Brickwork Ratings has assigned a long-term rating of BWR BB with a stable outlook and a short-term rating of BWR A4+ for the bank loan facilities of Ars Agri Industries LLP (AAIL). The ratings reflect the operational experience of the partners in the agro-processing industry, AAIL's first full year of operations since its incorporation in 2023, and the commencement of commercial operations in February 2025. Additionally, the company has established strong relationships with suppliers and customers, along with a stable financial risk profile. However, these credit strengths are somewhat offset by the firm's moderate scale of operations, high working capital intensity, exposure to raw material price volatility, and susceptibility to agro-climatic risks within a highly fragmented industry. Brickwork Ratings believes that Ars Agri Industries LLP will maintain its business risk profile over the medium term. The stable outlook indicates a low likelihood of a rating change, which is supported by steady demand for agricultural products and the partners' proven operational track record.
Rating Rationale
| Facilities / Instruments | Tenure | Amount ( ₹ Crore) | Rating | Rating Action | Regulator |
|---|---|---|---|---|---|
| Fund Based | Long Term | 59.40 | BWR BB /Stable | Assignment | RBI |
| Non Fund Based | Short Term | 1.70 | BWR A4 + | Assignment | RBI |
| Total | 61.10 | ||||
1. Please refer to BWR website www.brickworkratings.com for the definition of the ratings
2. Refer to Annexures I, II, and III for details of rated bank loan facilities, debt instruments, and the List of Entities Consolidated
As per the Key covenants stipulated in the sanction letter of the banks.
ANALYTICAL APPROACH & APPLICABLE RATING CRITERIA| Analytical Approach | Comments |
|---|---|
| Applicable Rating Criteria | |
| Parent/Group/Government Support | NA |
|
Analytical Approach (Standalone) |
As part of its credit rating assessment, BWR has conducted a comprehensive evaluation based on the standalone performance of Ars Agri Industries LLP as outlined in the Rating Criteria, ensuring a systematic and objective approach to the rating process |
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Experienced Promoters with Established Presence in the Agro-Industry :
Ars Agri Industries LLP benefits from its extensive experience and deep industry knowledge of its promoters. Mr. Ayan Iqbal Siddiqui, the eighth generation in the family legacy of rice trading, has played a pivotal role in expanding the business and establishing it as a leading supplier of paddy in the district. Supporting this is Mr. Aheraz Siddiqui, with a strong academic foundation in finance is focusing on vendor management, financial planning, and cost efficiency enhancing the firm’s financial discipline and operational governance. Together, the leadership team brings a cohesive and complementary management style, positioning Ars Agri Industries LLP for growth, operational excellence, and leadership in the rice milling business.
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Stable demand and favourable market conditions :
The rice industry continues to exhibit a stable demand outlook, primarily supported by structural factors such as a growing population and rising consumption patterns. These demand fundamentals provide a consistent base for industry revenues and support long-term sectoral stability. This favorable demand environment is further reinforced by moderate price trends, which help maintain market equilibrium and reduce volatility risks. Additionally, realizations remain relatively strong in both domestic and export markets, contributing to healthy profitability for players across the value chain. Overall, these factors contribute to a broadly stable operating environment for the rice industry, supporting the credit profiles of participants engaged in cultivation, processing, and trade
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Susceptibility to Raw Material Price Fluctuations and Monsoon Dependency :
The rice industry continues to face inherent risks associated with fluctuations in raw material prices, particularly paddy, which is the primary input. These price movements are influenced by various factors such as seasonal supply variations, government procurement policies, and broader market conditions. Sudden spikes in raw material costs can adversely affect the cost structure and profitability of rice processing units, especially when cost pass-through to customers is limited. Moreover, the industry’s operations are significantly dependent on monsoon performance, as a large portion of paddy cultivation in India relies on rainfall rather than irrigation. Any shortfall or irregularity in the monsoon can lead to lower crop yields, affecting both the availability and pricing of raw materials. This climatic dependency introduces an element of unpredictability in operations and can disrupt production planning and procurement strategies.
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Fragmented Structure of the Industry :
The rice industry remains highly fragmented due to its commodity-based nature and the dominance of unorganized players with minimal product differentiation. This structure limits pricing power and puts pressure on margins. Government-regulated paddy prices further restrict the bargaining ability of rice millers, while small-scale operators offering only partial processing intensify competition. The concentration of rice millers in paddy-growing regions adds to the competitive intensity, and the company is expected to face additional pressure from other states known for producing higher-quality rice, especially in premium markets. Nevertheless, the company’s position in Bhandara district offers a scale advantage, which may support operational efficiency and strengthen its local market presence. These factors will remain key monitorable in assessing the company’s ability to sustain profitability and maintain a competitive position within the fragmented and price-sensitive rice industry.
Upward Factors:
Sustained improvement in Total Operating Income (TOI) and/or EBITDA margins of more than 7% and net margins improving to more than 3%, leading to enhanced debt protection metrics and capital structure.
Significant improvement in the liquidity profile driven by higher cash accruals and comfortable working capital management.
Downward Factors:
Decline in Total Operating Income and ISCR falling below 2.00x.
A stretch in the working capital cycle or higher-than-expected debt-funded capital expenditure impacting the capital structure and overall liquidity position.
LIQUIDITY POSITION - Adequate
Ars Agri Industries LLP(AAIL) was established in 2023 and its commerical operations started in February 2025.The liquidity indicators for the company remain adequate.The current Ratio is at 1.17x in FY25 which increased to 1.48x in FY'26(Prov.) and is further projected at 1.63x in FY27.Net Cash Accruals have increased to Rs 5.77 Crores in FY26(Prov.) against the repayment obligation of Rs 1.76 Crores in FY26(Prov.) from Rs 2.69 Crores in FY25 which is further projected to Rs 6.39 Crores in FY27.ISCR is at 3.60x in FY25 and has went to 2.30x in FY26(Prov.) and is further projected at 2.62x in FY27.
ENVIRONMENTAL, SOCIAL, GOVERNANCE (ESG) PRACTICESArs Agri Industries LLP demonstrates an adequate Environmental, Social, and Governance (ESG) profile based on its operational practices.
Environmental: The firm is compliant with environmental regulations, maintaining active emission and discharge consent orders from the Maharashtra Pollution Control Board (MPCB) for its rice milling and agro-processing operations. It adheres to standard pollution control norms, including ambient air monitoring, effluent treatment, and water management. Waste management practices center on the efficient utilization of paddy husk waste generated during processing, using a portion internally for boiler/parboiling energy needs and reselling the remaining volume to promote resource efficiency. Long-term environmental risks are adequately managed through continuous emission control and energy-efficient milling machinery.
Social: The firm employs a scalable labor model tailored to seasonal agro-processing demands, maintaining core permanent staff alongside contract workers brought in during peak harvesting periods. Operations align with applicable labor laws and workplace safety standards, maintaining functional fire prevention and machinery hazard controls at its processing facility in Bhandara, Maharashtra.
Governance: As a Limited Liability Partnership (LLP), traditional corporate board and committee structures are not applicable, with governance reliant on designated partner oversight. Key-person risk is tied to the designated partners (Aheraz Iqbal Siddiqui and Ayan Iqbal Siddiqui); however, this is partially offset by transparent financial reporting, adherence to the LLP agreement, and satisfactory conduct with lenders. Additionally, related-party transaction risks remain low due to the minimal volume of transactions with group entities.
COMPANY / FIRM PROFILE| Industry Classification | |||
|---|---|---|---|
| Macro Economic Indicator | Sector | Industry | Basic Industry |
| Fast Moving Consumer Goods | Fast Moving Consumer Goods | Agricultural Food & other Products | Other Agricultural Products |
Established in 2023 and based in Bhandara, Maharashtra, Ars Agri Industries LLP is a standalone agro-processing enterprise specializing in modern rice milling operations. The firm is dedicated to producing a diverse portfolio of high-quality products, including premium Raw Rice and Parboiled Rice, to meet growing market demands. The company benefits immensely from the deep-rooted expertise of its promoters, led by Mr. Ayan Iqbal Siddiqui and Mr. Aheraz Siddiqui, who bring an eight-generation family legacy in regional rice trading and paddy supply. By combining this generational industry knowledge with strong industry experience, Ars Agri Industries leverages state-of-the-art machinery, scalable processing infrastructure, and a skilled workforce to deliver operational efficiency, consistent volume, and superior product quality in the rice milling sector.
| Standalone Financial Indicators (in ₹ crore) | Units | FY 23 - 24 (A) | FY 24 - 25 (A) | FY 25 - 26 (P) |
|---|---|---|---|---|
| Operating Revenue | Rs.Crs. | Not Available | 23.88 | 174.00 |
| EBITDA | Rs.Crs. | -0.20 | 3.80 | 10.15 |
| PAT | Rs.Crs. | -0.53 | 1.30 | 3.46 |
| Tangible Net Worth | Rs.Crs. | 0.01 | 19.86 | 28.76 |
| Total Debt / Tangible Net Worth | Times | 1133.79 | 2.12 | 1.83 |
| Current Ratio | Times | Not Available | 1.17 | 1.48 |
|
* A:Audited UA:Unaudited P:Provisional PROJ:Projected
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Note: These are latest available financial results. All ratios as per BWR's calculations; Amount in ₹ crore
|
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| Current Rating (2026) | Rating History | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2023 | |||||||
| Facility / Instrument | Type | Amount ( ₹ Crore) |
Rating | Date | Rating | Date | Rating | Date | Rating |
| Fund Based | LT | 59.40 |
BWR BB/Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| Non Fund Based | ST | 1.70 |
BWR A4+
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| Grand Total | 61.10 | (Rupees Sixty One Crores and Ten lakhs Only) | |||||||
| Instrument / Facility | Complexity Indicator |
|---|---|
| Fund Based | Simple |
| Non Fund Based | Simple |
The Complexity Indicator refers to the ease with which the returns associated with the rated instrument could be estimated. It does not indicate the risk related to the timely payments on the instrument, which is rather indicated by the instrument's credit rating. It also does not indicate the complexity associated with analysing an entity's financial, business, industry risks or complexity related to the structural,transactional or legal aspects. Details on the complexity levels of the instruments are available on BWR's website Complexity Levels.
NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCYNot Applicable
| Contacts | |
|---|---|
|
Analyst Team Contact
Mukesh Kumar Verma Associate Director mukesh.verma@brickworkratings.com Dhairya Haresh Rupreja Analyst dhairya.r@brickworkratings.com |
Relationship Contact
Pankaj Parmar Director - Business Development pankaj.p@brickworkratings.com Client Support clientsupport@brickworkratings.com |
| SL.No. | Name of Bank | Facilities | Tenor | Amount ( ₹ Crore) | Regulator |
|---|---|---|---|---|---|
| 1 | State Bank Of India (SBI) | Term LoanSanctioned | Long Term | 14.40 | RBI |
| 2 | State Bank Of India (SBI) | Cash CreditSanctioned | Long Term | 40.00 | RBI |
| 3 | State Bank Of India (SBI) | Bank GuaranteeSanctioned | Short Term | 1.70 | RBI |
| 4 | State Bank Of India (SBI) | Emergency Credit Line Guarantee Scheme (ECLGS)Sanctioned | Long Term | 5.00 | RBI |
| Total | 61.10 | ||||
| Name of the Instrument/Facility | Long Term/Short Term | ISIN | Date of Issuance | Coupon Rate (%) | Maturity Date | Size of the Issue ( ₹ Crore) | Rating Assigned and Rating Outlook | Regulator |
|---|---|---|---|---|---|---|---|---|
| Nil | Nil | Nil | Nil | Nil | Nil | Nil | Nil | Nil |
| Name of Entity | % Ownership | Extent of consolidation | Rationale for consolidation |
|---|---|---|---|
| Nil | Nil | Nil | Nil |
| A. | Rating activities | |
|---|---|---|
| SL.No. | Instrument / Activity | Regulator of the Instruments |
| 1 | Listed/Proposed to be listed bonds/debentures/preference share (all securities) | SEBI |
| 2 | Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities) | MCA |
| 3 | Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)* $ | RBI |
| 4 | Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)* | SEBI |
| 5 | Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)* | RBI |
| 6 | Listed Commercial Paper and NCDs with original maturity less than 1 year | RBI |
| 7 | Unlisted Commercial Paper and NCDs with original maturity less than 1 year | RBI |
| 8 | Loan Facilities (Fund/Non-Fund Based) from Bank/NBFCs/NHB/FIs^ | RBI |
| 9 | External Commercial Borrowings and other similar borrowings | RBI |
| 10 | Certificates of Deposit | RBI |
| 11 | Fixed Deposits raised by NBFCs,HFCs, FIs | RBI |
| 12 | Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs | MCA |
| 13 | Inter Corporate Deposits/Loans extended by Corporates | MCA |
| 14 | Borrowing programme ~ | - |
| 15 | Issuer Ratings # | - |
| 16 | Credit Ratings for Capital Protection Oriented Schemes (by Mutual Funds and AIFs) | SEBI |
| 17 | Credit Quality Ratings (CQR) for Mutual Fund Schemes and Schemes of AIFs | SEBI |
| 18 | Listed Security Receipts $ | RBI |
| 19 | Unlisted Security Receipts | RBI |
| 20 | Independent Credit Evaluation (ICE) | RBI |
| 21 | Expected Loss Ratings (Listed/Proposed to be listed bonds/debentures/preference share (all securities)) | SEBI |
| 22 | Expected Loss Ratings (Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)) | MCA |
| 23 | Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) * | Investor-side regulator such as IRDAI, PFRDA @ |
* Includes securitisation transactions involving assignee payout, acquirer's payout.
~ The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans,
commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be
determined upon issuance. In PRs subsequent to issuance(s), Brickwork Ratings India Private Limited (BWR) shall separately capture the rated quantum
details along with names of respective regulators.
^ Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
# There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are
being followed as stipulated in SEBI Master Circular for CRAs.
@ These ratings were assigned during regulatory regime prior to introduction of SEBI CRA Circular dated Feb 10, 2026 and the
investor side regulators have accordingly been included.
$ By virtue of the instrument being listed, SEBI acts as the regulator for listing and related issues.
Note: Kindly note that for activities or instruments falling under the purview of FSRs other than SEBI, the grievance/dispute
redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
| B. | Other Activities | Regulator of the Instruments |
|---|---|---|
| 1 | Monitoring Agencies | SEBI |
| 2 | Research activities incidental to rating such as research for Economy, Industries and Companies * | NA |
BWR Board of Directors have no influence over rating decisions, nor do they sit on the rating committee or review, discuss or evaluate any credit rating during the Board meetings.
About Brickwork Ratings
Brickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI]. BWR is the 5th agency to get a credit rating registration in India in 2009 and its corporate office in Bengaluru. It has a country-wide presence with representatives in 150+ locations. Canara bank is an institutional investor in Brickwork.
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