CARE reaffirms ratings of Mangalam Ventures’ bank facilities

Credit rating agency, CARE has reaffirmed ‘BB+’ rating to Mangalam Ventures’ long term bank facilities worth Rs 9.17 crore and ‘A4+’ rating to company’s Short term Bank Facilities worth Rs 2 crore. The ratings assigned to the bank facilities of Mangalam Ventures (MVL) continue to be constrained by relatively modest scale of operations, moderate profitability margins and customer concentration risk. The ratings further continue to be constrained by susceptibility of profit margins to the volatility in the foreign exchange and presence in highly competitive and fragmented industry.

Mangalam is primarily engaged in the manufacturing and exporting of readymade garments to Canada, USA and Europe from the past 16 years. Mangalam has a manufacturing facility at Faridabad with an installed capacity of around 16.5 lakh pieces per annum for readymade garments.