Balaji Amines Opportunity

Both the management agreed on headwinds and likely restoration in two quarters. About overcapacity of Ethyl amine, it constitute 10% of overall capacity of Balaji amines. I have invested (will exit if stop loss triggers) due to Volume action + new capacity additions 1) n-Butylamine : The plant is expected to be commissioned during the fourth quarter of financial 2023 and ’24. 2) Methylamine : The project is likely to be commissioned around the second quarter of FY 2024 and ’25. 3) Dimethyl ether : The project for manufacturing Dimethyl ether is initiated to be set up in Unit IV and the detailing and engineering is completed and the company has started civil works. The plant is expected to be commissioned during the first half of the FY ’24 and ’25 (end of FY 2025). The company is proposing to take up the following projects at Unit IV.
o N-Methyl Morpholine (NMM) – 3000 TPA
o N-(n-butyl) Thiophosphoric triamide (NBPT) – 2500 TPA
o Pharmapure Povidone (PVP K-30) – 4000 TPAAll these products are first time in the country,

Mr Kirit Patel on concall -In terms of the structure of the competition, well, as you know, we have two players in domestic market, and the rest are from the Chinese or the Europeans active in the market. Over the last year or so, over the last 6 months, we have not seen much activity for imports because our competitor has increased this capacity and has been able to push out the imports to some extent. However, we have managed to retain our market share in this product albeit with some sacrifice in margins. Going forward, given that now the capacities are more or less balancing out between the two domestic players, and we have extra capacity coming on because of the new plant which we have just commissioned in October, where we have added capacity, will give us some headroom in terms of growth in the future.

Mr Ram Reddy – Earlier, I thought that our country’s consumption was 90,000 tonnes. So my 30,000 tonnes can be adjusted anywhere. That was our intention, that’s the reason we are very comfortable, and we did not look seriously on the export market. Because in the total 90,000 tonnes, we can fit somewhere. But these people started dumping like anything. Like Saudi, I’ll give you an example. In Saudi there’s a consumption, one customer is
there, they are selling at INR 170 – INR 160. And in India, they’re selling at INR 70, INR 80.
That has given us the reason for going for the reach registration and to scout outside the country. And last month, we have given in very Saudi Arabia, about 60, 70 tons, I have, exported to those Saudi Arabia, much better price.