ICRA has reaffirmed credit ratings for the bank facilities availed by JTEKT India Ltd (JIL), the largest manufacturer of steering systems for passenger car and utility vehicle market in the country.
The rating reaffirmation continues to factor in JIL's position as a leading supplier of steering systems to passenger vehicle original equipment manufacturers in India, strong business and technical support from its parent company JTEKT Corporation Japan as well as its well diversified product offerings.
ICRA said JIL enjoys a leading position in the steering system segment in India with strong presence in manual steering gears, electronic power steering and hydraulic power steering systems.
It continues to maintain healthy share of business with some of the leading passenger vehicle original equipment manufacturers including Maruti Suzuki India, Mahindra & Mahindra, Honda Cars India and Toyota Kirloskar Motor which further strengthens its business profile.
The ratings also continue to factor in the strong business and technical support from its parent company JTEKT Corporation. JTEKT supports JIL with its marketing efforts, new customer acquisition and technical support.
Being part of the Toyota Group, JIL also maintains almost 100 per cent share of business with Toyota Kirloskar Motor in India.
Further, the presence of a Japanese parent has also helped the company acquire healthy share of business from subsidiaries of other Japanese original equipment manufacturers in India.
In addition to the favourable business linkages, the Japanese parentage has also helped the company in tying up unsecured lines of credit from Japanese banks on JTEKT's corporate guarantee at competitive interest rates.
The company has operations across the country through its eight plants -- two in Gurugram, three in Dharuhera, one in Bawal, one in Chennai and one in Sanand.
( With inputs from ANI )