Product Quantum (Rs. Cr) (SEBI) Quantum (Rs. Cr) (Other FSR) Long Term Rating Short Term Rating Regulated By
Bank Loan Ratings 0.00 2.50 ACUITE BB | Stable | Reaffirmed - RBI
Bank Loan Ratings 0.00 2.00 - ACUITE A4+ | Reaffirmed RBI
Total Outstanding 0.00 4.50 - - -
Total Withdrawn 0.00 0.00 - - -
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
 
Rating Rationale

Acuite has reaffirmed its long-term rating of 'ACUITE BB' (read as ACUITE double B) and short-term rating of 'ACUITE A4+' (read as ACUITE A four Plus) on the Rs. 4.50 Cr. bank facilities of Maris Agro Products Private Limited (MAPPL). The outlook is 'Stable'.

Rationale for rating reaffirmation:
The rating considers migration from 'Issuer not-cooperating' status. The rating reaffirmation factors in the group’s established operational track record and the management’s extensive experience in the Tea industry and efficient working capital management. However, these rating strengths are constrained due to decline in scale of operations with subdued profitability, below average financial risk profile and stretched liquidity position of the group. The rating also remains constrained due to susceptibility of profitability to fluctuations in prices of raw material prices and climatic risk.

About the Company
Tamil Nadu based, Maris Agro Products Private Limited (MAPPL) was incorporated  in 1990. The company is engaged in manufacturing of Orthodox green tea with ~60 percent of exports to the countries like Europe, Russia, USA, Dubai, & Australia. The company majorly supplies to Unilever in the domestic market. The company sells tea under the brand name - ‘Warwick’. The Present Directors of the company are Mr. Thangavelu Jayaraman, Mr. Thangavelu Raghuraman, Mr. Jayaraman Karthik Narayan and Mr. Raghuraman Ajaykumar.
 
About the Group
Tamil Nadu based, Havukal Tea and Produce Company Private Limited (HTPCPL) was incorporated in 1976. The company is engaged in manufacturing of Orthodox black tea with 50 percent exports to countries like United Kingdom, Canada, Italy, Germany, and other countries. The company sells tea under the brand name - ‘Havukal’. The Present Directors of the company are Mr. Anandkumar Rengaswamy, Mr. Thangavelu Jayaraman, Mr. Nandakumar Ramaswami and Mr. Jayaraman Karthik Narayan.
 
Unsupported Rating
­Not Applicable
 
Analytical Approach

Extent of Consolidation
•Full Consolidation
Rationale for Consolidation or Parent / Group / Govt. Support
­Acuite has considered the consolidated business and financial risk profiles of Havukal Tea and Produce Company Private Limited (HTPCPL) and Maris Agro Products Private Limited (MAPPL) hereinafter referred to as the ‘Havukal Group’ (HG). The consolidation is mainly on account of similar line of business, operational & financial synergies and common management.
Key Rating Drivers

Strengths
­­­Established track record of operations and experienced management
Coimbatore-based, Havukal Group (HG) was established in 1976; thus, the group has an operational track record of over four decades in the tea industry. The promotors of the group, Mr. Anandkumar Rengaswamy, Mr. Ramaswami Nandakumar, Mr. Thangavelu Jayaraman, Mr. Karthik Narayan Jayaraman, Mr. Thangavelu Raghuraman and R. Ajaykumar have over three decades of experience in the aforementioned line of business. The long track record of operations and experience of the management have helped the group develop healthy relationships with its customers. Acuite believes that the group will continue to benefit from its established track record of operations and experienced management.

Efficient working capital operations
The group’s working capital operations are efficiently managed marked by Gross Current Asset days (GCA) of 62 days in FY25 against 64 days in FY24. The inventory days stood at 28 days in FY25 against 31 days in FY24. The inventory holding policy depends on the market conditions. Generally, the group maintains inventory holding maximum of 1 month. The debtors’ days stood at 20 days in FY25 as against 22 days in FY24, which is corresponding to normal terms with the customers. The average fund-based bank limit utilization is 47.75 percent for Havukal Tea and Produce Company Private Limited and 46.65 percent for Maris Agro Products Private Limited during the last 6 months period ending February 2026.

Weaknesses

Decline in scale of operations with subdued profitability
The group has witnessed the decline in the revenue from operations by ~13.93 percent which stood at Rs. 46.52 Cr. in FY25 against Rs. 54.05 Cr. in FY24 due to a decline in orders. The group faced difficulty in procuring raw materials, due to intense competition, the group sometimes purchases raw materials at higher rates. The operating margins declined to (0.92) percent in FY25 from 2.87 percent in FY24. The decline in revenue and operating margins is primarily due to increased wages in the tea division albeit absence of any increase in tea price realization. Therefore, PAT margin stood at (6.36) percent in FY25 as against (3.23) percent in FY24. The group has achieved the revenue of ~Rs. 50.33 Cr. till  February 26, 2026 and expected to close fiscal year ~ Rs. 53.00- 58.00 Cr. The group has incurred a net loss of Rs. (1.66) Cr. till February 26, 2026 due to higher depreciation costs and employee costs. Further, it is estimated to incur net loss for FY2026 as well due to depreciation and low order book. Going forward, the group’s revenues are expected to remain range-bound, given the prevailing industry dynamics and operational constraints and operating profit margin are expected to improve marginally due to expected reduction in production costs.

Below Average financial risk profile
The group’s financial risk profile remained below average in FY25 with average net worth, low gearing levels and low debt protection metrics. The net worth of the group has declined to Rs. 16.25 Cr. as of March 31, 2025, from Rs. 19.07 Cr. as of March 31, 2024, due to net loss reported during the year. The gearing remained at 0.57 times as of March 31, 2025 against 0.47 times as of March 31, 2024. Total outside Liabilities/Tangible Net Worth (TOL/TNW) remained low at 0.61 times as of March 31, 2025 against 0.57 times as of March 31, 2024. Interest coverage ratio (ICR) and debt service coverage ratio (DSCR) deteriorated significantly and stood at (0.49) times and 0.50 times respectively, as of March 31, 2025 against 1.95 times and 1.32 times respectively, as of March 31, 2024. The net cash accruals to total debt (NCA/TD) declined and stood at (0.03) times in FY2025 from 0.15 times in FY2024. Acuite believes, the financial risk profile would remain below average due to low net worth base.

Susceptibility of profitability to volatility in raw material prices and climatic risk
The operating margins of the group are highly depended on raw material prices. Further, raw material price depends on various factors such as exposure to agro-climatic risk which could affect the availability of tea leaves in adverse weather conditions. Thus, inadequate rainfall could affect the tea plantation, further adverse change in the raw material price due to supply-demand scenario can lead to fluctuation in operational margins of all the players across the industry. As tea is a seasonal product, its yield depends on weather conditions. Production could be hampered significantly in case of any variation in rains, humidity, and temperature. In case of poor weather conditions, decline in production and quality levels causes volatility in realisations. Moreover, plantation operations are fixed cost in nature, with labour accounting for 50-60% of total cost. Presence of several labour laws and unions restrict the scope to reduce manpower.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:
  • Sustain improvement in the scale of operations and profitability
  • Improvement in financial risk profile with DSCR above 2 times
Potential triggers (individual or collective) for a downward rating action:
  • Consistent decline in revenue by over 20 per cent
  • Elongation in working capital cycle further stretching the liquidity
Liquidity Position
Stretched
The ­liquidity position of the group is stretched as reflected from Net cash accruals (NCA) against the maturing debt repayment obligations. The group has registered Net cash accruals (NCA) of Rs. (0.23) Cr. during FY2025, against the maturing debt obligations of Rs. 0.33 Cr. The gap in repayments has been met by the infusion of unsecured loans from directors/ promoters. The current ratio stood low at 0.79 times in FY2025. Further, the company had a cash and bank balance of Rs. 0.08 Cr. as on March 31, 2025. The average fund-based bank limit utilization is 47.75 percent for Havukal Tea and Produce Company Private Limited and 46.65 percent for Maris Agro Products Private Limited during the last 6 months period ending February 2026.
 
Outlook
­Stable
 
Other Factors affecting Rating
­None
 

Particulars Unit FY 25 (Actual) FY 24 (Actual)
Operating Income Rs. Cr. 46.52 54.05
PAT Rs. Cr. (2.96) (1.74)
PAT Margin (%) (6.36) (3.23)
Total Debt/Tangible Net Worth Times 0.57 0.47
PBDIT/Interest Times (0.49) 1.95
Status of non-cooperation with previous CRA (if applicable)
­Not Applicable
 
Any Other Information
­None
 
Applicable Criteria
• 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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
19 Aug 2025 PC/PCFC Short Term 2.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 1.00 ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+ | Stable)
Proposed Long Term Bank Facility Long Term 1.50 ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+ | Stable)
27 May 2024 PC/PCFC Short Term 2.00 ACUITE A4+ (Reaffirmed)
Cash Credit Long Term 1.00 ACUITE BB+ | Stable (Reaffirmed)
Proposed Long Term Bank Facility Long Term 1.50 ACUITE BB+ | Stable (Reaffirmed)
27 Feb 2023 PC/PCFC Short Term 2.00 ACUITE A4+ (Reaffirmed)
Cash Credit Long Term 1.00 ACUITE BB+ | Stable (Reaffirmed)
Proposed Long Term Bank Facility Long Term 1.50 ACUITE BB+ | Stable (Reaffirmed)
­

Lender’s Name ISIN Facilities Listing Status Regulated By Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)		 Complexity Level Rating
CENTRAL BANK OF INDIA Not avl. / Not appl. Cash Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.00 Simple ACUITE BB | Stable | Reaffirmed
CENTRAL BANK OF INDIA Not avl. / Not appl. PC/PCFC Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.00 Simple ACUITE A4+ | Reaffirmed
Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.46 Simple ACUITE BB | Stable | Reaffirmed
CENTRAL BANK OF INDIA Not avl. / Not appl. Term Loan Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. 30 Nov 2026 0.04 Simple ACUITE BB | Stable | Reaffirmed
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
­


*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

 
Sr. No. Company Name
1 Havukal Tea and Produce Company Private Limited
2 Maris Agro Products Private Limited
 

Contacts

List of instruments and names of regulators of the instruments
© Acuité Ratings & Research Limited. All Rights Reserved.www.acuite.in