ICRA has reaffirmed a long-term rating of 'BBB-' and short term rating of 'A3; for the Rs 105.52 crore bank facilities of Uniproducts (India). The above ratings, which were put on “Rating watch with developing implications”, have now been taken off the Rating Watch. The Outlook on the long-term rating is 'Stable.'
The ratings continue to take support from UPL's strong market position in the Noise, Vibration and Harshness (NVH) products, healthy share of business with its OEM customers for its products and financial support from the promoters through equity infusion in H1 2012-13.
The ratings were earlier put on rating watch amid the lockout at the Manesar (Haryana) plant of Maruti Suzuki India (MSIL), the key customer of UPL, which had disrupted production output of the company. While the recent lock-out at MSIL had a short-term impact on the financial performance of UPL, its impact on the financial risk profile may not be material. With the resumption of production at MSIL's Manesar facility, UPL's production levels have returned to relatively normal levels.
Uniproducts (India) (UPL) was incorporated as International Spinners Company with the objective of manufacturing non-woven products.