PACRA Withdraws Entity Ratings of Island Textile Mills Limited
Subsequent to the management's decision to discontinue the entity ratings of Island Textile Mills Limited, PACRA withdraws the entity ratings of Island Textile Mills Limited with immediate effect.
Island Textile Mills limited (the Company), incorporated in 1970, is a public listed company engaged in the manufacturing and sale of different varieties of yarn. Tata family acquired the Company in the early 80s and took charge of its management. The corporate office of the Company is located at Textile Plaza, M.A. Jinnah Road, Karachi, whereas, vicinity of the plants is in Kotri Industrial Estate in the Province of Sindh. Until 2015, the Company was operating with a single manufacturing unit with a designed capacity of 19,200 spindles - Unit 1. However, in 2016, in line with the emerging business needs, the Company made an expansion and installed its second state-of-the-art unit with a capacity of 26,784 spindles – Unit 2. Thereby, current total installed capacity of the Company stands at 45,984 spindles.
The CEO, along with other family members collectively own the majority (77%) shares of the Company. The remaining shareholding is held by mutual funds (7%) and the general public (7%). The overall control of the Company vests in seven members (board of directors) including the CEO – Mr. Shahid Anwar Tata. Mr. Mazhar Valjee is the Chairman of the board. He has diverse experience in the field of textile sector, bringing specialized and comprehensive experience and knowledge on the board.