SK Minerals & Additives
- SK Minerals & Additives is coming out with an initial public offering (IPO) of 32,40,000 equity shares in a price band of Rs 120-127 per equity share.
- The issue will open on October 10, 2025 and will close on October 14, 2025.
- The shares will be listed on SME Platform of BSE.
- The face value of the share is Rs 10 and is priced 12.00 times of its face value on the lower side and 12.70 times on the higher side.
- Book running lead manager to the issue is Khambatta Securities.
- Compliance Officer for the issue is Divya.
Profile of the company
SK Minerals & Additives is engaged in the business of trading and manufacturing of specialty chemicals, with a primary focus on food and feed additives. Over the years, it has established itself as a reliable partner catering to the diverse needs of customers across multiple industry segments. Its product portfolio comprises a wide range of ingredients and additives that play a crucial role in enhancing the nutritional value, functionality, and shelf life of various end products. Its key products include chelated minerals such as Glycinates and EDTAs (Ethylenediaminetetraacetic Acid) in variants of Zinc, Copper, and Magnesium; essential Mineral Mixtures; Calcium Propionate; Ferric Pyrophosphate; Technical Grade Urea; Virgin Base Oil; Magnesium Oxide; By-Pass Fat and other allied specialty chemicals. These products serve critical functions in various applications, particularly in the food and bakery, animal feed, petroleum, plywood, and other allied industries.
The company operates through a flexible business model that integrates domestic trading, imports, and in-house production. A significant portion of its trading products is imported from global suppliers, particularly specialty chemicals, which are then stored at warehouses at ports before dispatch to customers. This model enables it to ensure better control over inventory, product quality, and timely deliveries. Its manufacturing operations are supported by a dedicated in-house Research and Development (R&D) unit, located at its DSIR-certified facility in Khanna, Ludhiana, Punjab. Its R&D efforts focus on innovation, product differentiation, process improvement, and customer-centric formulation development. Every manufactured product is developed in-house to ensure cost-efficiency, nutritional integrity, and performance enhancement.
The company is committed to upholding good quality and safety standards across all its operations. Its Quality Management System is ISO 9001:2015 and ISO 22000:2018 certified, reflecting adherence to international standards in product safety and management. It also follows Good Manufacturing Practices (GMP) and ensure each batch is released only upon approval from its internal quality control team, accompanied by a Certificate of Analysis (CoA).
Proceed is being used for:
- Meeting the working capital requirements of the company
- Funding the expansion plan of the company i.e. capital expenditure towards purchase of plant and machinery
- General corporate purpose
Industry Overview
The Indian Chemicals & Additives sector is playing a critical role in various end-use industries, including agriculture, pharmaceuticals, textiles, automotive, and construction. The growth is fueled by increasing investments, rising demand for specialty chemicals, and India’s emergence as a global manufacturing hub for chemicals and petrochemicals. India’s chemical sector is a vital contributor to the national economy, accounting for around 7.0% of the country’s GDP. The nation ranks as the 6th largest producer of chemicals globally and 3rd in Asia, reinforcing its pivotal role in the global supply chain. The chemical and petrochemical industry in India has reached Rs 8 lakh crore ($107.3 billion) in FY’25, underlining its economic significance. Additionally, India has established itself as a world leader in generics and biosimilars, contributing over 50.0% of the global vaccine supply.
India’s chemical sector, currently valued at Rs 20.9 lakh crore ($240.0 billion) in FY’25, is poised for substantial growth, with expectations to reach Rs 26.1 lakh crore ($300.0 billion) by 2030 and Rs 87 lakh crore ($1.0 trillion) by 2040. The demand for chemicals has grown at a CAGR of 9.0% from FY’24-FY’25 annually. It holds a strong global position, ranking 14th in exports and 8th in imports of chemicals (excluding pharmaceuticals). The domestic chemicals industry covers more than 80,000 commercial products, with an overall market size of $304.0 billion in FY’25. The Indian Specialty Chemical Manufacturers' Association (ISCMA) signed an MoU with USIIC on February 15, 2023, to strengthen international trade in specialty chemicals. Agrochemicals remain a key revenue driver, with 50.0% of total production being exported, reinforcing India’s status as a major player in the global agrochemical market.
Further, as of 2025, the combined market for food and feed additives globally is to be valued at $102 billion. Within this market, food additives constitute about 54.6% ($55.7 billion), while feed additives account for the remaining 45.6% ($46.5 billion). This growth trajectory is driven by rising demand across preservatives, flavorants, nutritional supplements and other additives for the Global food additive market. Likewise, Global feed additive consumption ((e.g. amino acids, enzymes, vitamins for animal nutrition) is buoyed by over 1.26 billion tons of feed produced annually. In 2025, the global feed additives market is valued at $46.5 billion, following consistent growth from $32.2 billion in 2020. The market witnessed notable fluctuations - experiencing accelerated growth of 12.9% in 2022, reflecting strong post-pandemic recovery in livestock production, followed by moderation (5.2% in 2023) due to global inflation, supply chain constraints, and volatile raw material prices. From 2025 onward, the market is growing at a compound annual growth rate (CAGR) of 6.5%, reaching $63.7 billion by 2030. This consistent growth trajectory is driven by increasing demand for high-quality livestock products, growing adoption of precision nutrition practices, regulatory encouragement of antibiotic-free and sustainable feed solutions, and rising utilization of specialized feed additives such as enzymes, amino acids, and probiotics, which collectively enhance livestock productivity and animal health.
Pros and strengths
Strengthening business resilience through client diversification: One of the key strengths of the company’s business lies in its well-diversified customer base, which spans multiple industries and market segments. It serves a broad spectrum of sectors, including food and bakery, animal feed, plywood, petroleum and other allied industries. This strategic diversification significantly reduces its reliance on any single customer, product category, or industry vertical, thereby insulating its business from sector-specific downturns, seasonal demand variations, regulatory disruptions, or macroeconomic volatility. Its diversified client portfolio not only enhances revenue visibility and financial stability but also provides a strong foundation for sustained growth.
Mix trading and expanding manufacturing foot prints: The company’s business operates with a mix of manufacturing and trading, combining in-house production with strategic sourcing to meet diverse market demands. Through manufacturing, it ensures product quality, innovation, and cost efficiency, while its trading operations allow it to expand its product portfolio, optimize supply chains, and respond flexibly to customer needs. This dual approach strengthens its market presence, enhances operational efficiency, and provides customers with a comprehensive range of and competitively priced products.
Catering to diverse industries: The company’s capability to cater to a wide range of industries including food and bakery, animal feed, plywood, petroleum and other allied industries serves as a core pillar of its business strategy. This multi-industry presence allows it to de-risk its operations by reducing over-dependence on any single sector and ensures consistent demand across economic cycles. By offering products and solutions that are integral to multiple value chains, it is able to maintain operational stability even amidst market-specific slowdowns or regulatory disruptions. Its ability to serve such a diversified customer base also enhances its brand equity, fosters long-term business relationships, and facilitates cross-sectoral learning and innovation.
Risks and concerns
Maximum revenue comes from limited customers: The company has derived a significant portion of its revenue from its top customer. The company has garnered 61.26%, 68.11% and 69.26% of its revenue from top 10 customers in FY25, FY24 and FY23 respectively. The loss of one or more of such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for its products could adversely affect its business, results of operations, financial condition and cash flows.
Significant portion of revenue comes from government customers: Approximately 25% of its revenue from operations is derived from government customers and public sector undertakings. While government contracts offer scale and stability, they are often associated with longer payment cycles compared to private sector customers. In its case, government customers operate on a credit cycle of 30–60 days, as opposed to 15-30 days for other customers. This extended credit period results in a higher working capital requirement and can impact its cash flows and liquidity position. Delays in realization of dues from government clients may further aggravate this situation and could adversely affect its ability to meet operational expenses or reinvest in the business.
High working capital requirement: The company’s business is working capital intensive, Trade Receivables and Inventories form a substantial part of its current assets. If it experiences insufficient cash flows to meet required payments on its working capital requirements or failed to manage its inventory, there may be an adverse effect on the results of its operations.
Outlook
SK Minerals and Additives is engaged in the manufacturing, processing, and supply of industrial minerals and speciality chemicals. The company specialises in the processing of materials such as bentonite, barite, talc, dolomite, kaolin, and other industrial minerals. The company is strengthening business resilience through client diversification. On the concern side, the company derived a significant portion of its revenue from its top customer, top 5 customers and top 10 customers. The loss of one or more of such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for its products could adversely affect its business, results of operations, financial condition and cash flows. Moreover, the company relies on third-party suppliers for its purchases and raw materials, and any disruption in their supply may adversely affect its business operations.
The company is coming out with a maiden IPO of 32,40,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 120-127 per equity share. The aggregate size of the offer is around Rs 38.88 crore to Rs 41.15 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations increased 94.61% to Rs 21,167.24 lakh in Fiscal 2025 as compared to Rs 10,876.85 lakh in Fiscal 2024. The revenue from operation increased primarily due to increase in revenue from trading operations. Moreover, the company’s profit for the year increased by 253.37% to Rs 1,093.82 lakh in Fiscal 2025 compared to Rs 309.54 lakh in Fiscal 2024.
The company plans to increase its focus on environmentally responsible manufacturing practices and the development of eco-friendly formulations to meet the growing expectations of regulators, customers, and investors regarding sustainability and compliance. Its current environmental initiatives include reusing steam condensate, maintaining high energy efficiency standards at its manufacturing facility, and implementing variable frequency drives to reduce electricity consumption. Expanding its sustainable product offerings will not only mitigate regulatory risks but also enhance its appeal to institutional customers with stringent procurement standards.
