Balaji Amines’ Big Chemical Bet Pays Off As Expanded Plant Begins Operations

Balaji Amines Limited has commenced commercial production at its expanded and modernised acetonitrile plant at Unit III in Chincholi MIDC, Solapur, raising the installed capacity of the speciality chemical to 1,440 tonnes per month.

The company said commercial operations began on September 24, 2026, at the facility located at Plot Nos. E-7 and E-8. The plant has been developed using an improved process and advanced technology under Balaji Amines’ expansion and modernisation programme.

At the new installed capacity, the ACN facility can produce up to 17,280 tonnes annually on an annualised basis, although actual output will depend on utilisation, customer approvals and market demand. Balaji Amines said the product would cater to both domestic and international markets.

Acetonitrile is an important speciality solvent with applications across pharmaceutical, agrochemical and chemical-intermediate supply chains. For Balaji Amines, the commissioning advances its strategy of increasing its presence in value-added, import-substitution chemical products rather than relying solely on core aliphatic amines and derivatives.

The development is also in line with management’s earlier FY2026-27 project roadmap. In its annual report, the company had indicated that the upgraded ACN facility was expected to be commissioned later in FY2026-27, alongside projects involving dimethyl ether and N-methyl morpholine. Management had identified these new products as potential contributors to volume growth and product-mix improvement over the medium term.

Balaji Amines has previously said it was already selling some acetonitrile volumes and expected higher sales after commissioning of the improved process. However, the company has not disclosed the capital expenditure for the ACN upgrade, the earlier installed capacity, expected utilisation levels or revenue potential from the project.

The commissioning comes after a strong June 2026 quarter for the chemical maker. Net sales rose 27.23 per cent year-on-year to Rs 455.93 crore, while PBIDT excluding other income more than doubled to Rs 115.87 crore. The related margin improved to 25.41 per cent from 15.26 per cent a year earlier. Profit after Tax increased 113.86 per cent year-on-year to Rs 78.12 crore.

The better quarterly profitability provides a more favourable backdrop for the new capacity, though chemical-sector earnings remain exposed to volatile raw material prices, international competition and changing product realisations. Management has previously highlighted volatility in key inputs such as methanol and ammonia, while noting that product qualification and market absorption can influence ramp-up for newer speciality products.

Balaji Amines sells chemicals in India and exports to more than 50 countries. Its Unit III in Solapur is positioned as a speciality-solvents and pharmaceutical-intermediates platform, making the ACN expansion relevant to its effort to widen participation in regulated and higher-purity chemical markets.

Management has guided for consolidated volume growth of 10 per cent to 15 per cent in FY2026-27 and an EBITDA margin of 22 per cent to 23 per cent. The upgraded ACN unit is among the projects that will be monitored against this guidance, particularly for the pace of commercial ramp-up and export-market uptake.

As of 3:50 PM on September 24, 2026, Balaji Amines shares were trading at Rs 2,225.00, down 1.97 per cent from the previous close of Rs 2,269.65. The stock has gained 50.31 per cent over the past year, compared with a 3.73 per cent decline in the BSE 500 over the same period.

Disclaimer: The article is for informational purposes only and not investment advice.