Blow Plast Ltd

  • Commercial paper programme - Rs. 10 crore Rating : P1 (reaffirmed)

Crisil has reafirmed the "P1" rating it had assigned to Blow Plast Ltd''s Rs. 10-crore commercial paper programme.

The reaffirmed rating reflects the moderate financial risk profile of the company characterised by a high level of investments in group companies, average gearing and interest coverage indicators. The rating also factors the company’s favourable market position in the premium and mid-price luggage segments, which is partly offset by strong competition faced from the unorganised sector in the low-priced segment. The company’s recent initiatives to counter competition in its main business and the steps taken to restructure its business portfolio in terms of exiting the toys and office chair businesses have been factored favourably.

Blow Plast, a part of the D G Piramal group, is involved in the marketing of plastic moulded and soft luggage and office furniture systems manufactured by the group. In the year ended 31 March 1999, the company had an operating income of Rs. 266.15 crore and a net profit of Rs.7.55 crore.