ICRA assigns LAA rating to debenture prog of FIL

New Delhi, Sep 25 (UNI) Credit rating agency ICRA today assigned high credit quality LAA rating to the Rs 153 crore non-convertible debenture programme of Finolex Industries Ltd (FIL).

ICRA also reaffirmed the LAA rating assigned to FIL's Rs 75 crore NCD program.

The rating reflects FIL's market position in PVC pipes and PVC resins.

The rating is constrained by the commodity nature of FIL's business, the volatility of the spreads between EDC/VCM, and PVC; and FIL's ltd product diversity.

FIL proposed to set up an imported coal based captive power plant of capacity 43 MW at Ratnagiri at a cost of around Rs 200 crore, which should also aid its profitability since the cost of power generation is expected to be cheaper than grid power, besides providing uninterrupted supplies.

FIL, set up in 1981, is the largest manufacturer of PVC pipes with a 22 per cent share in the organised PVC pipe market and the second largest player in PVC resin market with a share of 30 per cent.

UNI SBA RA VV1740