The Pakistan Credit Rating Agency Limited
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Sohail Ahmed Qureshi

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PACRA Maintains Entity Ratings of Ghani Global Glass Limited | Positive Outlook

Rating Type Entity
(23-Nov-22 )
(23-Nov-21 )
Action Maintain Initial
Long Term BBB+ BBB+
Short Term A2 A2
Outlook Positive Positive
Rating Watch - -

Ghani Global Group has diversified businesses, managed through a holding company named Ghani Global Holding Limited (GGHL). One of its subsidiaries is Ghani Chemical Industries Limited (GCIL) which is the largest producer of industrial and medical gases in Pakistan. In 2004, the holding company started another business venture and formed Ghani Global Glass Limited (GGGL) for the manufacturing & sale of Glass tubes, Ampoules & Vials serving the needs of the pharmaceutical segment. As stated by the management of the Company, GGGL is the only manufacturer of Glass Tubes in Pakistan, having state of Art European technology and creating value through import substitution. The current national market of glass tubes stands at approx. ~7,586 tonnes per annum, approximately 45%-50% of the demand is being met through imports (~25% Germany & ~ 30% China) and the rest of 50% is contributed by GGGL. The Company is aiming to increase its market share in the Chinese as well as European tubes segment. In the recent period under review, the annual furnace capacity was enhanced to 22TPD from 20TPD with an achievable glass tube production capacity of 18TPD from 15TPD. and the commencement of production from the new furnace, which also now enabled GGGL to explore export markets. The Company has also a presence in the value-added segment of Glass Tubes and converts them into Ampules, and Vials. The Company was able to capture a reasonable (~16%) market share in this segment. The current actual ampule converter capacity was ~30 million per annum. However, the Company faces immense competition in this particular tube conversion segment from organized and unorganized players. The operations of the Company are benefited from a sound system of internal controls implemented across the organization. The Company has availed ITERF facility for its production capacity expansion. Going forward the Company is expected to receive benefits from (a) rising demand for locally manufactured Glass Tubes (b) imposition of regulatory duties on Imports of Glass Tubes (c) export potential of the product (d) rationalized leverage policy. The financial profile of the Company is considered strong with comfortable coverages, cashflows, and working capital cycle. Capital structure is leveraged comprising a mix of short-term and long-term (ITERF) for capacity expansion projects.
The ratings are dependent on upheld sustainable profits and market share while retaining sufficient cash flows and coverages. However, adherence to maintaining its debt metrics at an adequate level is a prerequisite

About the Entity
Ghani Global Glass Limited (GGGL) is a public listed concern, incorporated in 2007 as Ghani Tableware (Private) Limited. Its status was changed to public unlisted company, as on July 24, 2008. The name of the Company was further changed to Ghani Global Glass Limited on January 14, 2009 and GGGL listed on Pakistan Stock Exchange on December 12, 2014. The majority stake (50%) is held by Ghani Global Holdings Limited (formerly “Ghani Gases Limited”) and remaining shareholding lies with financial institutions and general public. The Company commenced its commercial operations with effect from April 01, 2016. GGGL’ eight-member board is majorly represented by members of sponsoring family. Mr. Atique Ahmad Khan is the Chairman of the BoD while Mr. Masroor Ahmad Khan holds the office of CEO.

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