PACRA Maintains Entity Ratings of Ghani Global Glass Limited

Ghani Global Glass Limited (hereinafter referred to as ‘GGGL’ " or ‘the Company’) is a leading manufacturer of pharmaceutical-neutral tubing glass in Pakistan. The Company focuses on maintaining quality standards and serves the pharmaceutical packaging industry. GGGL specializes in the manufacturing and distribution of high-quality glass tubes, ampoules, vials, and a range of industrial chemicals. These products are essential components in the pharmaceutical and healthcare sectors, ensuring safe and reliable packaging for injectable and other medicinal formulations. The Company incorporates European technology, including modern furnaces and specialized equipment, to support domestic production and reduce dependency on imports. In period under review, the Company has successfully completed a Balancing, Modernization, and Replacement (BMR) initiative for its existing furnace, to improve the efficiency and quality of the tubes produced. Additionally, another furnace is being expanded from three to five production lines. These upgrades will support growth in both domestic and international markets, including South Africa, Latin America, and Eastern Europe. In FY25, Pakistan’s pharmaceutical sector experienced continued constraints in the production of essential medicines, including injectable formulations. These were primarily due to limited availability of active pharmaceutical ingredients (APIs) and regulatory price controls. As a result, national demand for pharmaceutical-grade glass tubing was recorded at approximately 6,380 tons. GGGL supplied around ~58% of this demand, while the remaining ~42% was met through imports, mainly from China (~29%) and Germany (~13%). GGGL’s customer base includes established pharmaceutical companies such as Hilton Pharma, Martin Dow, Genix, Surge Laboratories, GSK, AGP, Barrett Hodgson, and Indus Pharma. Company’s current ampoule conversion capacity stands at approximately 55mln units per year. This segment remains competitive, with participation from both organized and informal market players. Operational efficiency at GGGL is supported by robust internal controls. In FY25, the Company recorded a ~20% increase in revenue, reaching PKR 2,932mln compared to PKR 2,440mln in FY24. This growth was largely attributed to higher selling prices. Gross and operating margins improved during the period, with net profit rising to ~10.3%, up from 5.9% in FY24, mainly due to reduced finance costs. The Company's borrowings also includes the Temporary Economic Refinance Facility (TERF) to support its capacity expansion initiatives. Looking forward, GGGL anticipates several growth drivers, including increasing local demand for glass tubes, enhanced regulatory duties on imports, export opportunities, and a balanced leverage strategy. The financial risk profile of the Company is considered adequate with comfortable coverages, cashflows, and working capital cycle. Capital structure is leveraged comprising a mix of short-term and long-term for capacity expansion projects.
The ratings are dependent on the sustainable growth in revenue, profits, and market share while retaining sufficient cash flows and coverages. However, adherence to maintaining its debt metrics at an adequate level is a prerequisite.

About the Entity
Ghani Global Glass Limited ('GGGL' or 'the Company') was established in 2007 and began commercial operations in 2016. The Company is headquartered in Lahore, Pakistan, with a state-of-the-art manufacturing facility in Phool Nagar, Kasur. It specializes in the production of high-quality glass tubes, vials, ampoules, and various glassware products, primarily catering to the healthcare sector. The Company's board consists of seven members, led by Mr. Hafiz Farooq as Chairman. Mr. Atique Ahmad serves as the CEO, bringing extensive industry experience to his leadership role.