CARE has reaffirmed ‘BBB’ ratings to GHCL’s Long-term Bank Facilities worth of Rs 955.32 crore which was reduced from Rs.968.45 crore. The credit rating agency, has also reaffirmed ‘BBB / A3’ rating to company’s long-term/short-term bank facilities worth of Rs 998 crore.
The ratings continue to factor in the stable operating performance of the soda ash division of GHCL. (GHCL) marked by healthy capacity utilisation and profitability. The ratings further continue to be underpinned by GHCL’s established position in the domestic soda ash industry and stable industry growth prospects thereof. Ratings also derive comfort from the healthy operating cash flows of the company.
GHCL is a leading producer of synthetic soda ash in India with an installed capacity of 8.5 lakh Tonnes Per Annum (TPA) located in Gujarat. Over the years, it has diversified into yarn and home textile products. While its yarn division, with an installed capacity of 1,48,280 spindles, is located in Tamil Nadu, the home textile plant with a weaving capacity of 25,000 meter per day and processing capacity of 1 lakh meter per day for home-textiles (bed sheets and curtain panels) is located at Vapi (Gujarat).
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