Shares of Balaji Amines fell more than 4% on 13 March after the company announced that it is facing a significant interruption in the procurement of ammonia, a crucial raw material, due to the ongoing war in West Asia, which has impacted global shipping and supply networks and caused some suppliers to exercise force majeure.

In its statement, the company stated that the conflict has “significantly disrupted” global transportation networks, with certain critical raw material suppliers invoking force majeure provisions. This, in turn, has hampered the availability of liquefied natural gas (LNG), a critical input for ammonia production, prompting some ammonia manufacturers to announce their inability to deliver the product during this time.
 
Balaji Amines stated that it is suffering “significant logistics disruptions” in obtaining ammonia, which is used in the production of methylamines, ethylamines, and derivatives.

“Some of the plants of the company are presently non-operational,” it said, attributing the shutdowns to the non-availability of ammonia.

The company noted that the financial and operational consequences of the raw material scarcity cannot be anticipated at this time due to the fluid nature of the situation.
 
Balaji Amines said it is actively watching events and is in constant communication with suppliers to explore alternative solutions for obtaining ammonia supplies. It also stated that it will notify stock exchanges of any subsequent material developments.

Amid escalation in West Asia, both US President Donald Trump and Mojtaba Khamenei, who replaced his late father and former supreme leader Ali Khamenei, issued defiant statements on Thursday, implying that the war may not finish soon. In his first remark since taking power, the younger Khamenei stated that if the US and Israel continue to attack Iran, Tehran will seek to develop new fronts in the conflict. 

When asked if a lack of regime change would entail failure or recurring confrontations with Iran, Netanyahu declined to answer explicitly, saying that the best way to secure Israel’s future survival and prosperity is to “be very strong.”

At 3:30 pm, the shares of Balaji Amines closed 3.29% lower at Rs 1,001 on NSE.

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