- Non convertible debenture - Rs.8. 4 crore Rating : A+ to A (Downgraded)
The rating assigned to the Rs. 8.4 crore non convertible debenture issue of Ion Exchange (India) Limited (IEIL) has been downgraded from 'A+' (pronounced single A plus) to 'A' (pronounced single A).
The rating reflects the cyclical nature of IEIL's business and the slowdown witnessed by the water & effluent treatment equipment industry in the recent past. The rating takes into account the above average market position of IEIL in water treatment plants and ion exchange resins arising out of its strong technical collaborations and established service network. The rating also factors IEIL's exposure to its group companies and its deteriorated financial profile attributable to pressure on operating margins & increased working capital requirement.
IEIL is engaged in the manufacture and sale of water treatment plants, ion exchange, specialty chemicals and consumer products such as Zero B. IEIL executes orders for installation of large and medium sized water treatment plants and effluent treatment plants for power units, fertilizers, petrochemicals and refineries. It also supplies plants for non-water treatment applications such as recovery and manufacture of vitamin- C and solvent recovery.