Balaji Speciality Chemicals Limited intends to use the funds generated through the IPO for the following purposes:

• Settling or reducing a portion of the existing debt
• Meeting working capital needs
• Supporting general corporate objectives

Established in 2010, Balaji Speciality Chemicals Limited is a prominent producer of specialized chemicals such as Ethylenediamine, Piperazine (Anhydrous), Diethylenetriamine, Amino Ethyl Ethanol Amines, and Amino Ethyl Piperazine. Utilizing the Monoethanol Amine (“MEA”) process, these chemicals serve as domestic alternatives to imported substances across various industries, including specialty chemicals, agrochemicals, and pharmaceuticals. The company's manufacturing center, located in Solapur, Maharashtra, is the central hub for the production of its entire range of products.

With a client base of 182 customers, Balaji Speciality Chemicals caters to manufacturers of specialty chemicals, agrochemicals, and pharmaceuticals, along with distributors responsible for further distribution within these sectors. Notable clients include Nanjing Union Chemical Company Limited, Korea India Limited, UPL Limited, Dr. Reddy’s Laboratories Limited, and Aarti Drugs Limited.

As a subsidiary of Balaji Amines Limited (“BAL”), a key player in the Indian aliphatic amines manufacturing sector, Balaji Speciality Chemicals contributes to the overall success of the BAL group.

Strengths

1. This esteemed company holds a unique position in India and is the only producer of specialized chemicals, including Ethylenediamine, Piperazine (Anhydrous), Diethylenetriamine, Amino Ethyl Ethanol Amines, and Amino Ethyl Piperazine. These chemicals are highly demanded by several industries and are used in various applications, such as pharmaceuticals, agrochemicals, and water treatment.

2. The company's position in the industry is enviable, thanks to its long-standing presence, expertise, and wide range of products. 

3. The company's products are indispensable in the end-use industries, and there are no effective substitutes available in the market.

4. With a national and global client portfolio, the company has established itself as a reliable and trusted supplier in the industry.

5. The company's research and development capabilities, combined with the strategic direction provided by Balaji Amines Limited, enable it to innovate and create new products that meet the evolving needs of its customers.

6. The company's focus on improving market share and profitability has resulted in impressive growth and success in the industry.

Risks

1. The company has not entered into any long-term contracts with either its customers or suppliers, which provides flexibility but also increases the uncertainty of future business relationships.

2. Due to its limited operating history, the company has reported losses in the past, which may raise concerns about its future financial performance and sustainability.

3. The company's profitability is vulnerable to any restrictions on import materials or increases in shipping costs since it relies on imported materials to produce its products.

4. The company's sales of Ethylenediamine constitute 67% of its revenue, so any changes in demand for this product can significantly impact the company's financial performance.

5. As a result of its business operations, the company is subject to strict government regulations to ensure compliance with safety, environmental, and labor standards.