Methylamine plant with a capacity of 40,000 tons and N-Butylamines plant with a capacity of 15,000 tons per annum
Balaji Amines Limited (BAL), a leading manufacturer of Aliphatic Amines in India, is planning a total Capex of Rs. 300-350 crore for FY 23-24 for installation of new plants.
Speaking during second quarter and half year ended 30th September, 2022 result, D. Ram Reddy, Managing Director, Balaji Amines Limited said, "The total Capex over FY23 and FY24 will be about Rs. 300-350 crore and the production at above plants will commence between mid FY24 till end of FY25 subject to the government approvals/permissions/environment clearance.
Elaborating on Capex plan, D. Ram Reddy, Managing Director, Balaji Amines Limited (BAL) said, "Coming to our Capex plans for the future growth journey, we would start initiating Capex for installation of the below plants in FY23 and FY24 subject to the government approvals/permissions/environment clearance: Methylamine plant with a capacity of 40,000 tons; N-Butylamines plant with a capacity of 15,000 tons per annum; DMAHCL plant with a capacity of 12,000 tons; Acetonitrile plant with a capacity of 15,000 tons; and DMF plant with a capacity of 30,000 tons.
"The company has also started construction for Methylamine. The Environmental Clearance for the same has been received well in advance. The company expects to start operations at these state-of-the-art manufacturing facilities around the closure of this current financial year," says Reddy.
"For our new Acetonitrile plant, we plan to undertake production through a new upgraded technology, where we envisage to have a cost advantage, which will enable us to withstand higher prices of acetic acid and shall lead to healthy operating margins. Over the medium to long term we foresee a substantial demand for this product as the ‘China Plus One’ strategy takes centre stage and the PLI incentives provided by the Government of India gives further impetus leading to substantial capex by pharmaceutical and agrochemical companies," said Reddy.
"Upon smoother accessibility to the raw materials for matching products at our clients’ end in coming quarters, we expect to witness an increase in capacity utilization for our legacy products in FY23. We expect substantial improvement in volume offtake in FY23 from improved capacity utilization at our various plants,” added Reddy.
Balaji Amines is specialized in manufacturing Methyl Amines, Ethyl Amines, Derivatives of Specialty Chemicals and Natural Product and its business is broadly classified into three segments - Amines, Specialty Chemicals and Derivatives. The company enjoys leadership position in many of its products like Monomethylamine (MMA), Dimethyl amine (DMA), Trimethylamine (TMA), Dimethyl Amino Ethanol (DMAE), Mono Methyl Amino Ethanol etc.
The company has three state of the art manufacturing facilities – two near Solapur and one near Hyderabad. In addition, BAL possesses a fully furnished laboratory which helps the company in development of newer products. A majority of its products are being exported to major customers worldwide and the company has become one of the leaders in specialty chemicals among the international specialty chemical players.
Subscribe To Our Newsletter & Stay Updated