PACRA Maintains Entity Ratings of M.Y. Bari Mills (Pvt.) Limited

M.Y. Bari Mills (Pvt.) Limited (hereinafter referred to as “Bari Mills” or “the Company”) is a leading manufacturer and exporter of high-quality towels, catering to renowned retailers as well as the hospitality and healthcare sectors across the USA, Germany, Norway, and Sweden. The Company operates a modern, semi-integrated facility that combines weaving and finishing processes under one roof, equipped with advanced machinery, including high-speed air-jet looms. Bari Mills delivers efficient and superior production quality to meet the demands of its global clientele. The ratings reflect the Company’s sound business foundation, supported by the Bari family’s longstanding presence in the textile industry spanning over six decades. As one of Pakistan’s top ten towel exporters, the Company has positioned itself as a notable player in the textile sector. During 11MFY25, the country’s total textile exports reached USD 16.4bln, reflecting a moderate growth of ~7% compared to the same period last year. Towel exports contributed around 6% of the total textile exports, amounting to USD 994mln, with a marginal growth of 3% only. Export volumes registered a modest increase of 2%, while the average unit price remained stable at ~USD 4.7 per unit. The local textile industry’s margins came under pressure due to new fiscal measures and a significant rise in energy tariffs. In IHFY25, the Company achieved a notable revenue growth of 43%, largely driven by higher export volumes. Gross and operating margins experienced some compression due to rising costs across various fronts, while net margin improved on the back of foreign exchange gains. The Company’s board is composed primarily of close family members, indicating potential for enhanced governance through greater independence. The operations are managed by a team of experienced professionals, supported by a robust framework of internal controls implemented across the organization. The Company continues to strengthen its operational footprint by undertaking capacity expansions in key segments, including stitching, dyeing, weaving, and printing, with these initiatives being financed through internally generated cash flows. Management maintains a prudent approach to borrowing, as manifested in the financial projections. The Financial risk profile is characterized by comfortable cashflows, coverages, and working capital cycle. Capital structure is leveraged with a mix of long-term and short-term borrowings availed at concessionary rates from SBP (LTFF & ERF).
The ratings are dependent on maintaining optimal operations with sustained growth in revenue and margins, while maintaining financial risk at a low level is critical. Meanwhile, strengthening the governance framework and control environment for better oversight of strategic affairs is essential for ratings.

About the Entity
M.Y. Bari Mills (Pvt.) Limited was incorporated in 2012 as a Private Limited Company. Primary business of the Company is to manufacture and export towels with a total installed capacity of 190 looms. Mr. Haroon Bari owns ~20% of shares and the remaining shareholding is evenly distributed among his five sons (~16% each). The BoD comprises five members with Mr. Haroon Bari as Chairman, who is having an experience of ~52 years in textile industry. The CEO of the Company is Mr. Nabeel Haroon Bari, a graduate from UK in the field of commerce with overall working experience of ~25 years with the group. There is no independent director on the board.