Ujin Pharma IPO

India’s specialty chemical industry is expanding through innovation, sustainability and import substitution, supported by global efforts to diversify sourcing beyond China.  

The specialty chemicals market is projected to increase from USD 64 billion in FY25 to USD 91 billion by FY30, registering a CAGR of 7.2%.  

By FY30, pharma APIs, surfactants, personal care and water treatment chemicals are expected to account for around 40% of the market, followed by agrochemicals at 24% and dyes and pigments at 22%. Construction chemicals and textile chemicals are projected to account for 9% and 5%, respectively.  

The chemical solvents market grew from ₹336 billion in FY21 to ₹400 billion in FY24 and is projected to reach ₹584 billion by FY30F, representing a CAGR of around 6.5%.  

Growing pharmaceutical, paints and coatings, electronics and automotive applications are expected to support demand for solvents. Expansion in domestic electronics manufacturing, including PCB and display production, could also increase demand for high-purity specialised solvents.  

The pharmaceutical-grade chemical market is projected to grow from ₹1,841 billion in FY25 to ₹2,742 billion by FY30F, registering a CAGR of around 8.3%.  

Growth in pharmaceutical-grade chemicals is supported by India's expanding pharmaceutical industry, which was valued at around USD 50 billion in FY24.  

India is the third-largest pharmaceutical producer globally by volume, supporting demand for high-purity excipients, solvents and reagents used in drug manufacturing.  

Increasing regulatory scrutiny and more complex drug formulations are driving demand for traceable and quality-certified pharmaceutical-grade chemicals that meet global and pharmacopeial standards. 

Diversified Global Supplier Network: Ujin Pharma works with 1,277 suppliers across global markets, supported by warehouses in Bhiwandi and Kandla, helping streamline sourcing and distribution.  

Diversified Product Portfolio: The company distributes over 100 chemical products across solvents, specialty chemicals, acids, monomers, pharmaceutical raw materials and nutraceuticals, serving multiple industries.  

Established Customer Base: Ujin Pharma has supplied products to 3,034 customers across 22 Indian States and Union Territories, along with customers in 14 international markets.  

Expansion into Manufacturing: The company has expanded beyond distribution through its 51% stake in Shiv Shakti Oxalate Private Limited and 26% stakes each in Altra Agro-Chem and Altra Pharma-Chem, providing exposure to solvent recycling and chemical intermediates.  

Improving Financial Performance: Revenue from operations increased from ₹14,257.61 million in FY23 to ₹16,288.27 million in FY25, while EBITDA margin improved from 0.92% to 2.18% and reached 2.64% in 9M FY26.  

Experienced Management: Promoters Jinesh Rasiklal Sheth and Umang Ketan Mehta have more than 20 years of experience in the chemical and pharmaceutical industries.  

Growing Specialty Chemicals Market: India’s specialty chemicals market is projected to grow from USD 64 billion in FY25 to USD 91 billion by FY30, creating opportunities for Ujin Pharma across its chemical distribution and manufacturing businesses.  

Expansion of Solvent Market: The Indian chemical solvents market is expected to grow from ₹426 billion in FY25E to ₹584 billion by FY30F, supporting demand for Ujin Pharma’s solvent distribution and recovery activities.  

Import Substitution: India’s continued dependence on imported chemicals and intermediates creates opportunities for domestic sourcing, manufacturing and value-added processing.  

Cross-Selling Opportunities: Converting Altra Agro-Chem and Altra Pharma-Chem into subsidiaries could allow Ujin Pharma to offer specialised agrochemical and pharmaceutical intermediates to its existing customer base.  

Debt Reduction: The proposed use of ₹250 million towards debt repayment or prepayment could reduce financing costs and improve the company’s debt-equity profile. 

High Supplier Concentration: The top 10 suppliers contributed 46.13% of total purchases in 9M FY26, while the proportion ranged from 40.32% to 48.10% in FY23–FY25. Dependence on key suppliers and the absence of long-term contracts could affect supply continuity and procurement costs.  

Chemical Price Volatility: Material costs accounted for 95.32% of revenue from operations in 9M FY26. Fluctuations in chemical and solvent prices may put pressure on margins if higher costs cannot be passed on to customers.  

Working Capital and Receivables Risk: The company generally provides customers with 90–120 days of credit. As of December 31, 2025, credit-impaired trade receivables stood at ₹42.91 million, while an ECL allowance of ₹28.59 million was recognised during 9M FY26.  

Risks from Subsidiary Investments: A substantial portion of the IPO proceeds will be invested in Altra Agro-Chem and Altra Pharma-Chem to convert them into subsidiaries. Delays in production, working capital management or business execution could affect consolidated performance.  

Contingent Liabilities and Litigation: As of December 31, 2025, contingent liabilities and commitments stood at ₹1,864.14 million, including ₹1,818.41 million of outstanding letters of credit. Pending legal and tax matters could result in additional financial liabilities if decided adversely.  

Potential Conflict of Interest: Promoter group entity Ujin Pharmachem Private Limited has business objects that overlap with Ujin Pharma’s chemical and pharmaceutical trading activities. Any breach or non-enforcement of the existing non-compete and non-solicit arrangement could create competition risks.  

Unhedged Foreign Currency Exposure: Ujin Pharma has foreign currency exposure from its import and export activities. Since these exposures are currently unhedged, adverse currency movements could increase procurement costs and result in foreign exchange losses.  

Statutory and Banking Compliance Risks: The company has reported delays in certain statutory payments, including ESIC, TDS, GST and Professional Tax. It has also identified past discrepancies between books and statements submitted to banks, which could affect regulatory compliance and access to credit if repeated. 

Ujin Pharma IPO DRHP 

SMC Capitals Limited 

Contact Number: 040-79615565 

Email Address: ujinpharma.ipo@kfintech.com