Meezan Plastic Industries Private Ltd (hereinafter referred to as "MPI" or "the Company") was established as a Private Limited Company in June 2018.

Meezan Plastic Industries (Pvt.) Limited was incorporated in Azad Jammu & Kashmir under the Companies Ordinance, 1984 (now the Companies Act, 2017 as adapted under the Azad Jammu & Kashmir Companies Adaptation Act, 2021) as (Private) Limited Company in June 2018. The registered office of the Company is situated at Small Industrial Estate, Bhimber, Azad Kashmir.

Meezan Plastic Industries (Pvt.) Limited serves the packaging market with a focus on manufacturing a wide range of plastic products and packing materials. The Company specializes in the production of BOPP and OPP plastic bags, primarily catering to the textile and jewellery sectors. The Company has its own sales outlets in Lahore and Faisalabad. MPI operates two manufacturing units. The first is a production facility with an annual capacity of 14.4 million kilograms of bags, while the second is a dedicated printing unit equipped with a Flexo machine, offering an annual production capacity of 35 tons. Together, these facilities enable the Company to deliver high‑quality packaging solutions tailored to diverse market needs.

MPI is a family-owned enterprise, with majority ownership held by Mr. Hafiz Muhammad Atif, who controls ~70% of the Company. The remaining ~30% is owned by his brother, Mr. Yasir Amin. Their shared leadership structure ensures direct oversight of operations and provides strategic direction for the business.

Currently, the Company does not have a formal succession plan in place for the future transfer of ownership shares. The absence of a defined strategy may create challenges in ensuring a smooth transition of control and could potentially affect long‑term business stability. Establishing a clear succession plan would strengthen governance practices, safeguard financial and operational interests, and provide assurance of continuity for employees, customers, and investors. A well‑designed framework would also help mitigate risks associated with ownership disputes, ensure alignment of strategic vision, and reinforce the Company’s long‑term sustainability.

MPI is a family-owned business managed by two seasoned professionals with extensive expertise in the packaging sector. Their deep industry knowledge and hands-on leadership enable effective decision-making, operational efficiency, and strategic growth. By combining entrepreneurial vision with practical experience, they ensure that the Company remains agile, competitive, and responsive to evolving market demands. This shared leadership not only strengthens governance but also fosters innovation and long-term sustainability. Their commitment to excellence continues to drive the Company’s success, positioning MPI as a trusted name in Pakistan’s packaging industry.

The sponsoring family maintains diverse investments across real estate and allied businesses, which serve as a potential source of financial support for the Company. These external holdings provide an additional layer of security, acting as a financial cushion in the event of liquidity challenges or unforeseen operational requirements. This diversified investment portfolio not only strengthens the family’s overall financial position but also enhances the Company’s resilience by ensuring access to supplementary resources when needed. Such backing reinforces business stability, safeguards operational continuity, and instills confidence among stakeholders in the Company’s long‑term sustainability.

The Company’s overall control rests with its two‑member Board of Directors (BoD), both of whom serve in executive roles. This structure ensures that strategic decisions and operational oversight remain directly in the hands of the sponsoring family, allowing for swift decision‑making and strong alignment between ownership and management.

The leadership of Meezan Plastic Industries (Pvt.) Limited is anchored by two key executives from the sponsoring family. Mr. Hafiz Muhammad Atif, serving as Chief Executive Officer (CEO), oversees the overall management of the business, ensuring strategic direction and operational efficiency. His leadership is complemented by strong business relationships cultivated with buyers and suppliers, which have significantly contributed to the Company’s growth and strengthened its market presence. Alongside him, Mr. Yasir Amin, serving as Director, plays a pivotal role in managing the Company’s affairs. He ensures smooth day‑to‑day operations and effective execution of strategic initiatives. His active involvement in key decision‑making processes further enhances the Company’s ability to navigate industry challenges, maintain resilience, and sustain long‑term success. Together, their combined expertise and collaborative leadership provide stability, reinforce governance, and position Meezan Plastic Industries as a trusted and competitive player in Pakistan’s packaging sector.

The Company’s Board currently consists of only two members, both of whom hold executive roles. While this structure allows for agility and direct oversight, it also makes the governance framework weaker compared to established corporates with broader representation. The absence of formal board committees further limits oversight, risk management, and strategic decision‑making capacity. To strengthen governance, the Company could consider expanding its Board to include independent directors, thereby introducing diverse perspectives and enhancing accountability. In addition, establishing key committees—such as Audit, Risk Management, and Strategy—would provide structured oversight, improve transparency, and support long‑term sustainability. These measures would align the Company’s governance practices with recognized corporate standards, instilling greater confidence among stakeholders and reinforcing its resilience in a competitive market.

The absence of an internal audit function further creates room for improvement in the corporate governanceframework. M/S Zafar & Co. Chartered Accountants are the external auditor of the Company. The auditors haveexpressed an unqualified audit opinion on the financial statements of Meezan Plastic Industries Pvt. Limited forthe year ended June 30, 2025. The firm is not on SBP's panel of auditors and is Non-QCR rated, therefore there isroom for improvement in the corporate governance framework.

MPI has a lean organizational structure divided into various functional departments. Currently, the organizational structure is divided into five main functions namely; 1) Sales &Marketing 2) Production 3) Purchase 4) Accounts & Finance, and 5) Collection & Recovery.

The Company has an organizational structure with an experienced management team and a balanced mix of professionals. Mr. Hafiz Muhammad Hamid, General Manager, holds a Ph.D. degree and has been associated with the Company for the past 5 years. Mr. Sheikh Muhammad Bilal, Production, Planning & Control Manager, has been associated with the Company for the past 5 years. Mr. Muhammad Nasir, Marketing Manager has been associated with the Company for the past 5 years. Mr. Muhammad Azam Chief Accountant holds adegree in MBA Finance and has been associated with the Company for the past 5 years.

The Company's management team comprises experienced professionals with extensive expertise in the plastic industry. Their collective knowledge and industry background enable effective decision-making and operational management. Although there is no formal management committee, the Board of Directors are actively engaged in the Company's day-to-day operations, ensuring strategic oversight and direct involvement in key business activities. Instead of a designated committee, departmental heads conduct meetings to address operational matters, with the frequency of these meetings varying based on the evolving business needs and industry dynamics. This flexible management structure allows for efficient communication, rapid decision-making, and adaptability to market conditions, ensuring that operational challenges are promptly addressed while maintaining alignment with the Company’s strategic objectives.

The Company's Management Information System (MIS) plays a crucial role in financial oversight and strategic decision-making. It generates key financial statements—including the Balance Sheet, Profit and Loss Statement,and Cash Flow Statement on an annualize basis. These reports provide a comprehensive snapshot of the Company’s financial health, enabling informed decision-making at the highest level. Additionally,the MIS generates detailed sales reports, which are reviewed by top management daily.

The Company utilizes licensed Microsoft Office applications, including Excel, Word, and Outlook, to support its daily operations and ensure efficient workflow management. These tools play a critical role in data processing,documentation, and communication across various departments. For internal Management Information System(MIS) reporting, the Company maintains a structured reporting framework, generating reports on a weekly,monthly, quarterly, and annual basis. These reports provide senior management with valuable insights into key operational and financial metrics, aiding in strategic decision-making and performance evaluation.

The future of Pakistan’s BOPP and OPP films industry is expected to reflect moderate yet steady growth, supported by strong demand fundamentals and increasing domestic production capacity. Imports have already contracted at a CAGR of around -15% between 2020 and 2024, underscoring the structural shift toward local manufacturing as producers invest in advanced technologies such as multi‑layer and metallized films. Over the next five to seven years, the industry is projected to deliver a mid‑single‑digit CAGR, driven by rising consumption of packaged food and beverages, expanding pharmaceutical requirements, and growth in e‑commerce, all aligned with urbanization and evolving consumer preferences. However, the outlook remains tempered by volatility in polypropylene resin prices linked to global oil markets, exchange rate instability, and competitive pressures from regional producers in India, China, and the Middle East. Regulatory changes, including updated customs valuations, have further reshaped industry dynamics by aligning import costs with global benchmarks and incentivizing local production. The sector’s trajectory is stable to moderately positive, with sustainability hinging on governance improvements, cost efficiency, and technological upgrades among domestic players, while risks from external shocks and industry fragmentation necessitate close monitoring.

Meezan Plastic Industries Limited (MPI) operates within Pakistan’s highly fragmented BOPP/OPP packaging film industry, which is gradually shifting from import reliance toward stronger domestic production amid regulatory changes and rising demand from food, beverage, pharmaceutical, and industrial sectors. The industry remains divided between a large unorganized segment and a few dominant players such as Cherat Packaging Limited, Pakistan Synthetics Limited, and Nishat Paper Products Company Limited, alongside organized firms like IPAK Group that have invested in advanced technologies including five-layer and metallized films. Within this competitive landscape, MPI is positioning itself as an emerging player by leveraging its expertise in manufacturing high-quality BOPP/OPP bags and focusing on operational efficiency to expand its market share. The Company benefits from its regional footprint in Faisalabad and Lahore, serving both edible and non-edible packaging segments, though it faces challenges from volatile polypropylene resin prices linked to global oil markets, exchange rate fluctuations, and competitive pressures from larger, more technologically advanced rivals. MPI’s growth strategy is expected to include enhancing production capabilities, fostering strategic partnerships, and adapting to evolving industry trends to remain competitive. The Company demonstrates moderate growth potential supported by sectoral demand drivers, but its risk profile is elevated by external shocks, governance limitations, and industry fragmentation, requiring close monitoring of cost structures, strategic adaptability, and governance practices.

MPI derives the majority of its income from the sale of BOPP/OPP (Biaxially Oriented Polypropylene) bags, which are widely utilized in packaging applications due to their durability and flexibility. During FY25, the Company’s revenues contracted sharply by 44.5%, declining to PKR 2.2 billion from PKR 4.0 billion in FY24. According to management, this downturn reflects a broad reduction in demand for BOPP/OPP bags within Pakistan, driven by weaker activity in key end‑use industries such as textiles, FMCG, and agriculture. In addition to demand pressures, rising raw material costs—linked to imported polypropylene—have eroded competitiveness, while exchange rate volatility has further inflated input prices along with the flood situation at facilitys' surrounding are afftected the operations of the MPI. The shift in consumer and corporate preferences toward eco‑friendly packaging alternatives has also intensified competition, contributing to the decline in sales volumes. Moreover, taxation pressures have compressed margins, discouraging buyers and limiting the Company’s ability to pass on cost increases. The significant revenue contraction underscores structural challenges in MPI’s operating environment, highlighting the need for diversification, cost optimization, and strategic adaptation to evolving market dynamics. Management’s ability to mitigate these pressures will be critical in stabilizing earnings and preserving financial resilience going forward.

MPI recorded a modest increase in gross profits during FY25, primarily supported by lower operating costs. Consequently, the gross profit margin improved to ~9.3%, compared to ~8.9% in FY24. However, the Company’s net profit margin contracted significantly, declining from ~2.9% in FY24 to ~0.9% in FY25. This deterioration was largely driven by a sharp reduction in revenues of ~44% during the review period, coupled with higher taxation expenses. In response to these financial pressures, the Company remains committed to implementing stringent cost-control measures, particularly in administrative expenses. By enhancing operational efficiency and maintaining disciplined expenditure management, MPI aims to safeguard its bottom-line margins despite ongoing challenges in revenue generation and rising costs. Furthermore, management is expected to pursue strategic initiatives such as improving supply chain efficiency, renegotiating supplier contracts, and identifying cost-saving opportunities across production and logistics. These measures are intended to mitigate financial volatility and reinforce the Company’s ability to sustain profitability in a challenging operating environment.

MPI has developed reliable forecasts that are consistent with its strategic vision, supporting the sustainability of its planned growth trajectory. Management anticipates continued demand for plastic bags used in packaging materials—particularly for apparel and household textiles such as shirts, cloth, and bedsheets—driven by several structural market factors. These include expansion in the retail sector, rising requirements for protective packaging, and consumer preferences for convenient and durable storage solutions. Additionally, the evolving dynamics of e-commerce and the textile industry are expected to further stimulate demand, as businesses increasingly seek efficient packaging options that enhance product presentation and ensure safe transportation. Leveraging its established expertise, MPI is well-positioned to capitalize on these trends, reinforcing its role within the packaging industry and strengthening its long-term market relevance.

The Company continues to rely on internal cash flows to finance its working capital requirements, which are predominantly driven by inventory and receivables. By the close of FY25, gross working capital days extended to ~108 days, compared to ~60 days in FY24. Similarly, net working capital days increased to around ~93 days in FY25, up from ~52 days in FY24. The elongation in working capital cycle highlights a shift in the Company’s cash conversion dynamics and reflects a more stretched liquidity position. This trend underscores the need for enhanced efficiency in receivables management and inventory turnover to safeguard cash flow stability.

During the review period, MPI’s operating cashflows (FCFO) recorded a substantial decline, falling from PKR 119mln in FY24 to PKR 21mln in FY25. This contraction was largely attributable to reduced revenues and profitability in FY25, underscoring the financial pressures confronting the Company. The weakened cash generation capacity reflects heightened operational challenges and signals a deterioration in MPI’s overall financial flexibility.

The Company’s equity base demonstrated steady growth, rising PKR 521mln in FY24 to around PKR 541mln in FY25. This expansion is primarily attributable to profit retention from prior years, which has reinforced the Company’s capital structure and overall financial resilience. Notably, the Company does not maintain any long-term or short-term funded facilities, thereby limiting its reliance on external borrowings. However, access to a non-funded facility of PKR 500mln (at group level) provides an additional buffer, enhancing liquidity support and financial flexibility.