Charbhuja Product (India) Pvt. Ltd.

Brickwork Ratings assigns the long-term ratings of BWR BB/Stable for the Bank Loan Facilities of Rs. 88.94 Crs. of Charbhuja Product (India) Pvt. Ltd.

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	88.94	Long Term	BWR BB /Stable Assignment
	(37.00)
Grand Total	88.94	(Rupees Eighty Eight Crores and Ninety Four 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

Brickwork Ratings has assigned a rating of BWR BB (Stable) to the bank loan facilities of the Company aggregating to Rs. 88.94 Crs. The rating draws strength from the vast business experience of the promoters, a relatively moderate scale of operations, and locational advantage. However, the ratings are constrained by the risk associated with exposure to volatility in the raw material prices, the cyclical nature of the industry, and high working capital.

BWR believes that the business risk profile of Charbhuja Product India Pvt. Ltd. will be maintained over the medium term. The long-term rating has been assigned a ‘Stable’ outlook as the business risk profile of the company is stable. The rating outlook may be revised to 'Positive' in case there is an improvement in revenues and profit margins on a sustained basis. The rating outlook may be revised to 'Negative' if there is any deterioration in the financial risk profile or liquidity issues.

Brickwork Ratings (BWR) has essentially relied upon the audited financial statements of the company upto FY24(A), FY25( Prov) and relevant data to the extent available for projected financials for FY26, and FY27, as well as information/clarifications provided by the company’s management and its bankers, to arrive at the present ratings.

KEY RATING DRIVERS

Credit Strengths:

• Extensive experience of the promoters :

  The Naraniwal family has decades of experience in successful trading in the iron and steel sector. Mr. Nand Lal Naraniwal ventured into manufacturing and played a pivotal role in expanding the family's business operations. His decision to establish Charbhuja Ispat (India) Pvt. Ltd. and M/s Prime Rolling Mills Pvt. Ltd. marked a significant shift from mere trading to an integrated approach involving production. Under his leadership, these entities have become key players in the supply of scrap to induction furnace units in Rajasthan, cementing their position as one of the largest suppliers in the region. As a next-generation leader, Mr. Piyush is gaining valuable experience in the business, and he has exposure to both the trading and manufacturing sides of the business.

• Locational advantage :

  The unit enjoys the connectivity of Road, Rail, and Air for proper transportation and commutation. The unit has the benefit of getting a steady supply of major raw materials with minimum transportation cost due to its proximity to the iron ore belts. The location advantages of the land are as availability of requisite skilled, semi-skilled, and unskilled labor, ready Infrastructural facilities, and bright marketing prospects for the product.

Credit Risks:

• Susceptibility of profitability to volatile raw material prices :

  Raw materials account for more than 80% of the total cost of sales, making the company vulnerable to fluctuations in raw material prices, which in turn affects its operating profitability.

• Exposure to intense competition and cyclicality :

  The company is a moderate player in the steel industry, with a limited production capacity and sales concentrated in specific regions. It manufactures TMT bars, and faces intense competition along with the commoditized nature of its products, which restricts pricing flexibility and puts pressure on profitability. Steel is strongly correlated to economic cycles since its key users, viz., construction, infrastructure, automobiles, and capital goods are heavily dependent on the state of the economy. Thus, the demand for TMT bars is largely linked to the demand in construction and infrastructure.

• Risk of high working capital :

  High working capital needs can strain finances, especially if there are delays in sales or fluctuations in raw material prices, making it harder to meet short-term financial obligations and increasing the risk of credit defaults.

ANALYTICAL APPROACH - Standalone

BWR has principally relied upon the audited financial FY24 and provisional financial of FY25 and projections of FY26 and FY27 as per information/clarification provided by the company.

RATING SENSITIVITIES

Upward:

• Successful and timely implementation of the entire project within the envisaged costs,
• Completion of the Project in/before time, and profitable ramp-up of operations thereafter, resulting in a sustained improvement in the company’s financial risk profile. 

Downward:

• Weakening of the cash flow from operations.
• Delay of more than 6 months, in completion of the projects.
• The rating could also be impacted by increased project cost, leading to a deterioration in its debt coverage metrics and liquidity on a sustained basis.

LIQUIDITY INDICATORS - Adequate

Bank limit utilisation is moderate at around 77 percent till mid-July 2025. The current ratio is moderate at 1.44 times on March 31, 2025(Prov). The promoters are likely to extend support in the form of equity and unsecured loans to meet its working capital requirements and repayment obligations.

ABOUT THE ENTITY

M/s Charbhuja Product (India) Pvt. Ltd. was incorporated on 15th Feb. 2023 The Directors of the Company Mr. Nand Lal Naraniwal aged about 65 years and his son Mr Piyush Naraniwal, have rich experience in similar line of activities and trading business of iron & Steel. It was incorporated with the purpose of setting up a new plant at A-390-391, RIICO Growth Centre, Swaroopganj, Hamirgarh, Bhilwara Rajasthan- 311025, to manufacture M.S. Billets with an installed capacity of 1,60,000 TPA and manufacturing of T.M.T Bars with an installed capacity of approx. 1,53,600 TPA. M.S. Billets are the basic products of steel from which different types of steel products are made such as sheets, angles, channels, rods, etc. The promoters have infused Rs. 26.15 cr (FY25: Prov) in the form of quasi-equity.

 

KEY COVENANTS OF THE FACILITY RATED

The terms of sanction include standard covenants normally stipulated for such facilities. 

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

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	88.94	BWR BB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
FB SubLimit	LT	(37.00)	BWR BB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		88.94	(Rupees Eighty Eight Crores and Ninety Four lakhs Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Manufacturing Company

Analytical Contacts
Sejal Santosh Jaiswal Ratings Analyst sejal.sj@brickworkratings.com	Sabitha M Nayak Associate Director-Ratings sabitha.nayak@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 Loan - Sanctioned	28.94	_	28.94	Simple##
2	HDFC Bank	Cash Credit - Sanctioned	10.00	_	10.00	Simple##
3	HDFC Bank	Term Loan - Sanctioned	50.00	_	50.00	Simple##
	Sub-Limit (Letter of Credit) - Sanctioned	(37.00)
Total			88.94	0.00	88.94
TOTAL (Rupees Eighty Eight Crores and Ninety Four 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.