STPL was incorporated as a private limited Company on 21 December, 2023 in Pakistan under the Companies Act, 2017. The Company is a wholly owned subsidiary of SIL. The Company’s registered head office is located at Servis House, 2 Main Gulberg, Lahore.

The parent company, SIL, traces its origins back to the late 1930s in Lahore when its founders Ch. Muhammad Saeed, Ch. Nazar Muhammad and Ch. Muhammad Hussain began manufacturing and supplying mosquito nets, minor steel products, leather chappals, and eventually travel bags, hand bags, and holdalls, made of canvas and leather. SIL was formally incorporated as a private limited company in 1957 and later converted into a public limited company on September 23, 1959. In 1954, SIL installed a shoe manufacturing plant in the industrial area of Gulberg, Lahore, commencing large-scale footwear production the same year. The Company’s expansion continued with the acquisition of land in Gujrat, where one of Punjab’s largest industrial complexes was set up, encompassing the production of leather and canvas footwear, canvas fabric, textile spinning and eventually bicycle tyres and tubes. Over the decades, SIL has evolved into a diversified player with strong presence in both the tyre and footwear industries.  In 2024, SIL transfer its Tyre Undertaking to its wholly owned subsidiary namely, Service Tyres (Private) Limited, through an approved Scheme of Arrangement.

The principal line of business of STPL is to carry on the business of manufacturing, trading, sale, marketing, retail, wholesale, import, and export of all types of tyres, tubes, spare parts, and allied products for bicycles, motorcycles, scooters, rickshaws, automobiles, aircraft, buses, trucks, cars, tractors, trolleys, and other vehicles. The Company has an annual installed capacity of ~22.95mln tyres and ~57.45mln tubes in the tyre division. In the Servis genuine parts division, the Company has an installed capacity of ~2.5mln chains and ~1.9mln sprockets. As of CY24, capacity utilization stood at ~66.5% in tyres, ~75.7% in tubes, ~89.3% in chains, and ~99% in sprockets, underscoring efficient operational execution across both segments.

STPL operates as a wholly owned subsidiary of Service Industries Limited, which holds nearly 100% ownership in the Company. This close integration provides STPL with strong strategic and financial backing from its parent entity, enabling synergies in brand recognition, supply chain management, and market outreach.

STPL’s ownership structure is considered stable, as the controlling stake is held by Service Industries Limited, a well-established entity with over six decades of presence across multiple industries.

The business acumen of the sponsors is regarded as strong, anchored by the longstanding involvement of the sponsoring families who remain actively engaged in guiding the Company. With decades of experience in footwear and tyres business, the sponsors have consistently demonstrated strategic foresight and execution capabilities that have driven SIL’s sustained growth. Their ability to identify and capitalize on investment opportunities is reflected in the successful diversification into subsidiaries such as Service Retail, Service Global Footwear and Service Long March Tyres. Backed by strong financial depth and resources, the sponsors have established SIL’s flagship brand “Servis” as a household name in Pakistan while also extending the Company’s presence globally. This proven track record of building scale, brand equity, and international reach underscores the sponsors’ robust business acumen.

Being a part of the Servis Group, STPL benefits from a strong financial standing and wide access to both domestic and international markets. This affiliation also ensures that sponsor support, if needed, remains readily available. By the close of CY24, the Servis Group reported a consolidated asset base of ~PKR 110.6bln and consolidated revenues of about ~PKR 125bln, reflecting its robust financial position and market reach.

The Board of Directors of STPL comprises five members, including the Chief Executive Officer (CEO). The composition reflects diversity in expertise across regulatory affairs, industry operations, and business leadership, supporting effective decision-making and strategic oversight.

Mr. Arif Saeed (CEO) has served as Chairman of Service Global Footwear, Engineering Development Board, and founding Chairman of major public-sector power companies, in addition to leading APTMA and Lahore Stock Exchange. Mr. Omar Saeed has served as CEO of SIL (2011–2018) and currently serves as CEO of Service Long March Tyres and Servis Foundation, while also serving on boards of Nestlé Pakistan, Systems Limited, and Service Global Footwear. Mr. Hassan Javed is a director at STPL, has served as CEO of Service Global Footwear, and has also chaired the Pakistan Footwear Manufacturers Association and GESCO. Mr. Saif Javed serves as Head of a business unit at Service Global Footwear. Mr. Ejaz serves as the Chief Operating Officer (COO) of STPL. He began his career in the FMCG sector with key roles at Qarshi Industries and Mayfair Pakistan before joining Service Industries Limited as Country Manager for the tyres business.

The Board of SIL, the parent company of STPL, convenes quarterly meetings with a predefined agenda to review STPL’s management performance and ensure alignment with the Company’s strategic objectives. Proceedings are formally documented, and action items are communicated to relevant stakeholders for timely execution. To further strengthen governance, the formation of specialized committees could provide more focused oversight and facilitate efficient decision-making.

The external auditors are M/s. Riaz Ahmad & Co., Chartered Accountants, having satisfactory QCR Rating and also classified in category “A” on the SBP's panel of auditors. The auditor expressed an unqualified opinion on the financial statements of the Company for the year ending December 31st, 2024.

On group level, the Company is structured into multiple operational entities, each overseen by specialized management teams tailored to their respective functions. Clear reporting lines, defined roles, and accountability mechanisms ensure operational efficiency and effective oversight. The Company also benefits from the stability of having all key positions filled, with senior management experienced in leading both domestic operations and international ventures. This professionalized governance structure underpins STPL’s ability to effectively discharge its operational responsibilities and support sustainable growth of Servis Group.

The management team comprises seasoned professionals with extensive industry knowledge and functional expertise. Mr. Arif Saeed, the CEO, brings over 27 years of experience and is supported by executives including Mr. Badar Ul Hassan (Group CFO), a Chartered Accountant with over 25 years of experience, and Mr. Omar Saeed, Executive Director, with more than two decades of leadership within the Group. Other senior team members include specialists in finance, technical operations, human resources, sales, and marketing, many of whom have long tenures with Servis Group, ensuring both continuity and depth of expertise. The mix of family leadership and professional managers provides a well-rounded foundation for strategic execution.

With the support of an experienced team of professionals, STPL has gradually strengthened its business profile, expanding operations across various cities in Pakistan and tapping export markets over the years. The management functions are clearly defined, enabling effective pursuit of strategic objectives. The company’s ability to execute its expansion strategy demonstrates management’s capacity to deliver on stated plans.

The Company has implemented an Enterprise Resource Planning (ERP) solution through Oracle E-Business Suite (EBS) R12, which integrates multiple operational and financial modules. The system generates periodic (daily and monthly) reports that provide management with timely, structured, and reliable information to support decision-making across operational, financial, and strategic dimensions. The deployment of such technology infrastructure enhances efficiency, ensures transparency, and enables management to monitor performance effectively. This setup is in line with industry best practices for information-based decision-making.

STPL has established a structured control environment supported by a team of qualified professionals responsible for implementing and monitoring policies and procedures across all functions. Segregation of duties and clarity of roles minimize operational risk, while occupancy of key positions supports continuity of processes. A centralized internal audit function further strengthens the framework by ensuring compliance with established controls and driving continuous improvements. The integration of operations with ERP-based systems provides additional built-in checks, thereby reducing the scope for conflict of interest and reinforcing a process-driven culture.

The tyre industry in Pakistan plays a vital role in the broader mobility sector, with demand closely linked to replacement cycles and sales of automobiles and motorcycles. Given the industry’s heavy reliance on imported raw materials (natural rubber, synthetic rubber, carbon black, etc.), it remains structurally vulnerable to exchange rate volatility and global commodity price swings. Demand is predominantly replacement-driven (~80–90%), while OEMs account for a smaller share. The 2/3-wheeler segment continues to anchor industry volumes, with over 1.5 million units sold in FY25, supported by affordability and resilient rural demand. In the commercial segment, demand for Truck and Bus Radial (TBR) tyres is expanding, aided by regulatory push for localization, ongoing import substitution, and rising logistics requirements. In FY25, truck and bus sales stood at ~5,200 units, while the LCV and pickup segment posted a strong ~61% volumetric growth, reinforcing the strategic significance of the commercial tyre space. Conversely, the agricultural tyre segment witnessed a slowdown, with tractor sales declining to ~29,000 units in FY25 versus ~45,911 units in FY24, reflecting a ~37% contraction. The decline underscores pressure on rural incomes and mechanization uptake. Nonetheless, the segment remains strategically important, with prospects of recovery tied to improvement in rural purchasing power. Overall, the industry exhibits steady underlying demand potential, supported by replacement needs, gradual localization initiatives, and growing export avenues. However, rising input costs, currency depreciation, energy shortages, and competition from smuggled and under-invoiced tyres continue to weigh on sector margins. Future growth remains contingent on macroeconomic stability, sustained policy support for localization, and the industry’s ability to diversify its export base.

STPL holds a prominent position in Pakistan’s tyre industry, supported by its dominant market share and established presence in both domestic and export markets. With sizeable installed capacities of ~23 million tyres and ~57 million tubes, the Company stands as a benchmark within its respective segments. The scale of operations allows STPL to leverage economies of scale, cater to a wide customer base, and maintain a strong competitive edge in the industry.

In CY24, the Company reported revenues of ~PKR 46.3bln, with exports contributed ~PKR 5.7bln. During 6MCY25, revenues increased to ~PKR 25.9bln, reflecting a half year over half year growth of ~9.7% compared to PKR 23.6bln in 6MCY24. The revenue mix in 6MCY25 remained predominantly concentrated in tyres, which accounted for ~92.8% of the topline, while servis genuine parts contributed the remaining ~7.2%.

The Company’s gross profit margin stood at 20.1% in CY24, while for 6MCY25 it moderated to 19.2%, compared to 20.7% in 6MCY24. Operating margin recorded at 13.3% in CY24 and 12.7% in 6MCY25, down from 14.3% in the corresponding prior period, mainly due to higher distribution and administrative expenses. However, net profitability remained resilient, with the net margin at ~7.5% in CY24 and improving marginally to 8.5% in 6MCY25 (6MCY24: 8.4%).

STPL is committed to advancing its financial and operational sustainability through continuous product diversification and innovation. Leveraging advanced technology and decades of industry expertise, the Company is strategically expanding its global footprint while also strengthening its domestic market position in the tyre industry.

The Company’s gross and net working capital cycle stood at 66 days and 52 days, respectively, in CY24. For 6MCY25, the cycle lengthened modestly to 74 days and 62 days, driven by higher trade receivable days.

During CY24, the interest coverage ratio stood at 3.2x in CY24, with further improvement to 4.2 in 6MCY25, indicating improved cash flow generation relative to financial obligations. Meanwhile, the debt payback ratio was recorded at 1.4x in CY24 but declined to 0.9x in 6MCY25, reflecting the impact of higher debt levels and ongoing repayments.

The Company’s leverage ratio stood at 74.9% in CY24, compared to 59.1% in 6MCY24, indicating a year-on-year increase driven primarily by higher reliance on debt financing during the period. In 6MCY25, the leverage ratio improved to 61.3%, due to a significant decrease in short-term borrowings. In terms of debt composition, short- term borrowings constituted a significant portion of total borrowings in CY24.