India Ratings and Research assigns Investment-grade rating

28th May 2019, Bangalore: Runaya Refining has been assigned a long-term issuer rating of ‘IND BBB-‘ by India Ratings and Research. The rating is assigned on the basis of Runaya Refining’s operational linkage with a strong counterparty, continuation of timely implementation of the project, successful tie-up with foreign technology company, low working capital requirement, and high customer concentration

Annanya Agarwal, CEO – Runaya Refining said, “We are delighted that Runaya is assigned investment-grade credit rating, in spite of being in project phase, demonstrating very strong project dynamics. This also validates the robust financials of the company and its lean operational model. Runaya’s vision is to enable sustainable growth in the aluminium industry. The development of the project will be an important strategic initiative that will create value-added products that will benefit regional and global markets.” 

According to India Ratings and Research, the definitive agreement that Runaya Refining has entered into with Vedanta for the processing of aluminium dross till March 2023 will contribute steadily to the topline of the project. The company is also implementing hot and cold dross units near Vedanta’s cast houses in Jharsuguda for recovering metal content.

Another reason cited is that since commencing operations from October 2018, Runaya Refining is running on track with commissioning of units and expansion of capacity. Runaya is expected to commission the Hot dross processing Plant and briquette plant by October 2019, which is on schedule.

Runaya has also entered into a perpetual, exclusive agreement with TAHA International for using its aluminium dross processing technology in India. The agreement include setting dross processing unit in Odisha for which it has already received the ‘consent to establish’ from Odisha Pollution Control Board. It will enable the company to develop an end-to-end solution in aluminium dross handling – the first of its kind in India.

Finally, the rating agency has accounted in the comfortable liquidity position and the positive cash flow from operations of the company. The inventory holding will also be negligible. The company will experience high customer concentration that will secure its revenue.


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