|Long-term Bank Facilities
(Triple B Minus)
|Long-term / Short-term Bank Facilities
The ratings draw strength from the strong parentage of TBEA Energy (India) Pvt Ltd (TBEA India), being a part of China-based TBEA group, which has established operations in China’s
power transmission industry and a dominant share in the Indian higher kilo volt (KV) class power transformer segment. The ratings also draw strength from the demonstrated financial support, including entire project funding of TBEA India, by its immediate parent viz TBEA Shenyang Transformer Group Company Ltd (TBEA Shenyang) and its strong business linkages with sub-contracting of part execution of orders in India.
The ratings, however, are constrained on account of the stabilization risks associated with the green field project and TBEA group’s first manufacturing base in India where the power transmission
industry is saddled with project execution challenges. The ratings are also constrained on account of the intense competition and exposure to volatile raw material prices and forex rates.
Ramping up of operations, establishment of track record and development of the company’s operational and financial capability to meet the qualifying criteria for bidding in the higher KV
transformer segment would be the key rating sensitivities.
Incorporated in July 2010, TBEA Energy (India) Pvt Ltd (TBEA India) is promoted by China-based TBEA Shenyang, which is a wholly owned subsidiary of Tebian Electric Stock Apparatus Co Ltd
(TBEA). TBEA, along with all its subsidiaries, is referred to as ‘TBEA group’.
The group has an established position in the heavy equipment manufacturing industry of China, with a presence in various countries. Its product portfolio includes electrical transformers, high
voltage power conductors, advanced electronic aluminum foil, solar photovoltaic products and systems, cross linked cables etc, along with engineering, procurement and construction (EPC)
TBEA India was set up to execute in part, the orders for supply of 765 kilo volt (KV) class, 500 Mega Volt Ampere (MVA) transformers and 765 KV class, 80/110 Mega Volt Ampere reactive (Mvar)
shunt reactors, awarded to TBEA Shenyang by Power Grid Corporation of India Ltd (PGCIL). TBEA India is also engaged in providing EPC services and trading of some key input materials to
transformers viz cold rolled grain oriented (CRGO) steel, bushings, etc.