PACRA Maintains the Entity Ratings of Be Be Jan Pakistan Limited

The assigned ratings of Be Be Jan Pakistan Limited (“BBJPL” or “the Company”) reflect its adequate business profile in the competitive textile sector of Pakistan. The Company operates a semi-vertically integrated facility that combines weaving and stitching processes, operating with an operational capacity of 140 looms and 405 stitching machines. BBJPL delivers superior product quality in line with the demands of its global clientele while keeping the processes streamlined. The ratings find comfort from the Company's sound business foundation and the Elahi family’s long-standing presence in the textile industry. The Board of the Company is dominated by sponsors, who also hold executive positions, ensuring significant control over the Company’s strategic and operational decisions. The execution of decisions is assured through a team of experienced professionals, supported by a robust framework of internal controls implemented across the organization.
During FY25, the Company’s topline witnessed a slight reduction (FY25: PKR 6.9bln, FY24: PKR 7.1bln), underpinned by a volumetric decline in the local sales. While the upward revision in the minimum wage policy led to higher labor costs, the Company’s gross and operating margins improved, supported by favorable pricing during the year. The net margins also improved, benefiting from ongoing monetary easing. The management is cognizant of energy cost risk and in the process of optimizing its cost structure through the installation of a ~2.0MW solar plant, elevating the Company’s total solar generation capacity to 3.5MW. The new solar plant is expected to become operational within the first fiscal half, with its financial impact materializing in the following quarters. In addition to FESCO and diesel generation, the Company operates two gas engines to optimize energy costs and ensure uninterrupted production.
In FY25, the transition from Final Tax Regime (FTR) to Normal Tax Regime (NTR) is anticipated to establish a uniform taxation framework for the sector, thereby enhancing transparency in operations. Being an export-oriented weaving and stitching unit, this shift is expected to enhance the profitability of BBJPL. The financial risk profile of the Company is considered adequate, with an aptly managed working capital cycle. Capital structure remains adequately leveraged, comprising a mix of long and short-term borrowings. Short-term borrowing constitutes 55.9% of the total borrowings, primarily funding the working capital requirements. The cash flows and coverages of the Company are considered adequate, provided the monetary policy remains constant. The industry's intensive working capital requirements, along with supply-side risks related to the availability of local cotton, may increase reliance on imported cotton and elevate the cost base.
The ratings are dependent upon the management's ability to capitalize on growth opportunities in a competitive landscape, operate at an optimal level, and improve margins and coverages, going forward. Adherence to the debt matrix at an optimal level is a prerequisite for the assigned ratings.

About the Entity
Be Be Jan Pakistan Limited is an unlisted public company incorporated on November 19, 1978. The shareholding is distributed among family members, with Mr. Usman Ehsan Elahi holding a 49.0% ownership stake, followed by Mrs. Aisha Saqib (~34%), Mr. Faisal Ehsan Elahi (~8.6%), Ms. Marriam Saqib (~2.3%), Mrs. Fareeha Faisal (~2.3%), and Be Be Jan Protein Farms (Pvt.) Ltd (3.8%). The Board comprises three sponsoring family members: Mrs. Aisha Saqib holds the position of CEO, Mr. Usman Ehsan Elahi is appointed as Executive Director, and Ms. Marium serves as Non-Executive Director of the Company.