PACRA maintains the entity ratings of DIC Pakistan Limited

The assigned ratings reflects DIC Pakistan Limited's ("DIC" or the "Company") strong sponsor profile, established market position and sound financial footing. The ratings also take comfort from its good governance framework, strong control environment, and an experienced management team. DIC is predominantly engaged in the manufacturing of a range of printing inks, with production closely tied to the demand for food products and other consumer goods. Since CY24, Pakistan’s paper and packaging industry has faced margin pressures due to rising energy costs and higher imported raw material prices. 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. DIC Pakistan Limited has taken proactive measures to navigate this environment, including reducing sales prices and diversifying its product portfolio. During CY24, the Company benefited from a decline in imported raw material costs due to stable PKR–USD parity. To maintain sales volumes, the Company also reduced its sales prices by approximately 5–6%. In addition, DIC expanded its offerings by introducing textile inks and wood coatings during CY25 to support topline growth and sales volumes to remain competitive in the industry. The Company also plans to launch ceramic inks in collaboration with DIC Asia Pacific Limited (Singapore), with the formula or finished products to be supplied by the sponsor. According to management, currently DIC Pakistan Limited commands an estimated 35% market share in the country’s printing ink industry and remains the sole domestic manufacturer of printing inks in Pakistan.
The Company recorded a minor increase of 9% in topline to PKR 9.6bln during 9MCY25 (9MCY24: PKR 8.8bln). Rotogravure ink continues to be the leading revenue contributor, accounting for ~50%, followed by Flexographic Ink-Water based at ~12%. During 9MCY25, the Company's profit after tax was recorded at PKR 639mln compared to PKR 788mln last year. The decline in bottom-line profitability was mainly due to operating costs. The strong group structure and associated synergies have helped the management in reaping the benefits of catering to higher demand with effective inventory management. During 9MCY25, leverage remained almost intact at the same level at 69.8%, a slight increase was noticed due to an increase in long-term loan of PKR 1.2bln to support Kasur project. The Company has successfully relocated majority of its production facility from Lahore to Kasur as part of its business expansion and operational optimization strategy. The inauguration ceremony of the Kasur plant was held on Oct 22, 2025. The total project cost has been entirely financed through debt. As part of the transition, around 20%–30% of the machinery was relocated from the Lahore facility, while the remaining equipment was newly imported to enhance production efficiency and technological capability. At present, the Kasur plant is engaged in the production of paste and water-based inks, while the Lahore facility continues to manufacture rotogravure inks using the remaining machinery. According to management, the relocation and installation processes are progressing as planned, and full-scale production of all ink types at the Kasur facility is expected to commence by December 2025. As of 9MCY25, equity of the Company stood at PKR 2.6bln (CY24: PKR 2.4bln).
The Parent Company’s continued commitment to support the Company in times of financial need remains firm. Ratings depend on the management’s ability to enhance margins while maintaining market share, ensuring prudent working capital management, and sustaining adequate cash flows and coverages. Any notable decline in margins or coverages may exert pressure on the ratings.

About the Entity
DIC Pakistan Limited was incorporated as a public limited Company in July 1994 as a Joint Venture between DIC Asia Pacific Limited and Packages Limited by holding 45% and 55% shares respectively. Syeda Henna Babar Ali is the Chairperson of the Board and Mr. Ismail Hussain Naqvi is the CEO of the Company. Mr. Ismail joined DIC as COO in Jun'19 and took over as CEO from Jan'21. He has more than 27 years of diversified professional experience in various positions in different companies.