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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 32.50 | ACUITE BB+ | Stable | Assigned | - |
| Total Outstanding | 32.50 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has assigned the long-term rating of 'ACUITE BB+' (read as ACUITE Double B plus) on the Rs.32.50 Cr. bank facilities of Vi-Son Wires Private Limited (VWPL). The outlook is 'Stable'.
Rationale for rating The rating assigned takes into consideration the established experience of the promoters in automotive, wiring & cabling sector along with growing operating performance of the group driven by increasing orders from reputed clientele. However, the rating is constrained by the intensive working capital operations and moderate financial risk profile. Furthermore, the margins are susceptible to raw material price volatility and any expansion plans backed by major debt funded capex, affecting the financial risk profile shall remain a key monitorable. |
| About the Company |
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Incorporated in 2008, Vi-Son Wires Private Limited is a Maharashtra based company, engaged in manufacturing of wiring harness and battery cables having primary end uses in appliances, generators, elevators and automotive. The manufacturing facility is located at Chakan, Pune. The company is currently promoted by Mr. Paramjit Singh Virk and Mrs. Jasbeer Kaur Virk.
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| About the Group |
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Established in 1997, Vi-Son group of companies is a diversified and integrated manufacturing group specializing in wires & cables, battery cable assemblies, wiring harness, power cords, copper bus-bar, lugs & terminals, PVC Compounds, brake and control cables etc. catering to the key sectors like automotive, home appliances along with uses in elevators, generators, electric vehicles etc. The group has strong & reputed customer base like Mahindra & Mahindra, Piaggio, Godrej, Samsung, Fortis Elevators etc. Further, it has 6 manufacturing plants located across Pune, Daman, Bangalore and Himachal Pradesh.
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| Unsupported Rating |
| Not Applicable. |
| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuité has consolidated the business and financial risk profile of Vi-Son Wires Private Limited (VWPL) along with its group companies namely- Vi-Son Cables Private Limited, Vi-Son Industries, V-Tech Industries India Private Limited to arrive at the rating (hereinafter referred to as ‘Vi-Son Group’ or ‘the group’). The consolidation is on basis of common promoters, similar line of business along with significant financial and operational linkages.
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| Key Rating Drivers |
| Strengths |
| Experienced promoters and established track record of operations
Established in 1997, Vi-Son group has a strong legacy of operations, backed by extensive expertise of its promoters in both the automotive and wiring & cable sector. With over 35 years of industry experience, Mr. Paramjeet Singh Virk provides strategic support towards the phased expansion which is witnessed from enhanced Y-o-Y production capacity and diversifying product offerings of the group. Improving scale of operations The revenue of the group improved from Rs.262.59 Cr. in FY23 to Rs.286.14 Cr. in FY24 and further grew to Rs. 355.71 Cr. in FY25 (Est.). The FY25 growth is primarily driven by increase in orders from one of its reputed client owing to increase in demand from automotive sector on account of certain policy changes in the sector. Further, the group's order book stood at ~Rs.30 Cr. as on June 2025. Moreover, the operating margins also improved to 5.30% in FY25(Est.) from 4.74% in FY24 and 4.61% in FY23 driven by better absorption of fixed costs. |
| Weaknesses |
| Moderate financial risk profile
The net-worth (considering subordinated unsecured loans of Rs.4.72 Cr. and partner withdrawal of ~Rs.2.08 Cr.) of the group stood moderate at Rs.43.54 Cr. as per FY25(Est.) as against Rs.36.77 Cr. in FY24, growth driven by profit accretions. Further, owing to significant working capital borrowings, the gearing remained moderate at 1.42 times as on March 31, 2025 (Est.) (1.78 times as on March 31, 2024). Moreover, the Debt/EBITDA stood high at 3.17 times as on March 31, 2025 (Est.) (4.59 times as on March 31, 2024). However, interest coverage ratio stood healthy at 3.35 times in FY25(Est.) (2.35 times in FY24). Going forward, the group has capex plans for setting up of new plant in Haryana (2 phases) and Gujarat at an overall cost of ~Rs.11.00 Cr. (Rs.3.00 Cr. incurred till date) to be funded by a mix of debt & internal accruals. Therefore, continued maintenance of financial risk profile supported by steady cash accrual shall be a key rating monitorable. Intensive working capital management The working capital management of the group has improved yet remain intensive in nature marked by gross current assets (GCA) of 160 days in FY25(Est.) (180 days in FY24). This is primarily due to high inventory maintenance (57 days in FY25(Est.), 83 days in FY24) and elevated receivable periods (96 days in FY25(Est.), 86 day in FY24). Therefore, the average bank limit utilization remained high at ~97-99% for the last 6 months ended August 2025. Presence in highly competitive industry and exposure to volatile raw material prices The wires and electrical cables industry comprises of many unorganized as well as organized players. Hence, intense competition may continue to constrain scalability, pricing power and profitability. However, the group has plans for phased expansion through increased production capacity which will help to cater orders more efficiently. Further, the main raw material includes copper, and pricing variations in which impact the company’s operating margins. However, as the prices are reset on a quarterly basis with customers and major portion of fluctuations are passed on, the margins remain protected to an extent. |
| Rating Sensitivities |
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| Liquidity Position |
| Adequate |
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The liquidity position of group is adequate as reflected from sufficient net cash accruals of Rs.11.50 Cr. in FY25(Est.) (Rs.6.93 Cr. in FY24) against maturing debt obligations of Rs.0.31 Cr. Going forward, the group is expected to generate cash accruals in the range of Rs.12.00-14.00 Cr. over the medium term, while repayment obligations are expected to be in the range of Rs.0.24-0.31 Cr. for the same period. The cash and bank balance stood at Rs.0.60 Cr. during FY25(Est.). Moreover, the group has unencumbered fixed deposits of ~Rs.3.00 Cr. as on year end. The current ratio stood moderate at 1.17 times during FY25(Est.). However, the average bank limit utilization for fund-based limits stood high in the range of ~97-99% for the last 6 months ended August, 2025.
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| Outlook: Stable |
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| Other Factors affecting Rating |
| None. |
| Particulars | Unit | FY 24 (Actual) | FY 23 (Actual) |
| Operating Income | Rs. Cr. | 286.14 | 262.59 |
| PAT | Rs. Cr. | 4.08 | 2.73 |
| PAT Margin | (%) | 1.43 | 1.04 |
| Total Debt/Tangible Net Worth | Times | 1.78 | 1.95 |
| PBDIT/Interest | Times | 2.35 | 1.99 |
| Status of non-cooperation with previous CRA (if applicable) |
| None. |
| Any Other Information |
| None. |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm |
| Note on complexity levels of the rated instrument |
| Rating History : |
| Not Applicable |
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| *Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||||
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