Neochem Bio Solutions Ltd. (NSE SME)

IPO Details

Key Performance Indicators (KPI)

Company Financial (In ₹Crore)

Peer Comparision (Financial Performance)

About Company

Incorporated: 2006
Industry: Specialty Performance Chemicals

Neochem Bio Solutions Ltd. is engaged in the manufacturing of specialty performance chemicals used across multiple industrial applications. The company’s products serve essential roles in sectors such as textile and garment washing, home and personal care (HPC), institutional and industrial cleaning, water treatment, paints and coatings, paper and pulp, construction, rubber, and dyes and pigments.

Product Portfolio

The company offers a comprehensive range of textile and garment washing auxiliaries, supporting various processes including:

• Pre-treatment
• Dyeing
• Finishing
• Printing
• Coating

These products are compatible with all fabric and garment substrates and are suitable for a wide variety of processing machinery used in the textile and garment industry.

Manufacturing Facility

Neochem Bio Solutions operates a manufacturing unit located at:
Saket Industrial Estate, Village Moraiya, Taluka Sanand, District Ahmedabad.

Key facility details include:

• Installed capacity: 22,000 MTPA
• Total area: 6,763 sq. meters

The facility is equipped to produce specialized chemical formulations used across the company’s diverse industrial customer base.

Strength

Integrated & Flexible Manufacturing Capabilities: The company operates an integrated facility capable of producing key intermediates in-house and formulating proprietary products. Its ability to handle multiple chemistries—such as acrylic dispersants, bio-based esters, silicones, and surfactants—ensures control over input quality, cost efficiency, and reliable supply for specialty performance chemicals.

Deep Technical Expertise Across Industries: With over four decades of operational experience and a skilled technical team, the company has strong application knowledge across textiles, HPC, cleaning, construction, paints, water treatment, paper, rubber, and dyes. This expertise enables delivery of high-performance formulations that meet functional, regulatory, and quality requirements.

Long-Standing Customer Relationships: A strong understanding of chemical behaviour and consistent product performance has helped the company build and maintain long-term relationships across diverse industries. Its customer-centric approach drives recurring business and supports expansion across domestic and international markets.

Weakness

High Dependence on the Textile Industry: A significant portion of revenue comes from supplying specialty performance chemicals to textile manufacturers in India and abroad. Any downturn in the textile sector or inability to sustain or grow sales in this segment may adversely impact the company’s financial performance and operations.

Lack of Long-Term Customer Contracts: Sales are largely based on short-term purchase orders rather than firm long-term agreements. Customers may amend or cancel orders anytime, and loss of key customers or reduced demand could affect revenue stability, production planning, and cash flows.

Strict Quality Compliance Requirements: The company must meet stringent quality standards since its products serve as raw materials for multiple industries. Failure to comply with these specifications may lead to loss or termination of customer relationships, negatively impacting business prospects and operational results.