VIL, promoted by Kiran Mehta, Kailash Agarwal and Virendra Mehta, received its certificate of incorporation on April 21, 2005. VIL, earlier known as Varun Continental Limited, was incorporated on March 8, 1996 and exported stainless steel houseware and kitchenware, and gems and jewellery. Varun Continental Limited, in turn, took over Varun Exports, the proprietorship concern of Kiran Mehta, on April 10, 1996, which had been in the business of exporting stainless steel utensils.

Currently, the company exports stainless steel houseware and kitchenware, gems and jewellery, and other general merchandise. VIL has set up an in-house manufacturing and warehousing facility at Vasai (E), District Thane. The company has also set up a stainless steel re-rolling mill at Jodhpur.

For the year ended March 2007, VIL recorded a net profit of Rs 196 million, on an operating income of Rs 7,585 million, as compared with a net profit of Rs 144 million on an operating income of Rs 6,076 million for the year ended March 2006.

CRISIL Grading :

CRISIL has assigned a CRISIL IPO Grade “1/5″ (pronounced “one on five”) to the proposed initial public offer (IPO) of Varun Industries Limited (VIL). This grade indicates that fundamentals of the issue are poor relative to other listed equity securities in India.

In CRISIL’s opinion, the grading is constrained by VIL’s lack of cogent business and operating strategy in its current business, as well as significant uncertainties associated with the consummation of its plans in new business areas, in most of which it does not have any prior experience and expertise.

The grading also reflects the inadequate information available with management on key aspects of business operations. The grading has taken into consideration VIL’s status as India’s largest exporter of stainless steel utensils, where it aggregates products from many small manufacturers spread across the country to supply to overseas customers.

Cumulative Bid Details

Not Available at this time.