Muhammad Nadeem Sheikh
PACRA Maintains Entity Ratings of Panther Tyres Limited
The ratings take strength from strong industry positioning of Panther Tyres in its respective niches. The company has a formidable market share in 2& 3 wheeler tyre and tractor tyre segment of tyre & tube industry. The sponsors have built a strong management team with a wholesome mandate: roles are clearly demarcated with high degree of delegation. The company intends to improve its overall organisation structure and inculcate financial transparency as per Code of Corporate Governance. Latest evidence is the appointment of a professional in the position of the CEO. Margins are sanguine though slightly constrained during FY18 due to increase in prices of raw material. The company is strengthening its international presence. The ratings draw comfort from strong coverages coupled with adequate capital structure. Going forward, the demand from replacement market is expected to remain strong whereas the OEMs' demand is expected to contract due to increased prices.
The ratings are dependent on the management's ability to sustain its business profile with careful management of market risks, increase in international outreach and improvement in governance structure.
Panther Tyres Limited is an unquoted public limited company incorporated in 1983. The Company is primarily engaged in the production of tyres and tubes of vehicles. Panther is the pioneer in the motorcycle tyre manufacturing industry of Pakistan. The company sells its product with the brand name “Panther” and it has since been renowned for quality products. These products are not only sold in the replacement market but also supplied to the original equipment manufacturers of motorcycle, rickshaw and tractors.
Mr. Mian Iftikhar Ahmed-a renowned businessman, along with his family owns the entire shareholding of the Company. He has served as the chairman of All Pakistan Tyres & Tubes Manufacturing Association. The overall control of the Company vests in three members’ board of directors. Two are executive directors, including the chairman, and one is a non-executive member of the sponsoring family. Mr. Naveed A. Khawaja is the new CEO of the company; he has replaced Mr. Mian Iftikhar Ahmed. He is supported by a team of qualified and experienced professionals.