Balaji Amines jumps seven per cent owing to developing expansion plans
In the afternoon session on Friday, Balaji Amines Limited's stock jumped as much as seven per cent. This can be attributed to the key developments in the company's expansion plans for its ethyl amines project in the current fiscal.
As per the data released by the company, it has planned capital expenditure of Rs 150 crore to Rs 170 crore during the current fiscal year. It will be carried out as part of the first phase of the Greenfield expansion project under which the company will install capacity for manufacture of 16,500 tons of ethyl amines and 9,900 tons of di-methyl carbonate. Regarding the expansion, the scale of the project and the demand scenario in the domestic market are noteworthy.
The data revealed by the company stated that the company would have the largest installed capacity of ethyl amines in the country, nearly 22,500 tons per annum, after the successful implementation of the project. On the other hand, demand for di-methyl carbonate would be about 8,000 tons in domestic market, fully dependent on imports.
Moreover, prospective growth triggers are likely for its agrochemical business. Various factors are at play for this such as the storage levels in water reservoirs across the country, a hike in minimum support price (MSP) of key Kharif crops and an anticipated strong monsoon spread.
On Friday, the stock of the company recovered from its day lows to end higher by 4 per cent at Rs 554.85 on BSE.