Solapur: Balaji Amines has successfully commissioned a Dimethyl Ether (DME) production plant at its Unit-4 project in Chincholi MIDC, Solapur, and commercial production commenced on 20 May 2026. With this achievement, Balaji Amines has become the only company in India producing DME on a commercial scale.
DME is considered a clean and efficient alternative fuel that can be blended with LPG. In many Western and European countries, up to 20% DME is mixed with LPG for usage. The company has established this state-of-the-art project with an annual production capacity of 100,000 metric tons, and the core engineering technology required for DME production has been sourced from a foreign company.
Speaking on the occasion, Managing Director D. Ram Reddy stated that this project is a significant step toward India’s energy self-reliance. Since DME production is entirely new to India, the Bureau of Indian Standards (BIS) has recently issued a new IS code, according to which up to 8% DME can be blended with LPG. He also urged public sector Oil Marketing Companies (OMCs) to take the initiative in implementing DME blending programs.
He further stated that, considering the growing uncertainty in the global energy sector, the development of alternative fuels has become the need of the hour. The use of DME will significantly reduce India’s dependence on LPG imports and help save valuable foreign exchange.
As this is India’s first DME production plant, the company faced several challenges in obtaining PESO approvals and other statutory clearances due to the lack of sufficient Indian standards for storage, handling, usage, transportation, and road tanker movement of DME. Referring to international standards, reviewing, and validating them to prepare the required guidelines proved to be a time-consuming process.
Initially, Balaji Amines will supply DME to the aerosol industry and other commercial sectors for use as a heating fuel.
The inauguration ceremony of the project was attended by Whole-Time Director N. Rajeshwar Reddy, Senior General Manager Govind Menchikere, and General Manager Vinay Durgam.
Speaking about the company’s future strategy, D. Ram Reddy said that Balaji Amines is rapidly expanding to play a leading role in India’s EV battery chemicals sector. The company is focusing on meeting the growing demand in the EV battery industry and plans to restructure certain existing projects in the future to manufacture next-generation EV battery chemicals.
Dimethyl Carbonate (DMC) – Electronic Grade
DMC is extensively used in EV battery electrolytes. Balaji Amines is the only company in India producing this chemical, with a current annual production capacity of 15,000 metric tons. The company also has the capability to increase this capacity with minimal additional investment.
N-Methyl Pyrrolidone (NMP) – Electronic Grade
Balaji Amines has been producing NMP for the last two decades and has now developed EV battery-grade solvents. The company is fully prepared to supply the upcoming gigawatt-scale EV battery projects being established across the country.
Balaji Amines is the only company in India manufacturing both DMC and NMP chemicals, and the management stated that these developments have positioned the company at the forefront of multiple segments in the specialty chemicals sector.
Source : Hemanth Reddy G (Director – BALAJI SPECIALITY CHEMICALS LIMITED) Ghr@balajiamines.com
