East Gate Industries (Pvt.) Limited (“EGI” or “the Company") was incorporated in Pakistan in 2014 under the Companies Ordinance 1984 (Repealed with the enactment of the Companies Act, 2017) as a Private Limited Company.

EGI was formerly a sister concern of the Sefam (Pvt.) Ltd., & Ali Embroidery Mills (Pvt.) Ltd. Co-founded by Mr. J.A. Zaman (Late), Mr. Hamid Zaman, and Ms. Seema Aziz, as an associated concern of the Sarena Group. The Group takes pride in claiming itself as the pioneer of introducing the concept of brands in Pakistan. The Company started with its flagship brand, Bareeze, in 1985 (40 years ago). Following the demerger, EGI owns 8 brands under its umbrella (Bareeze, Bareeze Man, Home Expressions, Minnie Minors, Chinyere, Rang Ja, The Fabric Store & The Entertainer). EGI also owns S-Luxe (Private) Limited, a wholly owned subsidiary, transitioned from retailing THE FRED HOTEL, & Restaurants (The Fred, Gaijin, Observatory, Polymath, A-1 Tasty, Ambassador Zhen, Deliverance) under S-Luxe (Pvt) Limited.

EGI is principally engaged in the manufacture and retail of embroidered classic unstitched fabric, children boys, girls, infants, party line & accessories, stitched casual, semi-formal, formal, couture, ethnic cuts & colors, men's kurtas, shalwar, sherwanis, shirts, trousers, outerwear & toys along with home accessories through its outlets. The Company maintains an integrated supply chain encompassing in-house design, production, and retail distribution. EGI operates ~294 physical outlets comprising ~442 POS terminals locally, inclusive of five franchise-based outlets, along with four outlets in the UAE and one outlet in the UK. The head / registered office of the Company is situated at 34-C, Gulberg, Lahore.

Following the demerger, the Company's ownership structure is reorganized. Ms. Seema Aziz holds majority shares comprising 83.34% stake, while Mr. Tariq Zaman and Ms. Ambreen Zaman each hold an equal stake of 8.33%.

A formal written agreement has been undertaken between the family members. The shareholding structure is well-defined with clear segregation of responsibilities, spanning different businesses among family members.

Ms. Seema Aziz holds an LLB degree from the University of Punjab and completed the sought-after Owner President Manager (OPM) program at Harvard Business School. In addition to being business savvy, Ms. Seema is a social activist. Together with her brother, Mr. Tariq Zaman, she founded the C.A.R.E. foundation and manages it by herself.
Mr. Tariq Zaman completed his undergraduate studies in the United States and holds an MBA from LUMS. He is the Managing Director of Ali Embroidery Mills (Private) Limited & Director at Sarena Industries & Embroidery Mills (Pvt.) In addition, Mr. Tariq also manages the group’s corporate farming initiative under the name of “Jaz Hatari (Private) Limited”. Mr. Tariq also looks after new business ventures, such as energy, car leasing, etc. Ms. Ambreen Zaman is a founding member of C.A.R.E. Pakistan and has been closely involved in the C.A.R.E. schools, fundraising, and C.A.R.E. Crafts. She has a Master's Degree in Development Economics from The Fletcher School of Law and Diplomacy, Tufts University, Boston, USA. As a Director at Sefam Pvt. Ltd. Pakistan, she launched ‘Leisure Club’ as the first international quality children’s & Teenager brand in the country.

EGI is a financially robust entity with its primary strength in a diversified portfolio of eight multidisciplinary retail brands. Building on a 40-year legacy, the Company has evolved from a single brand into a family of eight. This evolution provides a stable foundation for EGI’s financial performance and supports its long-term growth and expansion.

The board is comprised of three members, all belonging to the sponsor’s family, with no independent directors. Ms. Seema Aziz serves as the Chief Executive Officer & Managing Director (CEO & MD), Mr. Tariq Zaman holds the position of Director, while Mr. Ali Zain Aziz serves as Executive Director.

All directors possess extensive experience within the textile sector and are actively involved in the management of various group companies. Each member has a long-standing association with the Company, contributing to a stable and knowledgeable leadership team. Ms. Seema Aziz has served on the board for over 45 years, while Mr. Tariq Zaman brings 30 years of experience, and Mr. Ali Zain Aziz has been with the Company for 20 years.

A formal board meeting is held annually, with minutes duly prepared and documented. There are numerous sub-committees in place to assist the Board.

M/s Arshad Raheem & Co. Chartered Accountants, who hold a satisfactory QCR rating from ICAP but are not rated by the SBP, are the external auditors of the Company. They have expressed an unqualified opinion on the financial statements of the Company for the year ended June 30, 2024.

The organizational structure of the Company is divided into various functional departments: (i) Marketing, (ii) Finance, (iii) Accounts, (iv) Procurement, (v) Internal Audit, and (vi) Human Resources (HR).  All the department heads are reportable to the Board of Directors. The management hierarchy, including various levels, enables the Company to carry out smooth operations.

Management of the Company comprises qualified and experienced professionals with a wide range of skills and relevant experience. Most of the senior management have been associated with the Company for an adequate amount of time. The CEO, Ms. Seema Aziz, began her retail career in 1985 when she co-founded Bareeze, one of Pakistan’s leading high-end fashion retailers, with her brother Hamid Zaman. Mr. Syed Raza Rahman, the Chief Operating Officer (COO) of the Company, looks after all day-to-day operations. He has 28 years of experience and has been associated with the Company for more than two decades. Mr. Syed Raza Rahman works with complete independence and reports to Mrs. Seema Aziz. Mr. Kamil Aziz, the Brand Head, has been associated with the Company for over 2 years. The position of CFO is held by Mr. Hasan Bilal, who is a qualified Chartered Accountant. He has been associated with the group for the past 8 years, with an overall experience of more than 14 years.

The Company operates through formal management committees: Executive, Investment, and Retail Committees. Each committee is led by the senior management team, including the Managing Director and Executive Director, along with relevant functional heads. The Executive Committee oversees overall operational performance and drives the implementation of strategic initiatives across the organization. The Investment Committee ensures adherence to defined risk parameters and alignment with the Company’s broader financial strategy, focusing on prudent capital allocation to support sustainable growth. Retail Committee focuses on retail sales strategy, product mix, pricing, distribution, promotions.

The Company’s MIS is a diversified & well-integrated technology framework supporting both corporate and front-end retail operations. SAP S4 HANA serves as the central ERP platform, complemented by RetailPro for retail operations, reflecting the Company’s commitment to long-term, mission-critical systems. Network infrastructure is secured through Cisco and Ruckus, while data protection and endpoint security are managed by Sophos and Symantec. Microsoft 365 enhances cloud-based productivity, communication, and analytics. The Company maintains most systems under regular annual or multi-year update agreements, with recent upgrades such as an IBM Server & SAN and Opera cloud-based room management highlighting a continued commitment to technological modernization and operational efficiency.

The Company utilizes intra-networking to connect all departments through a common network, with user-based controls ensuring secure access. Dedicated servers support structured data management and backup policies. To uphold a strong control environment, the Company has established an Audit Committee that ensures compliance with policies, enhances operational efficiency, and oversees the Internal Audit Department, which monitors operational performance, reinforces governance, and strengthens internal controls. The internal audit report is submitted directly to the Board of Directors (BOD).

During MY25, approximately 24.4mln MT of cotton was produced globally, compared to about 24.2mln MT in MY24. Throughout the year, low cotton production was observed in India and Pakistan. However, this was partly offset by increases in cotton production in China, the United States, and Brazil by roughly 9.7%, 19.4%, and 15.7%, respectively. The sector's rising dependence on imported cotton poses a supply-side risk. During the FY25, imports accounted for approximately 35% of the cotton supply (~11% in FY24), adding about USD 1.27bln (USD 448mln in FY24) to the country's import bill. Textile exports reached USD 17.9bln in FY25, a modest rise from USD 16.7bln the previous year, reflecting a 7.2% year-over-year growth. The largest contribution came from the composite and garments segment, at USD 14bln, which included the weaving segment at USD 1.8bln and the spinning segment at USD 0.7bln. The production of cotton cloth in FY25 declined by approximately 0.7% year over year, reaching around 877.1mln square meters. The renewable energy as input costs play vital role in the cost dynamics.

During FY25, about 25.3% of the cotton cloth produced was exported (compared to roughly 27.2% in FY24), with the rest used for the domestic market. The country's fabric exports fell by approximately 4.4% on YoY basis in FY25 (FY24: up about 5.8% on YoY basis), with approximately 23.4% of Pakistan's cotton cloth exports going to Bangladesh (compared to about 19.9% in FY24), followed by the USA with about 8.1% of cotton cloth exports (approximately 7.8% in FY24). The transition from the final tax regime to the normal tax regime is expected to affect the profitability of export-oriented units, with a 29% tax on profits and a super tax of up to 10%. Energy and finance costs are expected to stay within a range, given the projected reduction in interest rates and the absence of any major energy tariff increases. The textile & apparel sector recorded ~USD 3.21bln in exports in July–August 2025, up ~10% year-on-year. August 2025 alone saw a 7% YoY decline and a 9% month-on-month fall in exports of value-added textiles. The current trend is shifting from unstitched to ready to wear (Pret) collection. 

EGI holds a well known position in the retail sector as a diversified retailer. The Company’s key strength lies in its broad brand portfolio, which caters to customers across all age groups and demographics. By serving a diverse consumer base, the Company mitigates concentration risk and benefits from a higher value-added product mix, supporting its resilient market position.

During FY24, the Company experienced moderate growth, with total sales closing at PKR 27.2bln (FY23: PKR 25.5bln). A major portion of this revenue was generated from local markets, with Lahore contributing 33%, Karachi 13%, and Islamabad 8% of total sales. While exports constitute a minimal portion, e-commerce sales contribute around 10% to the total revenue. In FY25, the Company's growth continued, with revenue increasing by 10.6% to reach PKR 30.1bln, with exports amounting to PKR 74mln.

EGI has sustained its gross margins within a reasonable range over the last three years (FY25: 51.8%, FY24: 52.4%, FY23: 53.0%). During FY25, the net margins witnessed a decline due to the upward revision in wage rates and the continuation of adverse taxation measures implemented in the preceding fiscal year, leading to a contraction in net profits to PKR 2.7bln (FY24: PKR 3.4bln) with a net profit margin of 9.1% (FY24: 12.6%).

EGI operates a diversified portfolio of eight retail brands, including FRED, a dedicated hospitality group. The management has implemented renewable energy initiatives over time, including the implementation of a comprehensive solarization plan across its retail network and manufacturing facilities. These efforts aim to optimize energy costs and create a cushion in the cost structure. The Company is also in process to transform franchise based model to Company owned outlets models to enhance control, centralize and assure quality of services in eeach sale center. 

The Company fulfills its working capital requirements through a mix of short-term borrowings and internally generated cash flows. During FY24, the net cash cycle, although still at an elevated level, recorded at 148 days compared to 144 days in FY23. The Company’s short-term trade leverage increased marginally to 75.1% during FY24 (FY23: 72.7%), reflecting a higher reliance on trade-related financing. Meanwhile, the current ratio declined to 3.8x (FY23: 5.5x), though it still indicates a comfortable liquidity position. In FY25, net working capital days stood at 170, with inventory days at 187 and payables at 17. Whilst the current ratio is reported at 4.1x.

During FY24, the Company’s free cash flows from operations (FCFO) stood at PKR 4.6bln, reflecting an improvement compared to PKR 4.2bln in FY23. The interest coverage ratio, however, declined to 6.1x (FY23: 6.5x), primarily due to a sizeable increase in finance cost, which rose to PKR 1.1bln from PKR 741mln. In FY25, FCFO stood at PKR 4.5bln, with interest coverage improving to 14.6x.

The Company maintains a low-leveraged capital structure. During FY24, the Company’s leverage improved to 25.2% (FY23: 29.0%), reflecting an improvement in the equity position. The total borrowings stood at PKR 6.5bln in FY24  and FY23, while the same increased to PKR 7.0bln during FY25. Within this, long-term borrowings displayed a downward trend, declining to PKR 3.5bln from PKR 3.8bln, while short-term borrowings increased to PKR 2.2bln in FY24 from PKR 1.8bln in FY23. During FY25, the Long term borrowings clocked in at PKR 3.8bln and short term borrowings at PKR 2.3bln , mainly to support working capital needs. The leveraging ratio stood at 24.3%, with equity rising further to PKR 22.9bln.