Jazaa Global (Pvt.) Limited (referred to hereafter as "Jazaa" or "the Company") was established as a private limited company in 2015, in accordance with the provisions of the Companies Act of 2017.

The Jazaa concept was introduced in March 2016, driven by the vision of the late Mr. Junaid Jamshed. The core objective was to provide value to consumers and establish Jazaa as a prominent company, both domestically and internationally.

Jazaa Global offers a comprehensive portfolio of ethnic products designed to meet the demands of consumers both domestically and internationally. The Company boasts a significant global footprint, with its products available in over 55 countries and more than 100 cities across Pakistan. This extensive reach is supported by a diverse range of over 352 quality Stock Keeping Units (SKUs). Jazaa's product offerings include: rice, recipe mixes, spices, essential pantry staples, pastes, teas, desserts, salt, organic oil, cooking oil and snacks. The Company's production plant is strategically located in Karachi, with an annual production capacity of 40,400 metric tons for rice and 4,000 metric tons for salt. Jazaa Global is committed to maintaining the highest standards of quality and food safety, as evidenced by its array of certifications, including PSQCA, HACCP, Halal, FDA, BRCGS, ISO 9001, ISO 22000, and GMP, in addition to holding Kosher certification.

The Company’s ownership is divided into four members, Mr. Shahid Tawawalla holds ~37.5%, followed by Taimur Junaid ~25%, Abbas Jabbar ~19% and Ali Jabbar holds ~18.5%.

The company is jointly owned by the Tawawalla family, the Bantva Memon family, and the family of the late Junaid Jamshed. However, a formal succession plan is currently not in place.

The sponsors possess extensive experience and expertise within the trading sector. Their robust business acumen has been instrumental in the Company's sustained success. Furthermore, the sponsors contribute valuable industry-specific knowledge, practical experience, and strategic foresight.

Jazaa has diversified into various food segments. As at FY24, the Asset base of the company stood at PKR 1.25bln while equity base stood at PKR 223mln. Through its diverse set of business, it is generating a turnover of PKR 2.69bln and posted a PAT of PKR 25 mln. 

The Company's Board of Directors consists of four members, comprising three Executive Directors and one Non-Executive Director.

Mr. Shahid Tawawalla, the Chairman and Director of Jazaa Global (Pvt.) Limited, brings over three decades of extensive experience in rice milling and various other commodities within Pakistan. He also holds the position of CEO at Meskay & Femtee Trading Pvt. Ltd., a prominent entity in the rice sector. Furthermore, Mr. Tawawalla is a founding member and Chairman of "Hamara Kissan." He is an alumnus of Ipswich Civic College and City & Guilds, London, where he specialized in Grain Milling Technology, and he is a graduate of Lock Haven University, USA. Mr. Ali Jabbar serves as the CEO, an energetic and proactive leader with over two decades of comprehensive experience in the rice trading sector. His extensive knowledge and expertise provide critical guidance to the Jazaa Global team, which is further supported by a cadre of seasoned professionals. Mr. Ali Jabbar is a graduate of Govt. Commerce College, Karachi. Mr. Taimur Junaid Jamshed, the eldest son of the late Junaid Jamshed, is a Commerce Graduate from Greenwich University. He is deeply dedicated to upholding and extending his father's significant business philosophy within the company. Mr. Abbas Jabbar, an accomplished entrepreneur, holds the position of Director at Jazaa Global. His exceptional ability to form and lead cohesive teams toward common objectives makes him an invaluable asset to the organization.

Jazaa Global's Board of Directors has established an Executive Committee, an Audit Committee, and a Human Resources Committee. The Board conducts annual meetings, with all proceedings meticulously documented in formal minutes. The presence of these committees underscores Jazaa Global's commitment to a structured governance framework, which aims to enhance risk management, strengthen internal controls, and refine overall business practices.

The company's external auditors, Clarkson Hyde Saud Ansari Chartered Accountants, a QCR-rated firm, issued an unqualified opinion on the financial statements for the period ended June 2024. However, it's worth noting that the reporting could be improved, as certain disclosures pertaining to the financial statements were not included in the notes to the accounts.

The Company operates with a horizontal organizational structure, where each department is overseen by a department head who reports directly to the CEO. The Company's operations are segmented into five key functional areas: (i) Export Sales, (ii) Finance & Accounts, (iii) Marketing, (iv) Operations and (v) HR & Admin.

Mr. Ali Jabbar, the Chief Executive Officer of Jazaa Global and a prominent Bantva Memon entrepreneur, has been actively involved in the rice industry since 2000. His dynamic leadership and extensive industry expertise are key drivers of the company's progress, supported by a highly skilled professional team. Jazaa Global (Pvt.) Limited's senior management team, as of December 31st, 2024, includes several experienced professionals. Mr. Raweed, with 10 years of overall experience and 8 years with the group, holds the position of Head of NPD, reporting to the CEO. Miss Shizra Jasani, also boasting 10 years of overall experience and 8 years with the group, serves as the Export Manager, reporting to the CEO. Mr. Nomi Qasim, the Procurement Manager, has 6 years of both overall and group experience. Lastly, Mr. Farhan Nisar, the Head of Marketing and Online Sales, brings 15 years of overall experience, with 2 years at Jazaa Global and in his current role. This team demonstrates significant tenure and specialized expertise within the company.

There are no management committees in place. However, management meets monthly to ensure efficiency of the Company’s operations.

Jazaa Global utilizes Gtech as its Management Information System (MIS) for inventory software management, specifically tailored for manufacturers and tool manufacturers. This system, implemented in July 2021, is built on a .NET framework with the latest technological advancements and an Oracle database. Gtech is regularly monitored and receives monthly upgrades from the vendor, ensuring the software remains current and adaptable to Jazaa's evolving needs. The Gtech team possesses the capability to mold the software as required, indicating a flexible and responsive system to support Jazaa's operations. Jazaa is in touch with ODOO ERP and Enterprises for the implementation of their retail and Manufacturing module which is under process, this will further cement there reporting structure and mechanism of internal controls within the organisation.

The Company has an effective internal audit department which helps to improve risk management, control and governance processes and brings improvement to business practices by forming SOP’s. The company is also PSQCA, HACCP, Halal, FDA, BRCGS, ISO 9001, ISO 22000, and GMP certified, in addition to holding Kosher certification. Company has 6-member internal audit function which reports to CEO.

In Pakistan, the convenience food market is experiencing a significant growth at a 7.64% CAGR in 2024, driven by domestic products and robust urban distribution networks, with rural areas still offering substantial expansion potential. The retail landscape is evolving rapidly, with large chains increasingly influencing consumer habits. The local food products sector's production of biscuits, snacks, and confectionery segments collectively reached around 6.8 million metric tons in FY24, showing a 1.4% year-on-year increase. The market is highly competitive, characterized by a continuous influx of new players and high marketing and distribution costs, limiting individual market participants' pricing power. Consumer demand is significantly driven by a young population, increasing disposable incomes, rising brand awareness, and evolving tastes, particularly favoring potato chips among savory snacks. Despite being a net exporter in biscuits, crackers, snacks, and confectionery, Pakistan remains a net importer in the condiments segment. The sector's financial performance, particularly margins, is heavily influenced by raw material costs, which constitute a significant portion of production expenses. Furthermore, the rice sector, a significant contributor to the market, faced a substantial 22% production drop due to floods, affecting sales, though this impact was partially mitigated by currency depreciation. Businesses within this dynamic sector must continually adapt to these evolving market and environmental changes to thrive.

Jazaa is the nascent player in the industry with market penetrating strategy. The Company has yet to establish brand recognition to compete with the key players.

Since its inception in 2015, Jazaa has consistently demonstrated a robust growth trajectory in its revenue. The company's diverse revenue streams are primarily generated from six core product categories: Rice, Kitchen Essentials, Spices, Pink Salt, Bakery Items, and Pastes, with Rice significantly contributing the largest share to the company's turnover. Jazaa has established a considerable global presence, with its products distributed in over 55 countries internationally and across more than 100 cities within Pakistan. This expansive market penetration is supported by a comprehensive portfolio of over 352 distinct Stock Keeping Units (SKUs). The company's operational strategy encompasses both domestic and international markets, with approximately 64% of its total revenue being derived from exports and the remaining 36% from local sales. An in-depth look at revenue segmentation reveals that Rice accounts for approximately 63%, followed by Kitchen Essentials at ~14%, Pink Salt at ~8%, Spices at ~7%, Bakery Items at ~5%, and Pastes at ~3%. In Fiscal Year 2024 (FY24), Jazaa achieved remarkable topline growth of approximately 58%, with revenues reaching PKR 2,693 million, an increase from PKR 1,703 million in FY23. This substantial growth was primarily attributed to a strategic combination of elevated average selling prices and increased sales volumes. The positive momentum continued into the first nine months of Fiscal Year 2025 (9MFY25), with the company reporting revenues of approximately PKR 2,236 million.

The company demonstrated positive growth in gross profit during Fiscal Year 2024, reporting approximately PKR 637mln, a notable increase from PKR 458mln during FY23. As of the nine months ending FY25 (9MFY25), gross profit stood at approximately PKR 512mln. Despite the increase in gross profit, the company experienced a decline in profitability margins. The gross profit margin decreased to approximately 23.7% during FY24 from 26.9% during FY23. This contraction was primarily driven by a disproportionately higher increase in the cost of goods sold relative to revenue growth. The rise in costs was attributed to inflationary pressures and elevated raw material expenses. This trend of declining profitability extended to the operating profit margin, which decreased from 5.9% during FY23 to 5% during FY24. The decline in operating profit margin was further influenced by an increase in marketing and selling expenses. The net profit margin also saw a slight decrease, settling at approximately 0.9% during FY24, down from 1.4% during FY23. The declining trend in profitability margins continued into 9MFY25, where the company recorded a gross profit margin of 22.9% and a net profit margin of 0.9%.

The company has shown growth trajectory since its inception and is planning to discover more international markets. Further, in order to improve margins in comparative to established market player management has plans for enhance production capacity and backward integration.

The company demonstrated significant enhancements in its working capital management during Fiscal Year 2024. These improvements were driven by optimized inventory turnover and enhanced collection efficiency, leading to a substantial reduction in the company's cash conversion cycle. Inventory days were reduced substantially to 65 days during FY24, down from 73 days during FY23. Simultaneously, trade receivable days showed marked improvement, declining to 34 days compared to 40 days in the previous year, indicating accelerated collection processes. These operational efficiencies resulted in a considerable improvement in gross working capital days, which decreased from 114 days during FY23 to 100 days during FY24. Furthermore, the company successfully extended its payment terms, with trade payable days increasing significantly to 39 days during FY24 from 20 days during FY23. This strategic extension, combined with faster inventory turnover and collections, contributed to a substantial improvement in the company’s liquidity position. Consequently, net working capital days decreased significantly to 61 days during FY24, a substantial reduction from 94 days during FY23. While FY24 showed strong gains, working capital efficiency appears to have moderated during 9MFY25. Average inventory days increased to 74 days, primarily due to an increase in raw material days.

The company's ability to generate cash from core operations, measured by Funds from Operations (FCFO), showed an increase during Fiscal Year 2024. FCFO grew to approximately PKR 149mln during FY24, up from PKR 117mln in the previous year. The increase in FCFO indicates a resilient capacity to generate cash from core operations. However, finance costs (expenses related to the company's borrowing) also increased, rising from PKR 73mln during FY23 to PKR 96mln during FY24. Although finance costs increased to PKR 96mln during FY24, the company maintained a stable debt servicing capability, with the interest coverage ratio slightly improving from 1.6X to 1.7X. This indicates a modest enhancement in the company's capacity to meet its interest obligations from operational earnings.

Jazaa maintains a highly leveraged capital structure, relying significantly on debt financing. The debt-to-equity (D/E) ratio stood at approximately 61.5% during Fiscal Year 2024, a modest decrease from 64% during FY23. Total borrowings remained stable at approximately PKR 356mln during FY24. A defining characteristic of the company’s debt profile is its substantial reliance on short-term borrowings, which represented 98.3% of the total borrowing portfolio during FY24. As of the nine months ending FY25 (9MFY25), the company’s leverage increased considerably. Short-term borrowings escalated significantly to approximately PKR 600mln, consequently driving the debt-to-equity ratio to 71.1%. The high proportion of short-term debt necessitates careful monitoring of the Company's liquidity and its ability to manage upcoming debt maturities and potential fluctuations in short-term credit markets, despite the year-end improvement in the leverage ratio.