Credit rating agency, CARE has reaffirmed the assigned ‘A1+’ rating to the commercial paper (CP) issue of the West Coast Paper Mills for Rs 25.00 crore. The ability to maintain capacity utilization and garner higher profitability amidst increased supply remains the key rating sensitivity.
The rating continues to derive strength from considerable experience of the promoters in the paper industry, the strategic location of its plant, the company’s well-established distribution network and low cost of project debt. The rating is, however, constrained by substantial amount of corporate guarantee given to a group company and high financial leverage.
West Coast Paper Mills, incorporated in 1955, is engaged in manufacturing paper, paperboard and coated duplex board. The company is Flagship Company of Kolkata based- SK Bangur Group. The company contributes nearly 60% to Group’s revenue. In the year 1955, company was established at Dandeli, Karnataka. Products manufactured by company cater the writing, printing and packaging demand of millions of customers across the globe.
| Company Name | CMP |
|---|---|
| JK Paper | 375.20 |
| TN Newsprints | 140.05 |
| West Coast Paper | 492.00 |
| Emami Paper Mills | 75.24 |
| Seshasayee Paper | 270.95 |
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