Al Rahim Textile Industries Limited (Hereinafter referred to as 'Al Rahim' or 'the Company') has its origins in Al Rahim Textile Industries, established in 1991 as a sole proprietorship. To enhance its corporate structure and facilitate growth, the business was restructured into a public unlisted Company, Al Rahim Textile Industries Limited, in July 2019. As part of this transition, all assets and liabilities of the sole proprietorship were transferred to the newly formed entity. The Company’s registered office is located in Karachi, with its state-of-the-art manufacturing facility situated in Nooriabad, Sindh.

The Company was founded by Mr. Abdul Rahim Saya and initially focused on providing processing and weaving services. In 2005, Al Rahim established its manufacturing facility in Nooriabad, which has since played a pivotal role in its growth. Following a significant expansion in 2015, the Company has emerged as one of the leading manufacturers of towels in Pakistan, cementing its position in the textile industry.

Al Rahim specializes in the manufacturing of towels and fabrics, with a strong focus on exports. The Company caters to a diverse clientele, including retailers and the hospitality sector, such as hospitals and hotels. Al Rahim operates with an impressive production capacity, comprising ~284 air-jet looms, ~447 stitching machines, ~3 printing machines, ~7 embroidery machines, and ~44 dyeing machines. Following the incorporation of the new entity in FY20, all assets and liabilities were seamlessly transferred to the newly established Company, ensuring continuity and operational efficiency.

Al Rahim is a family-owned business, with ownership held by the Saya family. Mr. Faisal Rahim Saya is the majority stakeholder, while the remaining shares are equally distributed between Mr. Moiz Saya, son of Mr. Faisal Rahim Saya, and Mr. Abdul Rahim Saya.

The Company benefits from the active involvement of both sons of Mr. Abdul Rahim Saya—Mr. Faisal Rahim Saya and Mr. Shehzad Saya—who contribute to its day-to-day operations and strategic direction. While the majority of the shareholding is held by Mr. Faisal Rahim Saya, both brothers play important roles in supporting the Company’s growth and continuity. To ensure long-term stability, a formal succession plan has been established. Under this plan, leadership responsibilities will transition to Mr. Moiz Saya, the Director and son of Mr. Faisal Rahim Saya. Mr. Moiz Saya currently serves as the Company’s Chief Executive Officer (CEO), providing continuity in management and aligning future ownership with existing executive leadership. This structured approach reflects the Company’s commitment to orderly governance, sustainable growth, and the preservation of family involvement across generations.

The Saya family has maintained a strong presence in the textile industry for more than three decades. Over this period, they have established a reputation for resilience, adaptability, and consistent growth. Their achievements reflect not only sound business acumen and strategic foresight but also a commitment to sustaining long-term value within a highly competitive sector. Through steady expansion and prudent decision-making, the family has positioned itself as a respected contributor to the industry’s development. Their journey underscores the importance of vision, discipline, and generational continuity in building a business that endures across changing market dynamics.

The Saya family possesses substantial financial resources, underscoring the strength and stability of the Company’s sponsors. Their long-standing commitment is reflected in past equity injections that have supported the Company’s growth, operational expansion, and resilience in a competitive market environment. Beyond their flagship enterprise, Al Rahim Textile Industries, the family has diversified its portfolio into multiple sectors. They own Al Rahim Retail Limited, which manages the Zellburry brand stores, a well-recognized retail chain in Pakistan offering affordable, stylish apparel for men, women, and children. Zellburry has built a strong presence in the mass-market fashion segment by combining contemporary designs with accessible pricing, making it a household name across the country. In addition, the family has introduced Rowaski, a premium fashion and lifestyle brand under the Saya umbrella. Rowaski emphasizes high-quality textiles, refined tailoring, and couture-inspired designs, catering to consumers seeking sophistication and elegance. Together, Zellburry and Rowaski demonstrate the family’s ability to serve diverse market segments—from affordable everyday wear to luxury fashion—while reinforcing their legacy as innovators in Pakistan’s textile and retail landscape. The Saya family also maintains ventures in real estate and construction, further broadening their business footprint and reinforcing their position as influential contributors to Pakistan’s industrial and commercial development. This diversified presence highlights their ability to balance traditional textile operations with modern retail and property development, ensuring both continuity and adaptability in their business strategy.

The Company’s Board of Directors is composed of three members and is chaired by Mr. Abdul Rahim Saya. The current structure includes two executive directors—one of whom serves as the Chief Executive Officer (CEO)—and one non-executive director, all representing the Saya family. This composition reflects strong family leadership and continuity, ensuring alignment between ownership and management. At the same time, there is scope to further strengthen governance practices. Expanding the Board to include additional members, particularly independent directors, would introduce diverse perspectives, professional expertise, and impartial oversight. By balancing family representation with independent voices, the Company would be well-positioned to reinforce stakeholder confidence, support sustainable growth, and adapt effectively to evolving industry challenges.

The Saya family has been actively engaged in the textile industry since 1991, contributing over three decades of expertise to the sector. Their longstanding involvement has enabled them to build a strong foundation in textile manufacturing, particularly within the towel industry, where they have developed specialized knowledge and operational excellence.

The Board of Directors plays an active role in overseeing the Company’s operations, with meetings convened on an as-needed basis to facilitate timely decision-making. This flexible approach has supported responsiveness to business requirements and ensured continuity in leadership. However, the current governance framework remains informal. The Board has not yet established dedicated committees—such as audit, risk, or remuneration committees—that could provide specialized oversight and strengthen accountability. In addition, there is also room to make structured policy for recording and maintaining minutes of Board meetings, which limits the ability to document deliberations, track decisions, and ensure transparency. Introducing these governance practices would enhance the Board’s effectiveness by promoting clearer responsibilities, improving decision-making processes, and aligning with recognized corporate governance standards.

Reanda Haroon Zakaria & Company, Chartered Accountants, serves as the external auditors for the Company. The firm issued an unqualified opinion on the financial statements for the year ending June 30, 2024, reflecting the Company’s adherence to accounting and financial reporting standards. Reanda Haroon Zakaria & Company is QCR- rated by ICAP and classified under Category 'B' on the State Bank of Pakistan’s panel of auditors. Audit of FY25 is in progress. 

The Company’s management structure is organized into clearly defined divisions and functional departments, ensuring transparent lines of responsibility, accountability, and operational efficiency. This framework enables effective coordination across business units and supports the Company’s ability to respond to evolving industry demands. Oversight of both the head office and site-level operations rests with Mr. Faisal Rahim Saya, the Chief Executive Officer (CEO). His leadership provides strategic direction, guiding the Company’s long-term vision while maintaining operational discipline. By combining centralized oversight with structured departmental responsibilities, the management system fosters alignment between strategic objectives and day-to-day execution. This organizational approach not only strengthens internal governance but also enhances decision-making, resource allocation, and performance monitoring. It reflects the Company’s commitment to professional management practices that balance family leadership with institutionalized processes, ensuring resilience and sustainable growth.

Mr. Faisal Rahim Saya, the Chief Executive Officer (CEO), leads the Company’s management team with more than ~29 years of experience in the family business. His extensive industry knowledge and strategic leadership have been central to guiding the Company’s sustained growth, operational resilience, and competitive positioning within the textile sector. Under his direction, the Company has successfully aligned long-term vision with day-to-day execution, ensuring that strategic initiatives translate into measurable outcomes. He is supported by a skilled and professional management team, whose expertise across finance, operations, marketing, and production contributes to effective governance and operational excellence. This collaborative leadership structure fosters accountability, innovation, and efficiency across all divisions. Together, Mr. Faisal Rahim Saya and his team embody a management approach that balances family-led leadership with professional practices, reinforcing the Company’s ability to adapt to evolving market dynamics while maintaining consistent performance and stakeholder confidence.

The Company does not presently maintain formal management committees. In lieu of such structures, senior management convenes on a daily basis to deliberate on ongoing matters and to formulate strategies for forthcoming initiatives. This approach ensures continuity of communication among leadership and promotes timely, informed decision‑making.

The Company has implemented the G‑Tech software platform to strengthen its business operations and modernize information management practices. The deployment introduced live dashboards that provide real‑time reporting capabilities for management. This advancement has reduced reliance on manual reporting by staff, thereby streamlining workflows and supporting greater operational efficiency.

The sponsors of the Company maintain active participation in both the Board and management, thereby fostering cohesive leadership and strategic alignment. Al Rahim has instituted an internal audit department, which functions as a critical element of its management control framework. In addition, the Company enforces rigorous quality control procedures that reinforce its commitment to operational excellence. Al Rahim also holds a diverse portfolio of internationally recognized certifications, including Oeko‑Tex 100 Class‑I and Class‑II, BSCI, C‑TPAT, Sedex, GOTS, and BRC. These credentials highlight the Company’s strong control environment and its adherence to globally accepted standards.

Pakistan’s towel manufacturing sector consists of about 10,000 shuttle and shuttle-less looms across both organized and unorganized segments, and it remains largely export-oriented. During FY25, Pakistan’s towel exports remained broadly stable in value terms at USD 1,082.6 million compared to USD 1,055.1 million in FY24, while export volumes increased marginally by ~1.4 percent to 226,300 metric tons,  contributing around ~6% to Pakistan’s overall textile exports. Pakistan is among the top five global towel exporters along with China, India, Turkey, and Vietnam, and together these countries account for about ~80% of global towel exports. During FY25, Pakistan’s cotton production declined by about ~30.7% year-on-year, driven by a reduction in cultivation area and lower yields. Extreme temperatures in Punjab affected boll formation, which reduced productivity. In addition to weather-related challenges, shifts in sourcing preferences among textile manufacturers also influenced demand for locally produced cotton. To meet domestic requirements, cotton imports increased by  ~234% year-on-year in FY25, following a ~70% decline in FY24.

Al Rahim is a recognized participant in Pakistan’s towel industry, contributing approximately ~10% of the country’s total towel exports. This share positions the Company as one of the leading exporters in a highly competitive market. In comparison, Feroze 1888 holds the dominant position with an estimated ~20% share, making it the largest single exporter of towels from Pakistan. The scale of Feroze 1888’s operations provides it with significant market influence, while Al Rahim’s consistent performance underscores its role as a strong competitor and reliable supplier. Together, these two companies account for nearly one‑third of Pakistan’s towel exports. Their combined presence not only strengthens Pakistan’s role in the global textile supply chain but also reflects the country’s specialization in towel manufacturing. In line with industry and geographic trends, Al Rahim's export concentration towards the USA declined materially, with the revenue impact partially offset by the strategy to increase penetration and export volumes to European markets. 

The Company primarily generates revenue from the manufacturing and sale of towels. In FY25, the topline amounted to PKR 27,877mln, comprising PKR 22,467mln from exports and PKR 6,300mln from the local market. Local sales recorded a notable increase during the year, while overall sales declined by -7.1% compared to FY24. Looking ahead, the Company’s strategy is to retain its export customer base while continuing to expand local market sales.

During FY25, the Company’s gross margin declined to ~12.4%, compared to ~16.6% in FY24. The operating margin also decreased to ~5.3% in FY25 (FY24: ~10.5%), mainly due to higher operational costs and increased energy expenses. The net profit margin fell to around ~1.5% in FY25, down from ~7.5% in FY24, reflecting the impact of lower sales and increased tax expense during the review period. Overall, FY25 showed a reduction across all margin levels, indicating pressure on profitability from both cost-side factors and revenue performance.

As per management representation, Company being an export-oriented entity, still has a positive growth trend from USA and Europe. This reflects a strong international demand for its products, driven by the Company's reputation for quality and reliability. Looking ahead, the Company is well-positioned to capitalize on increasing global demand, with expectations of continued growth in both export sales with market expansion and increased local sales potential. To combat cost rationalization, the management has initiated various efficiency measures, notably investments in wind and solar energy, to contain energy costs over the longer run.  As key international markets recover and consumer spending rises, the Company’s focus on maintaining product quality and expanding its global footprint is likely to drive sustained growth in the coming years. Enhanced marketing efforts, coupled with strategic partnerships, will further support this upward trajectory in demand. 

During FY25, the Company’s gross working capital days increased to ~194 days, compared to ~175 days in FY24. Inventory days also rose to ~118 days (FY24: ~96 days). Trade payables extended to ~67 days in FY25 (FY24: ~51 days), reflecting longer payment periods to suppliers. Trade receivable days remained relatively stable at ~76 days (FY24: ~79 days), suggesting consistent collection practices. As a result, net working capital days reached to ~127 days in FY25, down from ~124 days in FY24.

The Company’s free cash flows from operations (FCFO) decreased to PKR 1,770mln in FY25, compared to PKR 2,909mln in FY24, mainly due to decline in sales of the Company in review period. The interest coverage ratio declined to around ~3.9x in FY25 (FY24: ~4.3x), showing a lower level of earnings available to cover interest expenses. The debt coverage ratio improved to ~0.2x in FY25 from ~0.1x in FY24, reflecting a change in the Company’s ability to meet debt obligations.

The Company maintains a moderately leveraged capital structure, with leverage decreasing to ~20% in FY25 (FY24: ~27.8%), indicating a reduction in reliance on debt financing and a more conservative approach to capital management. Short-term borrowings, used to finance working capital requirements, stood at ~PKR 3,074mln in FY25 (FY24: ~PKR 4,702mln), reflecting a decrease in short-term debt, which is aligned with improved working capital management. This overall decrease in borrowings highlights the Company’s focus on reducing leverage and improving its balance sheet strength, providing greater financial flexibility and lower risk exposure. With a more efficient capital structure, the Company is well-positioned to manage its debt levels while sustaining growth and profitability.