P1 plus for Rhone Poulenc

The reaffirmation of P1 plus rating to the Rs. 18 crore commercial paper programme reflects the strength Rhone Poulenc (India) (RPIL) derives from its established brands in its focus segments and its favourable financial profile. Crisil understands that the parent company, Aventis SA, plans to sell its 40 per cent controlling stake in RPIL and is currently in negotiations with various parties for the same. Given RPIL's strong cash generation from operations, the rating agency expects RPIL's short term credit profile to remain favourable and does not anticipate any immediate impact on account of a possible change in shareholding in future.

RPIL is a medium sized pharmaceutical company with a key presence in the anti-histamines, cough syrup, anti-emetics, amoebicides and anti-malarial segments. During the first half of 2000-01, the company reported a profit after tax of Rs. 16.13 crores on an operating income of Rs. 134.53 crores.

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Section  : Business
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