ICRA reaffirms rating of Venky’s India’s bank facilities

Credit rating agency, ICRA has reaffirmed the rating assigned to Rs 112 crore term loan (enhanced from Rs 30 crore) and Rs 25 crore cash credit facilities (enhanced from Rs 18 crore) of Venky’s India as A- with stable outlook. The rating agency has also assigned A1 rating to Rs 50 crore short term fund based facilities and reaffirmed A1 for Rs 15 crore (enhanced from Rs 7 crore) non fund based facilities of the company.

The rating reaffirmation reflects continued strong financial performance of the company in FY11 resulting in healthy accruals, and comfortable debt protection indicators. The rating reaffirmation also takes into account favourable demand prospects for the domestic poultry industry on back of favourable socio economic factors combined with positioning of the VH (Venkateshwara Hatcheries) group as the largest fully integrated poultry player in the country.

The company mainly produces day-old layer and broiler chicks for the dense poultry markets of North India. Its product portfolio includes animal health products, pellet feeds, processed, and further processed chicken products, solvent oil extraction, and SPF Eggs.