SRPL was incorporated as a private limited Company on 21 December 2023 in Pakistan under the Companies Act, 2017. The Company is a wholly owned subsidiary of SIL. The Company's registered head office is located at Servis House, 2 Main Gulberg, Lahore.

The Group traces its origins back to the late 1930s in Lahore, where its founders, Ch. Muhammad Saeed, Ch. Nazar Muhammad and Ch. Muhammad Hussain began manufacturing and supplying handbags and sports goods across the subcontinent. SIL was formally incorporated as a private limited entity in 1957 and later converted into a public limited company on September 23, 1959. In 1954, SIL installed a shoe manufacturing plant in the industrial area of Gulberg, Lahore, commencing large-scale footwear production the same year. Around this time, its first retail outlet on Mall Road was established, which later became a dedicated Servis store. In 2016, Servis Group launched its footwear retail network under the brand name “Shoe Box.” In 2022, this network was rebranded under the iconic heritage name “Servis.” In 2024, SIL transfer its Retail Undertaking to its wholly owned subsidiary namely, Service Retail (Private) Limited, through an approved Scheme of Arrangement.

The principal line of business of SRPL is to carry on the sale, trading, retail, wholesale, marketing, import, and export of footwear, bags, apparel, accessories, and other items/products. SRPL manages a nationwide retail network, which expanded to 280 outlets as of 6MCY25, up from 275 outlets in CY24. These outlets are strategically located across Pakistan to cater to a diverse customer base, with a majority presence in the Punjab province. SRPL’s retail operations are supported by a robust supply chain and centralized management structure, ensuring consistent product availability and service quality. Its product portfolio primarily comprises locally manufactured footwear, sourced from different vendors. Service Retail operates entirely in the domestic market, with growth entirely dependent on local demand dynamics and enhanced retail penetration.

SRPL operates as a wholly owned subsidiary of Service Industries Limited, which holds nearly 100% ownership in the Company. This close integration provides SRPL with strong strategic and financial backing from its parent entity, enabling synergies in brand recognition, supply chain management, and market outreach.

SRPL’s ownership structure is considered stable, as the controlling stake is held by Service Industries Limited, a well-established entity with over six decades of presence across multiple industries.

The business acumen of the sponsors is regarded as strong, anchored by the longstanding involvement of the sponsoring families who remain actively engaged in guiding the Company. With decades of experience in footwear the sponsors have consistently demonstrated strategic foresight and execution capabilities that have driven Company’s sustained growth. The sponsors have established SRPL’s flagship brand “Servis” as a household name in Pakistan. This proven track record of building scale, brand equity, and international reach underscores the sponsors’ robust business acumen.

SRPL being the entity of Servis Group maintains a healthy financial profile with substantial access to domestic market. By the close of CY 2024, the Servis Group reported a consolidated asset base of ~PKR 110.6bln and consolidated revenues of ~PKR 125bln, reflecting its robust financial position and market reach.

The Board of Directors of SRPL comprises five members, including the Chief Executive Officer (CEO). The composition reflects diversity in expertise across regulatory affairs, industry operations, and business leadership, supporting effective decision-making and strategic oversight.

Mr. Arif Saeed has served as Chairman of Service Global Footwear, Engineering Development Board, and founding Chairman of major public sector power companies, in addition to leading APTMA and Lahore Stock Exchange. Mr. Arif Saeed also serves on the governing boards of the Pakistan Cricket Board (PCB), Aitchison College and Pakistan Kidney and Liver Institute and Research Center (PKLI&RC). Mr. Omar Saeed has served as CEO of SIL (2011–2018) and currently serves as CEO of Service Long March Tyres and Servis Foundation, while also serving on boards of Nestlé Pakistan, Systems Limited, and Service Global Footwear. Mr. Hassan Javed is a director at SRPL, has served as CEO of Service Global Footwear and has also chaired the Pakistan Footwear Manufacturers Association and GESCO. Mr. Saif Javed serves as Head of a business unit at Service Global Footwear. Mr. Kashif Aziz, the CEO, Director on the Board of Speed Private Limited, and Board of Trustees for the Cadet College Hassan Abdal Endowment Fund Trust. He has served at British American Tobacco (BAT) as Brand manager where he held Senior Leadership positions across Pakistan, Vietnam, Korea, Hong Kong, and Australia. He served as a Global Brand Manager for Gold Leaf. He was also the Group Brand Manager Premium portfolio BAT for New Zealand, Soloman Island and PNG. He later built Shoe Box from scratch, a footwear brand, which he successfully transitioned into Servis, one of the fastest-growing and most efficient footwear businesses in the region.

The Board of SIL, the parent company of SRPL, convenes quarterly meetings with a predefined agenda to review SRPL’s management performance and ensure alignment with the Company’s strategic objectives. Proceedings are formally documented, and action items are communicated to relevant stakeholders for timely execution. To further strengthen governance, the formation of specialized committees could provide more focused oversight and facilitate efficient decision-making.

The external auditors are M/s. Riaz Ahmad & Co., Chartered Accountants, having satisfactory QCR Rating and also classified in category “A” on the SBP's panel of auditors. The auditor expressed an unqualified opinion on the financial statements of the Company for the year ending December 31st, 2024.

On group level, the Company is structured into multiple operational entities, each overseen by specialized management teams tailored to their respective functions. Clear reporting lines, defined roles, and accountability mechanisms ensure operational efficiency and effective oversight. The Company also benefits from the stability of having all key positions filled, with senior management experienced in leading both domestic operations and international ventures. This professionalized governance structure underpins SRPL’s ability to effectively discharge its operational responsibilities and support sustainable growth of Servis Group.

The management team comprises seasoned professionals with extensive industry knowledge and functional expertise. Mr. Kashif Aziz, the CEO, Director on the Board of Speed Private Limited, and Board of Trustees for the Cadet College Hassan Abdal Endowment Fund Trust. He has served at British American Tobacco (BAT) as Brand manager where he held Senior Leadership positions across Pakistan, Vietnam, Korea, Hong Kong, and Australia. He served as a Global Brand Manager for Gold Leaf. He was also the Group Brand Manager Premium portfolio BAT for New Zealand, Soloman Island and PNG. He later built Shoe Box from scratch, a footwear brand, which he successfully transitioned into Servis, one of the fastest-growing and most efficient footwear businesses in the region. He is supported by executives including Mr. Badar Ul Hassan (Group CFO), a Chartered Accountant with 25 years of experience. Other senior team members include specialists in finance, technical operations, human resources, sales, and marketing, many of whom have long tenures with the Servis Group, ensuring both continuity and depth of expertise. The mix of family leadership and professional managers provides a well-rounded foundation for strategic execution.

With the support of an experienced team of professionals, SRPL has gradually strengthened its business profile, expanding operations across various cities in Pakistan over the years. The management functions are clearly defined, enabling effective pursuit of strategic objectives. The Company’s ability to execute its expansion strategy demonstrates management’s capacity to deliver on stated plans.

The Company is presently using Microsoft Dynamics 365 Finance & Operations. Its advanced retail-focused features, including seamless POS integration, demand forecasting, and omni-channel capabilities, make it better aligned with SRPL’s business model and growth trajectory. The deployment of such technology infrastructure enhances efficiency, ensures transparency, and enables management to monitor performance effectively. This setup is in line with industry best practices for information-based decision-making.

For operational efficiency and appraisal of internal controls, the Company has an in-house team of qualified professionals at all levels to implement and monitor the policies and procedures. Segregation of duties and clarity of roles minimize operational risk, while occupancy of key positions supports continuity of processes. A centralized internal audit function further strengthens the framework by ensuring compliance with established controls and driving continuous improvements. The integration of operations with ERP-based systems provides additional built-in checks, thereby reducing the scope for conflict of interest and reinforcing a process-driven culture.

Pakistan’s footwear industry is a key segment of the manufacturing sector and fulfills an essential consumer need, employing over one million people. Production is largely concentrated in Lahore, Gujranwala, and Sheikhupura, while domestic demand is estimated at ~600 million pairs annually, according to the Trade Development Authority of Pakistan (TDAP). The organized sector, comprising players such as STYLO, BATA, NDURE, SRPL, and BORJAN, accounts for a meaningful share of the market, while the cottage industry continues to dominate the low-cost segment. In FY24, footwear exports amounted to ~USD 162 million (~21 million pairs), reflecting a ~9% YoY decline due to weaker international demand. Europe, the US, and the Middle East remained the primary destinations, with leather footwear dominating at ~77% of export revenues. The sector’s outlook is underpinned by resilient local demand, moderate export potential, and possible policy facilitation. However, rising input costs, exchange rate volatility, and muted external demand remain key challenges. Moreover, a sizeable portion of domestic demand is still met by the unorganized sector, particularly in low- to mid-priced categories, creating both competitive pressure and an opportunity for conversion to the organized channel.

Within the retail footwear segment, SRPL holds a dominant position among the organized players catering to domestic demand. The Company competes on price while offering a diverse product portfolio that caters to men, women, and children across various income brackets. Its broad retail footprint and accessible pricing strategy enable it to capture a sizeable share of the mass market, while also tapping into mid-tier urban demand. This positioning not only enhances brand visibility but also allows SRPL to withstand competitive pressures from both organized players and the unorganized/grey market.

The Company reported topline of ~PKR 12,812mln in CY24. In 6MCY25, revenues stood at ~PKR 7,179mln, reflecting a ~12.7% half year over half year growth. The topline growth was largely driven by volumetric expansion, supported by store network expansion and resilient local demand. Sales remained concentrated in men’s and women’s footwear, supplemented by contributions from kids’ footwear, accessories, and apparel.

The Company’s gross profit margin stood at 50.4% in CY24 and 49.9% in 6MCY25, reflecting stability at the gross level. Operating profit margin remained steady at 15.0% in both periods, indicating effective control over operating expenses despite retail expansion and associated overheads. At the net level, profitability improved notably, with net margin improving to 5.6% in 6MCY25 from 3.1% in CY24. This improvement primarily reflects better management of financial costs and a stronger emphasis on bottom-line performance.

SRPL is committed to advancing its financial and operational sustainability through continuous product diversification and innovation. While on the local footwear segment the Company actively enhancing its product reach by expanding its nationwide retail outlet network. To mitigate competitive pressures from local players, the Company is diversifying its product offerings in retail outlets which include branded apparel, handbags, accessories etc.

The Company’s inventory days stood at 100 in CY24 and in 6MCY25 on the back of sustainable inventory management and demand forecasting, which supported faster stock turnover across retail outlets. Trade receivable days remained minimal at 1 in CY24 and in 6MCY25, reflecting a predominantly cash-based sales model and strong receivables control. However, payable days have been decreased from 33 days in CY24 to 27 days in 6MCY25 due to higher purchasing trend in 1st half of the year. As a result, the net working capital cycle stood at 68 days in CY24 and 74 days in 6MCY25.

SRPL’s interest coverage ratio improved from 4.8x in CY24 to 11.5x in 6MCY25, reflecting stronger cash flow generation relative to financing obligations. The debt payback period stood at 0.7x in CY24 and reduced to Nil in 6MCY25, indicating a manageable repayment profile supported by operational cash flows.

SRPL’s capital structure remains leveraged, with a leverage ratio of ~75.9% in CY24, reflecting significant reliance on debt financing. This slightly reduced to 68.8% in 6MCY25. The debt profile is primarily short-term in nature, availed mainly to finance working capital requirements.