The Pakistan Credit Rating Agency Limited
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Kanwal Ejaz

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PACRA Assigns Initial Entity Ratings to Ghani Global Glass Limited | Positive Outlook

Rating Type Entity
Action Initial
Long Term BBB+
Short Term A2
Outlook Positive
Rating Watch -

Ghani Global Group has diversified businesses, managed through holding company named Ghani Global Holding Limited (GGHL). One of its subsidiary is Ghani Chemical Industries Limited (GCIL) which is the largest producer of industrial and medical gases in Pakistan. Lately the holding company started another business venture and formed Ghani Global Glass Limited (GGGL) for manufacturing & sale of Glass Tube, Ampoules & Vials serving the needs of pharmaceutical segment. As stated by the management of the Company, GGGL is the only manufacturer of Glass Tubes in Pakistan, having state of Art European technology. Previously the local demand of Glass Tubes was being met through imports from China (70%) and (30%) from Europe, as part of strategic business model the Company took initiative to produce it locally as a substitute of imports. As of now the Company asserts to have 66% market share in Chinese imported Glass Tubes segment. The Company has also presence in value addition segment of Glass Tubes and converts it into Ampules, and Vials. The Company faces immense competition in this particular tube conversion segment from organized and un-organized players. Currently the Company possesses 16% of market share in it. Pharmaceutical sector showed an impressive growth of 12% in FY21 (FY20: 2.6%) and benefited to the Company. The operations of the Company is benefited with sound system of internal controls implemented across the organization. Capacity utilization is gradually pacing up and requires capacity expansion which is now underway. The Company has availed TERF facility for its plant expansion, however management intends to rely primarily on equity based funding sources as against debts for expansionary measures. Going forward the Company is expected to receive benefits from (a) rising demand of locally manufactured Glass Tubes (b) imposition of regulatory duties on Imports of Glass Tubes (c) export potential of the product (d) rationalized leverage policy. Financial profile of the Company is considered strong with comfortable coverages, upright working capital management and healthy cashflows.
The ratings are dependent on upheld sustainable profits and market share while retaining sufficient cash flows and coverages. However, adherence to maintain its debt metrics at an adequate level is a prerequisite

About the Entity
Ghani Global Glass Limited (GGGL) is a public listed concern, incorporated in 2007 as Ghani Tableware (Private) Limited. Its status was changed to public unlisted company, as on July 24, 2008. The name of the Company was further changed to Ghani Global Glass Limited on January 14, 2009 and GGGL listed on Pakistan Stock Exchange on December 12, 2014. The majority stake (50%) is held by Ghani Global Holdings Limited (formerly “Ghani Gases Limited”) and remaining shareholding lies with financial institutions and general public. The Company commenced its commercial operations with effect from April 01, 2016. GGGL’ eight-member board is majorly represented by members of sponsoring family. Mr. Atique Ahmad Khan is the Chairman of the BoD while Mr. Masroor Ahmad holds the office of CEO.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.