PACRA Assigns Positive Outlook to Sarena Textile Industries (Private) Limited
Sarena Textile Industries (Private) Limited specializes in weaving, dyeing, printing, finishing and stitching. The Company offers a variety of special finishes and is the only licensee for PROBAN® in Pakistan. The Company employs experienced professionals, aided by comprehensive reporting, who look after operations with autonomy. The greater part of revenue is generated from processing sales followed by weaving. Revenue is balanced between the local and export market. The devaluation of the rupee has enabled the company to capitalize on positive dynamics and grow its revenue while penetration into the niche of work-wear gives it a competitive advantage over local peers, in terms of margins. The Company has a strong financial profile characterized by strong coverages and improving working capital management reflected in an adequate borrowing cushion. Financing at concessionary rates by the SBP shields the Company's moderately leveraged capital structure against the recent interest rate hikes. Planned expansion into value-added weaving is expected to further enhance the Company's performance, going forward.
The ratings are dependent on the management’s ability to sustain its working capital management and margins. Adverse movement in margins and/or coverages will negatively impact the ratings.
Sarena Textile Industries (Private) Limited, incorporated in 2001, is part of the Sefam and Ali Group of Industries, most famous for its fashion brand Bareezé. The Company has its plant located at Sheikhupura Road which is equipped with ~100 looms and has processing facilities with the capability to process ~6mln mtrs. of fabric per month. Ownership of the Company lies with the four children of Mr. J.A Zaman (late). Mr. Zaman founded Ali Embroidery Mills (Private) Limited in 1972, which later became the launching pad for Sefam & Sarena Group of Industries. The Group has expanded its operations over the years and owns many well-known retail brands, such as, Bareezé, Leisure Club, Minnie Minors, Chinyere, Home Expressions and Kayseria, among others.
Majority of the ownership (84%) lies with Mr. Hamid Zaman and Ms. Seema Aziz, both of whom are educated from prestigious universities and have a diverse background in the textile industry. Operations of the company are looked after by the Chief Executive Officer, Mr. Asif Masood.