Saurashtra Cements gets D

The rating of the Rs. 58.15 crore non-convertible debenture issue of Saurashtra Cements has been revised downwards from C (single C) to D (single D). The revised rating indicates that the debentures are in arrears on interest and expected to default on maturity.

Saurashtra Cements is a 1.16 million tonne plant belonging to the Mehta Group which is also the promoter group for Gujarat Sidhee (1.20 million). Both companies were among the first cement plants in Gujarat but have been rendered uncompetitive by the newer and more efficient plants of Ambuja and L&T. The over capacity situation coupled with poor demand in Gujarat has resulted in Saurashtra Cements posting a loss of Rs. 40 crores on a sales of Rs. 168 crores for the year ended June 30, 2000.

Corporate Bureau

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Section  : Business
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