Shares of fell sharply in early trade on the National Stock Exchange on Friday, declining more than 4 per cent amid concerns over supply disruptions triggered by the ongoing West Asia conflict.
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 per cent from the last closing level.
The company informed the stock exchanges that it is facing severe logistical disruptions in procuring ammonia, a key raw material, due to escalating geopolitical tensions in West Asia. Some of its manufacturing plants have become non-operational because of the non-availability of ammonia.
Balaji Amines said the ongoing war has significantly disrupted global shipping lines, logistics networks and supply chains, with certain key raw material suppliers invoking the Force Majeure clause. The disruption has also affected the supply of Liquefied Natural Gas (LNG), a critical input used in ammonia production by most fertiliser manufacturers in India.
As a result, several ammonia manufacturers have expressed their inability to supply the product under Force Majeure conditions, creating shortages for downstream chemical producers.
The company said the situation has directly impacted its ammonia procurement, which is essential for manufacturing methylamines, ethylamines and their derivatives. Due to the raw material shortage, some of the company’s plants are currently non-operational.
Balaji Amines further said that the financial and operational impact of the disruption cannot be assessed at this stage. It added that it is closely monitoring developments and remains in continuous discussions with key suppliers to explore alternative sourcing arrangements.