PACRA Maintains Entity Ratings of H. Nizam Din & Sons (Pvt.) Ltd.

The assigned rating reflects H. Nizam Din & Sons (Private) Limited’s (Nizam or “the Company”) reputable standing, strong presence, and long-established business history. Based upon the knowledge legacy and skills inherited from canvas tents/shelter manufacturing and exports, the Company has transformed itself into a leading global supplier of humanitarian relief products. This transformation has been driven by the Company’s ability to adapt to evolving international standards, expand its product portfolio, and strengthen its global supply chain network, particularly in servicing humanitarian agencies and NGOs. Nizam operates through two business verticals, one specializing in the relief and camping segment, and the other in garment/apparel production. Both units are equipped with state-of-the-art plant and machinery and supported by fully integrated processes that enhance productivity by streamlining the operations. The Company’s revenue stream is well-diversified, underpinned by a broad product portfolio encompassing relief supplies, apparel, camping equipment, made-ups, and workwear. This strategic diversification reduces concentration risk and enhances Nizam’s resilience to industry-specific and macroeconomic fluctuations. Nizam is among the few local companies approved by the United Nations and global donor agencies to supply essential relief items such as tents and blankets. The increasing frequency of natural disasters—amplified by climate change, and ongoing regional conflicts has led to a sustained rise in global demand for disaster relief and emergency response solutions. On the other imposition of reciprocal tariffs by the United States presents a broader trade risk, however, the impact on Nizam’s exports remains modest, given its limited exposure to the U.S. market. As per the management’s the current evolving landscape can potentially create opportunities, and Nizam remains well-positioned to respond with agility and scale. During 6MFY25, the Company recorded a sales revenue of ~PKR 7.14bln (FY24: ~PKR 13.11bln), representing an annualized growth of around ~9.6%, primarily driven by price adjustments and slightly increased volumes. Profitability remained stable, with the gross and net margin sustained at ~17.9% and ~2% respectively (FY24: ~17.5 & ~2%). The board of the Company is family-oriented, where sponsors are close family members and thus indicates room for further improvement. The operations of the companies are governed by a qualified team of professionals, and a sound system of internal controls is implemented across the organization. The financial profile of the Company is considered good with modest coverage, cash flows, while working capital cycle is stretched. Capital structure is leveraged, and borrowings are mainly comprised of short-term borrowings for working capital management. Going forward, the Company aims to enhance operational and cost efficiencies while strategically expanding its non-relief product portfolio to strengthen its export footprint.
The ratings are dependent on sustainable growth in top-line and bottom-line with upheld margins, and market share, while retaining sufficient cash flows and coverages. However, adherence to maintaining its debt metrics at an adequate level is a prerequisite.

About the Entity
H. Nizam Din & Sons (Private) Limited, incorporated under the Companies Ordinance, 1984, operates manufacturing units in Karachi (S.I.T.E.) and Lahore (34 km Ferozepur Road). The Company is majority-owned by Mr. Naveed Ahmad (~73.05%), with the remaining shares equally held by Mr. Ali Ahmad, Mr. Usman Ahmad, and Mr. Saad Ahmad (~8.89% each). Mr. Ali Ahmad serves as CEO and brings extensive business experience to the role.