Brickwork Ratings assigns the long-term ratings of BWR BB-/Stable for the Bank Loan Facilities of Rs. 66.12 Crs. of Ananda Balaji Foods Pvt. Ltd.
Particulars| Facilities** | Amount(Rs.Crs.) | Tenure | Rating# | |
|---|---|---|---|---|
| Fund Based | 56.12 | Long Term |
BWR BB -
/Stable Assignment |
|
| Non Fund Based | 10.00 | Long Term |
BWR BB -
/Stable Assignment |
|
| Grand Total | 66.12 | (Rupees Sixty Six Crores and Twelve lakhs Only) | ||
Brickwork Ratings has assigned the long-term ratings of "BWR BB-/Stable" for the bank loan facilities of Ananda Balaji Foods Pvt. Ltd.
The rating has factored, inter alia, the promoters vast experience in the food industry and favorable location. However, the rating is constrained by the project execution risk, competitiveness of the industry and risk related to the fluctuation in raw material prices. However, Going forward, the ability of the company to improve its financial risk profile and timely completion of project be the key rating sensitivities.
The rating outlook has been assigned as "Stable" as BWR believes that the Ananda Balaji Foods Pvt. Ltd. business risk profile will be maintained over the medium term. The 'Stable'' outlook indicates a low likelihood of rating change over the medium term. The rating outlook may be revised to 'Positive' in case of timely commencement of operations with improved net margin and the rating outlook may be revised to 'Negative' if any delay in the commencement of operations.
KEY RATING DRIVERSCredit Strengths:
Ananda Balaji Foods Pvt. Ltd. is promoted by Mr. Anand Kumar Uddaraju and M/s. Naveen Varma Uddaraju who are in the company positioned as promoters having a decade experience in the food industry. The company has an experienced pool of technical staff who have diversified know-how of the industry along with relevant experience.
The manufacturing facility for dehydrated potato flakes is located in Khargone, Madhya Pradesh situated on the southwestern border of the state. The company benefits from the strategic location within close proximity to key potato-growing regions including Barwani, Dhar, Indore and Dewas. Khargone is well-connected by highways (NH52) ensuring efficient transportation of raw materials and finished products.
The company operates in a highly competitive market facing pressure from both established global and domestic players in the industry which limits its pricing flexibility of the company. Further, The industry segment is marked by stringent regulations and quality requirements.
Any further delays in commencement of operations will results in increasing operating expenses and it will affect the revenue and profitability margins of the company.
The price of the potatoes are highly volatile influenced by the factors such as weather conditions, crop yields and global market dynamics. The fluctuations in supply and demand particularly from major potato-producing regions can cause significant price changes and price hikes during the off seasons. Such volatility directly impacts the production costs and profitability of the company.
BWR has taken a standalone approach for the bank loan rating review of the company. BWR has applied its rating methodology as detailed in the rating criteria.
RATING SENSITIVITIES
Positive :
Negative :
The company is projected to maintain sufficient level of inflow and it is expected to grow steadily with an increase sales. Additionally, the company is likely to benefit from the resourcefulness of the partner group. Hence the overall liquidity position is expected to be at adequate level.
ABOUT THE ENTITY| Macro Economic Indicator | Sector | Industry | Basic Industry |
|---|---|---|---|
| Fast Moving Consumer Goods | Fast Moving Consumer Goods | Food Products | Other Food Products |
Ananda Balaji Foods Private Limited incorporated in 12July2023 as a Private Limited Company. The company is the group company of Ananda Group of Bhimavaram, Andhra Pradesh. The group is having experience in the operations of various businesses like food park, shrimp feed manufacturing etc. The company has envisaged to enter into the Manufacturing of dehydrated Potato flakes foreseeing the future potential in the business and proposes to setting up 1100 Kg perhour production line for manufacturing of dehydrated potato flakes.
KEY FINANCIAL INDICATORS (Standalone)| Key Parameters | Units |
FY 21 - 22 (Audited - Annual) |
FY 22 - 23 (Audited - Annual) |
FY 23 - 24 (Audited - Annual) |
|---|---|---|---|---|
| Operating Revenue | Rs.Crs. | Not Available | Not Available | Not Available |
| EBITDA | Rs.Crs. | Not Available | Not Available | Not Available |
| PAT | Rs.Crs. | Not Available | Not Available | Not Available |
| Tangible Net Worth | Rs.Crs. | Not Available | Not Available | 6.38 |
| Total Debt / Tangible Net Worth | Times | Not Available | Not Available | 0.07 |
| Current Ratio | Times | Not Available | Not Available | 20.25 |
The terms of the sanction include standard covenants normally stipulated for such facilities.
Not Applicable
RATING HISTORY FOR LAST THREE YEARS (including withdrawal and suspended)| Facilities | Current Rating (2025) | 2024 | 2023 | 2022 | |||||
|---|---|---|---|---|---|---|---|---|---|
| Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
| Fund Based | LT | 56.12 |
BWR BB-/Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| Non Fund Based | LT | 10.00 |
BWR BB-/Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| Grand Total | 66.12 | (Rupees Sixty Six Crores and Twelve lakhs Only) | |||||||
| Analytical Contacts | |
|---|---|
|
Harish R Ratings Analyst harish.r@brickworkratings.com |
Nagaraj K Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@brickworkratings.com |
| 1-860-425-2742 | media@brickworkratings.com | Customer Support | CustSupport@brickwrokratings.com |
| SL.No. | Name of the Bank/Lender | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) | Complexity of the Instrument |
|---|---|---|---|---|---|---|
| 1 | Canara Bank | Term LoanSanctioned | 56.12 | _ | 56.12 | Simple## |
| 2 | Canara Bank | Bank GuaranteeSanctioned | 10.00 | _ | 10.00 | Simple## |
| Total | 66.12 | 0.00 | 66.12 | |||
| TOTAL (Rupees Sixty Six Crores and Twelve lakhs Only) | ||||||
## BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.
| Instrument | Issue Date | Amount (Rs.Crs) | Coupon Rate (%) | Maturity Date | ISIN Particulars | Complexity of the Instrument |
|---|---|---|---|---|---|---|
| Nil | Nil | Nil | Nil | Nil | Nil | Nil |
| Name of Entity | % Ownership | Extent of consolidation | Rationale for consolidation |
|---|---|---|---|
| Nil | Nil | Nil | Nil |
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