Neelum Oil and Ghee Industries (Pvt.) Limited (‘Neelum Oil and Ghee’ or ‘the Company’) was incorporated in 2019 under the Companies Act, 2017, as a Private Limited Company.

Mr. Sheikh Abdul Waheed, founder of Waheed Group of Industries (‘the Group’) started his business journey in the tea industry in the 1970s. Later, in 1988 he entered the edible oil industry The Group's significant combined production capacity, exceeds 850 million tons per day for vegetable ghee and edible oil. In 1993, the Group started its first venture Waheed Hafeez Ghee Industries (Pvt.) Limited in Hattar, KPK which currently has the capacity to produce 350. The company generates an annual turnover of over three hundred and fifty million US Dollars ($350 million), contributing significantly to the country’s economy. MT per day of vegetable oil/ghee. Waheed Group of Companies is also one of the largest entities in the field of manufacturing and import of edible oil, bulk import and distribution of Crude Palm Oil, RBD Palm Oil, RBD Palm Olein, import of various food industry chemicals, Electrolytic Tinplate Sheets, import and sale of Compressed Natural Gas (CNG) Equipment and Stations, running of (CNG) Filling Stations, and Real Estate and construction of Commercial Buildings. The group also deals in shortening. Additionally, Waheed Group of Companies maintains a presence in the hospitality industry with its hotel venture, ‘Laraib Inn’. Demonstrating a commitment to agricultural diversification and local development, the group has recently invested in olive farming, acquiring over 1000 acres of land for this purpose.

The Company is primarily engaged in the process of refining crude palm oil; producing and selling cooking oil/ghee. Capacity utilization is dependent on the local demand and availability of RBD, Olein, SBO which is primarily imported from U.A.E, Europe and the USA. The Company has a production capacity of 300MT per day. The Company sells branded oil including Fauji Supreme, Islamabad, Perlli, Phool, Zeenat.

The Company exhibits a highly centralized, family-owned ownership structure wherein the shareholding is concentrated among three brothers. Awais Karni maintains a controlling interest with a majority stake of 65.68%, while Hamad Waheed and Faad Waheed hold 17.25% and 17.07% respectively.

The Company benefits from complete ownership by the sponsoring family, achieved through a structure comprising both associated corporate entities and direct individual shareholdings. Its position as a leading supplier of cooking oil and banaspati in northern Pakistan highlights a robust market presence. The affiliation of Neelum Oil and Ghee Industries with the Waheed Group underscores its operational stability.

The Group has successfully navigated business cycles in the edible oil sector, sustaining their market position for the past 30 years. Beyond edible oil, the sponsors have established a significant presence in the transport, hotel, and energy sectors. Mr. Awais Karni is one of the key directors of the group and has lamented himself as a seasoned veteran of the palm oil industry with an experience of more than 18 years and has credited himself by creating and managing various brands of cooking oil and ghee which includes our flagship premium brand, Fauji Supreme. Mr. Faad Waheed is Director Operations and PR of the group. He has been the Senior Vice President Islamabad Chamber of Commerce and Industries (2022-2024). Graduated from York University, Canada, Mr. Hammad he joined WGC and introduced various new systems in the organization related to HR and Finance. In 2023, under the Guidance of his father, he established state-of-the-art edible oil refinery at Waheed Hafeez Ghee Industry, Hattar, Pakistan.

The Group is predominantly composed of Companies engaged in various aspects of the edible oil value chain, reflecting a focused and vertically integrated business model. Beyond the inherent financial strength of the Group, the sponsoring family holds considerable personal net worth. This financial capacity positions them to extend timely support to the Company, should adverse economic or industry-specific challenges arise, thereby enhancing the Company's financial resilience and credit profile.

The Board of Directors is not fully independent from the Company's management. It comprises four members, including the Chief Executive Officer, which may limit the degree of independent oversight.

The BoD is a key source of oversight and guidance for the management of all Group Companies. The Board’s Chairman, Mr. Abdul Waheed has been associated with the edible oil industry from almost 40 years. He has also served as the chairman Pakistan Banaspati Manufacturer’s Associated for 4 years. Furthermore, he is currently the member of Rawalpindi Chamber of Commerce, Federation of Pakistan Chamber of Commerce & Industry (FPCCI),Haripur Chamber of Commerce & Industry (HCCI) and SAARC Chamber of Commerce. Mr. Awais Karni, Executive Director, is associated with the Company’s Board from 2011 with over 18 years of experience in the palm oil industry. He holds higher education degree from Canada and has attended several Edible Oil conferences across the globe.

The Board has not established any formal sub-committees such as audit, risk, or nomination committees. Instead, board members convene informally to deliberate on key matters as they arise. While this approach facilitates flexibility and timely decision-making, it may limit the structured oversight and governance typically associated with formal committee structures.

The external auditors of the Company, Zafar & Co Chartered Accountants, have expressed an unqualified opinion on the financial statements of the Company for the year ended Jun-24. The firm has been QCR-rated by ICAP but not in the panel of SBP.

The organizational structure has been optimized as per the operational needs. The Company operates through three functions: Production, Finance, Distribution and Sales. All functional managers’ report to the Company’s CEO. The CEO makes all pertinent decisions of the Group. As the Company’s CEO is responsible for the whole unit, thus highlighting the key man risk of management.

The overall control of the Company vests with Board’s Chairman, who is also the Group’s Chief Executive Officer. Hence, there is no segregation of responsibilities. Mr. Abdul Waheed has been associated with the edible oil industry from almost 30 years. He started his career in the tea industry and later entered the edible oil industry by establishing his own cooking oil/ghee production units and companies. Apart from edible oil, the sponsors also have presence in the transport, hotel, and energy sectors as well. Mr. Karni has kept himself engaged in the palm oil industry further by becoming Vice President of Pakistan Vanaspati Manufacturer’s Association (PVMA) from 2011 to 2012. He has also received the award for “Highest Importer of Palm Oil” from Pakistan Edible Oil Conference (PEOC) in 2018. During his 10 years in WGC, Mr. Awais Karni has garnered many achievements which include receiving a gold medal from the President of Pakistan for “Highest Importer of Edible Oil” in 2018.

The Company currently does not have any formal management committees in place. This absence of dedicated committees may impact the ability to address specific operational or strategic issues with the focused attention and accountability typically provided by specialized management teams.

The Company employs SAP (Systems, Applications, and Products in Data Processing) as its enterprise resource planning (ERP) system. This robust software solution integrates key business processes across finance, supply chain, operations, and human resources, enabling real-time data management, streamlined workflows, and improved decision-making capabilities

The Company has an in-house Internal Audit Department, which reports directly to the Chief Executive Officer (CEO). This structure ensures that audit findings are communicated promptly and directly to senior management for effective oversight and decision-making.

The edible oil industry in Pakistan represents a significant segment of the country’s food and consumer goods sector, characterized by stable demand fundamentals and growing consumption levels. During FY25, total edible oil consumption increased by approximately 17.3% YoY to ~4.9Mn MT, supported by population growth and higher per capita consumption of ~20.3 KG/person. The sector, however, remains heavily reliant on imports, with nearly ~72.3% of domestic consumption fulfilled through imported edible oils, particularly palm oil, exposing industry players to international price volatility, exchange rate fluctuations, and global supply chain disruptions. The industry has demonstrated improving operational dynamics, with domestic edible oil production increasing by ~29.1% YoY in FY25, primarily driven by higher soybean oil processing following the government’s approval of GMO soybean imports. Going forward, improving macroeconomic indicators, relative PKR stability, and sustained consumer demand are likely to provide a supportive operating environment for the sector.

Being a small player in the edible oil industry of the country, the Company exhibits a positive growth trajectory, indicating potential for increased market penetration and expansion. The growth is prmarily driven by rising consumer demand in the domestic ghee and cooking oil market. The company sells exclusively in the local market, with no export revenues.  

The company has maintained a strong growth trajectory, with net revenue increasing by 9.7% to reach PKR 36,170.1 million in FY25 (FY24: PKR 32,967.6 million). This steady improvement is largely attributed to a strategic expansion of sales coverage across the northern region, which has successfully enhanced the company’s market footprint. Operations remain focused on the domestic market, with the revenue base consisting entirely of branded cooking oil and ghee products. However, the top line is highly sensitive to international commodity price volatility, as the company relies exclusively on imported raw materials—specifically crude palm oil and palm olein. In terms of operational efficiency, the company produced 79,461 metric tons during FY25. This corresponds to a capacity utilization rate of 73.6%, a decrease from the 85.0% utilization level recorded in FY24, against a total installed annual capacity of 108,000 metric tons.

The company's upward revenue trend is further evidenced by improving profitability ratios. During FY25, the gross profit margin recovered to 2.56%, up from 2.07% in FY24. This positive movement flowed through to the operating level, with the operating profit margin strengthening to 2.39% (FY24: 1.95%). Correspondingly, the net profit margin closed the period at 2.39%, compared to 1.94% in the preceding year. Despite these gains, the company remains exposed to foreign currency and commodity price risks. Since primary raw materials—specifically crude palm oil and RBD palm olein—are sourced from international markets, the cost structure is inherently sensitive to global supply-demand dynamics and exchange rate fluctuations.

Since its inception, the Company has exhibited a consistent growth trajectory. Building upon this foundation, the Company now possesses a heightened drive towards future expansion, underpinned by a clearly defined strategic direction within the industry-specific ecosystem.

The company’s working capital cycle showed marked efficiency gains in FY25. The inventory holding period was reduced to 10 days (FY24: 19 days), primarily driven by the reduction in finished goods days to 14 days from the previous year's 20 days. Additionally, the average collection period for trade receivables improved to 14 days, down from 20 days in FY24, indicating more effective credit management. These improvements led to a contraction in gross working capital days to 24 days (FY24: 39 days). With the trade payable cycle remaining largely consistent at 5 days (FY24: 6 days), the net working capital cycle shortened to 19 days, a significant improvement from the 33 days recorded in the prior year.

The Company’s interest coverage ratio, which measures its capacity to service debt obligations, is driven by the relationship between operating earnings and finance costs. During FY25, the Company’s EBITDA strengthened to PKR 901 million, up from PKR 657 million in FY24. Notably, the Company incurred no finance costs during the year, indicating a robust ability to cover its minimal debt-related requirements.

The Company maintains a low-leveraged capital structure, characterized by a debt-to-equity ratio of 38.5% in FY25 (FY24: 34.9%). This uptick in leverage is primarily attributable to an increase in total debt—rising to PKR 1,781 million from PKR 1,060 million in the preceding year—driven by higher short-term borrowing requirements to facilitate expanded import volumes. The debt profile is notably concentrated, consisting entirely of short-term obligations. Parallel to this, the equity base has demonstrated robust organic growth, strengthening to PKR 2,843 million in FY25 from PKR 1,978 million in FY24, which continues to provide a solid cushion for the Company’s financial position.