CRISIL Upgrades Rating on Nissan Copper to ‘B+/Stable’

Mumbai, India, July 02, 2010 --( CRISIL, India's leading Ratings, Research, Risk and Policy Advisory company has upgraded Nissan Copper’s rating on the long-term bank facilities of Nissan Copper Ltd (Nissan Copper) to ‘B+/Stable’ from ‘B/Stable’ while reaffirming its rating on the short-term facilities at ‘P4’.

The rating upgrade reflects Nissan Copper’s improved net worth levels, driven by equity infusion of about Rs.1 billion raised by the company through a global depository receipts (GDR) issue in May 2010. The company will use the proceeds from the issue to set up a wholly owned subsidiary in the UAE for trading in copper products. The upgrade factors in Nissan Copper’s healthy financial performance in 2009-10 (refers to financial year, April 1 to March 31) and on-track implementation of its capital expenditure (capex) programme, which is now nearing completion. The upgrade also reflects CRISIL’s belief that Nissan Copper will maintain its business and financial risk profiles over the medium term, supported by increasing business volumes and steady cash accruals.

The ratings reflect Nissan Copper’s exposure to risks associated with its large ongoing capex programme, and increasing susceptibility to volatility in raw material prices and foreign exchange rates. These rating weaknesses are partially offset by the company’s established market position in the copper pipes manufacturing industry.

CRISIL believes that the increase in turnover and strong cash accruals expected from the enhancement in Nissan Copper’s capacity will help Nissan Copper maintain its business and financial risk profiles over the medium term. The outlook may be revised to ‘Positive’ if Nissan Copper generates healthy sales volumes from its upcoming facility and proposed trading venture in the Middle East, and maintains healthy profit margins. Conversely, the outlook could be revised to ‘Negative’ if the company is unable to meet quality standards for its new product, or underutilises the capacity of its upcoming unit.

About Nissan Copper Limited

Nissan Copper Limited is a leading manufacturer in semi-finished copper products. Established during 1989 with an objective to manufacture copper tubes they have extended their production into manufacturing copper ingots, coils, bus bars, strips, sections, profiles, flats, billets, bars, rods, tubes and pipes being used in diverse sectors.

Ever since its inception, the Mardia family has been instrumental in promoting and managing the business of Nissan Copper Limited. The company is listed on the Bombay Stock Exchange and the National Stock Exchange and the Luxembourg Stock Exchange. Their quest for high standard quality products has enabled them to accredit themselves with the ISO 9001:2008 and the ISO 14001:2004 certification. The company supplies products to a wide list of clientele like Carrier, Voltas Ltd., Godrej, Mahanagar Gas Ltd., Mangalore Refinery & Petrochemical Ltd., Siemens Ltd., Electrotherm India Ltd., Mazagon Docks Ltd., Nutech Construction Pvt. Ltd. etc. The company has also started exporting to various countries like UAE, USA, UK etc. including the domestic market.

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Sharon Menezes