ICRA Nepal assigned LBB-/A4 rating to Mahabir Overseas Private Limited
Sun, Jun 7, 2020 1:24 PM on Credit Rating, Latest,
ICRA Nepal has assigned a long-term rating of [ICRANP] LBB- (pronounced ICRA NP L double B minus) to the NPR 24 million fund-based long-term loans of Mahabir Overseas Private Limited (MOPL). ICRA Nepal has also assigned a short-term rating of [ICRANP] A4 (pronounced ICRA NP A four) to the NPR 591-million fund-based and NPR 380 million non-fund-based limits of MOPL.
The assigned rating factors inthe long track record of the promoters of MOPL in primary food processing industry in Nepal. The rating also factors in the good demand prospect for beans and pulses,MOPL’s major products, as evidenced by healthy sales growth in the last four to five years. The rating also factors in MOPL’s established supply chain and traction in the local market as well as its diversified customer base.
Credit strengths
- Promoters’industry experience
- Positive demand outlook
- Established sales channel and diversified customer base
Credit challenges
- Moderate financial profile stemming from highly leverage capital structure
- Fragmented market amid competition
- Complete reliance on import for raw materials
- Forex and agro-climatic risk
About the company
Mahabir Overseas Private Limited (MOPL) was incorporated in 2012 as a private limited company. It is one of the large players in pulse processing with an installed processing capacity of 18,250 MTPA (metric tonnes per annum). The promoter group, through units such as MOPL and its sister units like Mahabir Adhunik Dal Udhyog Pvt Ltd., is among the major players in the pulse processing and supply business. MOPL imports and processes pulses and beans which are then packaged and sold under the brand name Yasoda and Uttam. The company also trades in imported items like pulses, beans and rice. Processing activities account for 70-75% of MOPL’s revenue while the rest consists of trading activities.
The company’s distribution channel comprises wholesale dealers who then pass on to retail traders and finally to the consumers.
MOPL is a unit under the Kedia Group, one of the reputed business houses in Nepal with involvement in trading, manufacturing, financial sector etc; apart from other multiple agro-processing units. MOPL’s paid up share capital of NPR 70 million is held equally by its two shareholders viz. Mr. Mukti Kumar Agrawal and Mr. Ankit Kedia.
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