Shares of Balaji Amines Ltd declined more than 3% in early trade after the company reported disruptions in procuring ammonia, a critical raw material used across its production processes.
The company said the ongoing conflict in the Middle East has disrupted global shipping routes and supply chains, affecting the availability of ammonia from key suppliers. Several ammonia manufacturers have invoked Force Majeure clauses due to logistical constraints, creating uncertainty in supply and delaying shipments.
As a result, Balaji Amines has faced challenges in sourcing adequate quantities of ammonia, which has affected operations at some of its manufacturing plants. Ammonia is an essential input used in the production of various specialty chemicals and derivatives manufactured by the company.
The company stated that the supply disruption is linked to broader global logistics challenges caused by geopolitical tensions in the Middle East. These developments have impacted shipping schedules and the availability of key raw materials across multiple industries.
At present, Balaji Amines said it is unable to estimate the financial or operational impact of the ammonia shortage. The company added that it continues to monitor the situation closely while engaging with its suppliers to identify alternative sourcing options.