Samrat Sea Brines Private Limited

Incorporated in September 2011, Samrat Sea Brines Private Limited (SSBPL) is engaged in the manufacturing and trading of edible salt. The company has a single product portfolio, edible salt. The rating reaffirmation takes into account the company’s weak financial profile characterised by thin profitability, highly leveraged capital structure and weak coverage indicators; its tight liquidity position as reflected by fully utilized working capital limits along with temporary overdrafts sanctioned by the bank at various instances in the past; and its relatively modest size of operations with a single product portfolio i.e. edible salt. The rating is also constrained by the highly competitive business environment owing to low entry barriers resulting in intense competitive pressures from both organised as well as unorganised players and the exposure to seasonality associated with the salt business. The rating, however, continues to positively consider the long standing experience of promoters in salt industry through other group concerns; the location advantage enjoyed by the company on account of its proximity to railway station which offers ease of raw material procurement and finished goods transportation; and the licence granted by the BIS to use the standard mark for the company’s products.