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CARE reaffirms ratings assigned to Khaitan Electricals’ bank facilities

23 Aug 2011 Evaluate

CARE has reaffirmed ‘CARE BBB’ ratings assigned to Khaitan Electricals’ (KEL) long-term bank facilities of Rs 135.1 crore. The credit rating agency has assigned ‘CARE A3’ rating to company’s short-term bank facilities of Rs 90 crore.

The ratings draw strength from KEL’s long & established track record, Rich business experience of promoter, good brand image, nationwide dealer/distribution network and moderate financial position. The ratings are however constrained by volatility in raw material prices, higher bargaining power of major dealers, high inventory & collection period and low profitability arising out of higher advertisement expenses & its inability to price products at a premium due to intense competition from industry leaders.

KEL, is engaged in the business of manufacturing & selling of electric fan, pumps and other electrical appliances.

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