Kandhari Beverages Private r 23012012

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Kandhari Beverages Private Limited

Particulars Amount Rating

LT scale fund based limits Rs 147.45 crore(enhanced from

Rs 77.45 crore)

[ICRA]BBB+(Stable)

downgraded from [ICRA]A-(Stable)

ST scale NFB Limits Rs 20 crore( reduced from Rs50 crore)

[ICRA]A2+ downgraded from[ICRA]A1

ICRA has revised the long term rating from [ICRA]A-(pronounced as ICRA A minus) to[ICRA]BBB+(pronounced as ICRA triple B plus) rating to Rs. 147.45 crore(enhanced from Rs 77.45crore) fund based limits of Kandhari Beverages Private Limited(KBPL).

*The outlook assigned to the

long term rating is stable. ICRA has also revised short term rating from [ICRA]A1(pronounced ICRA Aone) to [ICRA]A2+(pronounced ICRA A two plus) to the Rs 20 crore(reduced from Rs 50 crore) nonfund based limits of Kandhari Beverages Private Limited (KBPL).

The revision in rating follows a significant increase in gearing, both on a standalone and consolidatedbasis, following debt funded capex in its core business of bottling soft drinks as well as investment in

group companies. The rating also factors in risks arising out of a substantial amount of corporateguarantee given by KBPL to its group companies. The rating also continues to be constrained by theworking capital-intensive nature of the business arising out of the seasonal nature of the industry andthe need for recurring expenditure in empty bottles and chilling infrastructure. The rating also takes intoaccount the vulnerability of the companys operations to raw material prices which expose thecompany to the adverse variation in the margins, although ICRA takes note of the fact that these risksare partly mitigated by the fact that Coca Cola India (of which it is the bottler) compensates it byincreasing the price of the final products. The ratings are supported by KBPLs established position asone of the leading bottlers for Coca Cola India (CCI), satisfactory demand outlook for its products, thefinancial and marketing support from CCI, the promoters long experience in the business and itssteady operating performance.

About the companyKBPL is the approved franchisee bottler for Coca Cola India to bottle various soft soft drink brands

owned by CCI, with the major ones being Coke, Thums Up, Maaza, Limca and Sprite. The productsare sold in two packing media, glass bottles and polyethylene terephthalate (PET) bottles of sizesbetween 300 ml and 2.5litres. The company also produces syrups for use by soda fountains. KBPLhas two operational manufacturing units, at Nabipur (Punjab) and, Baddi (Himachal Pradesh) with anew unit being set up in Saha(Ambala. Haryana). It has an annual installed capacity of 37.55 millioncrates of regular glass as well as PET bottles. The company is fully owned by Kandhari family who haslong experience in the bottling business.

December 2011

For further details, please contact:

Analyst Contact:Mr. Sabyasachi Majumdar, (Tel. No. +91-124 4545304)

[email protected]

Relationship Contacts:Mr. Vivek Mathur (Tel No. +91 124 4545310)[email protected]

*For complete rating scale and definitions please refer to ICRAs website www.icra.in or otherICRA Rating Publications


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Copyright, 2011, ICRA Limited. All Rights Reserved.

Contents may be used freely with due acknowledgement to ICRAICRA ratings should not be treated as recommendation to buy, sell or hold the rated debt instruments. The ICRAratings are subject to a process of surveillance which may lead to a revision in ratings. Please visit our website(www.icra.in )or conta ct any ICRA office for the la test informa tion on ICRA rat ings outsta nding. All informa tion

contained herein has been obtained by ICRA from sources believed by it to be accurate and reliable. Althoughreasonable care ha s been ta ken to ensur e tha t th e informa tion herein is tru e, such information is provided as iswithout any warranty of any kind, and ICRA in particular, makes no representation or warranty, express orimplied, as to the accuracy, timeliness or completeness of any such information. All information contained hereinmus t be construed solely as sta temen ts of opinion a nd ICRA shall n ot be liable for any losses incurred by users fromany u se of this pu blication or its conten ts
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Registered Office

ICRA Limited

1105, Kailash Building, 11th Floor, 26, Kasturba Gandhi Marg, New Delhi 110001

Tel: +91-11-23357940-50, Fax: +91-11-23357014

Corporate OfficeMr. Vivek Mathur

Mobile: 9871221122

Email:[email protected]

Building No. 8, 2nd Floor, Tower A, DLF Cyber City, Phase II, Gurgaon 122002

Ph: +91-124-4545310 (D), 4545300 / 4545800 (B) Fax; +91-124-4545350

Mumbai

Mr. L. Shivakumar

Mobile: 91-22-30470005/9821086490

Email: [email protected]

3rd Floor, Electric Mansion, Appasaheb Marathe Marg,Prabhadevi, Mumbai - 400 025

Ph : +91-22-2433 1046/ 1053/ 1062/ 1074/ 1086/ 1087Fax : +91-22-2433 1390

Kolkata

Ms. Anuradha Ray

Mobile: 91-33-22813158/9831086462


A-10 & 11, 3rd Floor, FMC Fortuna, 234/ 3A, A.J.C. BoseRoad, Kolkata-700020.

Tel: +91-33-2287 6617/ 8839/ 2280 0008Fax: +91-33-2287 0728

Chennai

Mr. Jayanta Chatterjee

Mobile: 9845022459


5th Floor, Karumuttu Centre, 498 Anna Salai, Nandanam,Chennai-600035.

Tel: +91-44-2433 3293/ 94, 2434 0043/ 9659/ 8080, 24330724, Fax:91-44-24343663

Bangalore

Mr. Jayanta Chatterjee

Mobile: 9845022459


2 nd Floor. ,Vayudhoot Chambers, Trinity Circle, 15-16M.G.Road, Bangalore-560001.Tel:91-80-25597401/ 4049 Fax:91-80-25594065

Ahmedabad

Mr. L. Shivakumar

Mobile: 9821086490


907 & 908 Sakar -II, Ellisbridge,Ahmedabad- 380006Tel: +91-79-26585494, 26582008,26585049, 26584924TeleFax:+91-79- 2648 4924

Pune

Mr. L. Shivakumar

Mobile: 9821086490


5A, 5th Floor, Symphony, S.No. 210, CTS 3202, Range HillsRoad, Shivajinagar,Pune-411 020Tel : (91 20) 2556 1194 -96; Fax : (91 20) 2556 1231

Hyderabad

Mr. M.S.K. Aditya

Mobile: 9963253777


301, CONCOURSE, 3rd Floor, No. 7-1-58, Ameerpet,Hyderabad 500 016.

Tel: +91-40-2373 5061 /7251 Fax: +91-40- 2373 5152
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]

Kandhari Beverages Private r 23012012

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