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India Shoes Exports - R - 03062014 PDF
India Shoes Exports - R - 03062014 PDF
Instrument
Long term, Term Loans
Short term, Fund based/ Nonfund based Limits
Amount
Rating Action
In Rs Crore
May 2014
[ICRA]BB+(Stable), reaffirmed
[ICRA]A4+, assigned/
reaffirmed
ICRA has assigned a long-term rating of [ICRA]BB+ (pronounced ICRA double B plus) and a shortterm rating of [ICRA]A4+ (pronounced ICRA A four plus) to Rs. 1.86^ crore enhanced lines of credit
(total rated amount enhanced from Rs. 54.95 crore to Rs. 56.81 crore) of India Shoes Exports Private
Limited (ISEPL/ the company). The outlook on the long term rating is Stable. ICRA also has
outstanding ratings of [ICRA]BB+ (Stable) and [ICRA]A4+ for Rs. 54.95 crore lines of credit of the
company.
The ratings continue to reflect the established operational capability of the Farida Group, with the
Group being one of the largest leather and leather goods exporters in India; the established track
record of the promoters in the leather industry and the sustained association of the Company with
reputed international customers. The rating also considers the healthy growth rate in the revenues of
the Company over the years, which has been driven by large orders from new customers. The ratings
reaffirmation, however, factor in the vulnerability of revenues and margins to the volatility in orders
from certain top customers, the fluctuations in foreign exchange rates, power shortages and labour
availability issues in Tamil Nadu and also the steep increase in the prices of raw materials due to the
general shortage of high quality raw hides/skins and finished leather. The rating is also constrained by
the steep increase in the gearing levels due to the increased working capital debt as also the decrease
in net worth following the merger of smaller loss making Group entities with FSPL. The rating also
factors in the current scenario of subdued demand from Europe, which remains the largest market for
leather exporters, leading to a decline in the number of orders for the overall industry.
Company Profile
Farida Group is one of the biggest exporters of leather and leather goods from India. The Group
comprises 11 companies, with 6 companies involved in shoe manufacturing activities, while the rest
are involved in manufacturing shoe components. India Shoes Exports Private Limited (ISEPL) was
incorporated in 1979 to manufacture leather shoes for domestic as well as global market. M/s Farida
Holdings Private Limited, promoted by the family members of Mr. Rafeeque Ahmed is the single
largest stakeholder in ISEPL. The factory with a current production capacity of 13600 pairs/day (initial
production capacity of about 1000 to 1500 pairs/day) was set up at Ambur, Vellore District, Tamil
Nadu.
May 2014
Registered Office
ICRA Limited
1105, Kailash Building, 11th Floor, 26, Kasturba Gandhi Marg, New Delhi 110001
Tel: +91-11-23357940-50, Fax: +91-11-23357014
Corporate Office
Mr. Vivek Mathur
Mobile: 9871221122
Email: vivek@icraindia.com
Building No. 8, 2nd Floor, Tower A, DLF Cyber City, Phase II, Gurgaon 122002
Ph: +91-124-4545310 (D), 4545300 / 4545800 (B) Fax; +91- 124-4050424
Mumbai
Mr. L. Shivakumar
Mobile: 9821086490
Email: shivakumar@icraindia.com
Kolkata
Mr. Jayanta Roy
Mobile: +91 9903394664
Email: jayanta@icraindia.com
Bangalore
Bangalore
Mr. Jayanta Chatterjee
Mobile: 9845022459
Email: jayantac@icraindia.com
'The Millenia'
Tower B, Unit No. 1004,10th Floor, Level 2 12-14, 1 & 2,
Murphy Road, Bangalore 560 008
Tel: +91-80-43326400; Fax: +91-80-43326409
Pune
Mr. L. Shivakumar
Mobile: 989986490
Email: shivakumar@icraindia.com
5A, 5th Floor, Symphony, S.No. 99, CTS 3909, Range Hills
Road, Shivajinagar,Pune-411 020
Tel: + 91-20-25561194-25560196; Fax: +91-20-25561231