CARE revises rating of Empee Distilleries’ bank facilities

Credit rating agency, CARE has revised Rs 31.72 crore long term bank facilities of Empee Distilleries (EDL) to ‘BB+’ from ‘BBB-’.

The revision in the rating factors in continuous fall of the company’s market share during the last two years due to change in supply dynamics of the Tamil Nadu (TN) IMFL industry, its increasing exposure to group companies with deteriorating credit profile, delay in project implementation of certain projects EDL’s regional presence, its size and challenges of operating in a highly regulated environment also constrain the rating.

The rating continues to factor in promoter’s track record in the business, the company’s established brand presence in TN IMFL market, increase in share of premium and medium segment products in company’s overall sales mix during FY10 and FY11.

Empee Distilleries is the flagship company of Empee Group mainly engaged in manufacturing of Indian Made Foreign Liquor (IMFL) in the states of TN, Kerala and Karnataka.