DIPL has a strong position in the premium vodka market in India through Smirnoff, which has a strong brand image as a premium drink for the youth.
DIPL has a weak financial risk profile, marked by high gearing and weak debt protection metrics because of operating losses.
Smirnoff alone contributed around 55 per cent to the total sales, making DIPL dependent on a single brand.
CRISIL believes that DIPL will maintain its market position on the back of its established brands, and the operational and financial support it receives from Diageo.
During 2009-10, DIPL
entered into an operating lease for a period of seven years with an adjacent billet manufacturing unit, which consists of an induction furnace of capacity 36,000 tonnes per annum and a billet making facility with a capacity of 72,000 tonnes per annum.