• Commercial paper programme - Rs. 25 crore Rating : P1+ (reaffirmed)

Crisil has reaffirmed its ''P1+'' rating for the Rs. 25-crore commercial paper programme of Brakes India Ltd.

The rating reflects Brakes India''s dominant market position in automotive brake systems across all market segments, its strong design and testing facilities, its stable financial performance, and the benefits arising from its technical and financial collaboration with Lucas Industries plc of the UK. Lucas Industries plc. is a subsidiary of Lucas Varity plc, which was acquired by TRW Inc. of the US in May 1999.

The rating also takes into consideration Brakes India''s relatively high dependence on automobile OEMs, the increasing competition from new foreign entrants, and the uncertainties associated with the ongoing business and financial restructuring exercise in TRW Inc.

Brakes India belongs to the TVS group of companies, and is engaged in the manufacture of complete braking systems, including hydraulic brakes, mechanical brakes, caliper brakes, foundry castings, rubber seals/hoses and brake fluid.

In 1998-99, the company registered net sales of Rs. 373 crore and a profit after tax of Rs. 16.29 crore.