The Oragadam, Chennai-based Daimler India Commercial Vehicles Private Ltd (DICV), the wholly wholly-owned subsidiary of the world’s leading truck manufacturer Daimler AG, has been rated CRISIL A1+for short-term and CRISIL AA/Stable for long-term operations in the country.
According to a company statement, CRISIL, a global analytical company providing ratings, research, and risk and policy advisory services has assigned this rating for DICV for its strong managerial, operational and financial support that the company received from its parent Daimler AG. The ratings also factor in the high level of indigenisation achieved by DICV at its recently commissioned commercial vehicle manufacturing plant and company’s strong operational capabilities.
Marc Llistosella, Managing Director and CEO, DICV, said: “The ratings reflect our stability in the market with a robust business plan and well-structured operations. With an increasing high-level of indigenisation of our products, the company will remain competitive and superior in terms of offering value products and services to the customers. We will continue to remain focussed on our business to realize our long-term growth in the country”.
Parthasarathy Thota, Chief Financial Officer, DICV, added: “DICV is a very stable and forward-looking organisation. Being part of Daimler AG, a global leader, DICV’s business plans are aligned with the utmost sensitivity to the requirements in India. Regular equity infusion by the parent organisation ensures that DICV is strongly oriented to achieving its goals in India. The rating from CRISIL – a world renowned rating agency, is ample proof of the solid fundamentals of DICV’s business”.
Being a wholly owned subsidiary of Daimler, DICV has access to the superior technology and expertise in the CV segment. The company looks at India as a key market for growth in Daimler’s global trucks business. DICV also receives managerial, financial and operational support from the parent company. Daimler is investing Rs 4,400 crore for its Indian operations, one of the largest Greenfield investments outside Europe. Daimler’s substantial cash reserves, marketable securities and financial strength provide it adequate flexibility to provide additional support to DICV’s operations.