Al-Khair Rice Mills Private Limited (herein referred to as "Al-Khair" or "The Company") is a private limited Company.

Al-Khair is associated with well-established players in the oil marketing and distribution segments. The Group also has a presence in oil logistics, organic farming, and real estate segments. In 2009, Mr. Javed tapped into the rice trading business. In 2012, the oil distribution channel was formally incorporated as Sitara Petroleum. The Group then formed an OMC; Gas & Oil Petroleum. In 2012, rice trading channel was formally incorporated as Al-Khair Rice Mills. Initially, the Company was established as a partnership concern and was run and managed by the sponsoring family. In 2019, Al-Khair's legal status was changed to a private limited company. Today, the Company holds a membership of the Rice Export Association of Pakistan (REAP).

The Company’s core operation includes processing and selling Basmati rice. The Company majorly deals in different variants of Basmati including 1121 Basmati classic and premium, Super Basmati rice, and PK 386 Long grain. The processing plant is located at Okara and spans 25 acres. Initially, the Unit had a processing capacity of 15MT/hr. Later, the installed capacity was enhanced to 25MT/hr. Lately, the Unit's capacity is enhanced to 30MT/hr. Al-Khair has the latest imported machinery in place and the plant is a complete manufacturing composite that is capable of performing all production stages: Pre-cleaning, Drying, Color Sorting, De-stoning, Polishing, and Packing. There are 4 storage silos, having 3,250MT capacity each. The focal attention is the quality and its target market. Al-Khair Rice Mills operates under the brand name "Go Grains," serving both domestic and international markets. The company exports its products to various regions, including the Middle East (notably the UAE and Saudi Arabia), as well as Russia and Europe.

The Company is wholly owned by the sponsoring family, with the shareholding structure comprising Mr. Javed Iqbal holding 80% stake and Mr. Siddique Javed holding the remaining 20%.

The ownership structure of the Company is notably stable, as it is entirely held by the sponsoring family. This consolidated ownership framework minimizes the potential for conflicts and ensures unified decision-making. With all shares vested within the family, the Company benefits from a cohesive vision and a strong commitment to its long-term growth and sustainability.

The GO Group is owned and operated by three brothers, each bringing specialized expertise to their respective businesses. Mr. Javed Iqbal oversees Al-Khair Rice as the Chief Executive Officer, a role in which he leverages his extensive 40 years of experience in the agriculture sector, specializing in the oil and rice industries. He holds a master’s degree in business education from Punjab University, providing him with a solid foundation in business management and strategic planning. In addition to his leadership role at Al khair Rice Mills, Mr. Javaid serves as a Director at Go Agro Pvt Limited, where he contributes his expertise to enhance the company’s strategic direction and operational success. His long-standing career is marked by a commitment to industry excellence and innovation, driving growth and efficiency in the agricultural sector. Mr. Tahir Iqbal manages Sitara Petroleum as the CEO. He is a veteran of the Retail & Oil Transportation sector with rich experience in the field spanning more than 30 years. Mr. Khalid Riaz leads GO Petroleum as the C.E.O of the Company. Mr. Khalid Riaz is a veteran of the retail and oil transportation sector with rich experience in the field spanning more than 35 years. In 1979, at a very young age, he started his career by joining his father’s family business which dealt in petroleum products. In 1981, he started his first retail outlet and went onto opening new retail outlets. In 1998, he started his logistics services, which eventually became a big logistics network providing services to major Oil Marketing Companies (OMCs) in Pakistan. In 2011, Khalid Riaz came up with the idea of starting an OMC, which was taken forward. He partnered with Sheikh Shehzad Mubeen & Bilal A. Ansari and formed GO. Sitara Heights is managed by Mr. Khalid Riaz and Mr. Tahir Iqbal.  Company’s principal line of business is development of residential and commercial properties including gated communities and apartments, commercial markets, multistoried building for offices, shopping centers, restaurants and leisure facilities.

Al-Khair Rice is an integral part of the GO Group, which encompasses a diverse portfolio of businesses, including Gas and Oil Limited, Sitara Petroleum, and Sitara Heights. The financial strength of the sponsoring family is robust, underpinned by their extensive involvement in key sectors such as oil marketing, logistics, organic farming, and real estate. The Group's strategic decision to acquire a 40% stake in Aramco has significantly bolstered its f inancial position and operational capabilities. This acquisition not only enhances the Group's market presence but also reinforces its commitment to sustained growth and diversification across its business verticals.

The Company's BoD comprises two Executive Directors only. Mr. Javed Iqbal and Mr. Siddique Javed.

Mr. Javaid Iqbal  is the Chief Executive Officer of Al khair Rice Mills Pvt Limited, a role in which he leverages his extensive 40 years of experience in the agriculture sector, specializing in the oil and rice industries. He holds a master’s degree in business education from Punjab University, providing him with a solid foundation in business management and strategic planning. In addition to his leadership role at Al khair Rice Mills, Mr. Javaid serves as a Director at Go Agro Pvt Limited, where he contributes his expertise to enhance the company’s strategic direction and operational success. His long-standing career is marked by a commitment to industry excellence and innovation, driving growth and efficiency in the agricultural sector.

The Directors are actively involved in the management of the Company to oversee and manage the Company's operations, ensuring direct involvement in strategic and operational decision-making. However, the Board does not currently have any sub-committees in place to provide specialized support or assistance in governance or management functions.

Ilyas Saeed & Co. Chartered Accountants have been appointed as the auditors for the Company. The firm satisfies QCR ratings and is classified in the ‘A’ category of SBP panel of auditors. In the year ended 31-Aug-24, the auditors issued an unqualified opinion.

The Company operates through Procurement, Finance, Sales & Marketing, HR, and Operations. The Company is supported by a highly experienced team, ensuring effective management and operational excellence. All managerial staff at both the head office and the factory report directly to the Directors, enabling streamlined communication, close oversight, and prompt decision-making across all functions. This structure fosters a cohesive workflow and alignment with the Company’s strategic objectives.

Mr. Javed, the Chief Executive Officer and Chairman of the Board, brings over 26 years of extensive experience to the business. Prior to the formal establishment of Al-Khair, he was actively involved in the family’s rice farming and trading business, where he honed his expertise in agricultural practices and supply chain management. His deep industry knowledge and strategic vision have been instrumental in driving the Company’s growth and success.

The management structure currently lacks effectiveness due to the absence of formal management committees. This gap presents an opportunity for improvement, as the establishment of such committees could provide specialized oversight, streamline decision-making processes, and enhance overall governance. By implementing these committees, the Company could achieve more efficient management and better alignment with strategic goals.

The Company currently utilizes Oracle ERP software for internal processes and information dissemination, ensuring efficient management of operations. However, in line with its growth and evolving needs, the Company plans to transition to SAP ERP software in the near future. This shift is aimed at enhancing system capabilities, improving integration across departments, and supporting the Company’s long-term strategic goals through more advanced and scalable solutions.

The internal audit function is currently managed at the Group level. Moving forward, the Group intends to strengthen its control environment by expanding the internal audit team, with a particular focus on Al-Khair. This initiative aims to improve oversight, ensure greater transparency, and enhance the effectiveness of risk management and compliance processes within the Company.

The rice industry is characterized by a narrow global supply surplus and significant local production volatility driven by climatic factors. Globally, rice is a critical staple for over half the world's population, with the market dominated by the Asian region, where China and India collectively account for approximately 55% of global production. In Marketing Year 2025 (MY25), global production grew by 3.2% to roughly 540.8 million MT, while consumption rose to 532.9 million MT. India's influence is particularly strong; the removal of its non-basmati export ban in late 2024 led to a nearly 43% surge in its exports for MY25, reaching 25.0 million MT. This narrow gap between global production and consumption leaves the market highly sensitive to supply shocks, weather disruptions like El Niño, and shifts in export policies by key producers. In Pakistan, rice is the second main staple food and the third-largest export commodity, contributing about 11.7% to the "important crops" agricultural segment. The local industry is geographically specialized, with Punjab producing 100% of the country's premium Basmati rice and Sindh focusing on non-basmati varieties like IRRI-6, which are largely exported to Africa. However, local production in Fiscal Year 2025 (FY25) declined by 3.0% to approximately 9.7 million MT due to water constraints, climatic variability, and high input costs. While the area under cultivation increased by 8.3% to 3.9 million hectares, yields fell by 7.4% to 2.5 MT/Ha, lagging significantly behind regional leaders like China (7.2 MT/Ha) and Vietnam (6.2 MT/Ha). The sector faces a complex risk environment, primarily due to high sensitivity to climate events. For example, 2025 flooding in Punjab is estimated to have damaged between 7.3% and 12% of the rice area, posing a significant threat to both domestic supply and exportable surplus for FY26. Financially, the industry is navigating margin pressures as average export prices fell by 9.5% for Basmati and 13.7% for non-basmati in FY25. Despite these challenges, Pakistan maintained its position as the world's 9th largest rice producer in MY25, with a stable outlook for FY26 that remains cautious due to the recent flood-related crop losses.

Al Khair's primary revenue stream is generated from the sale of Basmati rice, a product that underpins its stable market position. Additionally, the company's strength is reinforced by support from its group, which contributes to its operational stability and overall performance.

The Company’s financial performance in FY25 was characterized by an extraordinary trajectory, marked by a 65.1% surge in total revenue that signals a significant expansion of its market footprint. While the domestic segment remains the primary cornerstone of the business—accounting for a dominant 76% of total turnover—local sales demonstrated robust organic health with a 27% year-on-year increase, rising from PKR 4,447 million to PKR 5,649 million. This steady appreciation in the local market reflects high brand equity and a resilient capture of domestic demand, providing the necessary capital stability to fuel more aggressive growth initiatives elsewhere. The most transformative development of the fiscal year, however, lies in the Company’s international pivot. Export revenue underwent a monumental shift, escalating from a negligible PKR 36 million in FY24 to PKR 1,754 million in FY25, now contributing 17% to the total sales mix. This exponential growth indicates a successful penetration of foreign markets and a strategic diversification of the revenue base. By reducing its near-exclusive reliance on the local economy, the Company has effectively enhanced its risk profile, creating a valuable foreign currency hedge and establishing a dual-engine growth model that balances domestic market leadership with rapid global scaling.

While the Company achieved an impressive 65.1% growth in top-line revenue, the fiscal year was characterized by notable margin compression at the upper levels of the income statement. The Gross Profit (GP) margin contracted to 10.1% (FY24: 11.7%), a decline primarily driven by escalating raw material costs and inflationary pressures within the supply chain. This erosion of pricing power at the production level cascaded down to the operating profit margin, which settled at 9.4% compared to 10.7% in the preceding year. This trend suggests that while sales volumes surged, the Company faced significant challenges in fully passing on increased input costs to its customers, leading to a temporary squeeze on core operational profitability. In a strategic divergence, however, the Net Profit Margin demonstrated a resilient upward shift, improving to 3.0% from 1.7% in FY24. This bottom-line enhancement amidst declining operational margins is a direct result of aggressive capital restructuring and prudent treasury management. A substantial reduction in finance costs, which were contained at PKR 343 million, acted as a critical buffer. By de-leveraging the balance sheet or benefiting from a more favorable interest rate environment, the Company successfully decoupled its final profitability from its operational cost hurdles. Consequently, the fiscal year concludes with a lean and more financially efficient bottom line, even as the Company navigates a high-cost manufacturing environment.

The Company maintains a robust production baseline of 30MT/hr, a key pillar of economic sustainability strategy. By optimizing this existing capacity, the Company is positioned to transition from a domestic-centric model to a diversified export-oriented enterprise, ensuring the business remains resilient against localized economic shifts. This strategic evolution is bolstered by strong sponsor support, which empowers the Company to align its operational excellence with international benchmarks, ultimately securing a professional and sustainable future in an increasingly competitive global landscape.

During FY25, the Company’s working capital efficiency experienced a moderate decline, with the Net Working Capital Cycle extending to 76 days (FY24: 72 days). This trend was primarily driven by a stretch in Gross Working Capital days, which rose to 82 days from 74 days. The core pressure point lies within the inventory management framework; inventory turnover days increased to 39 days (FY24: 29 days), fueled by a buildup in both finished goods (29 days) and work-in-process (9 days). While this inventory accumulation may suggest a strategic stockpile to support the Company’s 65.1% revenue surge or to mitigate supply chain volatility, it has temporarily locked up liquidity within the warehouse, preventing a faster cash conversion. Offsetting these inventory headwinds, the Company demonstrated improved efficiency in its credit management, as trade receivable days sharpened to 43 days from 45 days. This indicates a disciplined collections process despite the rapid scaling of sales. Furthermore, the Company optimized its cash outflows by extending trade payable days to 7 days (FY24: 2 days), utilizing supplier credit as a low-cost financing tool. However, the most notable shift occurred in the Current Ratio, which moved to 6.3x from 3.7x. While a higher ratio typically suggests strong liquidity, a jump of this magnitude—coupled with rising inventory days—indicates that the balance sheet may be becoming "asset-heavy." The increase to 6.3x suggests an over-accumulation of current assets that are not yet being converted back into cash, highlighting a need for tighter inventory controls to ensure that capital is being deployed efficiently rather than sitting idle in stock.

The Company’s solvency profile underwent a significant strengthening in FY25, characterized by a heightened capacity to service its debt obligations through organic cash generation. Free Cash Flow from Operations (FCFO) expanded by 27.6%, rising from PKR 577 million to PKR 736 million, a testament to improved operational health and efficient working capital management. This robust internal cash generation has fundamentally bolstered the Company’s Debt Coverage Ratio (DCR), providing a substantial margin of safety for creditors. The ability to grow cash flow while simultaneously scaling revenue suggests that the Company’s expansion is not just high-volume, but high-quality and cash-accretive. Furthermore, the Company’s debt-servicing efficiency improved across all key metrics, aided by a strategic reduction in finance costs to PKR 343 million (down from PKR 369 million in FY24). The FCFO-to-Finance Cost ratio surged to 2.2x (FY24: 1.6x), indicating that the Company now generates more than double the cash required to cover its interest expenses. More impressively, the comprehensive coverage ratio—which accounts for Finance Costs, Current Maturity of Long-Term Borrowings (CMLTB), and excess short-term debt—rose to 2.2x from 1.4x. This upward trajectory underscores a de-risked balance sheet and reflects a disciplined approach to leverage, positioning the Company with the financial flexibility to pursue further capital expenditures or strategic investments without compromising its creditworthiness.

During FY25, the Company’s capital structure underwent a radical transformation, characterized by a substantial increase in financial leverage. Total borrowings surged from PKR 486 million to PKR 2,166 million, representing a 346% increase in debt exposure. Notably, this debt profile is comprised entirely of short-term obligations (100%), indicating a heavy reliance on revolving credit facilities and working capital lines to fund the Company’s rapid 65.1% revenue expansion. While this aggressive leveraging has provided the liquidity necessary to fuel recent growth, the concentration in short-term debt exposes the balance sheet to heightened refinancing risks and sensitivity to interest rate fluctuations. Despite the massive increase in the principal debt load, the Company demonstrated improved discipline in its debt servicing timeline. Interest payable days were reduced to 65.8 days, down from 76.4 days in FY24. This acceleration in interest payments suggests an improved cash flow velocity and a proactive treasury management strategy aimed at maintaining creditor confidence. However, the sheer scale of the new debt—moving from roughly half a billion to over two billion PKR—marks a pivotal shift in the Company's risk profile. The management must now focus on ensuring that the returns on these borrowed funds exceed the cost of capital, while potentially exploring the conversion of a portion of this debt into long-term instruments to stabilize the future maturity profile.