CRISIL’s ratings on the bank facilities of Arise India Ltd (Arise) continue to reflect Arise’s healthy financial risk profile marked by comfortable capital structure and debt protection metrics, and established market position in North India. These rating strengths are partially offset by Arise’s small scale of operations and low operating margin.

Outlook: Stable
CRISIL believes that Roland’s business risk profile will remain average, and that its financial risk profile will remain weak as its pricing flexibility will remain limited, over the medium term. The outlook may be revised to ‘Positive’ if there is more-than-expected improvement in Roland’s cash accruals or capital infusion by the partners, leading to significant improvement in the financial risk profile of the firm. Conversely, the outlook may be revised to ‘Negative’ if there is lower-than-expected growth in the firm’s cash accruals or the firm undertakes larger-than-expected debt-funded capital expenditure programme, leading to deterioration in debt protection metrics.

About the Company
Arise was incorporated in 1992 as Starlite Co-Tex Ltd (Starlite). In 1999, Starlite was acquired by Mr. Avinash Jain, who changed the name of the company to the current one. Arise manufactures mono-block water pumps, submersible pumps, and batteries. It also sells electric items such as water geysers, fans, inverters, and water purifiers, under its brand Arise. The company has three manufacturing units in Delhi and one in Sonepat (Haryana).

For 2009-10 (refers to financial year, April 1 to March 31), Arise reported a profit after tax (PAT) of Rs.9 million on net revenues of Rs.1924 million, against a PAT of Rs.9 million on net revenues of Rs.1158 million for 2008-09.