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| Product | Quantum (Rs. Cr) (SEBI) | Quantum (Rs. Cr) (Other FSR) | Long Term Rating | Short Term Rating | Regulated By |
| Bank Loan Ratings | 0.00 | 55.00 | ACUITE A- | Stable | Reaffirmed | - | RBI |
| Total Outstanding | 0.00 | 55.00 | - | - | - |
| Total Withdrawn | 0.00 | 0.00 | - | - | - |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. |
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Rating Rationale |
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Acuité has reaffirmed its long-term rating of 'ACUITE A-’ (read as ACUITE A minus) on the Rs. 55.00 crore bank facilities of Kherani Paper Mills Private Limited (KPMPL). The outlook remains 'Stable'. |
| About the Company |
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Mumbai based Kherani Paper Mills Private Limited (KPMPL) was originally incorporated in 1988 and subsequently takenover by the present management i.e. G.N. Agarwal Group in the year 1992. It is engaged in the manufacturing of duplex board in different grammages ranging from 180 GSM to 550 GSM. Its factory is situated at Vapi, Gujarat with a manufacturing capacity of the plant is 48,000 MTPA. The present directors of the company are Mr. Gajendra Nagin Agarwal, Ms. Meena Gajendra Agrawal and Ms. Tanisha Nikhar Agarwal.
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| About the Group |
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Gayatrishakti Paper and Boards Limited |
| Unsupported Rating |
| Not Applicable |
| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| To arrive at the rating, Acuité has consolidated the business and financial risk profiles of Gayatrishakti Paper and Boards Limited (GPBL), Kherani paper Mills Private Limited (KPMPL) and Gayatrishakti Tissue Private Limited (GTPL), hereinafter referred to as G.N. Agarwal group. The consolidation is on account of common management, significant crossholdings, a similar line of business and significant financial linkages among the three entities. |
| Key Rating Drivers |
| Strengths |
| Established track record of operations and experienced management
GPBL is the flagship company of the G. N. Agarwal group, which is engaged in the manufacturing of premium coated paper boards (duplex boards) and kraft paper. The promoters of the group, have an experience of more than three decades in the paper industry. The extensive experience of the promoters and the management has helped the company build a strong presence in the market thereby establishing healthy relationships with its consumers and suppliers. The group has an established track record with large distribution network of dealers providing access to a wide range of packaging industries such as food products, personal care, FMCG products, oral care and hygiene products, and the e-commerce industry, among others. Improving operating performance The operating revenue of the group improved by ~26 percent and stood at Rs. 1424.61 Cr. in FY2026 (Est.) from Rs. 1125.60 Cr. in FY2025, supported by stable growth in GPBL and KPMPL along with the completion of first full year commercial operations of GTPL. There has also been improvement in the operating margin of the group, mainly on account of increase in the tissue business, which has a higher margin as compared to kraft aper and duplex boards along with reduction in power cost. The operating margin stood at 11.89 percent in FY2026 (Est) as compared to 10.58 percent in FY2025. Further, with further scaling up of operations in GTPL, the revenues are expected to grow further. Additionally, with the introduction of two new high margin products by GPBL and spends on renewable capacity development, the overall operating performance of the group is expected to improve going forward. Moderately intensive working capital operations The operations of the group are working capital intensive. The gross current assets (GCA) stood at 134 days in FY2025, marginally increased from 114 days in FY2024. The GCA days are driven by the inventory days (64), debtor days (61) and other current assets in FY2025. The creditor days on the other hand stood at 68 days in FY2025. |
| Weaknesses |
| Average financial risk profile |
| ESG Factors Relevant for Rating |
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On the environment front, group has restored to clean sources of energy like solar power for running its plants to save power emissions. In its new tissue manufacturing facility, the group has installed a waste to energy boiler, which uses plastic waste to generate steam. Further, the group has an effluent treatment plant system for treatment of water. On the social front, the group has developed healthy employment practices such as insurance benefits, health and safety policies, corporate social responsibility programs for upskilling, vocational training, gender equality and rural development. It also promotes gender diversity and inclusivity.
On the governance front, the group has adopted requirement of corporate governance from provision of Companies Act 2013. The board of directors comprises of professionals having expertise and experience in the industry with one executive director, two non-executive directors and two of independent directors. Further, the group has constituted an audit committee and developed whistleblower policy to ensure a healthy governance mechanism. |
Rating Sensitivities
| Potential triggers (individual or collective) for an upward rating action: |
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| Potential triggers (individual or collective) for a downward rating action: |
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| Liquidity Position |
| Adequate |
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The repayment of Rs. 64.03 Crs in FY2025 was managed partially through net cash accruals of Rs. 38.45 Cr and balance through the infusion of funds through equity and compulsory convertible debentures of nearly Rs. 26.11 Cr. Further, term loans were refinanced through high cost NCDs of Rs. 315 Cr in April 2025. Subsequently, with the partial refinancing of these NCDs through debt of Rs. 271 Cr in March 2026 at GPBL, the group's liquidity is expected to remain adequate over the medium term. Going forward, the NCAs are expected to remain in the range of Rs. 100 – 120 Cr with maturing obligations of Rs. 50 – 65 Cr for FY2027 and FY2028. The current ratio stood low at 0.95 times on March 31, 2025. The average bank limit utilization of the group stood at ~84 percent for the last six months ended March 2026. Further, the group had an unencumbered cash and bank balance of Rs. 0.03 Cr on March 31, 2025. |
| Outlook: Stable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 1125.60 | 1049.57 |
| PAT | Rs. Cr. | 5.19 | 25.66 |
| PAT Margin | (%) | 0.45 | 2.45 |
| Total Debt/Tangible Net Worth | Times | 2.22 | 1.99 |
| PBDIT/Interest | Times | 1.98 | 2.45 |
| Status of non-cooperation with previous CRA (if applicable) |
| Not Applicable |
| 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 |
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| 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) | ||||||||
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Contacts |
List of instruments and names of regulators of the instruments |
