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The Textile Magazine
MARCH 2012
internal processes, quality standards and delivery time-
lines to the stringent norms of the clients. The clients, in
turn, will benefit from cost economies of outsourcing to
India, given its abundance of raw material and skilled
labour.”
The rated players’ stable financial risk profiles, sus-
tained by steady margins and moderate capital struc-
tures, will also help them withstand decline in demand.
Gearing may remain moderate and range-bound, at 2 to
2.2 times over the medium term, in the absence of sig-
nificant capital expenditure (capex). The fact that debt
consists largely of short-term working capital borrow-
ings will also support their financial risk profiles. Profit-
ability will hold steady around the historical average of
8.5 to 9.5 per cent, through appropriate input procure-
ment and forex hedging measures.
Adds Mr. R. Vasudevan, Head, CRISIL Ratings: “We
believe that the rated RMG exporters will maintain sta-
ble credit quality over the medium term, underpinned by
comfortable financial risk profiles, and ability to with-
stand business turbulence, as they have done in the past
five years, which includes the recession in 2008-09.”
CRISIL believes that the Technology Upgradation
Fund Scheme (TUFS), if extended beyond March 2012,
will serve as a fillip to the RMG sector and result in
fresh capex over the medium term. Some players, es-
pecially those in the niche RMG segment, and having
strong linkages with buyers, may even undertake capac-
ity expansion in the near term to capitalise on business
opportunities presented by buyers’ vendor consolida-
tion initiatives.
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Statement about ownership and other
particulars about newspaper
THE TEXTILE MAGAZINE
– FORM IV
1. Place of Publication
: CHENNAI - 600 017.
2. Periodicity of its publication : MONTHLY.
3. Printer’s Name
: B. Ashok Kumar (Rathna Offset Printers)
Nationality
: Indian
Address
: 40, Peters Road, Royapettah
Chennai-600 014
4. Publisher’s Name
: R. Natarajan (Gopali & Co.)
Nationality
: Indian
Address
: No.38/2, Thomas Rd., T.Nagar, Chennai-17
5. Editor’s Name
: R. Natarajan, B.A.
Nationality
: Indian
Address
: No.38/2, Thomas Rd., T.Nagar, Chennai-17
6. Names and address
: R. Natarajan - Partner
of individuals who own the No.38/2, Thomas Rd., T.Nagar, Chennai-17
newspaper and partner
I, R. Natarajan, hereby declare that the particulars given above are true to the
best of my knowledge and belief.
Dated: 1-3-2012
(Sd.) R. Natarajan
Signature of Publisher.
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