Hindalco NCD gets AAA from Crisil

THE CREDIT Rating Information Services of India (Crisil) has assigned AAA (triple A) rating to the Rs. 200 crore non- convertible debenture programme of Hindalco Industries (Hindalco). The AAA rating assigned to the outstanding non- convertible debenture programmes of Hindalco have been reaffirmed. Further, the P1 plus rating assigned to the Rs. 50 crore commercial paper programme of the company has also been reaffirmed.

The ratings reflect Hindalco's favourable and improving operating efficiency, its inherent low cost position stemming from its integrated nature of operations, its strong market position in the domestic aluminium industry and the expected sustenance of the company's strong financial position. The ratings also factor Hindalco's acquisition of majority stake in Indian Aluminium Company (Indal) and the synergies arising thereof. The ratings also take into account the limited risks that would arise on account of the ongoing brown-field expansion project at its existing manufacturing facilities at Renukoot.

Hindalco, a part of the Aditya Vikram Birla group of companies, is the largest producer of primary aluminium. The company is a fully integrated aluminium producer that mines bauxite, refines bauxite into alumina, smelts alumina into aluminium and fabricates downstream aluminium products. The company also has captive power plants that caters to its entire power requirements. At present, the company is in the midst of a brown- field expansion project at its existing manufacturing facilities at Renukoot, Uttar Pradesh. During 2000-01, the company reported a PAT of Rs. 678 crores on a net sales of Rs. 2275 crores.

- Corporate Bureau

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