RATING RATIONALE
23Feb2022

Kingspan Jindal Pvt. Ltd.(Formerly known as Jindal Mectec Pvt. Ltd)

Brickwork Ratings downgrades the long term rating while reaffirms the Short term rating and simultaneously withdraws the ratings for the Bank Loan Facilities of Rs. 77.28 Crs. of Kingspan Jindal Pvt. Ltd.(Formerly known as Jindal Mectec Pvt. Ltd)

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(18 Nov 2020)
Present
Fund Based 25.61 8.78 Long Term BWR BBB+ /Stable
Reaffirmation
BWR BBB /Stable
Downgrade/Withdrawal
Non Fund Based 68.50 68.50 Short Term BWR A2
Reaffirmation
BWR A2
Reaffirmation/Withdrawal
Grand Total 94.11 77.28 (Rupees Seventy Seven Crores and Twenty Eight lakhs Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure

RATING ACTION / OUTLOOK

BWR has downgraded the long term rating at BWR BBB (Stable) and reaffirmed the short term rating at BWR A2 and simultaneously withdrawn the rating for the bank loan facilities of  Kingspan Jindal Pvt. Ltd. (Formerly known as Jindal Mectec Pvt. Ltd). The ratings have been withdrawn at the request of the company vide their withdrawal request letter  dated 16 Dec, 2021 and based on No Objection Certificates received from the lenders of the rated debt and in line with BWR's  withdrawal policy.

The rating is downgraded on account of deteriorated financial performance of the company in FY21 and non availability of financial performance of Q1, Q2 and Q3 of FY22. The company has only achieved the operating income of Rs. 228.71 Crs. in FY21 in comparison to the operating income of Rs. 266.79 Crs. in FY20. Operating profit has reduced to Rs. 13.35 Crs. in FY21 from Rs. 16.37 Crs. in FY20.

ABOUT THE ENTITY

Kingspan Jindal Pvt Ltd(KJPL), is a manufacturer of insulated panel products, sheet profiling, flashings, doors, windows and accessories. Originally Incorporated in 1993 by Mr. Pawan Jindal and his family members as Jindal Mectec Private Limited (JMPL) in FY19, it entered into a joint venture with Netherland based company named “Kingspan Holding Netherlands BV” (“Kingspan”). Main objective was to develop JMPL existing product portfolio and leveraging Kingspan’s proprietary insulation core technologies and building technology know-how. Kingspan group is one of the leading global groups providing solutions such as  insulated panels, boards, light & air, flooring, water & energy management. and has executed various prestigious work orders. JMPL changed its name to Kingspan Jindal Pvt Ltd after it was taken over by Kingspan Group. Kingspan Group purchased 51% shares of the company and balance 49% is owned by the Jindal family. At present KJPL has two manufacturing facilities located at Nalagarh (Himachal Pradesh) and at Pithampur (Madhya Pradesh). 

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2022) 2021 2020 2019
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 8.78
BWR BBB/Stable
(Downgrade/Withdrawal)
NA
NA
11May2020
BWR BBB+ Stable
(ISSUER NOT COOPERATING*)
11Mar2019
BWR BBB+ Stable
(Reaffirmation)
0.00
NA
NA
NA
18Nov2020
BWR BBB+ Stable
(Reaffirmation)
NA
NA
Non Fund Based ST 68.50
BWR A2
(Reaffirmation/Withdrawal)
NA
NA
11May2020
BWR A2
(ISSUER NOT COOPERATING*)
11Mar2019
BWR A2
(Reaffirmation)
0.00
NA
NA
NA
18Nov2020
BWR A2
(Reaffirmation)
NA
NA
Grand Total 77.28 (Rupees Seventy Seven Crores and Twenty Eight lakhs Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - NA

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.

Hyperlink/Reference to applicable Criteria
Analytical Contacts

Aanchal Gupta

Ratings Analyst aanchal.g@brickworkratings.com

Tanu Sharma

Director - Ratings tanusharma@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Kingspan Jindal Pvt. Ltd.(Formerly known as Jindal Mectec Pvt. Ltd)
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Name of the Bank/Lender Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 Canara Bank Term LoanSanctioned _ _ 0.00
2 Canara Bank Cash CreditSanctioned _ _ 0.00
3 Canara Bank Letter of CreditSanctioned _ 30.00 30.00
4 HDFC Bank Letter of CreditProposed _ _ 0.00
5 HDFC Bank Letter of CreditSanctioned _ 38.50 38.50
6 HDFC Bank Cash CreditProposed _ _ 0.00
7 HDFC Bank Cash CreditSanctioned 5.00 _ 5.00
8 HDFC Bank Term LoanProposed _ _ 0.00
9 HDFC Bank Term LoanSanctioned 3.78 _ 3.78
Total 8.78 68.50 77.28
TOTAL (Rupees Seventy Seven Crores and Twenty Eight lakhs Only)
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