PACRA Maintains the Entity Ratings of Samad Rubber Works (Private) Limited

Samad Rubber Works (Pvt.) Limited (hereafter as ‘SRW’ or ‘the Company’) is primarily engaged in the manufacturing and marketing of apparel, outerwear, unicellular foams, and contact-based adhesives, in addition to supplying rubber/non-rubber and specialty fabric items to the Pakistan Armed Forces. With its longstanding history, SRW has solidified its position as an acclaimed player by establishing various Strategic Business Units (SBUs) across its diverse range of product offerings. In FY25, the Pakistan Bureau of Statistics (PBS) reported growth in Pakistan’s overall textile exports and value-added products. This growth was supported by reduced inflationary pressures, policy cuts, and stability in the PKR, which together fostered a positive investor sentiment and created a conducive environment for business. The assigned rating reflects the Company’s established presence across all operational segments, its diversified revenue streams, increasing export sales, and ongoing expansionary initiatives aimed at meeting growing demand. During FY25, SRW reported a topline of ~PKR 10.7bln, with a meager growth of ~6.8%, driven by increased volumes in its core business segments. Growth was led by the apparel segment, followed by outerwear and adhesives, while the foam and defense segments contracted, moderating overall revenue growth. Profitability was constrained, with margins contracting due to higher input costs and increased operational expenses. Although it’s a family-owned business, the Company maintains a good governance framework and implements effective risk management practices. Financial risk profile of the Company is considered good, characterized by an efficient working capital cycle, good coverages, and adequate cashflows. SRW’s capital structure is moderately leveraged, mainly encompassing short-term borrowings (STBs). Going forward, the management is diligently working on enhancing turnover and improving margins by expanding existing operations, with particular emphasis on the apparel, adhesive, and foam segments. The Company is also exploring new market opportunities to diversify revenue streams while concurrently transitioning the business to the third generation of family leadership.
The ratings are contingent upon SRW maintaining its position within its respective business niches and achieving consistent growth in a dynamic market environment. Sustained revenue growth, improved profit margins, and prudent financial performance remain imperative. Looking ahead, continuous enhancements in the Company’s governance framework, business transition phase, and external audit function, particularly by engaging auditors from the SBP’s panel of category 'A', would be viewed positively.

About the Entity
Samad Rubber Works (Pvt.) Limited (formerly known as Pakistan Rubber Industries) is a private limited concern established in 1948. Mr. Abdus Samad (Late) laid the foundation by entering into the manufacturing of rubber hoses & setting up the latex foam unit. In 1962, following a split in the family business, the Samad Group evolved as a diversified business empire by serving diversified sectors. Previously, the ownership was divided between Mr. Abdul Sami (~60%) and Mr. Fazal Haq (~40%). Following an internal restructuring, the shareholding composition shifted, with Mr. Abdul Sami now holding a majority stake of ~71%, Mr. Fazal Haq retaining ~6%, and Mr. Abdul Basit (Mr. Fazal Haq’s son) acquiring ~23%. Mr. Sami holds over three decades of experience and is actively involved in the business. He is being assisted by the Deputy CEO/CFO, Mr. Arshian Mahboob, FCA, and the members of the 3rd generation.