Anubhav gets DCR rating

MUMBAI, July 21: Anubhav Plantations has emerged as the first ever plantation to get a Grade IV rating from any credit rating agency. Duf...

MUMBAI, July 21: Anubhav Plantations has emerged as the first ever plantation to get a Grade IV rating from any credit rating agency. Duff & Phelps Credit Rating India (DCR) has assigned the Chennai-based company a rating of Ind 4 (CIS) – Grade IV – for its Rs 50 crore Teak Farm Scheme.

The rating indicates unsatisfactory ability to meet the stated obligations of investors on time. It is however considered better than a Grade V rating which indicates poor ability to meet the stated obligations to investors on time. All other plantation companies which were rated by the agencies have got only Grade V rating.

The rating is supported by the operational expertise of the management in developing large-scale plantations on a commercial basis and the management’s assurance of investing a certain amount of collections in safe investments in corporates and banks for ensuring the returns promised especially in the initial three years of the scheme as well as the proposed plans to sell a substantial portion of itsteak in the overseas market.

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Duff & Phelps Credit Rating India has noted that in terms of marketing, Anubhav is yet to fell and sell its teak on a commercial basis and hence, despite an existing demand for teak, the management is yet to establish the fact that its teak would fetch good realisations as are being envisaged.

While the management has been undertaking various market studies in the overseas market to gauge the potential for teak, plans are still at a nascent stage and would take some time to take a concrete shape.