing Facility

In a significant move towards vertical integration and expansion, Chemkart India has announced the construction of a greenfield nutraceutical Contract Development and Manufacturing Organization (CDMO) facility. This project will be executed through its subsidiary, Easy Raw Materials Private Limited, at the JNPT Special Economic Zone (SEZ) in Maharashtra. Key features of the new facility include:

• 4,120 sq.m plot leased for 60 years at JNPA SEZ, Raigad
• Integrated CDMO operations for formulation, packaging, and global dispatch
• Dosage formats including tablets, capsules, jars, and sachets
• Focus on novel technologies such as microencapsulation, liposomal delivery systems, and enhanced bioavailability formats
• Modern infrastructure including QC labs, warehousing, and sustainability features

The facility is expected to be operational by FY27 and is strategically positioned near India's largest container port, offering seamless access to global markets and duty-free benefits under SEZ policy.

Market Focus and Future Outlook

While Chemkart India currently derives 99.25% of its revenue from the domestic market, the new SEZ-based facility is primarily aimed at export markets. This move aligns with the company's vision to become a global leader in end-to-end CDMO solutions and trusted distribution of food, health, and specialty ingredients.

The company is well-positioned to capitalize on India's growing nutraceutical market, which is projected to reach USD 76 billion by 2033, growing at a CAGR of 10%. Chemkart India's focus on high-margin specialty and performance chemicals, coupled with its expansion into CDMO operations, sets the stage for scalable growth and potential market leadership.

Chemkart India Limited's strategic initiatives, including its new manufacturing facility and focus on export markets, demonstrate the company's commitment to long-term growth and its ambition to play a significant role in India's evolving nutraceutical industry.

Chemkart India Limited (CIL), a prominent B2B nutraceutical ingredient distributor and processor, has announced a significant expansion into manufacturing through its wholly owned subsidiary, Easy Raw Materials Pvt. Ltd. (EZRM). The company has commenced construction of a state-of-the-art greenfield nutraceutical manufacturing facility at the Jawaharlal Nehru Port Authority (JNPA) Special Economic Zone (SEZ) in Maharashtra.

Strategic Expansion into Manufacturing

This new facility marks a strategic shift for Chemkart, expanding its operations from trading and distribution into manufacturing. The project aligns with the company's long-term vision of becoming a fully integrated nutraceutical solutions provider.

Facility Details and Capabilities

The EZRM facility is designed to operate as a Contract Development and Manufacturing Organization (CDMO), focusing on:

• Formulation
• Packaging
• Global exports of health supplements

The facility will incorporate advanced technologies, including:

• Microencapsulation
• Liposomal delivery systems
• Enhanced bioavailability formats

These capabilities position EZRM to meet the growing demand for next-generation nutraceuticals in both domestic and international markets.

Strategic Location and Benefits

The facility is being constructed on a 4,120 sq.m plot, leased for 60 years at the JNPA SEZ in Raigad. This strategic location offers several advantages:

• Proximity to India's largest container port, ensuring seamless access to global markets
• Duty-free import-export benefits under the SEZ policy, enhancing Chemkart's export capabilities and global competitiveness

Construction Progress

Following the Bhumi Pujan, construction is now in full swing. Current milestones include:

• Completed site clearance
• Ongoing platform and bentonite pit excavation
• Initiated pile foundation work with dual bore drilling machines
• Installation of generator and temporary support infrastructure on-site

Facility Highlights

The EZRM SEZ facility will feature:

• Multiple dosage formats including tablets, capsules, jars, and sachets
• Export-oriented design with SEZ-compliant labelling, documentation, and logistics infrastructure
• Modern infrastructure comprising quality control laboratories, warehousing, utilities, and administrative block
• Sustainability features

Impact on Chemkart's Operations

As a key component of CIL's integrated supply chain, the facility will function as a centralized hub for formulation and packaging. It will support global nutraceutical brands with:

• Private label solutions
• Custom blends
• End-to-end export documentation

A CIL spokesperson stated, "EZRM will set new benchmarks in ingredient innovation, regulatory compliance, and global serviceability."

This expansion into manufacturing represents a significant step for Chemkart India Limited, potentially enhancing its position in the global nutraceutical market and expanding its capabilities across the supply chain.