Specialty cleaning & hygiene chemicals manufacturer
Owner-managed South India manufacturer with a repeat institutional customer base and a widening gross margin, preparing to convert to a private limited company.
Executive summary
CleanRise is a South India manufacturer of concentrated cleaning and hygiene chemicals, sold mainly in institutional packs to facility managers, hospitals, hotels, schools and housing societies. The owner-managed proprietorship is preparing to convert into a private limited company and invites indicative interest from investors. The case rests on repeat consumable demand and a widening gross margin.
Management accounts show total sales up by roughly half in FY2025-26, from ₹193.6 lakh to ₹291.5 lakh, with ₹158.9 lakh billed in the six months to September 2026.
Gross margin after direct expenses moved from 22.9% to 29.0% to 31.4% across the three periods. EBITDA margin fell to 17.0% in H1 FY2026-27 as costs stepped up (section 05).
650 of 998 accounts in the invoice ledger ordered more than once in 30 months.
Basis of preparation. Financials are management accounts as supplied by the company and have not been verified by the adviser. The business is a proprietorship; the profit and loss account carries no tax charge, so net profit is before any tax. H1 FY2026-27 covers April to September 2026.
Customer and product figures come from the company's invoice ledger, excluding GST, for 1 April 2024 to 29 September 2026. It is a separate dataset from the management accounts. Related accounts under a common name are combined as one customer group.
Investment highlights
Repeat consumable demand
650 of 998 billed accounts placed two or more invoices and carry 98.3% of billed value. The products are used on every cleaning cycle.
65.1% repeat accountsGross margin widening
Gross margin after direct expenses was 22.9% in FY2024-25, 29.0% in FY2025-26 and 31.4% in H1 FY2026-27. Finance cost is under 1% of sales.
22.9% → 31.4%Sales up by roughly half
Management accounts show total sales rising from ₹193.6 lakh to ₹291.5 lakh. Accounts billed in FY2024-25 billed 112.5% of their prior-year value in FY2025-26.
₹193.6 → ₹291.5 lakhBroad, returning account base
998 accounts were billed in 30 months. 249 were billed in all three periods and carry 76.9% of value; 97 accounts above ₹1 lakh carry 76.2%.
249 accounts in all 3 periodsOwn plant, own formulations
In-house formulation, laboratory and quality control under an ISO 9001 system. Customer-specific formulations and fragrances are offered across about 50 products in six care categories.
~50 products · 6 categoriesBusiness & products
The range covers washrooms, floors, glass, kitchens, fabrics, hands and vehicles. Institutional buyers lead; retail packs are a smaller, growing tail.
Home, industrial & institutional care
Toilet, hard-surface, bathroom, floor, glass and all-purpose cleaners, phenyl, room freshener, polishes, descaler, degreaser. Buyers: facility managers, hotels, hospitals, offices, factories.
Personal care
Hand wash gels and liquids, hand sanitiser gel and rub. Buyers: institutions, offices, healthcare, retail, households.
Kitchen care
Dishwash, machine dishwash, rinse aid, stainless-steel brightener. Buyers: restaurants, caterers, canteens, cloud kitchens.
Fabric care
Laundry detergent and fabric softener. Buyers: commercial laundries, hospitality, households.
Car care
Car shampoo, snow-foam shampoo, dash polish, tyre polish, window cleaner. Buyers: car-wash chains, dealerships, fleets.
Specialty & industrial
Concentrate cleaner, shuttering cleaner, adhesive remover, sodium hypochlorite, heavy-duty degreaser. Buyers: construction and industry.
Concentrates cut cost per use and freight per litre of cleaning solution.
Selling price less management cost price, weighted by ledger sales, in each of the three periods.
5 L packs dominate the top lines; 20, 35 and 50 L packs and 500 ml–1 L retail packs complete the range.
Customer base
Customers are facility operators, hospitals, hotels, schools, residential societies and industrial sites. Orders repeat because washroom, floor, kitchen and hand-hygiene products are consumed continuously.
| FY2024-25 | FY2025-26 | H1 FY2026-27 | |
|---|---|---|---|
| Top 5 groups | 35.8% | 40.3% | 40.7% |
| Next 5 groups | 10.5% | 8.6% | 8.9% |
| Next 10 groups | 10.1% | 9.2% | 10.5% |
| All other groups | 43.7% | 41.9% | 39.9% |
| Customer groups billed | 505 | 587 | 481 |
The table shows the ten largest customer groups, under fixed letter codes, ranked by FY2025-26 billing, in ₹ lakh.
| Customer | Segment | FY2024-25 | FY2025-26 | H1 FY2026-27 | FY25 → FY26 |
|---|---|---|---|---|---|
| A | Multi-site facility-management services provider | 24.0 | 30.8 | 14.1 | +28% |
| B | Large residential society | 21.7 | 29.4 | 18.9 | +36% |
| C | Industrial equipment manufacturing group | 9.6 | 23.9 | 13.4 | +150% |
| D | Commercial enterprise | 0.2 | 7.2 | 4.5 | +3,136% |
| E | Pharmacy operator | 6.6 | 5.4 | 2.5 | -19% |
| F | Infrastructure company | 0.0 | 4.5 | 2.5 | new |
| G | Hospital and school group | 4.4 | 4.4 | 2.7 | +0% |
| H | Healthcare services organisation | 3.4 | 4.4 | 2.2 | +29% |
| I | School | 3.2 | 3.9 | 1.7 | +23% |
| J | Hospital group | 1.7 | 3.4 | 1.8 | +97% |
| Total, top 10 | 74.8 | 117.3 | 64.4 | +57% | |
| All other customer groups | Various | 111.3 | 122.6 | 67.2 | +10% |
| Total billed, invoice ledger | 186.1 | 239.8 | 131.6 | +29% |
Concentration is material. Customers A, B and C billed 35.1% of FY2025-26 ledger value (12.9%, 12.2%, 10.0%). Residential-society and facility-services billing sits largely in B and A.
What reduces it: customers D to J each bill between 1.4% and 3.0%, and groups outside the top twenty still bill 41.9% of value.
Financial snapshot
All figures are management accounts in ₹ lakh. Sales grew and gross margin widened; EBITDA margin fell in the latest half.
The table gives the full profit and loss for the two financial years and the first half of FY2026-27.
| FY2024-25 | FY2025-26 | H1 FY2026-27 | |
|---|---|---|---|
| Total sales | 193.6 | 291.5 | 158.9 |
| Cost of goods sold | 136.7 | 188.0 | 81.3 |
| Direct expenses | 12.6 | 19.0 | 27.7 |
| Gross profit, after direct expenses | 44.2 | 84.5 | 50.0 |
| Gross margin | 22.9% | 29.0% | 31.4% |
| Indirect expenses | 10.4 | 15.6 | 23.0 |
| EBITDA | 33.9 | 68.9 | 27.0 |
| EBITDA margin | 17.5% | 23.6% | 17.0% |
| Interest | 1.5 | 2.2 | 0.9 |
| Depreciation | 4.0 | 6.1 | 2.8 |
| Net profit, as reported (no tax charge shown) | 28.4 | 60.6 | 23.3 |
| Net profit margin | 14.7% | 20.8% | 14.7% |
Finance cost was ₹2.2 lakh in FY2025-26, 0.8% of sales, and EBITDA covered it 31 times.
Weakest metric: EBITDA margin. It fell from 23.6% in FY2025-26 to 17.0% in H1 FY2026-27. Direct expenses rose to 17.4% of sales from 6.5%, and indirect expenses to 14.4% from 5.4%.
Management describes part of the FY2026-27 increase as exceptional, citing R&D and its staff costs and higher raw-material prices. No normalised EBITDA is shown here; add-backs will be assessed in the full information memorandum.
Risks & mitigants
The points a buyer will test first, stated as they stand.
Proposition & process
Indicative interest is invited from strategic and financial investors. Stake, structure and size are not fixed in this teaser and will be discussed under NDA.
Use of capital in management's plan. Packaging and automatic filling lines, in-house blow moulding, effluent treatment, ERP, product certifications and regional expansion. Amounts are not set in the documents supplied.
Management's five-year plan is a set of goals, not a forecast, and carries no weight in valuation until tested.
Enquiries: CA Dhiraj Ostwal & Co., Transaction Advisory, quoting SEL-001.
This teaser is a blind summary prepared by CA Dhiraj Ostwal & Co. from information supplied by the company. It has not been verified, is not an offer or invitation to buy or sell any security or business, and does not form the basis of any contract. Recipients must keep it confidential and must not seek to identify the company or contact its management, customers or suppliers.
Financial figures are unaudited management information. Customer and product analyses are drawn from the company's invoice ledger and are indicative. Statements about future plans are management's goals, not forecasts, and have not been validated by the adviser.