PACRA Maintains Entity Ratings of Meezan Plastic Industries (Pvt.) Limited.

Meezan Plastic Industries (Pvt.) Limited (“MPI” or “the Company”), is a growing manufacturer and distributor of BOPP/OPP (Biaxially Oriented Polypropylene) packaging materials, continues to strengthen its role in Pakistan’s packaging industry by serving both edible and non-edible product markets. With sales outlets strategically located in Faisalabad and Lahore, MPI facilitates efficient distribution and maintains direct operational oversight, ensuring consistent and reliable service delivery. The sponsors bring significant industry expertise, which supports informed decision-making and contributes to sustainable business growth. Pakistan’s BOPP/OPP packaging film industry remains fragmented, with a large unorganized segment and a few dominant players that have invested in advanced technologies. Amid an increasingly competitive landscape, MPI is establishing itself as an emerging player in the packaging sector. By leveraging its expertise in BOPP/OPP bag manufacturing, the Company is focusing on serving the price-sensitive segment of the packaging industry. However, it faces challenges from volatile polypropylene resin prices tied to global oil markets, exchange rate fluctuations, and competition from larger, more technologically advanced rivals. BOPP/OPP films are widely used across food packaging, non-food packaging, and various industrial applications. The key drivers of this market include the steady growth in food and beverage packaging, rising demand for films with UV light barrier properties, and broader macro trends such as population growth, urbanization, increasing consumer awareness of product safety and quality, and the rapid expansion of e-commerce. MPI is a family owned enterprise with strong leadership and a collaborative structure that drives efficiency and innovation, though succession planning remains a key need for long term stability. The Company’s governance framework remains fragile due to the absence of a formal board, dedicated committees, and independent oversight. Moreover, its external auditors are neither QCR rated nor included on the SBP panel, underscoring the need to strengthen financial transparency and regulatory compliance. During FY25, the Company’s revenue declined to PKR 2.2 billion, compared with PKR 4.0 billion in FY24. The reduction was primarily attributed to the flood situation affecting the facility’s surrounding area, which disrupted operations and impacted overall business performance. In FY25, the Company’s gross margin showed a modest improvement, rising to ~9.3% from ~8.9% in FY24. However, the net profit margin declined from around ~2.9% to ~0.9%. This reduction was primarily driven by the inclusion of taxation expenses in FY25, following the expiry of the exemption under Section 65D of the Income Tax Ordinance, 2001, which lapsed on 15 March 2024. The Company’s financial risk profile is satisfactory, supported by moderate coverage, cash flows, and a manageable working capital cycle, though trade receivable days have continued to lengthen. Operations rely solely on internally generated cash flows, with no plans for short or long term borrowing. A non funded facility has been secured from a financial institution to support the import of essential raw materials
The ratings are dependent on Company’s ability to maintain its position in a changing business environment and on management’s effective oversight of operations. Sustained growth in business volumes, increased sales supporting the bottom line, adherence to financial discipline, and a strong control framework will remain critical.

About the Entity
Meezan Plastic Industries (Pvt.) Limited is a Private Limited Company incorporated in Pakistan in June 2018 under the Companies Ordinance 1984 (now the Companies Act, 2017 as adapted under the Azad Jammu & Kashmir Companies Adaptation Act, 2021). It is family owned and operated business with shareholding divided among 2 members, Mr. Hafiz Muhammad Atif (~70%), and Mr. Yasir Amin (~30%). Mr. Hafiz Muhammad Atif is the founding member and CEO of the Company since its incorporation.