Balaji Amines Limited (BAL) has announced that its operations are significantly affected due to ongoing geopolitical conflict in the Middle East, which has disrupted global shipping and logistics. Key raw material suppliers have invoked Force Majeure, specifically impacting the supply of Liquefied Natural Gas (LNG) necessary for Ammonia production. Consequently, BAL is facing a critical shortage of Ammonia, a key input, forcing some of its manufacturing plants to become non-operational.
Operational Disruption Due to Global Events
Balaji Amines Limited (BAL) has issued a formal intimation regarding severe disruption to its manufacturing processes. The ongoing war in the Middle East has caused significant turbulence across global shipping lines, logistics networks, and supply chains. This has resulted in certain key suppliers of essential raw materials invoking the Force Majeure clause.
Impact on Key Input: Ammonia
The disruption has critically affected the supply of Liquefied Natural Gas (LNG), which is a vital input for Ammonia production among Indian fertilizer manufacturers. Several Ammonia producers have reported their inability to supply the product due to these Force Majeure conditions. As a direct consequence, Balaji Amines is experiencing severe logistics disruptions in procuring Ammonia, which is a fundamental raw material for manufacturing Methylamines, Ethylamines, and their derivatives.
Status of Manufacturing Plants
Due to the non-availability of this critical raw material, the company confirmed that some of the plants of Balaji Amines Limited are presently non-operational. At this time, the company stated that the exact financial and operational impact resulting from this key raw material shortage cannot be estimated.
Forward-Looking Strategy
The Company is actively engaged in closely monitoring the developments. Furthermore, BAL is in continuous dialogue with its key suppliers to actively explore all possible alternative avenues for securing the necessary supply of Ammonia. Balaji Amines Limited has assured the Stock Exchanges that it will keep them informed of any subsequent material developments regarding this critical situation.
Source: BSE
