The rating of CRISIL on the bank facility of Wacker Chemie India Pvt Ltd (WCIPL) continues to reflect the operational and financial support that WCIPL receives from its parent, Wacker Chemie AG (WCAG), Germany, and the benefits that WCIPL derives from WCIPL’s established market position in the polymer industry. These rating strengths are partially offset by WCIPL’s small scale of operations and customer concentration.

Outlook: Stable

CRISIL believes that WCIPL will continue to benefit over the medium term from the support that it receives from its financially strong parent and the established position of the parent’s products in the Indian market. The outlook may be revised to ‘Positive’ if the market in India for WCIPL’s products grows substantially, thereby boosting the company’s scale of operations and accruals. Conversely, the outlook may be revised to ‘Negative’ in case of significant decline in WCIPL’s commission income or in case of delayed parental support to meet operational and financial obligations.