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
Acuité has downgraded the long-term rating to ‘ACUITE D’ (read as ACUITE D) from ‘ACUITE BBB-’ (read as ACUITE triple B minus) on the Rs. 4.81 Cr. bank facilities of Borkar Packaging Private Limited (BPPL).
Further Acuité has downgraded the long-term rating to ‘ACUITE C’ (read as ACUITE C) from ‘ACUITE BBB-’ (read as ACUITE triple B minus) on the Rs. 158.19 Cr. bank facilities of Borkar Packaging Private Limited (BPPL).
Further Acuité has downgraded the short-term rating to 'ACUITE A4' (read as ACUITE A four) from 'ACUITE A3' (read as ACUITE A three) on the Rs. 32.00 Cr. bank facilities of Borkar Packaging Private Limited (BPPL).
Rationale for downgrade The rating downgrade is on account of past instances of one-day delay in the servicing of debt obligations latest in the month of May-2025 with respect of the term loan facilities availed from Saraswat Bank, as reflected in the credit bureau information report (CRIF) of BPPL.
About the Company
Goa-based Borkar Packaging Private Limited (BPPL) was incorporated in 1994 and is engaged in providing printing and packaging solutions, primarily manufacturing and supplying mono cartons ,corrugated cartons .The company caters to a diversified customer base across sectors such as FMCG, pharmaceuticals, consumer durables, liquor and many more. There board of directors consists of Mr. Amol Anil Borker, Mr. Nikhil Anil Borkar, Mr. Anoop Seth, Mr. Chaitanya Hari Singhania, Ms. Mamta Singhania, Mr. Harsh Pati Singhania, Mr. Amar Singh Mehta & Mr. Sushil Kumar Wali. BPPL entered into the composite scheme of amalgamation (Merger by Absorption) with Universal Cartons Solutions Private Limited (UCSPL) and Suraksha Packers Private Limited (transferor companies) and Borkar Packaging Private Limited (the transferee company). The said scheme was approved by the Hon'ble National Company Law Tribunal (NCLT) Mumbai Bench vide order dated November 14, 2024 wherein the appointed date of merger was April 01, 2024. In FY2026, JK Paper Limited acquired a 72% controlling stake in Borkar Packaging Private Limited marking its entry into the folding cartons segment and strengthening its position across secondary and tertiary packaging.
Unsupported Rating
Not applicable
Analytical Approach
Post amalgamation, Acuité has revised its analytical approach from a consolidated to a standalone evaluation of the business and financial risk profile of BPPL while arriving at the rating.
Key Rating Drivers
Strengths
Established track of operations and part of a reputed group JK paper Limited (JKPL) has acquired 72 percent stake of BPPL in FY2026 marking its entry into the folding cartons segment and strengthening its position across secondary and tertiary packaging. The strategic alignment provides backward integration benefits to BPPL, as JK Paper Limited is one of the leading manufacturers of paper and paperboard, which constitutes the key raw material for the manufacture of corrugated cartons. Post the acquisition, BPPL has become a subsidiary of JKPL w.e.f. October 28, 2025, wherein management control and decision-making authority have effectively shifted to JK Paper Limited.
Weaknesses
Delay in serving its term loan obligations
Past instances of one-day delay in the servicing of debt obligations in respect of the term loan facilities availed from Saraswat Bank latest in the month of May-2025, as reflected in the credit bureau information report (CRIF) of BPPL.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Timely serving of debt obligations
Potential triggers (individual or collective) for a downward rating action:
Delay in serving debt obligations
Liquidity Position
Stretched
The liquidity position of the company is marked stretched due to instance of delay in servicing loan obligation latest in the month of May-25.
Outlook-Not applicable
Other Factors affecting Rating
None
Particulars
Unit
FY 25 (Actual)
FY 24 (Actual)
Operating Income
Rs. Cr.
384.25
360.21
PAT
Rs. Cr.
4.98
4.16
PAT Margin
(%)
1.30
1.16
Total Debt/Tangible Net Worth
Times
2.10
0.83
PBDIT/Interest
Times
1.54
1.47
Status of non-cooperation with previous CRA (if applicable)
Not applicable
Any other information
For FY 2023-2024 , consolidated financials of BPPL and UCSPL has taken into the consideration.
For FY2024-2025 , standalone financials of BPPL has taken into the consideration on account of amalgamation.
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.
Contacts
List of instruments and names of regulators of the instruments
