Crisil upgrades Vashisti Detergents' NCD rating

THE CREDIT Rating Information Services of India (Crisil) has upgraded the AA (double A) rating assigned to the Rs. 12.71 crore non-convertible debenture issue of Vashisti Detergents (VDL) to AA plus (double A plus).

The upgradation reflects the improvement in the company's financial risk profile coupled with the benefits derived by VDL on account of the company's offtake arrangement with Hindustan Lever (HLL) and significant level of managerial, operational, and system support from HLL.

The rating agency expects the high degree of business and managerial support provided by HLL to continue in future. However, the competitiveness of VDL as a supplier to HLL has been reduced with the expiry of the sales tax benefits to VDL.

VDL is engaged in the manufacture of toilet soaps, detergent bars, and detergent powders. VDL has also backward integrated into the manufacture of fatty acids, which is used as input for detergents. HLL holds 32.9 per cent of the equity capital of the company. The company, which offers the benefit of its comprehensive product mix and large installed capacity, sells its entire production to HLL.

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Section  : Business
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