The Pakistan Credit Rating Agency Limited
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Bazah Tul Qamar

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PACRA Assigns Initial Ratings to Aggrio Pakistan (Pvt.) Limited

Rating Type Entity
Action Initial
Long Term BB
Short Term B
Outlook Stable
Rating Watch -

Aggrio Pakistan (Pvt.) Ltd. (“Aggrio”) is a private limited company operating under The Edge group Aggrio operates in three segments: i) pesticides ii) seeds and iii) fertilizer, with a countrywide distribution network of 150 sales staff. The group is extended to four companies, all of them are operating in agriculture input business. The company’s turnover is growing, with contribution from each segment, while pesticide business remains predominant in terms of revenue. Governance structure necessitates need for improvement. In its initial years of operations, Aggrio is marking its presence in the market through operational efficacy. The performance of pesticides sector hinges on the stability of its principal sector – Agriculture. During the period under review, the outbreak of COVID—19 pandemic has created a widespread impact on all economic sectors at different levels. The effect on pesticides sector is, however, mitigated with controlled situation in China (Supplier Country) leading to no shipment delays. On the demand side, the vitality of pesticides for food security leads to no major demand slippage in the country. Aggrio meets its working capital requirements through a mix of internal cash flows and short term borrowings. Financial discipline calls for substantial improvements, including timely preparation of quarterly accounts.
The ratings are dependent on sustained business and financial strength of the owners. Meanwhile, improved governance and financial practices are essential.

About the Entity
Aggrio Pakistan (Pvt.) Limited was incorporated in 2016 as a result of privatization. The current shareholding constitutes; Mr. Hamid Raza and Mr. Husnain Raza each with 50%. Aggrio Pakistan, as a private company is being run by sponsors. The partners are actively involved in the management as well. Mr. Muhammad Hamid Raza is the CEO of the company. He possesses fine business acumen spanning over two decades.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.