Balaji Amines, a leading manufacturer of aliphatic amines in India is planning for methyl amines and DMF expansion in the country thanks to Government of India's Aatmanirbhar Bharat initiative.
The Board of Directors have approved setting up of a separate plant for Methyl Amines with a capacity of 40,000-50,000 MT per annum for which the company has already got environmental clearance at Unit-IV, MIDC, Solapur (Greenfield Project). The Board has also approved a separate plant for DMF with a capacity of 30,000 MT/Year at Unit-IV.
The company has made investments of about Rs. 105 crore in its 90 acre greenfield project, out of the total capex of Rs. 150 crore and is expecting to commence manufacturing of Ethylamines by the end of the last quarter of this financial year.
The supply shortfall for Ethylamines is expected to increase to about 15,000 tons in the next two years. Demand for Ethylamines is likely to get a further boost as it finds application in the COVID-19 medicine. The production of Di-Methyl Carbonate (DMC) is expected to commence during FY 2021-22.
The company is currently manufacturing about 9 tons of Acetonitrile per day. The process of debottlenecking of the plant has commenced. Post the completion of the exercise, the company plans to gradually ramp-up the production to about 18-20 tons per day by the end of this fiscal year.
The board of directors have also approved the Employee Stock Option Plan providing for grant up to 1,00,000 Options (equity shares) to employees.
Balaji Amines Q2 FY21 revenue is up by 21.43% to reach Rs. 283.28 crore and net profit was up by 37.31% at Rs. 47.66 crore.
Total volumes stood at 23,150 MT for Q2 FY21 as against 21,376 MT in Q2 FY20. For Q2 FY21, Amines volumes stood at 5,094 MT; Amines Derivatives volumes stood at 9,916 MT; and Specialty Chemicals volumes stood at 8,140 MT.
On the performance, D Ram Reddy, Managing Director said, “In Q2FY21, we have witnessed increase in demand across our product portfolio with improved price realizations. In this quarter we have been operating at capacity utilization similar to pre-COVID levels. Demand for products like Acetonitrile, DMF, NEP, DMA and TEA has remained elevated as they are intermediates for drugs required for COVID-19 treatment. We are likely to observe better volume offtake in the second half of this fiscal year, especially with the expected revival of the entire economic value-chain across industries."
The company's ‘Balaji Speciality Chemicals has received the REACH Certification from Europe in the current month for export of Di Ethylene Tri Amine (DETA). Prior to this the company had already received the REACH Certification from Europe in FY 2019-20 for export of Ethylene Di Amine (EDA).
