PACRA Maintains Entity Ratings of Tufail Chemical & Surfactants (Pvt.) Limited

Tufail Chemical & Surfactants (Pvt.) Limited (herein referred to as ‘the Company’) is positioned as the prominent manufacturer of industrial chemicals in Pakistan. The ratings incorporate eminent position of the Company in domestic market, long-term partnering with MNCs working in Pakistan like P&G, sound business profile of Tufail Group, and ameliorated profits during review period. Under the entrenched umbrella of Tufail Group, the Company is associated with Tufail Chemical Industries Limited for the supply of two synthetic surfactants i.e. LABSA and SLES. Consequently, the Company's sales remain a factor of overall demand and how it will be benefited at group level. Revenue streamline of the industry in a post-pandemic world revamped as personal care applications of surfactants significantly increased ranging from sanitizers to disinfectants flourish to surface cleaners. The demand for the Company's products is expected to remain intact with rising income and hygiene awareness. Business risk of the Company is placed at an acceptable level on back of upward trajectory in sales of SLES & SLS and cost-reduction in manufacturing process. Technologically advanced R&D department with fine laboratory has always helped the Company in commissioning new surfactants variants. The Company’s ISO certified facilities together with professional management team transpires into operational efficiencies, in turn, improved business’s financial performance. Going forward, the Company intends to corporate M&A into / with Tufail Chemical Industries to attain economies of scales, opportunistic value generation, increased market share and faster strategy implementation. Meanwhile, financial risk profile of the Company is considered adequate with comfortable coverages, upright working capital management and healthy cash flows. Assigned rating factors in the Company’s association with Tufail Group, a notable player of surfactants industry in Pakistan. Strengthening of governance framework will be helpful to the Company.
The ratings are dependent on the Company’s ability to sustain its topline, , margins, optimal capacity utilization along with efficiency in working capital cycle. Any significant deterioration in margins and/or financial profile will impact the ratings.

About the Entity
Tufail Chemical & Surfactants (Pvt.) Limited was incorporated on September 02, 2009 as a private limited company. The Company is a family-owned venture and 99.6% of its shareholding is distributed among members of Tufail family. Out of which, Mr. Zubair Tufail along with his family members holds 51% and Mr. Pervez Tufail along with his family members owns 48.6%. The Company’s current capacity stands at 35,000 tones. The power requirement is met internally through gas fired generates.
The Company’s board comprises of five members with dominance of the Tufail family. Mr. Zubair Tufail is the Chairman of the board and is also the CEO of the Company. All directors carry executive roles. He holds a graduate degree and carries with him over four decades of experience in the organic and inorganic chemicals industry.