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I C R A LimitedAn Associate of Moodys Investors Service

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September 01, 2009

ICRA assigns LBBB+/A2 ratings to the bank lines ofNilons Enterprises Private Limited

ICRA has assigned LBBB+ (pronounced L triple B plus) and A2 (pronounced A 2) rating to FundBased/Non-Fund Based bank line facilities of Nilons Enterprises Pvt. Ltd (NEPL). LBBB+ ratingindicates moderate-credit-quality in the long-term

and A2 rating indicates above-average-credit-

quality in the short-term

The assigned ratings reflect NEPLs established presence as a pickle, vermicelli and papadmanufacturer, its geographical diversification, strong distribution network and low gearing on accountof equity infusion in FY08. The rating is however constrained by NEPLs high working capital intensity,adverse impact of rising raw material prices on its operating margins, fierce competition resulting fromfragmented nature of pickle industry, product concentration and expected increase in gearing onaccount of future expansion plans.

Company Profile:Nilons Enterprises Pvt. Ltd (NEPL), the flagship company of Nilons group, was incorporated in 1977to produce and sell pickle for household consumption. Today, NEPL has presence in 30 states in Indiawith an enhanced product portfolio which includes variety of pickles, vermicelli, papad, ketch up, fruit

jam, tooty fruity, macroni, achar masala etc. The company has three operational plants in Jalgaon,Maharashtra and a plant at Saharanpur, Uttar Pradesh which is under construction. NEPL is currentlymanaged by Mr. Deepak Sanghavi (Managing Director) and Mr. Rajheev Agrawal (Chief ExecutiveOfficer & Director). In March 2008, Pataks of UK infused Rs.497million in NEPL to acquire 23% stakeas a strategic investor.

NEPLs turnover increased from Rs. 260.0 million in FY06 to Rs. 633.0 million in FY091

, registering aCAGR of around 34.0 % in last 3 years. The company posted a profit after tax (PAT) of Rs. 5.0 millionin FY 05 as compared to PAT of Rs.17.0 million in FY 09.

For further details please contact:

Analyst Contacts:Mr. Rohit Inamdar(Tel No. +91-124-4545847)rohit.inamdar@icraindia.com

Relationship Contacts:Mr. L. Shivakumar,(Tel. No. +91-22-30470005)shivakumar@icraindia.com

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1As per the provisional numbers