Credit rating agency, CARE has revised rating of Essel Propack’s long-term bank facilities worth Rs 214 crore from 'A' to 'AA-' and Short-term Bank Facilities worth Rs 55 crore from 'A2+' to 'A1+'. The rating agency has also revised rating of company’s Long term/ Short term bank facilities worth Rs 95 crore to ‘AA-/A1+’ from ‘A/A2+’. Moreover, the rating agency has also revised rating of company’s non-convertible debenture issue worth Rs 90 crore to ‘AA-’ from ‘A’.
The revision in ratings assigned to the bank facilities/instruments of Essel Propack (EPL) factors in steady growth in sales, increasing share of high value added non-oral care business, increased volume offtake resulting in turnaround in European operations and stable profitability margins. The revision in ratings also factors divestment of non-core flexible packaging business (Packaging India, PIPL) in July 2015 with EPL using the proceeds to prepay its term loans.
EPL is one of the leading specialty packaging companies globally promoted by the Essel group. It manufactures laminated/seamless/extruded plastic tubes extensively used in packaging of oral care products, cosmetic, pharmaceuticals, etc. In India, it enjoys huge franchise having pioneered laminated tubes over three decades.
