|Rs 1000 million NCD programmes||AAA (Reaffirmed)|
|Fixed deposit programme||FAAA (Reaffirmed)|
|Rs 2000 million short-term debt programme (Enhanced from Rs 1500 million)||P1+|
Indian Aluminium Company Ltd’s (Indal) ratings reflect the company’s close association with its parent, Hindalco Industries Ltd (rated ‘AAA’ and ‘P1+’ by Crisil), which holds more than 90 per cent stake in Indal and continues to be actively involved in its management. Indal’s association with Hindalco results in business synergies and enhances the former’s financial flexibility. In July 2002, Hindalco, which then held a 74.6 per cent in Indal, announced a voluntary open offer to acquire the remaining 25.4 per cent shares. The open offer closed recently subsequent to which Hindalco’s stake has increased to more than 90 per cent. Crisil expects greater synergies between the two companies in future in line with Hindalco’s increased stake. Crisil has considered the consolidated financials of Indal and Hindalco (including Indo Gulf Corporation’s copper business, which will be merged with Hindalco with effect from April 1, 2002) in assigning Indal’s rating.
Indal’s ratings are supported by its strong market position in the semi-fabricated (semifabs) segment of the domestic aluminium industry, its comfortable financial position and improving operating efficiency. Besides being the second-largest player after Hindalco in the semifabs segment, Indal has