Nimir Resins Limited was initially incorporated in 1964 as a Private Limited Company and got listed on the Pakistan Stock Exchange (PSX) in 1991.

In 2010, the management entered into an amalgamation arrangement with Descon Chemicals (Pvt) Limited as a result of which the name of the Company was changed to “Descon Chemicals Limited”. At the beginning of 2016, the Company was re-acquired by the Nimir group and was renamed Nimir Resins Limited.

The Company’s product offerings are categorized under six Business Lines which cater to specific sectors of the industry (i) Textile Auxiliaries and Binders,(ii) Unsaturated Polyester Resins, (iii) Coatings and Emulsions, (iv) Pulp & Paper Chemicals, (v) Adhesives and Graphics and (vi) Trading and Exports.

The ownership of Nimir Resins Limited comprises both corporate and individual sponsors. Rudolf Pakistan (Private) Limited holds the largest stake at ~40.09%, positioning it as a key strategic shareholder. Among individual sponsors, Zafar Mehmood holds ~6.81%, Khalid Mumtaz Qazi ~6.62%, Aamir Jamil ~5.16%, Imran Afzal ~4.98%, and Umer Iqbal ~4.63%. Collectively, the sponsors retain a significant combined shareholding of ~80.16%, which includes both individual and corporate holdings. This structure ensures a well-distributed ownership base that promotes strategic alignment, governance depth, and long-term commitment to the Company’s sustainable growth.

Executive Directors, have strong knowledge of the industry and extensive experience in relevant fields and have the power to direct relevant activities of the Company. Business roles are equally divided among the Sponsors and the agreements are legally documented.

In 2016, the Sponsors acquired this Company from Descon Group and changed the name to Nimir Resins Limited. At that time the Company was generating bottom-line losses. The business acumen and diverse experience of the Sponsors resulted in a complete turnaround for the business

Nimir Resins Limited benefits from the backing of its parent company, Nimir Industrial Chemicals Limited, under which it operates as a subsidiary. The parent company has extended a corporate guarantee in favor of Nimir Resins, reflecting a strong level of commitment and financial linkage. This arrangement enhances the Company’s financial flexibility and provides an added layer of support, particularly during periods of financial stress, thereby reinforcing stakeholder confidence in the Company’s credit profile. 

The governance structure of the Company is designed to keep the company compliant with the code of corporate governance (CCG) for listed entities; eight members on the board exist with three independent directors. The board has two sub-committees; (i) Audit Committee & (ii) Human Resource and Remuneration Committee.

Members on the Board majorly include sponsors/pioneers possessing sufficient knowledge and expertise of the related business. The Chairman of the Board, Mr. Sheikh Amar Hameed, has been a pioneer in establishing Nimir Group in Pakistan. Prior to their association with the Nimir group in 1989, Mr. Amar was a banking veteran and served in the banking industry for more than 11 years.

The Board has formed two sub-committees; Audit and Human Resource & Remuneration Committee. Mr. Pervaiz Ahmed Khan is the Chairman of both committees. Attendance of board members remained satisfactory during the period.

Crowe Hussain Chaudhury & Co. Chartered Accountants are the External Auditors of the Company. They expressed an unqualified opinion on the Company’s financial statements for June 2024. The auditors are listed under Category ‘A’ of SBP’s panel of auditors.

The structure of the Company is well-defined, and the departments are in place each headed by an experienced manager. These department 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 also the CEO of Nimir Industrial Chemicals Limited. He is a fellow of the Institute of Cost & Management Accountants of Pakistan since 1991. He has more than 31 years of experience and has been associated with the Nimir group for over ~23 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 was installed in July 2016 as the MIS to ensure a reliable financial system and reporting. The highly automated manufacturing and operational procedures have led to improved operational efficiencies.

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.

The resins industry is closely linked to economic activity and infrastructure development, with demand primarily driven by the paints, coatings, and textile sectors. It remains highly competitive, with margin pressures stemming from a large unorganized segment. The industry functions largely as a price taker due to its reliance on imported raw materials and limited pricing flexibility, making it vulnerable to global supply chain disruptions and oil price volatility. During FY25, macroeconomic indicators began to stabilize, supported by improved foreign exchange availability and a gradual decline in interest and inflation rates supporting consumer confidence. The chemical sector, segmented into essential and non-essential chemicals, saw mixed trends. Nimir Resins Limited, operating primarily in the non-essential category through its specialized product lines which includes surface coating resins, polyesters, and textile auxiliaries remained sensitive to fluctuations in industrial activity. Nonetheless, the Company’s diversified portfolio, operational efficiencies, and affiliation with the Nimir Group supported its resilience amidst a competitive and import-dependent landscape.

Nimir Resins is becoming one of the market leaders in the domain of coating and emulsions through substantiating unique technological strength, robust research and development, and compliance with international quality standards. In the case of textile chemicals, Nimir Resins is currently in the phase of affirming its footprint and tempering its position to grow and sustain itself as a major player in this sector.

During 9MFY25, the Company recorded revenues of ~PKR 7,029mln, reflecting an annualized increase of ~9.2% (FY24: ~PKR 8,585mln; FY23: ~PKR 9,371mln). This topline growth was primarily driven by a ~11% increase in sales volumes within the Coating, Emulsion, and Polyester (CEP) segment. The improved performance was supported by gradually stabilizing macroeconomic conditions in Pakistan, which contributed to a moderate recovery in industrial demand.

In 9MFY25, the gross margin declined to ~11.0% (FY24: ~13.6%; FY23: ~12.9%), primarily due to elevated raw material costs and pricing pressures. The operating profit margin also compressed to ~8.0% (FY24: ~10.3%; FY23: ~10.6%), reflecting the impact of increased input costs and operational overheads. Net profit margin stood at ~2.8% (FY24: ~3.1%; FY23: ~4.1%), mainly affected by higher energy expenses. 

Going forward, the Company maintains a positive outlook on topline growth, supported by its strategic focus on the Coating and Emulsion segment, which is expected to be a key driver of expansion as Nimir Resins strengthens its position as a leading player in this category. Additionally, the recent inclusion of Rudolf Pakistan (Private) Limited as a prominent shareholder holding a ~40% stake is expected to further reinforce the governance framework and enhance operational synergies. This strategic partnership supports the Company’s overall efficiency and long-term sustainability.

In 9MFY25, inventory days increased to ~92 days (FY24: ~87 days; FY23: ~76 days), indicating a longer inventory holding period. Trade receivable days remained steady at ~82 days (FY24: ~82 days; FY23: ~77 days), reflecting consistent collection cycles. As a result, the gross working capital cycle expanded to ~175 days (FY24: ~169 days; FY23: ~153 days). Trade payable days stood at ~24 days (FY24: ~31 days; FY23: ~22 days), leading to a net working capital cycle of ~151 days in 9MFY25 (FY24: ~138 days; FY23: ~131 days), indicating a further stretch in the Company's liquidity cycle. 

The Company’s Free Cash Flow from Operations (FCFO) declined to ~PKR 455mln in 9MFY25 (FY24: ~PKR 736mln; FY23: ~PKR 874mln), reflecting margin compression and higher working capital requirements. Interest coverage ratio stood at ~2.6x in 9MFY25 (FY24: ~2.4x; FY23: ~3.1x). The debt coverage ratio (FCFO / Finance Cost + CMLTB + Excess STB) declined to ~1.7x in 9MFY25 (FY24: ~1.6x; FY23: ~2.0x).

As of 9MFY25, the Company’s leverage stood at ~36.1% (FY24: ~37.4%; FY23: ~25.1%). Total borrowings reached ~PKR 1,869mln in 9MFY25 (FY24: ~PKR 1,950mln; FY23: ~PKR 1,050mln), of which short-term borrowings accounted for ~PKR 1,817mln (FY24: ~PKR 1,888mln; FY23: ~PKR 851mln). The increase in borrowings reflects the Company’s need to finance working capital in a high-cost environment.