Chemspec Chemicals Ltd IPO

Chemspec Chemicals is a leading manufacturer globally of critical additives for FMCG ingredients used in skin and hair care products and intermediates for pharmaceutical APIs used in anti-hypertension drugs. As part of its FMCG product portfolio, it manufactures UV filters which are used as the primary ingredient in sunscreen lotions and creams, antibacterial soaps, anti-dandruff shampoos, and preservatives. The Company is also the largest manufacturer of ‘piroctone olamine’ in India, and the largest producer of ‘chemilide’ (an antibacterial ingredient) in the world with an approximate market share of 70% market share. The company manufactures these products at Taloja facility in Maharashtra which has a production capacity of 6,000 TPA and is approved by US FDA The firm has evolved from a local supplier to FMCG companies in India to a supplier to multinational FMCG companies in 43 countries including North America, Europe, the Asia Pacific region (APAC) including Japan, the Middle East and Africa

Entry barriers also include high cost of product development, complexity of the chemistry involved in manufacturing, time and cost involved in developing technologies and lengthy supplier qualification process
The principal raw materials used to manufacture the products include phenol derivatives, isobutylene derivatives, benzene and aniline derivatives, cresol derivatives, etc which are sourced from Indian manufacturers while some are imported from China and France. Its clientele includes Beiersdorf AG, Unilever Supply Chain Company AG, L’Oreal, DSM Nutritional Products, Godrej Consumers Products, Glenmark Life Sciences, Dr. Reddy's Laboratories, CTX Lifesciences etc.