PACRA Maintains Entity Ratings of Asif Rice Mills

The ratings for Asif Rice Mills (the Business) continue to reflect its established foothold in the non-basmati rice export segment, supported by a diversified geographic footprint and significant processing capacity. Strategically, the Business has successfully expanded its product portfolio into the sesame seeds segment, a move that provides a crucial buffer against the concentration risks inherent in a single-commodity model. The Rice industry, a cornerstone of Pakistan’s economy contributing approximately 10.5% to total export proceeds, witnessed a 14.7% year-on-year decline in export earnings to USD 3.35 billion in FY25, following a correction from the previous year's peak. In line with this sectoral moderation and softening international demand, Asif Rice Mills recorded a consolidation in net revenues to PKR 58,886mln (FY24: PKR 64,362mln). Despite this contraction, the financial risk profile remains stable, characterized by conservative leverage and improved debt service coverage. However, the bottom line felt the subtle weight of an increased taxation costs, while gross margins were pressured to 8.3% (FY24: 11.8%) by elevated raw material costs.
As the industry faces a period of pricing and volume stabilization, the Business’s ability to maintain its market share is closely tied to its operational efficiency. While working capital is currently supported by internally generated cash flows, sustaining business volumes amidst local economic challenges remains the primary focus. Meanwhile, keeping up with a stable financial risk profile, particularly debt servicing capacity, remains imperative for ratings.

About the Entity
Asif Rice Mills (‘Asif Rice’ or ‘the Business’) was established in 2006 as an Association of Persons (AoP). Ownership of the Business is concentrated within the family of Mr. Mumtaz Ali, with Mr. Asif Ali Shaikh holding approximately 34% and Mr. Hanif Shaikh and Mr. Kashif Mumtaz each holding approximately 33%. The Business is principally engaged in the processing and export of semi-processed non-basmati rice, along with limited volumes of basmati rice, to markets across China, Far East Asia, Europe, and Africa. Current installed processing capacity stands at 90MT per hour. The Business is led by Mr. Asif Ali Shaikh as Chief Executive Officer, while Mr. Kashif Mumtaz and Mr. Hanif Shaikh serve as Directors of Sales and Procurement, respectively.