DIC Pakistan Limited ("DIC" or the "Company") was incorporated as a public limited Company in July 1994 and specializes in the manufacturing and sale of high-quality printing inks and chemicals.

In July 1994, Dainippon Ink and Chemicals Pakistan Limited was established through a joint venture between DIC Asia Pacific Limited and Packages Limited by holding 45% and 55% shares respectively for the commencement of production and sale of printing inks. Later its name was changed to DIC Pakistan Limited.

DIC is engaged in manufacturing of printing inks for packaging sector in Pakistan. These inks include solvent-based liquid ink, water based liquid inks and sheetfed offset paste inks. At the end of CY24, the annual capacity of DIC is 17,095 tons (CY23: 16,826 tons). In CY24, it utilized 10,166 tons (59%), compared to 8,929 tons (52%) in CY23.

The majority stake in DIC Pakistan Limited is held by Packages Limited, which owns approximately 55% of the shares, while the remaining ~45% of the shares are owned by DIC Asia Pacific Limited.

Packages Limited is the flagship investment holding company of the Ali Group, with a legacy spanning over 67 years. Its investment portfolio includes entities involved in manufacturing and sale of inks, flexible packaging material, paper, paperboard, corrugated boxes, biaxially oriented polypropylene film and cast polypropylene films, ground calcium carbonate products, as well as businesses in insurance, power generation, real estate, and corn-based starch manufacturing sector.

The Group is ranked amongst the leading industrial groups of the Country with interests in paper and paperboard, packaging, financial institutions, education, and real estate sectors. Packages Limited has significant successful joint ventures with international conglomerates and long standing relationships with various multinational companies.

Packages Limited has a consolidated asset base of ~PKR 235bln supported by ~PKR 96bln of equity and generated a turnover of ~PKR 157bln during CY24. Whereas at the end of 9MCY25, consolidated asset base stood at ~PKR 274bln supported by ~PKR 89bln of equity with a turnover of ~PKR 149bln.

The Company has a seven-member Board comprising five non-executive directors, and two executive directors. The Board is chaired by non-executive director Ms. Syeda Henna Babar Ali. The Board comprises four representatives from Packages Limited, including the CEO, and three representatives from DIC Asia Pacific Limited.

The Board, with its diverse backgrounds and relevant expertise, provides vital oversight and guidance to the management. Ms. Syeda Henna Babar Ali - Chairperson brings extensive experience to DIC, having joined Packages Limited in 1990 as a Product Manager. She is also an advisor of the Packages Group Advisory Committee. Mr. Syed Aslam Mehdi - Non- Executive Director joined Packages Limited in 1980. He was General Manager of Packages Limited and Managing Director of DIC Pakistan Limited. Currently he also holds directorship of Packages Limited, Bulleh Shah Packaging (Pvt) Ltd., Packages Lanka (Pvt) Ltd. and Printcare PLC, Sri Lanka. Mr. Khurram Raza Bakhtayari - Non- Executive Director has vast experience in financial planning and budgeting, financial forecasting and analysis, asset investment and taxation. He also holds directorship in Bulleh Shah Packaging (Pvt ) Ltd., Packages Lanka (Pvt) Ltd., IGI Investment Bank Ltd., IGI Life Insurance Co. Ltd. He currently holds the position of Chief Financial Officer of Packages Limited. Mr. Paul Koek - Executive Director has more than 21 years of work experience in the field of regional tax, group accounting and treasury management. He is the Regional Finance Director of DIC Asia Pacific Pte. Ltd. in Singapore, a subsidiary of DIC Corporation Japan. Mr. Paul Koek is responsible for financial activities of entities in South East Asia, Oceania and South Asia Region. Mr. Hayato Kashiwagi - Non- Executive Director brings with him a wealth of experience of working with Group companies in Japan, Asia Pacific and China region on various projects. He is also a director of DIC Malaysia SdnBhd, PT DIC Graphics, DIC Philippines Inc, DIC Vietnam Co. Ltd, DIC Bangladesh Private Limited, DIC Australia Pty Ltd, DIC India Ltd., and DIC Lanka (Private) Limited. Mr. Lee Ji Xiang Jason - Non- Executive Director serves as the Regional Internal Audit Director at DIC Asia Pacific Pte Ltd (“DICAP”), overseeing governance, internal controls, and audit functions across DIC companies in the Asia Pacific region. With over fifteen years of experience in income tax, financial, operational, and compliance audits, Mr. Jason possesses extensive expertise in risk management and mitigation. He also holds a directorship at DIC India Limited.

The Board met four times during CY24, with the majority attending to discuss pertinent matters. To ensure effective governance, the Board has formed two committees, namely, (i) Audit Committee and (ii) HR Committee

The external auditors, M/s A.F. Ferguson & Co. classified in the “A” category on the SBP’s panel of auditors, have issued an unqualified opinion on the AMC’s financial statements for the period ended CY24.

The Company has established a well-defined management structure divided into functional departments with clear lines of responsibilities.

Mr. Syed Muhammad Ismail Hussain Naqvi - CEO joined DIC as Chief Operating Officer in June 2019 and took over as CEO from January 1, 2021. Previously, he served as Business Manager at AkzoNobel Pakistan Limited, Country Manager at Buhler Holding AG, and Senior Manager of Business Development at Descon Engineering Limited. He has also worked at Applied Materials in USA for 10 years in various technical and managerial positions before moving to Pakistan in 2008. Ms. Mehreen Zafar - Chief Financial Officer and Company Secretary is a Fellow Member of ICAP with over 14 years of post qualification experience in varying lines of services including financial management, budgeting, strategic business planning, corporate compliance, and risk management operations. 

The expertise of the professional management team has enabled the Company to streamline operations and reduce costs. The production facilities generate minimal wastage, which is effectively managed through recycling and reuse, minimizing overall losses.

To generate MIS and operational reports, ERP software, SAP ECC6 is used.

To ensure operational efficiency, the in-house internal audit function is in place that identifies and reports risks. The audit committee reviews the internal audit department reports and planned activities.

The packaging industry in Pakistan is categorized into four primary segments: paper, plastic, tinplate, and glass. Among these, the paper and plastic segments dominate the market, holding the largest share of total demand. The direct costs in these segments are heavily influenced by imported raw materials, with chemical wood pulp being a key input for paper packaging production. In the domain of packaging inks, the market comprises Rotogravure, Flexographic-Solvent/UV, Flexographic-Water-based, and Offset inks. Rotogravure ink leads the market due to its versatility and suitability for a wide range of packaging applications.

DIC Pakistan Limited enjoys the large market share of 35% in the local printing inks industry. 

The Company’s core revenue stream is derived from the sale of printing inks, with the majority of its sales concentrated in the domestic market. At the end of CY24, the revenue of DIC Pakistan Limited increased by 11% and stood at PKR 11.8bln (CY23: PKR 10.6bln). During 9MCY25, the Company reported net sales of PKR 9.62bln, representing a growth of 9% compared to PKR 8.79bln recorded in the corresponding period of the previous year. Rotogravure ink continues to be the leading revenue contributor, accounting for ~50%, followed by Flexographic Ink-Water based at ~12%. This improvement was primarily driven from sustained demand from the food and consumer goods sectors, coupled with the Company’s strong market positioning and established customer relationships.

At the end of CY24, the gross profit of the Company showed a minor dip to stand at PKR 2.7bln (CY23: PKR 2.9bln). The gross profit of the Company remained almost intact to stand at PKR 1.99bln at the end of 9MCY25 (9MCY24: PKR 2.02bln). Whereas, net profitability of the Company stood at PKR 972mln at the end of CY24 (CY23: PKR 1,067mln). 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 decline in bottom-line profitability was primarily attributable to increased operating expenses, including higher administrative and distribution costs, which partially offset the benefits of revenue growth.

The Company continues to maintain a strong brand presence, particularly within the consumer products segment, and is actively expanding its footprint in the printing inks industry. As part of its strategic growth initiatives, the Company has relocated its production operations from Lahore to Kasur. This relocation is aimed at enhancing operational efficiency, optimizing production capacity, and positioning the Company closer to distribution networks. The move is also expected to support long-term scalability and cost-effectiveness in meeting the growing market demand. 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. The Company imported five advanced machines from China and Malaysia, including ink dispensers, grinders, and related production units. 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 Dec'25.

The Company's working capital management is supported by a short-term running finance facility from a consortium of banks. Due to DIC's raw material lead time and high product demand, DIC's inventory days stood at 82 days during CY24 increasing from 77 days in CY23 whereas at the period ended 9MCY25, it is reported at 78 days. The trade receivable days stood at 63 days during CY24. (9MCY25: 74 days, CY23: 65 days). While trade payable days stood at 48 days during CY24 decreasing from 51 days in CY23. At the end of 9MCY25, it stood at 50 days. Consequently, the Company’s net working capital days stood at 98 days during CY24 increasing from 91 days in CY23. Currently, net working capital days stood at 102 days at the end of 9MCY25.

The Company's interest coverage ratio stood at 6.4x at the end of CY24 (CY23: 12.2x), whereas in 9MCY25, it was ~6.2x. The decline is due to increase in total borrowing of PKR 3.3bln to support the Kasur project. The Company's total debt service coverage stood at 2.4x at the end of CY24 and 2.7x at the end of 9MCY25. 

DIC has a moderate leveraged structure, with leverage at ~66.8% in CY24 (CY23: 69.8%). However, as of 9MCY25, leverage stood at 65.4%, indicating a marginal uptick due to higher short-term borrowings to support working capital requirements. As of CY24, equity of the Company stood at PKR 2.4bln and during 9MCY25, it was PKR 2.6bln.