International Business Management

RATING REPORT | Apr-26

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Rating History
Dissemination Date Long-Term Rating Short-Term Rating Outlook Action Rating Watch
03-Apr-26 BB+ A3 Stable Maintain -
03-Apr-25 BB+ A3 Stable Maintain -
03-Apr-24 BB+ A3 Stable Maintain -
03-Apr-23 BB+ A3 Stable Maintain -
14-Sep-22 BB+ A3 Stable Initial -
About the Entity

IBM, established in 1993, is the sole proprietorship of Mr. Saleem Bikiya, an experienced business personnel serving more than 4 decades in the relevant field. He is working with the biggest groups in the paper industry including the Sinarmas group Indonesia known as Asia Pulp & Paper (APP). The main principle of sole proprietorship belongs to Indonesia and China.

Rating Rationale

The rating of International Business Management (“IBM” or "Sole Proprietor") reflects its established role as an indenting intermediary within Pakistan’s paper and paperboard trading ecosystem. IBM facilitates commercial linkages between international suppliers and local importers, enabling efficient procurement and supply of paper-related products in the domestic market. IBM is owned and managed by Mr. Saleem Bikiya, the head of the Bikiya family, which has maintained a longstanding presence in the paper trading business in Pakistan. The family’s broader business footprint includes Madiha International (Pvt.) Limited, engaged in the import and trading of paper products, and Bikiya Industries (Pvt.) Limited, which operates in the tissue paper segment. Operating as an indenting agency, IBM generates revenue through commissions earned by connecting suppliers with importers and facilitating trade transactions. This business model enables IBM to operate with relatively limited operational assets while maintaining a strong network within the industry. IBM’s experienced team plays an important role in coordinating transactions, assessing product specifications, and supporting importers in sourcing suitable paper and paperboard products from international markets. IBM benefits from a stable and long-standing client base, which includes several family-owned businesses operating within the paper trade. Given the relatively modest scale of operations, the sponsor remains closely involved in the strategic and operational oversight of the business. IBM maintains a low financial risk profile, primarily due to its intermediary role in the supply chain. IBM typically operates based on advance payments from customers before the execution of orders, which significantly limits its exposure to credit risk and reduces the need to hold inventory. This structure supports consistent cash flows and minimizes reliance on external borrowings. During FY25, IBM demonstrated a strong profitability profile. Operating profit margins stood at approximately 80.8%, while net profit margins remained around 79.7%, reflecting the high-margin nature of its commission-based business model and limited operating cost base. IBM’s financial position remained stable, providing a strong base to support ongoing operations.

Key Rating Drivers

The ratings are dependent on IBM's ability to sustain its position amidst a changing business environment and management’s ability to run the operations optimally. With the upcoming growth in the firm’s business; prudent financial discipline and implementation of a stringent control environment shall remain imperative.

REPORT CONTENTS
  1. Rating Analysis
  2. Financial Summary
  3. Rating Scale
  4. Regulatory Disclosure

International Business Management


Rating Analysis

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Profile
Legal Structure

International Business Management ("IBM") was established as a sole proprietorship in 1993 and is the first ISO 9001- 2015 certified paper indenting house in Pakistan.


Background

IBM is serving the customers/importers of paper & paper board with dynamism. IBM has achieved Gold partner award from sinarmas group and the 2017 APP GOLD PARTNERS best overall performance award. IBM has also won the brand ICON award in 2010 and its products achieved Brand of the year award in 2010 & 2012.


Operations

Through its indenting operations, IBM caters to a large and diverse customer base in the paper and paperboard sector. The company facilitates quality assessment and evaluation of various types of paper, paperboard, and packaging materials across Pakistan. Additionally, IBM actively fosters collaboration and engagement with relevant government institutions.


Ownership
Ownership Structure

The sole proprietor - Mr. Saleem owns 100% of IBM.


Stability

Mr. Saleem Bikiya is also involved in other business ventures, including Madiha International Private Limited, which focuses on paper imports, and Bikiya Industries, which specializes in tissue paper imports.


Business Acumen

Mr. Saleem is experienced business person with an experience of more than 4 decades in the relevant field. He is working with the biggest groups in the paper industry including sinarmas group China, Indonesia known as Asia Pulp & Paper (APP).


Financial Strength

The financial strength of the sponsor is represented by the combined wealth of the group companies which are generating sustainable revenue base and profitability.


Governance
Board Structure

As IBM is a sole proprietorship, there is no board and the only owner is the operational head.


Members’ Profile

Mr. Saleem was honored with the "Businessman of the Year" award by the Prime Minister of Pakistan for three consecutive years: 2007, 2008, and 2009. He also serves as the director and holds a majority ownership stake in Bikiya Industries (Private) Limited.


Board Effectiveness

As a sole proprietorship, IBM is entirely controlled by its owner, with no board committees or independent oversight at the Board level.


Financial Transparency

IBM has appointed M/s Ishtiaq Ahmed & Co., Chartered Accountants, as the external auditor. They have provided an unqualified opinion on the financial statements of International Business Management for the period ended on June 25. This marks a significant step in ensuring greater transparency and accountability in the financial reporting of IBM.


Management
Organizational Structure

IBM functions with a simple organizational framework, led by the proprietor, supported by a dedicated marketing head managing promotional activities, and an administrative office handling daily operations. This streamlined setup allows for effective decision-making and smooth management throughout the organization.


Management Team

Mr. Saleem Bikiya the sole proprietor is solely managing the business with the assistance of some experienced resources.


Effectiveness

The simple structure and operations of IBM needs no management committees.


MIS

Being a proprietorship concern MIS is not required. A simple financial information pack in excel is shared with the management each month.


Control Environment

The information pack provides insight into the operations of IBM and its performance.


Business Risk
Industry Dynamics

Pakistan’s packaging industry consists of four major segments, paper, plastic, tinplate and glass. Paper and plastic segments occupy the major share in total market. Over FY21–FY25, the Paper Packaging segment has remained largely stable in terms of production levels. Growth is supported by rising demand for sustainable packaging and tighter environmental regulations, including EPR, which favor recyclable fiber-based materials. Advances in barrier coatings (e.g., bio-based and nano-cellulose) are improving paper’s functional performance, while digital printing and small-batch production are enhancing supply-chain flexibility and boosting the appeal of customized paper packaging solutions. The production level of Paper over the last five years has a CAGR of ~3.5%. This reflects the stable demand of the segment as it makes up a significant portion of overall Paper and board production. The production of Paper decreased marginally by ~2.9% YoY in FY25 to ~355,513MT from ~366,267MT in FY24. Production declined to ~54,435MT as of 2MFY26 (2MFY25: ~61,464MT). (Source: PACRA Sector Study)


Relative Position

IBM occupies a prominent position in Pakistan’s paper trade, having introduced a range of international brands to the market. As per management, during FY24, IBM, operating as an indentor, accounted for a substantial portion of the country’s paper imports, including approximately 90% of Art Card imports, 60% of Bleach Board imports, 57% of Offset Paper imports, and 75% of Boxes (A4 Paper) imports.


Revenues

IBM derives a significant portion of its revenue from foreign indenting commissions. In FY25, the Company’s revenue remained largely stable compared to the previous year, reflecting the continued strength of its operations and commission-based income stream.


Margins

As IBM is a indenting business and belongs to the services industry, the total inflows and total outflows during FY25 provided a net profit margin of 79.1% and an operating profit margin 80.8%.


Sustainability

IBM generates revenue by earning commissions through the indenting of paper and board for key importers in the market, alongside its three group companies. The company holds a substantial share of paper and board imports relative to the overall market, which underpins its business sustainability.


Financial Risk
Working capital

IBM maintains adequate liquidity, meeting its working capital needs entirely through internal resources.


Coverages

All expenses are well covered by commission income. Coverages are adequate.


Capitalization

IBM operates without the need for borrowings or credit facilities, resulting in a strong capitalization position.
 
 

Apr-26

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International Business Management


Rating Scale

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Apr-26

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International Business Management


regulatory disclosure

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  1. Rating Team Statements
    1. Rating is just an opinion about the creditworthiness of the entity and does not constitute a recommendation to buy, hold, or sell any security of the entity rated or to buy, hold, or sell the security rated, as the case may be. (Chapter III; 14-3-(x))
    2. Conflict of Interest
      1. The Rating Team or any of their family members have no interest in this rating (Chapter III; 12-2-(j))
      2. PACRA, the analysts involved in the rating process, and members of its rating committee and their family members do not have any conflict of interest relating to the rating done by them (Chapter III; 12-2-(e) & (k))
      3. The analyst is not a substantial shareholder of the customer being rated by PACRA [Annexure F; d-(ii)]
      4. Explanation: for the purpose of the above clause, the term "family members" shall include only those family members who are dependent on the analyst and members of the rating committee.
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Apr-26

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