Credit rating agency, CRISIL has downgraded rating on Vadilal Industries’ long term bank facilities to ‘BBB-/Negative’ from ‘BBB/Stable’. The rating agency has also downgraded rating on the company’s short term bank facilities to ‘A3’ from ‘A3+’.
The rating downgrade reflects the Vadilal group’s financial risk profile will remain constrained by weaker-than-expected gearing and debt protection metrics over the medium term.
Vadilal Industries is engaged in manufacturing and selling of ice-creams under the Vadilal brand. It has combined ice cream manufacturing capacity of 106,080 kilolitres per annum at its units in Ahmedabad (Gujarat), Pundhra (Gujarat) and Bareilly (Uttar Pradesh). Its processed food manufacturing unit in Dharampur (Gujarat) has capacity of 32,500 tonnes per annum.
