PACRA Upgrades Entity Rating of Dynamic Packaging (Pvt.) Limited

The rating upgrade of Dynamic Packaging (Pvt.) Limited (“DP” or the “Company”) reflects sustained growth in its revenue base and the resulting improvement in profitability. The sponsor’s strong business acumen has been instrumental in driving the Company’s growth trajectory, supported by the sponsor family’s extensive experience in the packaging industry, where they have been actively engaged since 2004. The Company is predominantly manufacturing different types of Flexible Packaging, Pharmaceutical sachets, Tropical Blister Foil, Aluminum Blister Foil, and Cold cold-forming aluminum Foil packaging. The Family's businesses include i) Dynamic Packaging (Pvt.) Limited ii) Global Inks & Chemicals (Pvt.) Ltd iii) Royal Traders. The Company is backward integrated, wherein Global Inks & Chemicals (Pvt.) Ltd provides a complete range of solvent-based ink systems for the Rotogravure and flexographic printing industries across Pakistan. The demand for packaging products is mainly derived from the food and pharmaceutical industries. The strong and stable customer base of the Company bodes well for the assigned rating. The raw material of the finished product is partially imported, hence, exposed to exchange rate risk. As per management representation, the Company has captured a good share of the flexible packaging market. While being the sole manufacturer of pharmaceutical packaging in Pakistan, the Company holds ~ 5% market share; the rest of the market of ~95% is captured by importers. In FY25, the capacity utilization of the Company remained adequate. While the pharmaceutical sector is expected to support improved capacity utilization, it remains on the lower side due to logistical disruptions, primarily stemming from heightened regional tensions, which led to shipping delays and vessels being held offshore.
In FY25, Dynamic Packaging recorded healthy performance, reflected by a Gross Profit Margin of 9.5% (FY24: 9.1%) and a Net Profit Margin of 3.5% (FY24: 3.4%). Equity stood at ~PKR 2,584mln at the end of FY25 (FY24: ~PKR 2,315mln). The Company is low leveraged with strong financial indicators as of the end of Jun’25. Additionally, the Company has planned to install a solar energy system with a total capacity of approximately 1.3 MW in two phases. Under Phase I, the Company has already installed 617 kV of solar capacity at the factory. The remaining capacity, bringing the total to approximately 1.3 MW, will be installed under Phase II, which is expected to be completed by the end of FY26. Once fully operational, this initiative is expected to materially reduce reliance on WAPDA electricity and support a meaningful share of the factory’s energy requirements, and give the Company an estimated PKR 25mln per annum cost cutting on utility.
The ratings are dependent upon the management’s ability to improve margins while sustaining its market share. Prudent management of the working capital and sufficient cash flows and coverages are essential for the ratings. Any significant change in margins and coverages will impact the ratings.

About the Entity
Dynamic Packaging (Pvt.) Limited was founded as a private limited company on 23rd June 2004 and is currently engaged in the commercial production of Flexible and Pharmaceutical Packaging. The Company’s manufacturing plant is located in Raj Industrial Park Dullu Kalan. The Company is wholly owned by the sponsor family with major ownership of ~72% residing with Mr. Ashraf Ch, followed by Mr. Waqas Ashraf and Ms. Shazia Ashraf hold respectively ~20% and ~8% ownership of the Company.