Irfan Noman Brothers (Private) Limited (‘the Company’) was incorporated in Feb 1998 as a Private Limited Company under the Companies Ordinance, 1984 (now Companies Act, 2017).

Mr. Mukhtar Ahmad Sheikh, former Chairman of Rice Millers and Supplier Association, established a rice mill in 1960s and laid foundations of the Irfan Noman Group (‘the Group’). Over the years the Group managed to gain prominence in the rice sector and established another rice mill and also established rice farms.

The Company is primarily engaged in processing semi-processed non-basmati and basmati rice, which it exports to Malaysia and over 40 other countries. In recent years, the Company has experienced significant growth in its operations, underscored by the establishment of two processing units located in Port Qasim and S.I.T.E Karachi. The combined processing capacity of these units is 50 metric tons per hour, translating to an annual capacity of 420,000 metric tons. Additionally, the Company maintains a storage facility with a capacity of 55,000 metric tons per month. This expansion has resulted in a consistent upward trajectory in processing capacity, leading to a volumetric increase in the quantity of rice processed.

The company's major ownership is divided equally between two brothers and their respective sons. Mr. Noman Ahmad Sheikh holds the largest individual stake at 35%, and when combined with his son, Mr. Affan Bin Noman's 15% share, their family group controls exactly 50% of the company. The other brother, Mr. Irfan Ahmad Sheikh, owns 25%, while his two sons, Mr. Moaz Irfan and Mr. Sunaif Irfan, each hold an equal stake of 12.50%. This means the family group of Mr. Irfan Ahmad Sheikh also controls the remaining 50% of the company, resulting in a perfectly balanced ownership structure between the two branches of the family.

The Company is completely owned by the sponsoring family and the structure is seen as stable as the third generation has been successfully integrated in the family business. Formal succession planning would provide additional cushion to the stability.

The sponsoring family have been involved in the rice export business for over 6 decades and have witnessed multiple business cycles. The current sponsors have been associated with the Company for over 2 decades and have led to the prominence of the Company as one of the largest exporters of rice in the country.

The sponsor’s substantial net worth, which provides the financial capacity to support the Company during periods of distress.

The Company’s Board is dominated by the sponsoring family and includes three Executive Directors, and two Non Executive Directors. 

The board and management team is led by Mr. Irfan Ahmad Sheikh, the Chairman, who has been with the company since 1998, bringing extensive experience in the rice sector, including involvement in research and seed development and representing the company at various conferences globally. The next generation of directors includes two individuals who joined in 2024 and share a family history in the FMCG business: Mr. Affan Bin Noman, who graduated from York University with a major in Business & Society, serves as a Director assisting with purchase and production matters and received the prestigious Rice Export Trophy on behalf of the company in 2024. Also joining in 2024 is Mr. Sunaif Irfan Sheikh, who holds a Commerce degree from York University and is responsible for the newly established Solar Business division. Finally, Mr. Moaz Irfan Sheikh, who holds a Bachelor's Degree in Finance from York University, serves as the Director of Sales & Marketing.

The Board convened multiple times during FY25, with majority attendance to discuss pertinent matters. The minutes of these BOD meetings were well documented. To ensure effective governance, the Board has formed two committees, namely, (i) Audit Committee, and (ii) HR and Remuneration Committee.

The company's audit process for the financial statements ended June 2025 is nearing completion, with the report currently in the final review stage. The external auditors, Rahman Sarfaraz Rahim Iqbal Rafiq & Co, Chartered Accountants, are expected to issue an unqualified opinion, confirming that the financials are presented fairly in all material respects. This firm is highly reputed, as it holds a Quality Control Review (QCR) rating and is listed in Category 'A' of the State Bank of Pakistan's (SBP) approved panel of auditors.

The Company has optimized its organizational structure as per the operational needs. The Company operates through functions of Finance, Procurement, Internal Audit, Production, Sales, HR & Admin. All functional heads report to the Company’s CEO except Internal Audit and HR & Admin.

Mr. Noman Ahmad Sheikh, who has served as the CEO since 1998, possesses extensive and distinguished experience in the rice sector. His deep involvement includes pioneering rice research and seed development, actively participating in introducing new seed varieties from abroad, and representing Pakistan internationally. Notably, he has led delegations to China and participated in numerous rice conferences and seminars abroad. His expertise has been recognized nationally, as evidenced by his former role as Senior Vice Chairman of the Rice Exporters Association of Pakistan and his receipt of the Best Businessmen of the Year Gold Medal award from the Prime Minister of Pakistan.

The Company benefits from streamlined operations, a direct result of the extensive experience of its sponsors combined with a professional management team. To further ensure management effectiveness and efficiency, the company utilizes a dedicated Management Committee. This committee is functionally diverse, comprising the Directors, the GM Plant, the CFO, the CAO, the CIA, and the Head of HR & Admin.

The Company has a customized ERP system in place installed by Sidat Hyder & Co. MIS reports are regularly generated and reviewed by the Management for operational efficiency and decision-making.

The Company has an internal audit function in place, which provides an effective mechanism for identification and reporting the risks arising out of the business operations.

Pakistan’s rice sector remains a critical growth driver, with 2024/25 production projected at nearly 10 million tonnes—among the highest on record—supported by favorable weather and strong farm-level profitability, while exports generated close to USD 3.9 billion in FY 2023-24, though earnings in FY 2024-25 have softened due to weaker non-basmati demand and declining global prices, offset by continued strength in basmati exports aided by India’s partial export restrictions. The recent floods in Punjab, which damaged an estimated 10–12% of the crop, have disrupted supply chains, submerged farmland, and elevated domestic prices, creating significant challenges for both food security and export competitiveness. Given that paddy procurement constitutes the single largest cost in the rice business, working capital availability is essential to secure timely procurement and maintain operational continuity; however, the flood-induced crop losses and logistical disruptions have tightened supply and increased financing pressures, complicating procurement management and liquidity planning. Despite these headwinds, major exporters such as Garibsons (Private) Limited, Meskey & Feemte, Asif Rice Mills, MATCO Foods, Irfan Noman, K.K. Rice Mills (Pvt.) Limited, Jhulay Laal Parboiled Rice Mill, and Jasons Commodities collectively recorded sales of approximately PKR 370 billion in FY24—accounting for about 40% of national rice exports—underscoring the sector’s resilience, while long-term growth will depend on productivity gains, sustainability measures, and enhanced market access.

The Company is a leading player in the country’s rice exporters market and holds approximately 2.5% market share in terms of sales.

The Company's core business is the export of basmati and non-basmati rice, which drives the majority of its revenue, primarily through sales to key international markets including Indonesia, Malaysia, China, and Africa. International markets are strategically vital, accounting for approximately 85% of the company's total revenue, with the remaining 15% generated from local sales. Its rice export portfolio is heavily weighted toward non-basmati varieties, reflected in an export combination of about 90% IRRI (non-basmati) to 10% Basmati. To mitigate agricultural export risks, the Company has diversified its revenue streams through the trading of solar panels, corn, and polypropylene. Despite this diversification, the Company faced significant headwinds in FY25, leading to a 25.5% decline in revenue, dropping from approximately PKR 25.9 billion to PKR 19.29 billion. This contraction was attributed to weaker sales in both domestic and international markets. The decline in revenue was largely impacted by adverse pricing dynamics in the IRRI export market. Specifically, while IRRI export prices were stable in FY24 (ranging from $500 to $600 per metric ton), they fell sharply in FY25, settling between $400 and $450, due to India's surplus stocks. The sole exception was a specific Bulog tender priced at $555 per metric ton. It is also noted that the company executed most of its major exports in 2025 on a CNF (Cost and Freight) basis.

Despite facing a challenging revenue environment and rising input costs, the Company successfully improved its overall profitability during Fiscal Year 2025. The Gross Profit (GP) margin saw a healthy increase, rising to approximately 8.9% from 6.3% in FY24. This improvement was primarily achieved through effective operational efficiency and a successful reduction in raw material costs, which more than offset other rising expenses. However, this gain in GP margin did not fully translate to operating efficiency, as the Operating Profit margin actually declined to 0.9% in FY25, down from 2.6% in the prior year. Crucially, the Company's Net Profit margin showed a modest but significant increase, climbing to approximately 0.3% in FY25 compared to 0.1% in FY24. The main driver of this enhanced net profitability was a substantial improvement in financial health: finance costs plummeted by more than 50%, falling from PKR 647 million in FY24 to approximately PKR 210 million in FY25. Overall, the FY25 financial results demonstrate strong cost management and a dramatically improved capital structure, which successfully boosted net profitability despite operational pressures.

The sponsors are planning to add storage and processing facility at Faisalabad, Punjab to increase the Company’s footing in the basmati sector.

The company's working capital management saw a negative shift in FY25, with capital being tied up in operations for a longer period. The gross working capital cycle lengthened significantly to 51 days, up from 40 days in the previous year. This deterioration was almost entirely driven by a substantial increase in inventory days, which jumped from 19 days to 30 days, indicating a slower movement or higher holding of stock. While the elevated inventory negatively impacted the overall cycle, the company demonstrated improved efficiency in other areas. Trade receivable days remained stable at 21 days, showing consistent effectiveness in collecting payments from customers. Furthermore, payable days slightly improved, decreasing from 4 days to 3 days. However, these minor efficiencies in receivables and payables were not sufficient to counteract the increase in inventory. Consequently, the net cash cycle stretched to 48 days in FY25, compared to 36 days in FY24, suggesting that a larger amount of the company's capital is now committed to funding its day-to-day operations.

The company's capacity to service its debt obligations significantly strengthened in FY25, primarily due to a substantial reduction in finance costs, which fell from PKR 647 million in FY24 to PKR 210 million in FY25. This improvement is clearly reflected in the interest coverage ratio, which nearly doubled from 1.8x to 3.5x, indicating a much greater cushion for meeting interest payments. However, this positive debt servicing trend happened despite a considerable weakening of the core operational cash generation, as Free Cash Flow from Operations (FCFO) plummeted from PKR 673 million to PKR 173 million. Consequently, the ratio of FCFO over finance cost also slightly declined to 1.0x in FY25, down from 1.2x in FY24, suggesting that while the absolute cost of debt is lower, the cash flow derived from operations is only just sufficient to cover the reduced finance expenses.

The company maintained a highly leveraged capital structure in FY25, although its overall reliance on debt slightly decreased. The debt-to-equity ratio saw a modest improvement, falling from 58.8% to 56.7%. This minor change resulted from total debt slightly declining to PKR 3.52 billion (from PKR 3.57 billion) while equity increased to PKR 2,729 million (from PKR 2,679 million). A critical characteristic of the company's capital structure is its overwhelming reliance on short-term borrowings, which constitute a substantial 93.8% of total debt. This heavy concentration of short-term liabilities creates significant refinancing risk and leaves the company exposed to potential volatility in short-term credit markets. Thus, despite the marginal improvement in the overall leverage ratio, the capital structure remains vulnerable due to this high dependency on short-term financing, a dependency that is expected to continue going forward.