PACRA Assigns Initial Entity Ratings to GH2 Industries (Pvt.) Limited

GH2 Industries (Pvt.) Limited ('GH2' or the 'Company') is a newly established venture with Mr. Rana Nasim Ahmed as the lead sponsor, alongside other investing shareholders, Descon Holdings (Pvt.) Ltd. and Aurelius (Pvt.) Ltd. The assigned ratings reflect the Sponsors' business expertise and their strong presence across diverse sectors, including agriculture, power (with a focus on renewable energy), and industrial operations and maintenance services, both locally and internationally. GH2 is in the process of setting up an agri-based manufacturing facility to produce value-added product mix as broken rice derivatives, with a focus on functional and health-oriented ingredients for local and international food and pharma industries. The plant will also integrate a rice processing unit with a capacity of 15 MT per hour / 360 MT per day to partially meet its internal feedstock requirement (i.e., broken rice). The Company shall be dealing in non-basmati rice, which has lower branding requirements for exports, and is more suitable for processing into rice derivatives, given lower cost and abundant availability in the project district of Thatta and adjoining areas. Pakistan's rice sector plays a vital role in the economy, with exports reaching a record $3.93bln (up from $2.1bln in FY23) by exporting approximately 6mln MT. Non-basmati rice dominated export volumes, accounting for around 88% of total shipments by quantity, driven by its affordability and global cuisine appeal. The Company’s governance structure is strong, supported by renowned business figures on the Board and assistance from board-level committees. GH2 plans to operate with a lean organizational structure focused on operational efficiency. The management team is well-qualified and experienced, providing further confidence in the ratings. The control environment is expected to be robust, with well-developed policies in place. The ratings consider the stable demand for rice and broken rice derivatives in both local and export markets. The strategic location of the manufacturing facility offers quick and easy access to paddy fields and rice processing units within Sindh, ensuring a steady supply of internal feedstock. The Sponsors' international presence is another key advantage, providing the Company with an established footprint in global markets. If managed effectively, this presents a favourable outlook for GH2.
The ratings depend on the sustained strength of business volumes amid the current economic environment. As the global economy faces ongoing challenges, business sustainability has become a critical concern for exporters. Simultaneously, maintaining a stable financial risk profile, with a strong emphasis on working capital management, is crucial to preserving favourable ratings.

About the Entity
GH2 Industries (Pvt.) Limited ('GH2' or 'the Company') was incorporated as a private limited company on 28-Sep-20, under the Companies Act, 2017. The project is projected to become commercially operational by Jun-26. GH2 is primarily owned by Mr. Rana Nasim Ahmed (~50%), with the remaining ownership split equally between Descon Holdings (Pvt.) Ltd. and Aurelius (Pvt.) Ltd. (~25% each). The Company’s Board comprises four members, including Mr. Rana Nasim Ahmed, Mr. Rana Uzair Nasim, Mr. Faisal Dawood (appointed by M/s Descon Holdings (Pvt.) Ltd.), and Mrs. Riffat Zamani (appointed by Aurelius (Pvt.) Ltd.). Mr. Rana Uzair Nasim serves as the CEO of the Company, appointed by Mr. Rana Nasim as per the Shareholding Agreement. All Board members and management personnel are experienced professionals.