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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 176.00 | ACUITE C | Downgraded | - |
| Total Outstanding | 176.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has downgraded its long-term rating to ‘ACUITE C’ (read as ACUITE C) from ‘ACUITE BBB-’ (read as ACUITE Triple B minus) on the Rs.176.00 crore bank facilities of B P Food Products Private Limited.
Rationale for downgrade The rating has been downgraded on an account of reporting in the Credit Bureau Information Report wherein multiple accounts are found delinquent with delays being captured in debt obligation servicing by the group. Futher, the rating takes into account the National company law tribunal (NCLT) Order dated 5th May, 2025 in the matter of BPC Technologies India Private Limited and Om Shri Shubh Labh Agritech Private Limited (group entity) wherein Corporate Insolvency Resolution Process (CIRP) has been initiated against Om Shri Shubh Labh Agritech Private Limited (Corporate Debtor) along with appointment of Interim Resolution Professional (IRP). Moreover, the order declares moratorium for having defaulted payment of its outstanding dues Rs.148.98 Cr. including interest of the operational creditor. |
| About the Company |
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B P Food Products Private Limited was incorporated in 1994. The company is engaged in trading of of cereals, agriculture produce, fruits & vegetables etc. and manufacturing of all kind Flour. It is currently managed and directed by Mr. Ketan Bansal, Ms. Mamta Bansal and Mr. Girraj Bansal. The company is based in Gwalior (M.P).
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| About the Group |
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Om Shri Shubh labh group is based out of Gwalior (M.P.) is engaged in trading, repackaging of various FMCG products, processing of wheat flour and extraction of edible oil. It has four group companies- Om Shri Shubh labh Agrifresh Private Limited (OSSAF), Shri Paramsukh Edible Foods Private Limited (SPEF), B P Food Products Private Limited (BPF) and Om Shri Shubh labhAgritech Private Limited (OSSATL). SPEF is engaged in extraction of oil from mustard seeds and sells edible oil under the brand name 'Smart Wife'. BPF is engaged in processing of various wheat flour and sells the flour under its brand 'Double Trishul'. OSSATL is engaged in trading of agricultural produce, dry fruits, wheat, pulses, spices etc. under the brand name 'Smart Wife' and OSSAF is engaged in trading of agricultural produce, fruits and vegetables.
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| Unsupported Rating |
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Not applicable
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| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuité has considered the consolidated business and financial risk profiles of Om Shri Shubh Labh Agritech Private Limited (OSSATL), Om Shri Shubh labh Agrifresh Private Limited (OSSAF), Shri Paramsukh Edible Foods Private Limited (SPEF) and B P Food Products Private Limited (BPF) to arrive at this rating. The consolidation is in view of the common management, strong operational linkages between the entities and the group is herein referred to as Om Shri Shubh Labh Group (OSSLG).
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| Key Rating Drivers |
| Strengths |
| Long track record of operations with experienced management
OSSLG is based out of Madhya Pradesh and the group is promoted by Mr. Girraj Bansal who has been engaged in the FMCG industry for more than a decade. The extensive experience of the promoters has helped the group to establish long and healthy relationships with reputed customers and suppliers over the years. Acuité believes that the promoter's experience is expected to support the business risk profile of the group over the medium term. |
| Weaknesses |
| Delays in debt obligation servicing
As per the reporting in Credit Bureau Information Report, multiple accounts are found delinquent with delays being captured in debt obligation servicing by the group. Highly fragmented and competitive industry The industry is marked by presence of large number of organized and unorganized players in the industry. The industry is intensely competitive and fragmented because of low entry barriers and moderate capital requirements. The high competitive industry further limits the pricing flexibility and exerts pressures on the margins of all participants. |
| Rating Sensitivities |
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| Liquidity Position |
| Poor |
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The liquidity profile of the group is poor on an account of multiple accounts being found delinquent with delays being captured in debt obligation servicing by the group,as per the reporting in Credit Bureau Information Report.
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| Outlook: Not Applicable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 24 (Actual) | FY 23 (Actual) |
| Operating Income | Rs. Cr. | 2214.54 | 1494.12 |
| PAT | Rs. Cr. | 9.79 | 6.64 |
| PAT Margin | (%) | 0.44 | 0.44 |
| Total Debt/Tangible Net Worth | Times | 0.87 | 0.44 |
| PBDIT/Interest | Times | 2.20 | 4.31 |
| Status of non-cooperation with previous CRA (if applicable) |
| Not applicable |
| Interaction with Audit Committee anytime in the last 12 months (applicable for rated-listed / proposed to be listed debt securities being reviewed by Acuite) |
| Not applicable |
| Any Other Information |
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None
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| 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 • Trading Entities: https://www.acuite.in/view-rating-criteria-61.htm |
| Note on complexity levels of the rated instrument |
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| *Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||||
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