Initiating Explosives Systems India

The Credit Rating Information Services of India Ltd (Crisil) said it reaffirmed its `P1+' rating, indicating very strong position, assigned to the Rs 4-crore short-term debenture programme of Initiating Explosives Systems India Ltd. CRISIL applies `+' or `-' signs to ratings to reflect the comparative standing of the rating within the category.

The rating reflects IESIL's established position in the domestic detonators business, leadership position in the high-technology non-electric detonators segment, increasing focus on exports and strengths arising from its association with Indian Explosives Ltd (the leading manufacturer of explosives in India) and Ensign Bickford Company of US (the leading player in the world-wide detonators business). The rating also factors in the company's favourable financial risk profile. However, these factors are partly offset by the competitive nature of domestic explosives industry and IESIL's significant dependence on Coal India Ltd for its sales.