Balaji Amines Ltd

is with great pride

Ithat I present your Company's annual report, a testament to our unwavering resilience in the face of significant challenges.

Despite the adverse effects of intense geopolitical stress, heightened inflation, and significant political polarisation on global trade and economic progress, we remained steadfast in our belief in the unfolding India story and continued to build capacities and capabilities.

Our performance

The world, as we knew it in the recent past, underwent significant changes. Intense geopolitical stress, heightened inflation, and significant political polarisation have hindered global trade and economic progress. However, amidst this global fragility, India emerged as a beacon of resilience, forging ahead despite harsh headwinds. While the domestic demand and markets remained robust, export-oriented businesses' performance dipped due to the global distraught. This reality impacted our performance. Our revenue from operation dipped by 21.73% over the previous year. EBITDA and Net Profit also slid by 21.19% and 24.71%, respectively.

While our annual numbers may appear subdued, a partitioned analysis indicates better days ahead. While the first two quarters of FY24 were particularly unsatisfactory, we saw an uptick in our performance in subsequent quarters. The positive move has ushered in the hope of sustaining business growth in FY25.

Capacities and capabilities

The highlight of the year was our new product vertical. We commissioned our N-Butyl Amine facility towards the close of FY24.

N-Butyl Amine is used extensively in manufacturing pharmaceuticals, APIs, pesticides and emulsi_ers. With India's steadfast focus on self-sufficiency in API manufacturing and strengthening India's food security, we are confident that the demand for this product will rise significantly over the coming decade. Our conviction is reflected in our surplus capacity (considering the current demand) for this product. We are reasonably confident that this product will emerge as an important revenue driver over the coming years. Additionally, our teams are working overtime to commission our DME and Electronic Grade DMC facilities, which are scheduled to commence operations in the current year. These products have the potential to ignite tectonic transformations in India and will make a significant contribution to business growth over the medium term. Moreover, these products will help us balance our exposure between user sectors.

The landscape over the horizon

India is poised at an in_ection point where it stands to correct decades of extensive product or service under-consumption across the decade, helping retain its position among the fastest-growing global economies. And there is little doubt that India, already the world's fifth-largest economy, will become the world's third-largest economy well before 2030 - unlocking abundant growth opportunities along the way. Interestingly, the manufacturing sector will play a defining role in India's ascent.

Industry experts have dubbed the current period as the golden era of India's industrial boom. Positive changes in the manufacturing sector are building a strong foundation for the nation's long-term economic success. ¹ The export of goods from India will rise from about US$450 billion (FY23) to about US$1 trillion by 2030 as investments in capacities and capabilities increase. Since our products are the building blocks of India's manufacturing sector, our offering basket and sectoral diversity position us perfectly to capitalise on emerging prospects. Moreover, we are expanding our product bandwidth. We are setting up manufacturing facilities for N-Methyl Morpholine, N-(n-butyl) Thiophosphoric Triamide and Isopropylamine. These additions further expand our futuristic growth horizon. I am hopeful of a steady uptick in demand for our products over the coming years.

A value-added blueprint

Staying firm on our ethos of supporting India in its journey to the global platform, we have drawn up an ambitious infrastructure development plan for our subsidiary, Balaji Speciality

Chemicals Limited. We are setting up a 90-acre Greenfield plant to manufacture a wide array of products like Hydrogen Cyanide, Sodium Cyanide and Ethylene Diamine Tetra Acetic Acid, among others, to address the increasing demand for value-added Cyanide derivatives. This strategic investment will provide a considerably long growth runway for the Company.

Our strategy for aggressive growth is complemented by our focus on environmental sustainability, and our commitment to sustainable development will ensure the long-term viability and success of our projects. As part of our responsibility drive, we are setting up a 20MW solar power plant. In the first phase, we will take up an 8 MW installation to be operational by December 2024.

In closing

Your Company doesn't just pride itself on being a purpose-driven entity - it embodies it, living out this ethos in every strategy, every investment, and every venture. We continue to map our portfolio against the dynamic market environment to create an offering basket that serves as a lever for our ambitions. This commitment to purpose continues to steer us towards an even brighter, more impactful future.

As we conclude another year, I would like to express my deepest gratitude to our shareholders for their unwavering support and trust in Balaji Amines. I also sincerely thank our employees for their disciplined dedication and our customers for trusting our brand.

Synergy guides us as we move forward, inspiring us to exceed stakeholder expectations while remaining true to our core values. Together, with strong leadership, we are poised to excel in all spheres and build a sustainable and prosperous future for our Company and stakeholders.