P1 plus rating for Widia (India)

A P1 plus rating has been assigned to the Rs. 25 crore (enhanced from Rs. 10 crore) short term debt programme of Widia (India). The rating continues to factor in Widia (India's) (WIL) strong market presence, sound financial position and significant product development and technological support from its U.S. and German principals.

These factors are partially mitigated by the company's significant dependence on the performance of the automobile and engineering sectors.

WIL, promoted by the erstwhile Krupp Widia GmbH Essen of Germany (now Widia Germany) and Sak Industries, primarily manufactures tungsten carbide tools and special purpose machines for metal cutting, mining and metal forming applications. Widia Germany is now part of the U.S. based Milacron group. WIL earned a profit after tax of Rs. 27.88 crores on an operating income of Rs. 193.86 crores for the year ended December 31, 1999.

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Section  : Business
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