ICRA has reaffirmed “BB+” rating assigned to Mohit Industries’ Rs 55.00 crore cash credit facility (enhanced from Rs 22.00 crore) and Rs 80.60 crore term loans (enhanced from Rs 23.17 crore). The outlook on the long term rating is ‘stable’. The rating of “A4+” has been reaffirmed to the Rs 2.25 crore (enhanced from Rs 0.40 crore) short term non-fund based facilities of MIL.
The assigned ratings are constrained as the company operates in a highly fragmented polyester yarn manufacturing industry where it is exposed to intense competition from small unorganized as well as large organized players; vulnerability of profitability to adverse fluctuations in POY prices and foreign exchange rates. The ratings, however, favorably factor in the long experience of the promoters and established track record of the company in the textile industry; the location advantage derived from proximity of the manufacturing unit to the raw material sources and downstream processing units and the diversified clientele base of the company. The ratings also factor in the positive demand outlook expected for man-made fibres.
Mohit Industries (MIL) is involved in manufacturing of DTY (Drawn Textured Yarn) and grey fabric. The company’s plants are located at Kim (Surat) and Silvassa. Currently MIL has an installed capacity of 22537 MTPA for manufacturing DTY and 9.50 million metres pa for manufacturing grey fabric. The company also has a captive gas based power plant with power generation capacity of 451 KVA.
| Company Name | CMP |
|---|---|
| Welspun Living | 125.45 |
| Vardhman Textiles | 557.75 |
| Arvind | 387.20 |
| K.P.R. Mill | 926.40 |
| Page Industries | 37935.70 |
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