Mumbai October 16, 2020: CARE Ratings, a leading credit rating agency in India, has reaffirmed the credit rating of Garware Polyester Limited as CARE A and upgraded the outlook to positive from stable.
The rating assigned to the bank facilities of Garware Polyester Limited (GPL) factors in the strength of GPL from its established track record of more than five decades in polymer value chain industry, diversified product portfolio with wide geographical coverage globally and integrated manufacturing facilities.
The ratings also continue to factor in the improvement in operating performance marked by consistently high capacity utilization level witnessed during last couple of years and improved focus on value added products translating into expansion in its operating profit margin (for FY20 and Q1FY21).
The rating has also taken cognizance of the fact that the leverage indicators continued to improve in FY20 on back of scheduled repayment of its debt obligations.
Commenting on the ratings upgrade Mr S.B Garware, Chairman GPL said, “This improved rating is a continued validation of GPL’s performance. CARE Ratings has taken into account the strong operating metrics and competitive strengths of GPL in the polyester industry.”
The long-term bank facilities Rs 369.81cr (enhanced from Rs288.97cr) is CARE A / Positive. For Short term Bank Facilities (Rs198.19cr) the rating is CARE A1.
About Garware Polyester Limited
Garware Polyester Ltd. (GPL) is the flagship company of the Garware Group. GPL was co-promoted by the Chairman and Managing Director Mr. S.B. Garware in the year 1957 along with the Founder Chairman Late Padmabhushan Dr. Bhalchandra Garware.
The Company has developed in-house Technology for Polyester Films in India and put its first State-of-the-Art plant to manufacture Polyester Films in the year 1976at Aurangabad in Maharashtra State, India which was the first plant of its kind in South-East Asia. The Company is the only one of its kind to manufacture its own raw material that is Polyester Chips to manufacture Polyester Films for variety of end applications such as Packaging, Electrical & Motor and Cable Insulations, Shrink Film for label application, Coloured Polyester Films for Window Tint application, sequin, TV Screen, Safety etc.
The Company has four manufacturing plants for Polyester Film and manufactures Film of thickness ranging from 10 micron to 350 micron. The Company possesses Patented Technology for Dyed Polyester Film in India and USA and is the Second Company possessing such Technology. The Company has facility of co-extrusion, Corona Treatment, on-line and off-line coating etc.
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