Neochem Bio Solutions Ltd IPO

We derive a substantial portion of our revenue from the textile industry. Consequently, any material decline in the performance of the textile sector, or our failure to sustain, grow, or efficiently manage our sales within this sector, may materially and adversely affect our business operations, financial condition and results of operations.

Our Company derives revenue from diversified customers. Our inability to acquire new customers or loss of all or a substantial portion of any of our major customers, for any reason and/or continued reduction of the business from them, could have a material adverse impact on our business, results of operations, cash flows and financial condition.

We do not maintain long-term contractual arrangements with the majority of our customers. As a result, the loss of one or more key customers, or any significant reduction in their demand for our products, could materially and adversely affect our business operations, financial condition, results of operations and cash flows.

Underutilization of the installed capacities at our Company may have an adverse impact on our growth and future profitability.

We derive a significant portion of our revenue from operations from domestic sales which exposes us to risks specific to Indian geographies and market.

We are required to adhere to quality standards in the manufacturing of our products. Our inability to comply with such parameters may result in termination or loss of business from our customers which, in turn, may have a material adverse effect on our business prospects and results of operations.

A significant increase in the cost of raw materials, particularly if not matched by a corresponding increase in product pricing or revenue, could materially and adversely affect our profit margins and overall financial performance. If we are unable to pass on these increased costs to our customers, it may result in reduced profitability and negatively impact our results of operations and financial condition.

We have not made any long-term supply arrangement or agreement with our suppliers. In an eventuality where our suppliers are unable to deliver us the required materials, at a competitive price, in a time-bound manner it may have a material adverse effect on our business operations and profitability.

Our manufacturing facility situated in Moraiya, Ahmedabad is critical for our business and any disturbance, slowdown or shutdown of our Moraiya manufacturing facility, may have an adverse impact on our business, results of operations and financial conditions.

Our operations can be adversely affected in case of industrial accidents at our manufacturing units. Further, any fire or mishap or accidents of such nature at the Company's facilities could lead to accident claims and damage and loss of property, inventory, raw materials, etc.