About Gem Aromatics Ltd.

Incorporated in October 1997, Gem Aromatics Limited manufactures speciality ingredients, including essential oils, aroma chemicals, and Value-Added D ... erivatives in India, with over two decades of experience. The company offers various products, from Mother Ingredients to Value-Added Derivatives.

The company's products are used in oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness, pain management, and personal care.

The company provides a total of seventy products, categorized into four distinct groups, which include:

1. Mint and its derivatives
2. Clove and its derivatives;
3. Phenol, and
4. Other synthetic and natural ingredients.

In Fiscal 2025, the company serves 225 customers and 44 international customers across 18 countries, including the Americas, Asia, Africa, and Australia.

The company sells products directly to customers on a business-to-business basis, with export sales through methods including (i) direct sales, (ii) sales via its subsidiary, Gem Aromatics LLC, in the USA, and (iii) sales through third-party agencies.

As of Mar 31, 2025, the company had an in-house R&D team of 13 scientists who pivotally implemented state-of-the-art technology that advanced our formulations in Value-Added Derivatives.

Strengths

• Diverse product range with strong domestic and global client relationships.
• Modern manufacturing infrastructure and R&D focus.
• Strong relationships with prominent clients like Colgate-Palmolive, Dabur, and Patanjali.
• Steady revenue growth in recent financial years

Risks

• High dependence on a few major customers, especially doTERRA.
• Dependence on mint and mint derivatives, accounting for approximately 73% of revenue in FY 2024.
• Ongoing litigation concerning land at the Budaun facility
• No long-term contracts with key customers and suppliers
• Vulnerable to raw material price volatility and regulatory changes