I C R A Limited

An Associate of Moodys Investors Service

September 01, 2009

ICRA assigns LBBB+/A2 ratings to the bank lines of Nilons Enterprises Private Limited
ICRA has assigned LBBB+ (pronounced L triple B plus) and A2 (pronounced A 2) rating to Fund Based/Non-Fund Based bank line facilities of Nilons Enterprises Pvt. Ltd (NEPL). LBBB+ rating indicates moderate-credit-quality in the long-term and A2 rating indicates above-average-creditquality in the short-term The assigned ratings reflect NEPLs established presence as a pickle, vermicelli and papad manufacturer, its geographical diversification, strong distribution network and low gearing on account of equity infusion in FY08. The rating is however constrained by NEPLs high working capital intensity, adverse impact of rising raw material prices on its operating margins, fierce competition resulting from fragmented nature of pickle industry, product concentration and expected increase in gearing on account of future expansion plans. Company Profile: Nilons Enterprises Pvt. Ltd (NEPL), the flagship company of Nilons group, was incorporated in 1977 to produce and sell pickle for household consumption. Today, NEPL has presence in 30 states in India with an enhanced product portfolio which includes variety of pickles, vermicelli, papad, ketch up, fruit jam, tooty fruity, macroni, achar masala etc. The company has three operational plants in Jalgaon, Maharashtra and a plant at Saharanpur, Uttar Pradesh which is under construction. NEPL is currently managed by Mr. Deepak Sanghavi (Managing Director) and Mr. Rajheev Agrawal (Chief Executive Officer & Director). In March 2008, Pataks of UK infused Rs.497million in NEPL to acquire 23% stake as a strategic investor. NEPLs turnover increased from Rs. 260.0 million in FY06 to Rs. 633.0 million in FY091 , registering a CAGR of around 34.0 % in last 3 years. The company posted a profit after tax (PAT) of Rs. 5.0 million in FY 05 as compared to PAT of Rs.17.0 million in FY 09.

For further details please contact: Analyst Contacts: Mr. Rohit Inamdar (Tel No. +91-124-4545847) rohit.inamdar@icraindia.com Relationship Contacts: Mr. L. Shivakumar, (Tel. No. +91-22-30470005) shivakumar@icraindia.com

For complete rating scale and definitions please refer to ICRA's Website www.icra.in or other ICRA Rating Publications
1

As per the provisional numbers

ICRA has classified various instruments based on their complexity as "Simple", "Complex" and "Highly Complex". The classification of instruments according to their complexity levels is available on the website www.icra.in

PRESS RELEASE
Disclaimer: ICRA Ratings should not be treated as recommendation to buy, sell or hold the rated debt instruments.
ICRA Ratings are subject to a process of surveillance, which may lead to revision in ratings. Please visit our website (www.icra.in) or contact any ICRA office for the latest information on ICRA Ratings outstanding.