PACRA Maintains Entity Ratings of Sayban International

The assigned ratings of Sayban International ("Sayban" or "the Business") take into account the extensive experience of the sponsors in the pesticide industry, a strong brand, established industry presence, and wide geographical reach in the domestic market. Lately, the Business witnessed a structural change where the partnership now resides solely among Mr. Azam Cheema's family. Sayban retains its market share despite fragmentation in the crop protection industry. The pesticide sector in Pakistan faced substantial challenges marked by a lack of supportive government policies. Resultantly, the yield of major crops has been impacted. Sayban holds diversified revenue streams from pesticides, plant growth regulators micro-nutrients, fertilizers, and seeds. Though, the top line declined by ~8.76%, yet remains healthy, backed by a robust sales network across the country. Margins and in turn profits remain intact. The Business meets its working capital requirements through a mix of internal cash flows and short-term borrowings. The financial risk profile improved owing to a strong leveraged structure and strong coverages. Going forward, the Business plans to participate in public sector tenders, further strengthening the overall performance.
The ratings are dependent on the sustained business and financial risk profile of the Business. Meanwhile, improvement in governance practices would be beneficial for the ratings.

About the Entity
Sayban International ("Sayban" or "the Business") was incorporated in 2005 as a partnership concern. Previously, the shareholding vests among Mr. M. Azam Cheema, Mr. Shamsher Hussain, and Mr. Muhammad Tariq. However, recently Mr. Shamsher and Mr. Muhammad Tariq have divested their stake in the Business. Now, the partnership resides between Mr. M. Azam (~98%), and his wife, Mrs. Shabana Mumtaz (~2%). Mr. M. Azam is the key decison maker for the Business and heads as the CEO. He is supported by a team of experienced professionals.