Electrolux Voltas Limited

• Commercial paper programme - Rs. 60 crore Rating : P1+

Crisil has assigned a "P1+" rating to Electrolux Voltas Ltd's enhanced commercial paper programme of Rs.60 crore.

The rating reflects Electrolux Voltas's strong linkage with its parent AB Electrolux of Sweden, which holds 74 per cent of its equity, the strong white goods brands in its portfolio, its moderate capital structure and integrated manufacturing facilities. The rating also factors in the significant combined business and operational strength of the company in the Indian white goods industry along with Electrolux Kelvinator, another Electrolux company in India. However, the competitive nature of the Indian white goods industry, the decline in the market shares of Electrolux Voltas's brands in their respective segments, pressure on the capital structure, with weak profitability levels in the near to intermediate term, are likely to be the offsetting factors.