Thread by @drprashantmish6

#Balaji amines - Excellent results, announced new capex , CFO not up to the mark .

#Balaji amines excellent growth and capex will continue, import substitution ( some products)

Balaji amines- continuation of anti dumping duty on DMF

#Balaji amines- superbbbbb results, already 3X for me but ye dil maange more .

indianchemicalnews.com/chemical/balaj…

Balaji concall-( Balaji sp.chemicals)India currently imports 29,000 MT of EDA and 7,000 MT of PIP and around 3,000 tons of
DETA per annum. balaji is planning to address this opportunity by progressively grabbing share of import
market in coming years.

The debottlenecking exercise for Acetonitrile plant is currently being undertaken and
should get completed by end of March 2021. Post this the production of Acetonitrile is
expected to ramp up to 18 tons to 20 tons per day from 9 MT per day.

completed capex of about Rs. 128 Crores in our 90-acre Greenfield projects out of the
total capex of Rs. 150 Crores and expect to commission the production of Ethylamine by end of FY 2021.

The sustainable EBITDA margin should be 20% to 22%. If prices come down, margins may
come down a little. But for Balaji the additional capacities will come by the time of March and
April, which will compensate the fall in margins..

Balaji amines - started new capacity for ethyl amines

Balaji amines- Good results, debt is less now - Good execution of capex by promoters

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Balaji amines - some interesting points from concall
1-Volume offtake would have been better, but it was adversely affected on account of
pandemic related disruptions of both inbound and outbound logistics support as well as lack
of adequate supply of industrial oxygen

2- zero-debt company on standalone basis.
3-Balaji Specialty Chemicals Private Limited witnessed substantial
ramp up in capacity utilization due to increase in demand for ethylenediamine (EDA). The
company is currently manufacturing 1,300 to 1,500 tonnes per month,

which will be further
ramped up going forward, once the supply of raw material eases
4-also exporting few
of products manufactured by our Balaji specialty to China which previously used to get
dumped in India.

5-With commencement of operations at new plant of Ethylamines, which is
part of phase 1 of 90-acre Greenfield Project Unit IV at Solapur the company has the
largest installed capacity of Ethylamines in India at 22,500 tonnes per annum.

6-With the
commencement of this plant, Balaji Amines is the largest manufacturer of Methylamines,
Ethylamines, and other chemicals in India

7-The new plant of Ethylamines at unit IV will lead to lower cost of production due to new
technology. Demand for Ethylamine is growing between 10% to 15% per annum in India.
In FY2022, company expect a decent revenue inflow from new Ethylamines plant.

8- Presently
there is supply shortfall of about 9,000 tonnes of Ethylamines in India which is imported
from outside. This supply gap is expected to increase to about 15,000 tonnes in the next two
years. Balaji will be well positioned to address this increase in market demand

9-The debottlenecking of Acetonitrile plant has been delayed on account of lack of skilled
manpower due to pandemic led restrictions. However, the construction of new plant for Dimethyl Carbonate in phase 1 of Greenfield project (Unit IV) is undergoing as envisaged

and company hope to commence production of DMC by the end of FY2022
10-In the Q4 of FY2021 the capacity utilization of DMF plant was much improved at about
48%; however, from mid-April onwards due to diversion of oxygen supply our DMF
production was briefly disrupted.

However now onwards the production of
DMF has been restarted, as supply of industrial oxygen has been restored.
11-Now because of increase in captive requirements, company planned to set up a separate plant for
Methylamines with a capacity of 40,000 to 50,000 tonnes per annum

under phase 2
expansion of Greenfield project (Unit IV) for which the company has already received
environmental clearances. They anticipate the commissioning of this plant by end of 2022

12-The raw material prices for acetonitrile have gone up
13-DMC capacity will be 10,000 tonnes volume, but
it may go between 10,000 and 15,000 tonnes.
14-EBITDA should be easily sustainable around 24% to 25%. ( overall )

15-Ethylamine new plant; Unit IV Greenfield with 16,500 capacity – if it goes well in full swing,
based on the current pricing basis then it should add about Rs. 300 Crores to Revenue

16-DMF total capacity is 30,000 tonnes . If
everything goes well, then thry can produce about 20,000 to 22,000 tonnes of DMF per annum of
DMF
17-CFL facility is totally stopped and now they are getting rent of 9lac per month

18-ingredient of the Covishield, Covaxin and Sputnik, all the three are having
content of EDTA, acetic acid something is there. But EDTA is produced out of
EDA which is the product of Balaji specialty . So, there may be small content going in vaccines also

19-. Basing on the current expansions in place, in the current
financial year revenue should be more than Rs. 1,400 Crores to 1,450 Crores, on conservative basis .
20-DMF capacity utilization should go up to
more than 60% to 70% this year

21-export was 17% to 18% of total sales.now company have target to increase it to do 30%

#Balaji amines

#Balaji amines - clientele

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