Rating Rationale

Brickwork Ratings assigned a long-term rating of BWR BB/Stable for the bank loan facilities of Rs 125.00 Cr, for Diasave Private Limited.

The rating factors in the comfort derived from the promoter's strong net worth. However, it remains constrained by exposure and execution risks related to timely project completion and construction costs. Going forward, the company’s ability to complete the project on schedule without cost overruns/time overruns, while efficiently managing its debt and inventory, will remain a key monitorable.

The rating outlook has been assigned as “Stable,” as BWR expects that Diasave Private Limited. business risk profile will remain consistent over the medium term. “Stable” outlook reflects a low likelihood of a rating change during this period. The outlook may be revised to “Positive” if the company achieves timely project completion, commences operations as scheduled, and the outlook may be revised to “Negative” in the event of delays in project completion or commencement of operations.

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

• Experienced management and strong technical capabilities: :

  The directors/promoters possess extensive experience and technical knowledge in the pharmaceutical/healthcare and medical-device domain, supporting the company’s ability to establish and operate the proposed manufacturing facility.

• Strategic location and favourable industry outlook: :

  The proposed facility at Andhra Pradesh MedTech Zone (AMTZ), Visakhapatnam, provides access to infrastructure, suppliers, labour and logistics. Further, favourable government initiatives such as the National Medical Devices Policy, 2023 and Make in India are expected to support the growth of the domestic medical-device industry.

• Limited track record in medical-device manufacturing: :

  The promoters are new to the medical-device manufacturing business, resulting in execution and operational risks during the initial phase. However, this is partly mitigated by their technical expertise and understanding of the manufacturing process.

• Dependence on imported machinery/raw materials: :

  The company’s reliance on overseas suppliers for machinery and potentially key raw materials exposes it to supply-chain disruptions, longer lead times, foreign exchange fluctuations and geopolitical risks.

• Revisied DCCO :

  Lender confirmation regarding the revised DCCO and permission for revision in DCCO with change in scope , size of project and revised additional term fund by lender is awaited.

Positive

Timely achievement of the revised DCCO, indicating satisfactory progress in project implementation and reducing the risk of further project delays.

Negative

Delay in project completion or further extension of the revised DCCO could lead to cost overruns, additional funding requirements and deferment of the projected cash flows.

The company’s liquidity position is considered adequate, supported by the promoter contribution and term loan funding for the ongoing project. Against the total project cost of Rs.216.45 crore, the project is being funded through promoter contribution of Rs.91.44 crore and a term loan of Rs.125.00 crore from Punjab and Sind Bank. As of 31-May-2026, promoters have infused Rs.70.90 crore, while Rs.98.00 crore has been disbursed by the bank. The company’s TNW stood at Rs.73.49 crore in FY26 (provisional) and is expected to increase to Rs.91.45 crore in FY27, with the gearing ratio remaining stable at 1.37x in FY27. The liquidity position is further supported by the expected increase in net worth and continued promoter support.

The company demonstrates an adequate ESG profile based on the proposed environmental, social, and governance practices for the greenfield project.

Environmental: The project is expected to have environmental considerations relating to energy consumption, water usage and waste management. The company is expected to comply with applicable environmental regulations and obtain the necessary approvals for project implementation and operations.

Social: The project is expected to generate employment opportunities and will be required to comply with applicable labour laws, workplace safety requirements and employee welfare practices. As the project is yet to commence operations, operating-level social metrics are not available.

Governance: The company is expected to maintain appropriate governance and compliance practices, including statutory and regulatory compliance, financial controls and risk-management systems. The assessment will be further reviewed once the project commences operations and relevant ESG disclosures become available.

Diasave Private Limited was incorporated on 21 August 2023, having its registered office at AMTZ Campus, Opp Pragati Maidan, Nadupuru village, VM Steel Project, Pedagantyada, Visakhapatnam Steel Project, Visakhapatnam, Pedagantyada, Andhra Pradesh, India, 530031.

Diasave Private Limited is incorporated to establish a manufacturing unit for Medical-grade Hemodialyzer Hollow Membrane Fiber and Dialysis Membrane Cartridge with total installed capacity of ~4 million units per annum. The company has executed a lease agreement with Andhra Pradesh MedTech Zone (AMTZ) dated June 8th, 2024, and acquired a 1.5-acre parcel of lease hold land for a period of 33 years.

The project enjoys robust support from AMTZ (a government undertaking). Land for the project shall be acquired from AMTZ, AMTZ shall also contribute funding for the project through its subsidiary (Bio Valley Incubation Council). Additionally, AMTZ will support in the environment clearance, Factory License & and advisory services for Medical Device regulatory compliance. AMTZ shall also make available the testing facility for product testing. AMTZ is India’s premier medical technology park with Common Manufacturing Facilities & Common Scientific Facilities that include specialized laboratories, warehousing, and testing centres such as the Centre for Electromagnetic Compatibility and Safety Testing, Centre for Biomaterial Testing, Centre for 3-D Printing, Centres for Lasers, MRI Super Conducting Magnets, Gamma Irradiation Centre, Mold & Machining Centre, and many other industrial service centres. In the nation’s battle against the pandemic, AMTZ contributed by producing over 100 ventilators, 500 oxygen concentrators, and 1 million RT PCR kits every day. Many innovations from AMTZ such as mobile container hospitals, mobile RTPCR vehicles and mobile oxygen plants were sent even to the remotest parts of the country. Built in a record time of 342 days, AMTZ showcases modern India as a leader in the medical technology global stage. AMTZ is one of world’s largest medical technology manufacturing cluster with over 100 companies working on research, development and production of life saving medical devices.

The company is supported by marquee investor Mr. Madhusudhan Kela. Madhusudan Kela is a distinguished figure in the Indian Capital Markets with over 30 years of experience. As the former Chief Investment Officer at Reliance Capital Limited, he managed a large team and the Equity AUM portfolio of India’s largest asset management company by total AUM. Post-Reliance, he founded Invexa Capital LLP for investment advisory services and acquired Ikab Securities & Investment Ltd, now M K Ventures Capital Limited, where he serves as Managing Director. He contributes to the SIDBI’s VCIC for startups, and is a member of FICCI and CII committees, as well as a founder and trustee of Plaksha University. He is recognized for his investment expertise, having received accolades such as the Best Equity Fund Manager from the Prime Minister of India. Additionally, he advises top Indian industrial houses on strategic and investment matters.

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