Fitch rates Vraj Packaging BB+(ind)

Fitch Ratings said it assigned Vraj Packaging Pvt. Ltd. a national long-term rating of BB+(ind), along with a BB+(ind) rating on its long-term loans of Rs. 101.9 million, BB+(ind)/F4(ind) ratings on its fund-based limits of Rs. 88.7 million and BB+(ind)/F4(ind) ratings on its non-fund based limits of Rs. 2.4 million.

The outlook is stable.

The ratings consider the company's long track record in cement packaging and demand visibility, driven by the positive long-term outlook for cement demand, Fitch said.

The ratings also reflect its established relationship with major customers, including large domestic players such as UltraTech Cement Ltd. and Orient Cement, which also partly offsets the high customer concentration within the cement business.

The company also benefits from its proximity to key consumers, which minimizes any freight costs in the transportation of the packaging materials, the agency added.

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