PACRA maintains Entity Ratings of Bikiya Industries Private Limited

The rating of Bikiya Industries (Pvt.) Limited (“Bikiya” or the “Company”) reflects the Company’s stable operational performance and its ability to sustain a profitable business profile. The Company is a privately owned, family-run enterprise led by its majority shareholder and CEO, Mr. Muhammad Saleem Bikiya, who possesses over four decades of industry experience. His strong business acumen and active involvement in the Company’s strategic and operational affairs have played a key role in maintaining the Company’s market positioning and ensuring operational stability. Bikiya Industries primarily operates in the tissue paper segment, where its flagship brand “TUX” has established a notable presence within a relatively short period. Alongside its core tissue product line, the Company has introduced a range of food products as part of its strategic initiative to broaden its product mix and enhance revenue streams. This move reflects management’s commitment to strengthening its market presence by expanding into complementary segments while addressing changing consumer preferences. The Company benefits from a well-integrated supply chain, supported through its dedicated intender, International Business Management, which facilitates the procurement of raw materials and contributes to operational efficiency. The demand outlook for tissue products in Pakistan remains favorable, supported by increasing consumer awareness regarding hygiene and steady household consumption. However, the sector remains exposed to fluctuations in raw material prices and exchange rate volatility, as a portion of the raw materials is imported. The Company’s established sourcing channels and operational management provide some cushion against these challenges. Financially, Bikiya Industries has maintained a sound performance profile. The Company’s operations have translated into a stable profitability position, supported by effective cost management despite inflationary pressures and volatility in raw material prices. The Company maintains a low leveraged capital structure, which, coupled with stable operational performance, supports its overall credit profile and bodes well for the assigned rating.
The ratings would remain dependent on the Company's ability to sustain the growth in the profitability while strengthening the equity base. 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
Bikiya Industries Private Limited was founded in 2014 with an initial share capital of PKR 50 million. Mr. Saleem Bikiya holds an 80% stake, while his sons, Mr. Usman Bikiya and Mr. Muhammad Bilal, each own 10%. The Company specializes in five key products: i) Pop-up Tissue Box, ii) Toilet Roll, iii) Pop-up Mini Tissue, iv) Hand Towel, and v) Party Pack, catering to a broad customer base. The Board of Directors (BoD) consists of three members, with Mr. Saleem Bikiya serving as the Chairperson.