PACRA Maintains Entity Ratings of Sayban International
Sayban operates in three segments: i) pesticides ii) seeds and bio fertilizer and ia a leading player in the former segment. It has laid the milestone of introducing ‘bio fertilizer’ in Pakistan. The Company has a sizeable turnover, with the contribution of each segment, while pesticide remains predominant segment in terms of revenue. Profitability of the company is sanguine. Sayban has managed to mark its presence in the marker through operational efficacy. The company is making efforts for improving its market share amidst the large fragmented industry. Sayban is still a partnership, to be converted into a private limited company in coming year. The governing structure is likely to improve as Sayban moves towards corporate structure. Company meets its working capital requirements through a mix of internal cashflows and short term borrowings. However, the financial risk remains good on account of low leveraged capital structure and adequate coverages. Going forward, the sustenance in bottom-line and cash flows, formalizing the governance and financial transparency is vital. The group has also set up another company under the brand of Comega to advance its business penetration.
The ratings are dependent on sustained business and financial profile of the company. Any deterioration to margins and/or cash flows remains critical to the ratings. The domino effect of restructuring is yet to materialize.
Sayban International (Under Sayban Group) incorporated in 2005 as a result of AOP, started its operations in 2007. Sayban has been working independently from 2015 with same shareholding. According to the current shareholding Mr. Muhammad Azam Cheema and Mr. Jamshed Cheema each holding 24.1% shareholding. Major shareholding will move to Mr. Muhammad Azam Cheema and Mr. Shamsher Hussain each 44.18%. Sayban Zarai Markaz (Pvt.) Limited has been formed to acquire the Sayban International after restructuring the ownership.
Sayban, as a partnership, does not have a formal BOD structure. The Company is being run by Partners; they have their repetitive roles in the management of the Company. Going forward, 3 partners (existing 7) will be engaged in the management. Mr. Muhammad Azam Cheema is the CEO of the Company. He possesses vast business acumen spanning over two and half decades. The CEO is supported by experienced management team; a balanced blend of professional people from the industry.