Nimir Industrial Chemicals Limited(NICL) was incorporated in Pakistan in February 1994 as a public limited company and got listed in the Pakistan Stock Exchange (PSX) in 1996.

Nimir Industrial Chemicals Limited was initially known as “Ravi Alkalis” – a Private Limited company. The company was acquired by Nimir Group in 1994 after which its name was changed to Nimir Industrial Chemicals Limited.

The Company is engaged in the manufacturing and sale of oleochemicals and chlor alkali products, including distilled fatty acid (DFA), soap noodles, stearic acid, glycerin, caustic soda, aerosol cans, and a range of industrial chemicals. Operations are carried out through a single manufacturing facility located on Faisalabad Road, approximately 14.8 km from Sheikhupura. The oleochemicals segment has an installed production capacity of ~140,000 metric tons, while the chlor alkali line offers a capacity of ~158,400 metric tons. 

The Company's major shareholding was previously held by Nimir Resources (Private) Limited, the group’s holding company established by five individuals who assumed management control in 2011. Currently, the ownership is held directly by the individual sponsors: Mr. Zafar Mehmood (~19.5%), Mr. Khalid Qazi (~11.4%), Mr. M. Yahya Khan (~11.8%), Mr. Imran Afzal (~9.6%), and Mr. Umer Iqbal (~6.6%). In addition, a key executive, Mr. Aamir Jamil, holds a stake of ~5.2%.

The Executive Directors possess in-depth industry knowledge and extensive experience in their respective fields, enabling them to effectively oversee the Company's key operational activities. Business responsibilities are equitably distributed among the Sponsors, with roles and agreements formally documented.

The business acumen of the Sponsors in relation to the related business is considered strong since most of the Sponsors are pioneers of the Nimir Group and have been associated with it since its inception i.e. 1994. They possess extensive knowledge and exposure to the industry. The skills level of the sponsors is reflected in healthy financial performance indicators which is evident from the steady growth of the business since its takeover by the current stakeholders.

Nimir Group constitutes Nimir Industrial Chemicals Limited, Nimir Resins Limited, Nimir Chemcoats (Pvt) Ltd & Nimir Energy Limited (acquired recently from Sunsation Energy (Pvt) Ltd) which are involved in profit-making business activities.

The Board of Directors of Nimir Industrial Chemicals Limited comprises nine members, structured to ensure compliance with the Code of Corporate Governance (CCG) for listed entities. The board, includes: Zafar Mahmood, the Chief Executive Officer; Executive Director Aamir Jamil; Non-Executive Director and Chairman Muhammad Saeed uz Zaman; Executive Director Imran Afzal; Non-Executive Director Saqib Anjum; Independent Directors Javed Saleem Arif, Parveen Akhtar Malik, and Mrs. Humaira Shazia ; and Nominee Director - PBICL, Abdul Jaleel Shaikh.

The Board of Directors benefits from a diverse mix of skills and experience. The Chairman, Mr. Muhammad Saeed uz Zaman, holds an Electrical Engineering degree and has extensive senior management experience in both public and private sectors. Mr. Zafar Mahmood, the CEO, is a highly experienced professional with over 25 years in MNCs and is a fellow of the Institute of Cost & Management Accountants of Pakistan, having been with Nimir for about 30 years. Mr. Aamir Jamil, an Executive Director, is a certified management accountant with an MBA and over 29 years of diversified experience in financial planning, accounting, and corporate affairs.

The Board has two sub-committees namely Audit Committee and Human Resource and Remuneration Committee. During the period, several boards, Audit Committee and HR & Remuneration Committee meetings were held. Attendance recorded in all the meetings was satisfactory.

EY Ford Rhodes Chartered Accountants – one of the big four firms, are the External Auditors of the Company. They expressed an unqualified opinion on the Company’s financial statements for the periods ending June 2024.

The Company operates through nine departments, each headed by an experienced manager. These departments include (i) Production (ii) Marketing & sales (iii) Accounts and Finance (iv) Human Resource and Admin (v) Supply Chain (vi) Information Technology (vii) Research & Development (viii)Quality Control & (ix) Quality Assurance.

The CEO, Mr. Zafar Mehmood, is a fellow of the Institute of Cost & Management Accountants of Pakistan since 1991. He has over ~33 years of experience and has been associated with Nimir group for over ~23 years. Mr. Khalid Qazi, the Director Finance, is an MBA and has been associated with the group for~29 years.

Senior management meetings are conducted regularly for discussion and decision-making purposes. In addition, weekly management meetings are also held in which performance and targets of all the concerned departments are discussed in detail.

SAP Business One installed as MIS for provision of reliable financial system and reporting is assessed. Highly automated manufacturing and operational procedures transpire into operational efficiencies. This management application was installed in July-2012 by External Vendor – Abacus Consulting and is annually updated based on Annual Maintenance Contract with them.

The control environment is strengthened by the role of the Internal Audit department provides periodic detailed reports to the Audit Committee for review and assessment and to take necessary remedial actions, where needed. Separate Internal Audit reports for each financial process, including inventory management, payroll, procurement, accounts receivables and accounts payable along with the risk rating matrix for each process are prepared and shared with the Audit Committee.

During FY25 country’s macroeconomic conditions started to improve, with stabilization of foreign exchange, gradual reduction in interest rates and inflation contributed in overall improvement in consumer confidence and buying patterns, however due to ongoing geopolitical tensions have temporarily altered the consumer buying preferences to local brands and restricted the overall growth in this segment. The chemical sector is divided into essential chemicals (e.g., Caustic Soda, Hydrochloric Acid) and non-essential chemicals (e.g., Personal and Home Care ingredients)—also experienced varying demand trends. While demand for essential chemicals remained relatively stable due to their industrial necessity, non-essential chemical segments faced muted growth as consumers prioritized basic needs over discretionary products.

NICL has captured the majority market share in the chemical industry. The company is considered a pioneer in new technologies in Pakistan and introduced oleo-chemicals, soap noodles, international-scale soap finishing and aerosols.

During 9MFY25, NICL experienced a ~10% increase in its Oleochemical sales volumes, while the volumes of Chlor Alkali products declined by ~26%. As a result, overall sales revenue registered a modest growth of ~3.6%, with the Company’s top line reaching ~PKR 32,583mln during 9MFY25 (FY24: ~PKR 41,925mln).

The Company’s gross margin increased to ~15.6% in 9MFY25 (FY24: ~14.7%; FY23: ~14.6%). Operating profit margin stood at ~12.7% in 9MFY25 (FY24: ~12.2%; FY23: ~12.6%). Meanwhile, net profit margin improved ~4.1% in 9MFY25 (FY24: ~2.4%; FY23: ~4.2%), due to cost controls at different levels.

All major capital projects, including the Liquid Chlorine and Chlorinated Paraffin Wax (CPW) plants, have transitioned to full commercial operations. These additions are expected to support revenue stability and margin enhancement over the medium term, as the Company continues to strengthen its presence across key chemical segments. Furthermore, as part of its strategic growth initiatives, the Company has acquired a manufacturing facility in Hub, Balochistan, from Procter & Gamble Pakistan (Private) Limited. This acquisition is expected to augment production capabilities in Soap Finishing and Oleochemicals, improving the Company’s ability to serve the evolving requirements of its multinational clients and reinforcing its footprint in the southern region. 

During 9MFY25, the Company’s inventory holding period improved to ~65 days (FY24: ~75 days; FY23: ~67 days), reflecting better inventory management. However, trade receivable days increased to ~58 days (FY24: ~45 days; FY23: ~47 days), indicating a lengthening in collections. As a result, the gross working capital cycle slightly extended to ~123 days (FY24: ~120 days; FY23: ~114 days). Trade payable days also increased to ~15 days (FY24: ~13 days; FY23: ~11 days), leading to a marginal increase in net working capital days to ~108 (FY24: ~107 days; FY23: ~103 days).

The Company generated free cash flow from operations (FCFO) of ~PKR 3,698 mln during 9MFY25, compared to ~PKR 5,251 mln in FY24 and ~PKR 5,122 mln in FY23. The interest coverage ratio improved to ~2.7x (FY24: ~1.6x; FY23: ~2.4x), primarily driven by enhanced earnings. The debt coverage ratio (FCFO / Finance Cost + CMLTB + Excess STB) remained stable at ~1.3x in 9MFY25 (FY24: ~1.1x; FY23: ~1.3x), indicating adequate capacity to meet financial obligations.

As of 9MFY25, the Company maintained a leveraged capital structure of ~65.5% (FY24: ~69.3%; FY23: ~71.3%). Total borrowings stood at ~PKR 17,679 mln (FY24: ~PKR 18,884 mln; FY23: ~PKR 19,543 mln), of which ~PKR 12,302 mln (FY24: ~PKR 12,869 mln; FY23: ~PKR 12,478 mln) comprised short-term borrowings. The debt was primarily deployed to support the Company’s operational scale and meet working capital requirements.