CARE Nepal assigns A1+ to short term bank facilities of Dabur Nepal; Details on financial indicators and bank facilities included

CARE Ratings Nepal Limited (CRNL) has assigned rating of ‘CARE-NP A1+’ to the short term bank facilities of Dabur Nepal Private Limited (DNPL). 

Key Rating Strengths

1. Strength and expertise derived from strong ultimate holding company Dabur India Limited
2. Established track record with a strong distribution network
3. Experienced Directors/ Management in the related field
4. Strong financial profile characterized by healthy profitability and comfortable debt coverage indicators
5. Strong brand equity with wide range of products
6. Major exporter of the country

Key Rating Weaknesses 

1. Concentrated business on foods segment
2. Volatility in the raw material cost
3. Fragmented industry with competition from both domestic and international players
4. Exposure to regulatory risk

About the Company

Dabur Nepal Private Limited (DNPL) is a private limited company, established in 1989 and commenced its business operations since 1992. It is a step down subsidiary of Dabur India Limited (DIL), one of the leading Multi-National Company of India. DNPL is one of the leading manufacturers and exporter of the country and markets wide range of consumer goods like Fruit Juices/ Beverages, Chyawanprash, Glucose, Tooth Paste, Hair Oil, Digestive Tablets (Hajmola), Honey etc. 

Brief Financial Performance during last 3 years:

(Rs. In Million)

 Details of the Facilities rated

 Source: CARE Nepal