PACRA Maintains the Entity Ratings of Packages Limited

Packages Limited ('Packages' or 'the Company'), the flagship holding entity of the Ali Group, has cultivated a strong business profile over the years. The Company manages a diverse investment portfolio comprising equity investments in companies both within and outside Pakistan. As of March 2025, the portfolio's value remains approximately unchanged at PKR 59.3 billion (March 2024: PKR 59.3 billion), including core and strategic holdings in listed and unlisted entities. In 2024, the Company invested PKR 102 million in Packages Trading FZCO, a wholly owned subsidiary, to enhance exports of finished goods and implement cost-saving measures to reduce the group’s import bills. The current portfolio includes investments in Nestle Pakistan Limited, Packages Convertors Limited, Tri-Pack Films Limited, Bulleh Shah Packaging (Private) Limited, DIC Pakistan Limited, Packages Real Estate (Private) Limited, Packages Lanka (Private) Limited, StarchPack (Private) Limited, Packages Trading FZCO, Hoechst Pakistan Limited, and other strategic investments. As dividend income represents the primary revenue source for Packages Limited, its income pattern aligns with the dividend distribution trends of group companies. In 2024, the Company earned dividend income of PKR 4,060 million, compared to PKR 5,840 million in the previous year. The decline was mainly due to the absence of dividends from Bulleh Shah Packaging (Private) Limited (2023: PKR 1,750 million). Additionally, first-year operating losses at StarchPack (Private) Limited (SPAC), increased depreciation and finance costs at Tri-Pack Films Limited (TPFL) from strategic capital expenditures, and adverse market conditions affecting Bulleh Shah Packaging (Private) Limited (BSPL) impacted overall returns. To address these challenges, the Company devised a revised three-year strategy aimed at restoring profitability. The Board of Directors approved an injection of up to PKR 3 billion into SPAC and PKR 8 billion into BSPL through various forms, including ordinary share capital, subordinated debt, and potential conversion of prior loans to equity to optimize their capital structures. The current equity of the Company is reported at PKR 55.2billion in Dec’24 (Dec’23: PKR 58.6billion).
The Company’s robust financial standing, supported by prudent leveraging and a strong balance sheet, underpins its credit ratings. The proven track record, strategic vision and business acumen of the Sponsors further reinforce the Company’s resilience and long-term sustainability.

About the Entity
Packages Ltd a listed concern, was established to convert paper and paperboard into consumer packaging in 1957. The Company is classified as an investment holding company and has continued to enhance its investment book to meet the growing demand in the FMCG sector. Ali Group holds ~67.78% shares of the Company through Directors, individual family members, and its corporates; with IGI Investments (Pvt.) Ltd. owning the prime share. The Company has a free float of ~28%. Mr. Syed Babar Ali provides guidance, while Mr. Syed Hyder Ali heads the Company as its CEO/MD. They are supported by a team of experienced professionals.