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Crisil assigns A rating to ORG-Marg NCDs
An `A' rating has been assigned to Rs 10-crore NCDs programme of ORG-MARG Ltd. The rating reflects the strengths ORG-MARG derives from its leadership position in the market research industry, equity participation by VNU, a $2 billion information services multinational and synergies accrued from merger of MARG with ORG. Partly offsetting these strengths are the competitive environment in the Indian National Television Audience Measurement (INTAM) and Indian Readership Survey (IRS) projects, the relatively small size and high gearing of the company. The company is almost a monopoly player in the syndicated research industry. However, the entry of strong global players in this business might increase the competitive pressures in the industry in the medium-term. Established brand equity and ability to continuously introduce new products are the key strengths of the customised research business of ORG-MARG. However, the income-growth of this business is dependent Crisil assigns A rating to ORG-Marg NCDs
An `A' rating has been assigned to Rs 10-crore NCDs programme of ORG-MARG Ltd. The rating reflects the strengths ORG-MARG derives from its leadership position in the market research industry, equity participation by VNU, a $2 billion information services multinational and synergies accrued from merger of MARG with ORG. Partly offsetting these strengths are the competitive environment in the Indian National Television Audience Measurement (INTAM) and Indian Readership Survey (IRS) projects, the relatively small size and high gearing of the company. The company is almost a monopoly player in the syndicated research industry. However, the entry of strong global players in this business might increase the competitive pressures in the industry in the medium-term. Established brand equity and ability to continuously introduce new products are the key strengths of the customised research business of ORG-MARG. However, the income-growth of this business is dependentto a certain extent on the economic cycles. The losses incurred in IRS have also effected the overall profitability of the customised business. While INTAM, a highly capital intensive project, is currently not a profitable venture, the company's policy of funding the expansions through equity has been favourably factored into the rating.
The company has three divisions -- tracking, customised research and INTAM. The tracking division conducts syndicated research of various consumer non-durables, pharmaceutical products and consumer durables. It also undertakes public and social research projects. The customised research division provides qualitative and quantitative customised market research services. INTAM provides continuous tracking of television viewership. ORG-MARG's turnover and PAT (provisional figures) for 1997-98 were Rs 55.22 crore and 2.62 crore respectively.
AAA rating for REC bonds
The proposed Rs 225-crore priority sector tax-free bonds programme and Rs 275-crore priority sectortaxable bonds programme of Rural Electrification Corporation Ltd (REC) have been assigned a `AAA (so)' rating. These ratings are based on the credit enhancement mechanism.
REC is a public financial institution, wholly owned by the Government of India, under the ministry of power. REC was set-up in 1969 to provide financial assistance at concessional terms, primarily to state electricity boards, for rural electrification schemes in the country. REC's focus has been on energisation of pumpsets and utilisation of underground water resources in order to increase agricultural production. It is largely through REC's efforts that more than 80 per cent of the villages and pumpsets of the country have been energised.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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