Balaji Amines' subsidiary commences production of ethyleneamines

Chemical Weekly: Balaji Speciality Chemicals Pvt. Ltd., a subsidiary of Balaji Amines Ltd., commenced production of ethy-leneamines and related products, including ethylenediamine (EDA), piperazine (PIP) and diethylenetriamine (DETA), after having received consent to operate by Maharashtra Pollution Control Board (MPCB) in June 2019.

During Q1FY20, the company also received clearance for the additional capacity of 7,000-tpa of morpholine, taking its total capacity for the chemical to 10,000-tpa, and for manufacturing of Acetonitrile and tetrahydrofuran (THF), for which the company has installed capacity of 9,000-tpa.

“Post the clearance from MPCB, production of Specialty Chemicals has commenced in our subsidiary. We have also commenced production of acetonitrile & THF in Balaji Amines. We are working towards getting environmental clearance for our 90-acre greenfield project and expect construction to begin in H2FY20,” Mr. D. Ram Reddy, Managing Director, said.

“Our constant endeavour is to broaden our product offerings, especially those which can substitute imports. We will be focused on exploring opportunities for innovation and downstream integration,” he added.

Margins under pressure

Meanwhile, Balaji Amines reported revenue from operations for Q1FY20 at Rs. 231.4-crore, as compared to Rs. 260.2-crore in Q1FY19 and Rs. 234.8-crore in Q4FY19. EBITDA for Q1FY20 was at Rs. 37.1-crore, as compared to Rs. 58.7-crore in Q1FY19 and Rs. 47.3-crore in Q4FY19, impacted by volatility in prices of raw materials and slowdown in end-use industries such as pharmaceuticals and agrochemicals. PAT for Q1FY20 stood at Rs. 20.0-crore, as compared to Rs. 33.8-crore in Q1FY19 and Rs. 27.0-crore in Q4FY19.

“We expect the market for our products to stabilise in H2FY20,” Mr. Reddy added.