PACRA maintains the entity ratings of Poly Pack (Pvt.) Limited.

The assigned ratings reflect Poly Pack (Pvt.) Limited's (or the “Company”) stable market position, an experienced management team and a strong customer profile. It is entirely family-owned, with sponsors possessing extensive expertise in packaging, having been active in the industry since 1991. The Company’s core business revolves around the production of polypropylene woven bags, complemented by a diversified portfolio that includes polyethylene plain films, polyethylene shrink films, POF shrink films, and flexible packaging products. The raw material of the finished product is mainly imported, hence exposed to exchange rate risk. The demand for the product is derived from various industries including textile, sugar, fertilizer, chemical, edible ghee/oil, beverages and confectionery/FMCG. Pakistan’s paper and packaging industry has faced margin pressures due to rising energy costs and inflationary impact, which increased the cost of sales and impacted profit margins. Despite these challenges, demand for packaging from the FMCG and food sectors is expected to sustain moderate production growth, with the industry outlook remaining stable, supported by sustainability initiatives and recycling trends. Despite economic headwinds, Poly Pack (Pvt.) Limited preserved its market share by prioritizing quality and customer retention, ensuring stability. The Company has an annual production capacity of 60,000 MT, with utilization rising to 89% in FY25 from 74% in FY24. As per management representation, the Company has captured the major share of the PP Woven Bags market. Almost 60% of the Company's total sales are made in the Punjab region in FY25. The Company has installed a BOPP plant of 50,000 MT with an approximate cost of USD 60mln in the Special Economic Zone, Sheikhupura. It is operated as an associated Company of Poly Pack (Pvt.) Limited, named “Poly Pack Films (Pvt.) Limited”. This project features a backward integration model, reserving 10%-15% for in-house use while supplying the remainder to external markets. The project achieved its commercial operations date (COD) in Jan'26. The Company intends to establish a CPP plant within the premises of Poly Pack Films (Pvt.) Limited as part of its ongoing efforts to further diversify its product portfolio.
On the financial profile side, Poly Pack (Pvt.) Limited achieved an increase in topline of 19% and stood at PKR 18,445mln in FY25 (FY24: PKR 15,504mln) driven primarily by higher sales volumes. It stood at PKR 8,473mln at the end of 6MFY26. PP woven bags continue to be the leading revenue contributor, accounting for ~50%. The gross profit margin declined from 7.2% in FY24 to 5.1% in FY25, due to high cost of sales primarily driven by increased raw material consumption. In 6MFY26, it stood at 5%. The bottom-line of the Company clocked in at ~PKR 585mln during FY25 (FY24: PKR 775mln) driven by a reduction in gross profit and other income. Whereas, at the end of 6MFY26, it amounted to PKR 151mln. The Company maintained a low leverage profile which is recorded at 6.8% (FY24: 5.2%), reflecting less reliance on debt to support ongoing capacity expansions. However, by the end of 6MFY26, leverage increased to 16.3%, primarily attributable to a rise in short-term borrowings to manage working capital requirements and business expansion. Most of the Company's leverage is of the non-funded nature. The Company has extended a corporate guarantee of PKR 6bln on behalf of the wholly owned subsidiary. Additionally, it has availed itself of the non-funded lines from banks. The equity of the Company stood at PKR 5,499mln as of 6MFY26 (FY25: PKR 5,495mln).
The ratings are dependent upon the management’s ability to improve margins while sustaining its market share. Prudent management of the working capital and maintaining sufficient cash flows and coverages are essential for the ratings. Any significant change in margins and coverages will impact the ratings.

About the Entity
Poly Pack (Pvt.) Limited was founded as a private limited Company in 1991 and began its operations with the commercial production of Poly Propylene Bags. The Company’s manufacturing plant is located near Raiwind. The Company is wholly owned by the sponsor family with major ownership of ~43.6% residing with Mr. Iftikhar Ahmed, followed by Mr. Aamir, Mr. Bilal, and Mr. Abdullah owns ~15.6% shares respectively while Mrs. Nazia Iftikhar owns ~9.4% shares.