Gem Aromatics IPO

Gem Aromatics Limited is an established manufacturer of speciality ingredients, including essential oils, aroma chemicals and value-added derivatives in India since 1999. The company offers a diversified portfolio of 70 products across 4 main categories: mint and mint derivatives, clove and clove derivatives, phenol, and other synthetic and natural ingredients, serving industries such as oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness and personal care.

The company was one of the largest procurers of Piperita oil and processors of DMO (Dementholised Mint Oil), clove oil, eugenol and eucalyptus oil in India during FY25. As of FY25, Gem Aromatics commanded a 65% market share in Eugenol and 12% in DMO by volume manufactured in India, while controlling over 58% of the Indian Eucalyptus Oil production market. Mint and mint derivatives contributed 69.12% followed by clove and clove derivatives 18.90%, phenol 2.80%, and other synthetic and natural ingredients 7.39% to revenue as of FY25.

The company operates 3 manufacturing facilities with a combined production capacity of 5,346 MTPA as of March 31, 2025. The facilities are located in Budaun, Uttar Pradesh (3,800 MTPA), Silvassa, Dadra and Nagar Haveli (1,500 MTPA), and Dahej, Gujarat (46 MTPA capacity through subsidiary Krystal Ingredients Private Limited).

The company serves a diverse customer base, including Colgate-Palmolive (India) Limited, Dabur India Limited, Patanjali Ayurved Limited, SH Kelkar and Company Limited, and international clients like dōTERRA and Symrise Private Limited. In FY25, it supplied products to 225 domestic customers and 44 international customers across 18 countries, covering the Americas, Asia, Africa and Australia. Export sales constituted 50.66% of total revenue, while domestic sales accounted for 47.55%.

The Global Flavours & Fragrances market is expected to grow from USD 41 billion to USD 57 billion at a 6.9% CAGR over 2025 to 2030; fragrances form 57% of the market. India’s F&F market is expected to grow from $2.7 billion to $4.1 billion at an 8.5% CAGR in the same period, with approximately 67% share from fragrances. The essential oils & aroma chemicals segment in India has high entry barriers due to R&D needs, quality consistency, and supplier stickiness. The global mint oil market is valued at USD 796 million in 2025, growing at 6% CAGR; India produces ~75% of the global supply.

The company is expanding into new product categories, particularly citral-based products, and is in the process of expanding capacity at its Dahej Facility. It has developed advanced processes for producing downstream products using Citral as a base through its R&D facility and has placed orders for specialised equipment to manufacture the full range of Citral-based products. GEM Aromatics holds ~65% share of eugenol and 12% of DMO production in India. Market leadership in high-demand natural oil derivatives ensures pricing power, export potential and gives it access to high-growth global demand.

Now, Gem Aromatics Ltd is launching its initial public offering (IPO), which consists of a fresh issue worth up to ₹175 crore and an offer for sale of ₹276.25 crore. The total issue size of the IPO is ₹451.25 crore. Its shares will be listed on the NSE and BSE.