Vinyl Chemicals (India) Ltd
25 Jan 2000
- Commercial paper programme - Rs. 8 crore
Rating : P1+ (Reaffirmed)
The ‘P1+’ (pronounced P one plus) rating assigned to the Rs. 80 million commercial paper programme of Vinyl Chemicals (India) Limited (VCIL) has been re-affirmed.
The rating re-affirmation factors in the company’s established position in the domestic vinyl acetate monomer (VAM) industry and a favourable capital structure. The rating also takes into account the comfort derived from the company’s association with its promoter - Pidilite Industries Limited, which is a leader in the VAM based adhesives business and procures its entire VAM requirements from VCIL. These factors are partly offset by increasing competition in the domestic VAM industry, prevailing over-capacity situation in the industry, and volatility in the prices of VAM and major raw materials (ethylene and acetic acid).
VCIL is engaged in the manufacture and sale of VAM. During the year 1998-99, the company has also commenced trading of imported VAM in the domestic market. The company reported a net profit of Rs. 42.1 million on a sales turnover of Rs. 855.6 million for the year 1998-99.
