AMI Organics Plans ₹177 Crore Expansion For Electrolyte Additives Production

AMI Organics Limited has announced a strategic move to enhance its production capacity with a capital expenditure of ₹177 crore. This investment aims to boost the company’s capabilities in manufacturing electrolyte additives, a key product in its portfolio. Shares of Ami Organics Limited opened on a positive note on December 12, 2024. 

Brownfield Project Overview

The expansion will take place at the company’s Jhagadia facility, with plans to achieve a production capacity of 4,000 MT per year. The project is expected to be completed in the first half of FY 2025-26.

Key Highlights of the Project

• Proposed Capacity Addition: The facility will achieve a production capacity of 4,000 MT per annum for electrolyte additives.
• Investment Plan: The total cost of the project is estimated at ₹177 crore, funded through share issue proceeds and internal accruals.
• Modernisation Efforts: The project will transform manual operations into fully automated processes, ensuring efficiency and precision. Additionally, the investment will establish dedicated utilities, storage, and packaging infrastructure.

Rationale Behind the Investment

The decision to expand aligns with AMI Organics’ growth strategy to cater to increasing market demands and streamline operations. 

Timeline and Outlook

The company aims to complete the capacity addition by the first half of FY 2025-26. With this development, AMI Organics is poised to strengthen its market position in the electrolyte additives sector.

Q2FY25 Financial Highlights

Ami Organics recorded remarkable financial growth in Q2FY25:

• Revenue Growth: Revenue from operations increased by 43.2% YoY, reaching ₹2,467 million.
• Profitability Surge: EBITDA grew by 97.2% to ₹489 million, with margins expanding to 19.8%. PAT surged 155% YoY to ₹375 million.
• Global Market Presence: Exports contributed 76% of the total revenue, showcasing the company’s strong foothold in international markets.

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