Shares of Balaji Amines Ltd fell sharply in early trade on Friday, declining more than 4% amid concerns over supply disruptions triggered by the ongoing West Asia conflict. According to The Hindu BusinessLine, the stock opened lower at ₹999 compared with the previous close of ₹1,035 and extended losses to touch an intraday low of ₹989, marking a decline of 4.4% from the last closing level. The sharp decline reflects investor concerns over the company's operational challenges stemming from geopolitical tensions in the Middle East.
Speciality chemicals maker Balaji Amines Ltd announced that some of its plants have become non-operational due to disruptions in the supply of ammonia, a key raw material. As reported by The Hindu BusinessLine, the company informed stock exchanges that it is facing severe logistical disruptions in procuring ammonia, a key raw material, due to escalating geopolitical tensions in West Asia. The company stated that the situation has created significant logistics disruptions in the procurement of ammonia, which is used in the manufacture of methylamines, ethylamines and their derivatives.
The company attributed the disruption to logistics and supply chain problems linked to the ongoing war in West Asia. According to The Hindu BusinessLine, the conflict has significantly disrupted global shipping lines, logistics networks and supply chains. Some of the company's key raw material suppliers have invoked the force majeure clause amid the ongoing geopolitical tensions, creating shortages for downstream chemical producers. The company noted that the financial and operational impact of the shortage of the key raw material cannot be estimated at this point.
The disruption has affected the supply of liquefied natural gas (LNG), which is used for the production of ammonia by most fertiliser manufacturers in India. As reported by The Hindu BusinessLine, several ammonia manufacturers have expressed their inability to supply the product under Force Majeure conditions, creating shortages for downstream chemical producers. The company stated that the situation has directly impacted its ammonia procurement, which is essential for manufacturing methylamines, ethylamines and their derivatives.
Despite the operational challenges, Balaji Amines stated it is closely monitoring the developments and remains in continuous discussions with key suppliers to explore alternative sourcing arrangements. According to The Hindu BusinessLine, the company added that the financial and operational impact of the disruption cannot be assessed at this stage. The company emphasized its commitment to keeping stock exchanges informed of any further material developments in this regard, indicating a proactive approach to managing the supply chain disruptions.
