Due to inadequate information, Crisil Ratings, in line with SEBI guidelines, had migrated the rating of Lavanya Purefood Private Limited (LPPL, part of Lavanya Group) to ‘Crisil BB//Stable Issuer Not Cooperating. However, the management has subsequently started sharing requisite information, necessary for carrying out comprehensive review of the rating. Consequently, Crisil Rating is migrating the rating on bank facilities of LPPL to ‘Crisil BB/Stable’.
The rating continues to reflect LPPL's extensive industry experience of the promoters and moderate working capital cycle These strengths are partially offset by its modest debt protection metrics and stretched capital structure. |
Analytical Approach To arrive at its ratings, Crisil Ratings has combined the business and financial risk profiles of LPPL, Eatage Agro Pvt Ltd (EAPL), Brown Belly Products Pvt Ltd (BBPPL) and Lavanya Finvest Pvt Ltd (LFPL). This is because both entities, together referred to as the Lavanya group, are in the same business and have common promoters and management. |
Key Rating Drivers - Strengths Extensive industry experience of the promoters: The promoters have an experience of over 17 years in Agriculture industry. This has given them an understanding of the dynamics of the market and enabled them to establish relationships with suppliers and customers. As a result, Lavanya group has been able to clock revenue of Rs. 176 crores in fiscal 2025. Product diversification and capacity expansion is expected to support an expected improvement in group’s revenue to around Rs 190-200 crore and operating margins of around 7.5-8% over the medium term. An optimal mix of buy-sell and processing model is expected to support the business risk profile over the medium term.
Moderate working capital cycle: Gross current assets were around 75-100 days for the group over the three fiscals ended March 31, 2025. Group is having reputed customers including ITC, Britannia and Parle which results in timely receipt of payments. Inventory of wheat is stocked for aata processing for about a month. With prudent working capital management, bank lines are also moderately utilized. Sustenance of the working capital cycle will remain a key rating monitorable over the medium term. |
Key Rating Drivers - Weaknesses Modest debt protection metrics: LPPL’s debt protection measures is expected to remain modest marked by interest coverage of around 2.4 times in FY26. Increase of term loan in the books to fund the incremental capex has resulted in increased finance costs over the last 3 fiscal years. Steady accruals generated from expected increase in operations is expected to support the debt protection metrics over the medium term. The same will remain a key rating monitorable.
Stretched capital structure: Capital Structure of the business remained modest marked by estimated networth of around Rs 37 crore in FY26. Gearing of the business in FY25 was around 2.3 times. Capital Structure of the business remained stretched due to availing of long term loans to fund capacity expansion. Gearing of the business is expected to improve over the medium term with regular repayments being covered by accruals generated from increased operations. With no other major debt funded capex plans and steady accretion to reserves, the financial risk profile of the business is expected to remain moderate over the medium term. |
Liquidity Adequate Bank limit utilisation is high at around 95 percent for the past twelve months ended Jan 2026. Expected net cash accruals of around Rs 9.7 crore and free cash balance in the books of around Rs 15 crore is sufficient against repayment obligations of around Rs 11.5 crore.
Current ratio is moderate at 1.21 times on March 31, 2025. Promoters are expected to infuse own funds in case of any operational exigencies. |
Outlook Stable Crisil Ratings believe LPPL will continue to benefit from the extensive experience of its promoter, and established relationships with clients. |
Rating sensitivity factors Upward factors
Downward factors
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About the Group Lavanya Group was incorporated in 2011. The group comprises of 4 different entities called LPPL, Lavanya Finvest Private Limited, Eatage Agro Private Limited and Brown Belly Products Private Limited. The group is engaged in milling, processing and selling wheat flour, semolina, wheat bran, biscuits, etc. The manufacturing facilities are located in Muzaffarpur, Bihar. The same is owned & managed by Mr. Sanjeev Kumar Thakur and Mr. Dilip Kumar. |
Key Financial Indicators
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Any other information: Not Applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
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Annexure – List of entities consolidated
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| Annexure - Rating History for last 3 Years | |||||||||||||||||||||||||||||||||||||||
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* - Issuer did not cooperate; based on best-available information
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| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||||||
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Criteria Details
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