Shares of Balaji Amines rallied 4% on 4 January after the company’s subsidiary received the status of a mega project from the Government of Maharashtra.

In its regulatory filing, the company said that the subsidiary of Balaji Speciality Chemicals, Balaji Speciality Chemicals Limited’s Expansion Project for Manufacture Speciality Chemicals project, was given the mega status, which has a proposed investment of Rs 750 crore.

The company is planning to undertake capital expenditure for a new product named n-Butylamine, which is used as an ingredient in the manufacturing of pharmaceuticals, APIs, pesticides and emulsifiers. The annual domestic demand for n-butylamine stands at 8,000 tonnes.

In its quarterly report for July-September, the company reported a 69% year-on-year decline in its net profit to Rs 61 crore during the quarter. The revenue during the quarter stood at Rs 387 crore, marking a 39% YoY increase from the same quarter of the previous fiscal year.

According to the company, the subpar earning was a result of the challenges faced in the chemical industry, where the rapid change in input costs resulted in lower landed costs of imported competitor products, impacting the company’s ability to charge a fair price for its products.

The company is one of the largest manufacturers of aliphatic amines in India, has over 30 products, and a production capacity of 2,31,000 million tonnes per annum. The products manufactured by the company are supplied to pharma, paints and resin, and agrochemical industries.

At 3:30 pm, the shares of Balaji Amines closed 3.28% higher at Rs 2,676.60 on NSE.