Sony India

A `P1 plus' (P one plus) rating has been assigned to the Rs. 125 crore short term debt programme of Sony India (SIL) (enhanced from Rs. 75 crore commercial paper programme).

The rating reflects SIL's 100 per cent ownership by its strong parent - Sony Corp., Japan (rated `A plus /stable/ A-1' by Standard & Poor's), the company's comfortable market position in the premium segment of the domestic colour television (CTV) and audio products markets, its strong and well recognised brand name and its superior technological capabilities.

The rating also reflects strong growth in SIL's revenues in the past and the expected sustenance of its comfortable liquidity position. The rating also factors in the company's moderate profitability, gearing & coverage ratios and the highly competitive nature of the domestic consumer goods industry.

Sony India, (SIL), a fully owned subsidiary of the Sony Corp., Japan, is engaged in the manufacture and sale of colour television sets, audio products and also marketing of other consumer electronics products like video cameras, recording media products, computer monitors etc. Inline with its global philosophy, SIL is mainly present in the premium segments of the domestic CTV market like the large screen and Flat TV segments, where it has an established market presence. In the audio market also, the company is present in the higher end niche segmentswhere it has comfortable market shares.

Over the years, the company has exhibited higher than the industry growth rates on account of brand acceptance of 'Sony' as quality products, its wide product mix in the selected segments and constant introduction of newer products within a short period of their international launches.

Corporate Bureau