Balaji Amines Ltd

Balaji Amines Ltd is a company that specializes in the manufacturing of Methylamines, Ethylamines, and derivatives of specialty chemicals and Pharma Excipients. In addition to its main products, the company also has facilities for manufacturing downstream products for various pharma/pesticide industries and for user-specific requirements. It is one of the largest manufacturers of aliphatic amines in India. The company has a diversified product portfolio of over 25 different products, which are categorized under three main categories: Amines, Amine Derivatives, and Specialty & Other Chemicals. Its products are used in many industries such as Pharma, Agro, Rubber chemicals, photographic chemicals, rocket fuel, pesticides, solvents, performance chemicals, and water treatment chemicals. Balaji Amines has a stable and diverse blue-chip customer base that includes Sun Pharmaceuticals, Dr. Reddy's, Aurobindo Pharma, Jubilant Lifesciences, Teva API, and many others. The company has a global presence and exports its products to over 50 countries, earning about 19% of its total revenues from exports. Balaji Amines has five manufacturing facilities located across Maharashtra and Telangana, with a current installed capacity of 2,31,000 MTPA of amines and amines derivatives and a capacity of ~45,000 MTPA of specialty chemicals. The company is undergoing a major expansion, adding ~1,15,500 MTPA of capacity till 2025.

About:

Balaji Amines Ltd is a company that specializes in the production of Methylamines, Ethylamines, derivatives of specialty chemicals, and Pharma Excipients. These products are its main focus, and it also has facilities to manufacture derivatives, which are downstream products for various pharma/pesticide industries, in addition to user-specific requirements. The company is one of the largest manufacturers of aliphatic amines in India.

Key Points:
Product Portfolio

Balaji Amines Ltd offers a diverse range of over 25 products that fall under three main categories - Amines, Amine Derivatives, and Specialty & Other Chemicals. The company's products include Methyl Amines, Ethyl Amines, Amino Ethanol, Acetamide, Amine Hydrochloride, Methyl Urea, Choline Chloride, Morpholine, and more. These products find applications in various industries, including pharmaceuticals, agriculture, rubber chemicals, photographic chemicals, rocket fuel, pesticides, solvents, performance chemicals, water treatment chemicals, and others.

Amines Business (~47% of revenues)

Amines Business comprises approximately 47% of the company's revenues. Balaji Amines Ltd is one of the two major manufacturers of aliphatic amines and its derivatives in India with a market share of around 50%. The amines category, which consists of low margin products, accounts for around 19% of the company's revenues. On the other hand, the amines derivatives category, which has higher margins, accounts for approximately 28% of the company's revenues. The company is the sole manufacturer of about 60% of its products in India. Products such as NMP, NEP, GBL, 2P, Morpholine, DEAE, DMAE, DMU, DMF, and PVPK-30 are exclusively produced by Balaji Amines Ltd.

China Factor - China's impact on the Indian amine industry cannot be ignored. Historically, China has been a major supplier of amines to India. However, in 2018, nearly 30% of China's amine production capacity was shut down due to pollution concerns. As a result, the Indian industry witnessed a boost in both sales and margins. Although some of these production capacities have resumed manufacturing, their costs have risen significantly due to environmental regulations.

Specialty Chemicals Business (53% revenues)

The company's specialty chemicals business accounts for 53% of its total revenues and is operated through its subsidiary, Balaji Specialty Chemicals Pvt Ltd, in which it holds a 55% stake.

Hotel Business (1% of revenues)

The company also possesses Balaji Sarovar Premiere, a 129-room 5-star hotel located in Solapur, which accounts for 1% of the total revenue. The hotel had an occupancy rate of 47%.

Key Clients

Balaji Amines Ltd has a stable and diverse customer base that includes well-established names in the industry. Some of its key clients are Sun Pharmaceuticals, Dr. Reddy's, Aurobindo Pharma, Jubilant Lifesciences, Teva API, Hetero Drugs, Kores India Limited, Venky's (VH Group), Wanbury, ZydusCadila, Indian Oil, and Hindustan Petroleum, among others.

Global Presence

Balaji Amines Ltd has established a significant global presence and generates around 19% of its total revenue from exports. The company exports its diverse range of products to more than 50 countries, including the USA, UK, Argentina, Canada, Israel, and various countries in Latin America, Europe, and Africa. Some of its major export destinations include Germany, Italy, Egypt, and Pakistan.

Manufacturing Capabilities 

The company has five manufacturing facilities situated across Maharashtra and Telangana. Currently, it has an installed capacity of 231,000 metric tonnes per annum (MTPA) for amines and amines derivatives, and an additional capacity of around 45,000 MTPA for specialty chemicals.

Major Expansion

In May 2021, the company commenced operation of its Ethylamines plant as part of the Phase-1 Greenfield Project, which also included the DMC/PC and PG plant that commenced operations in September 2022. The entire project cost of INR 250 crore was funded internally.

For Phase-2 expansion, the company plans to invest in capex for new products such as Methylamine, N-Butylamines, Acetonitrile, and DMF, subject to government approval, permission, and environmental clearance. The estimated project cost for the expansion is around INR 300-350 crore, to be incurred over FY23 and FY24. The company expects to finance the majority of the expansion through internal accruals, and the expansion is expected to commence between mid-FY24 and FY25.

By 2025, the company plans to add a total capacity of approximately 115,500 metric tonnes per annum (MTPA).