Tushar's Stock Tips: Balaji Amines plans Rs 70cr capacity expansion

Thursday, February 16, 2012

Balaji Amines plans Rs 70cr capacity expansion

Balaji Amines rallied as the company planned to invest Rs 70 crore in its Solapur unit expansion. The company has been planning to implement a hotel project worth Rs 40 crore in Solapur currently.

The company looks to expand the capacity of Methyl Amines from existing 22,000 tonne per annum capacity to 55,000 tonne per annum (adding more than 33,000 tonne per annum Methyl Amines capacity).

State Bank of Hyderabad will fund around Rs 48 crore for the expansion and rest will be from internal accruals, said D Ram Reddy, director commercial of Balaji Amines.

The production of Methyl Amines is scheduled to streamline by January 2012. Another product Di-Methyl Amine Hydrochloride would come into production by April 2012. The third product Dimethyl Formamide will come into stream by July 2012, he told CNBC-TV18 in an interview.

Reddy further indicated that the first plant of Methyl Amines, which will start by January, will contribute to the last quarter with a three-month revenue for the current year.

As the amount of Rs 48 crore would be via debt, the total debt on the books will be around Rs 79 crore from loans.

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