PACRA Upgrades the Entity Ratings of Jazaa Global (Pvt.) Limited

Jazaa Global (Private) Limited (‘Jazaa’ or ‘The Company’) ratings reflect the adequate financial profile of the Company. Jazaa’s ongoing transition towards a more diversified revenue base played a significant role in supporting the recent rating upgrade. This strategic realignment has reduced reliance on a single product and enhanced the Company’s resilience by broadening its income streams across various segments. The Company's total revenue is derived from two key segments (local and export sales). Approximately 64% of the revenue is generated from export sales, while around 36% is attributed to local sales. The Company has demonstrated significant growth potential, particularly in its export sales, showcasing substantial expansion in this area. The assigned ratings reflect the Company’s expanding operational scale, underpinned by sound financial management practices and robust liquidity. The upward trajectory in sales volumes—both domestically and internationally—along with the successful launch of new product lines, has contributed significantly to revenue enhancement. Jazaa’s broad portfolio of ethnic food products, comprising over 352 stock-keeping units (SKUs), caters to a diverse consumer base across more than 55 countries globally and over 100 cities within Pakistan, evidencing a strong market presence and product depth. The Company’s manufacturing facility, located in Karachi, has an annual production capacity of 40,400 metric tons (MT) for rice and 4,000 MT for salt, supporting its operational scale. The sponsors bring significant industry-specific experience and strategic foresight, which continue to strengthen the Company’s operational framework. Furthermore, comfort for the assigned rating has also been drawn from sponsors' resolute commitment to supporting the Company in case of any financial needs
On financial profile side, the Company benefits from a well-diversified revenue mix. Rice remains the leading contributor, accounting for approximately 63% of total revenue, followed by Essentials (23%), Recipe Mixes (5%), Tea Delights (5%), Pastes (2%), and Plain Spices (1%). In FY24, the Company’s topline exhibited a strong year-over-year growth of 58%, primarily driven by increased sales volumes. However, elevated inflationary pressures led to a marginal contraction in profit margins. Consequently, net profitability remained stable, recorded at ~PKR 25mln during FY24. The Company maintains a sound financial risk profile, underpinned by adequate coverage metrics and an efficiently managed working capital cycle. Leverage indicators remain at moderate levels. Furthermore, the Company’s proactive responsiveness to market trends, commitment to international quality standards, emphasis on customer satisfaction, and alignment with industry benchmarks provide additional support to its creditworthiness.
The ratings are dependent upon the management's ability to sustain margins while remaining self-sufficient and in surplus for expansionary measures. Sound financial discipline remains critical. Prudent management of the working capital, maintaining sufficient cash flows, and coverages remain crucial for the ratings.

About the Entity
Jazaa Global (Pvt.) Limited, established in 2015 under the repealed Companies Act'17, began operations in March 2016 with a vision inspired by the late Mr. Junaid Jamshed. It aims to serve consumers globally and domestically with a diverse range of ethnic products. Mr. Shahid Tawawalla, a respected figure with three decades of expertise in Pakistan's rice milling industry, chairs the board. Leading the company as CEO is Mr. Ali Jabbar, backed by a dedicated team of seasoned professionals.