Cargill India R 07102016

Cargill India Private Limited
Instrument Amount Rating Action

As on
September 20161
Fund Based/Non-Fund Based Facilities USD 50 million [ICRA]AA+ (SO) stable/[ICRA]A1+
(part of the regional umbrella facilities reaffirmed
for Asia Pacific subsidiaries of Cargill USD 233 million [ICRA]A1+ reaffirmed
Incorporated)* (PY: USD 288
million)
NIL -
(PY: Rs 76.4 crore)
Fund Based/Non-Fund Based Facilities USD 50 million & [ICRA]A1+ reaffirmed
Rs 70 crore
Cash-backed Letters of Credit (LCs) - -
(PY: Rs 2,200 crore)
Proposed Cash-backed Rs 2,200 crore [ICRA]A1+ assigned
Letters of Credit (LCs) (PY: NIL)
Commercial Paper/STD Programme Rs 300.0 crore [ICRA]A1+ reaffirmed
*interchangeable with Cargill Global Trading India Private Limited (CGTIPL); the long-term rating is assigned to
the cash credit/over draft facility, a part of USD 333 million bank facilities rated on the short-term scale
ICRA has reaffirmed the long-term of [ICRA]AA+ (SO) (pronounced ICRA double A plus Structured Obligation)
2
and short-term rating of [ICRA]A1+ (pronounced ICRA A one plus) assigned to the various bank facilities
(totalling USD 333 million and Rs 70 crore) of Cargill India Private Limited (‘CIPL’). The outlook on the long-
term rating is “Stable”. The letter ‘SO’ in parenthesis suffixed to a rating symbol stand for Structured Obligation.
An ‘SO’ rating is specific to the rated issue, its terms, and its structure. ‘SO’ ratings do not represent ICRA’s
opinion on the general credit quality of the issuers concerned.
ICRA has also reaffirmed/assigned the rating of [ICRA]A1+ (pronounced ICRA A one plus) for Rs 300.0 crore 3
Commercial Paper (CP)/Short-Term Debt (STD) programme and Rs 2,200 crore proposed cash-backed letters
of credit of CIPL.
While arriving at the rating ICRA has considered the consolidated operations of two subsidiaries of Cargill Inc.
operating in India i.e. CIPL and Cargill Global Trading India Private Limited (CGTIPL). There is a strong
business synergy between the two entities in India and a large part of the working capital bank facilities
available to Indian subsidiaries are a part of regional umbrella facility of Cargill Inc.’s Asia Pacific subsidiaries
and interchangeable between these two entities.
The [ICRA]AA+(SO) rating and Stable Outlook assigned to the long term bank facilities factor in the guarantee
extended by its parent Cargill Incorporated (rated A2/Stable/P-1 by Moody’s). Any change in the Moody’s rating
or Outlook on Cargill Incorporated can result in revision in rating or outlook of the facilities rated by ICRA of
CIPL.
The reaffirmation of ratings favourably considers the financial support available to CIPL from its parent, Cargill
Incorporated. CIPL continues to benefit from the strong operational linkages with parent by virtue of access to
information and relationships for sourcing raw material and tradable commodities, benefits from global
relationships in food and related industries, access to the knowledge related to commodity flows and alignment
of risk management practices with the parent. In addition, CIPL receives financial support from Cargill Inc. in
form of equity infusion, external commercial borrowings (ECB), corporate guarantees as well as trade
transactions support through advances and extended credit periods. Notwithstanding the volatility in profitability
1
Though USD 333 million bank facilities of the companies are denominated in foreign currency, ICRA’s rating for the
same are on national scale, as distinct from an international scale rating.
2
For complete rating scale and definitions, please refer to ICRA’s Website www.icra.in or other ICRA Rating
Publications
3
100 lakh = 1 crore = 10 million
indicators, ICRA, continues to derive comfort from the fact that all the bank facilities of the company4 are fully
backed by guarantees from Cargill Inc.
Company Profile
CIPL, setup in 1987, is a step down subsidiary of Cargill Incorporated. It has businesses in refined oils, food
ingredients, flour milling, grain and oilseeds, cotton, animal feed and trade structured finance. The company’s
business is structured as four broad verticals- Cargill Foods India, Grains & Oilseeds; Animal Feed and Trade
& Structured Finance. Each of the business unit is aligned with the parent. CIPL has also pursued in-organic
growth opportunities as well in India, particularly in the branded segment of the refined oils business. Cargill
India markets leading consumer brands of edible oils such as NatureFresh, Gemini, Sweekar, Leonardo Olive
Oil, Rath and Sunflower brand of hydrogenated fats in India. Cargill also markets NatureFresh brand of
packaged wheat flour. The company acquired ‘Sweekar’ brand from Marico in 2011 as part of its strategy to
focus on the branded refined oils business. Further, the company acquired ‘Sunflower Vanaspati’ in 2012 and
the “Leonardo” brand of olive oils in 2014.
The company currently has three refineries, one each at Paradip (Orissa), Kandla (Gujarat), and Kurkumbh
(Maharashtra) and a new corn milling plant near Davangere in Karnataka. It has six animal feed plants across
Sonepat, Rajahmundry, Doddaballapur and Yelahanka (Bangalore) and is in the process of establishing a new
cattle feed milling plant in Bhatinda.
September 2016
For further details, please contact:
Analyst Contacts:
Mr. Subrata Ray (Tel. No. +91 22 6114 3408)
subrata@icraindia.Com
Anupama Arora (Tel No. +91 124 4545 303)

anupama@icraindia.com
Shruti Zatakia (Tel No. +91 124 4545 396)

shruti.zatakia@icraindia.com
Relationship Contacts:
Mr. L. Shivakumar, (Tel. No. +91 22 6114 3406)
shivakumar@icraindia.com
© Copyright, 2016, ICRA Limited. All Rights Reserved

Contents may be used freely with due acknowledgement to ICRA
ICRA ratings should not be treated as recommendation to buy, sell or hold the rated debt instruments. ICRA ratings are subject to a process of
surveillance, which may lead to revision in ratings. An ICRA rating is a symbolic indicator of ICRA’s current opinion on the relative capability
of the issuer concerned to timely service debts and obligations, with reference to the instrument rated. Please visit our website www.icra.in or
contact any ICRA office for the latest information on ICRA ratings outstanding. All information contained herein has been obtained by ICRA
from sources believed by it to be accurate and reliable, including the rated issuer. ICRA however has not conducted any audit of the rated issuer
or of the information provided by it. While reasonable care has been taken to ensure that the information herein is true, such information is
provided ‘as is’ without any warranty of any kind, and ICRA in particular, makes no representation or warranty, express or implied, as to the
accuracy, timeliness or completeness of any such information. Also, ICRA or any of its group companies may have provided services other than
rating to the issuer rated. All information contained herein must be construed solely as statements of opinion, and ICRA shall not be liable for any
losses incurred by users from any use of this publication or its contents.
4
Except for the proposed Letters of Credit facilities which are expected to be backed by 100% cash and not
guaranteed by the parent entity
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: +91 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 Kolkata
Mr. L. Shivakumar Mr. Jayanta Roy
Mobile: +91 9821086490 Mobile: +91 9903394664
Email: shivakumar@icraindia.com Email: jayanta@icraindia.com
3rd Floor, Electric Mansion A-10 & 11, 3rd Floor, FMC Fortuna
Appasaheb Marathe Marg, Prabhadevi 234/3A, A.J.C. Bose Road
Mumbai—400025, Kolkata—700020
Board : +91-22-61796300; Fax: +91-22-24331390 Tel +91-33-22876617/8839 22800008/22831411,
Fax +91-33-22870728
Chennai Bangalore
Mr. Jayanta Chatterjee Mr. Jayanta Chatterjee
Mobile: +91 9845022459 Mobile: +91 9845022459
Email: jayantac@icraindia.com Email: jayantac@icraindia.com
5th Floor, Karumuttu Centre 'The Millenia'

634 Anna Salai, Nandanam Tower B, Unit No. 1004,10th Floor, Level 2 12-14, 1 & 2,
Chennai—600035 Murphy Road, Bangalore 560 008
Tel: +91-44-45964300; Fax: +91-44 24343663 Tel: +91-80-43326400; Fax: +91-80-43326409
Ahmedabad Pune
Mr. L. Shivakumar Mr. L. Shivakumar
Mobile: +91 9821086490 Mobile: +91 9821086490
Email: shivakumar@icraindia.com Email: shivakumar@icraindia.com
907 & 908 Sakar -II, Ellisbridge, 5A, 5th Floor, Symphony, S.No. 210, CTS 3202, Range
Ahmedabad- 380006 Hills Road, Shivajinagar,Pune-411 020
Tel: +91-79-26585049, 26585494, 26584924; Fax: Tel: + 91-20-25561194-25560196; Fax: +91-20-
+91-79-25569231 25561231
Hyderabad
Mr. Jayanta Chatterjee
Mobile: +91 9845022459
Email: jayantac@icraindia.com
4th Floor, Shobhan, 6-3-927/A&B. Somajiguda, Raj

Bhavan Road, Hyderabad—500083
Tel:- +91-40-40676500

Cargill India R 07102016

Uploaded by

Copyright:

Available Formats

Cargill India R 07102016

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Cargill India R 07102016

Uploaded by

Copyright:

Available Formats

Cargill India Private Limited

Instrument Amount Rating Action

Anupama Arora (Tel No. +91 124 4545 303)

Shruti Zatakia (Tel No. +91 124 4545 396)

© Copyright, 2016, ICRA Limited. All Rights Reserved

5th Floor, Karumuttu Centre 'The Millenia'

4th Floor, Shobhan, 6-3-927/A&B. Somajiguda, Raj

You might also like