PACRA maintains the entity ratings of DIC Pakistan Limited.

The assigned ratings reflect DIC Pakistan Limited's ("DIC" or the "Company") strong sponsor profile, established market position and sound financial footing. The ratings also take comfort from its good governance framework, strong control environment, and an experienced management team. DIC is predominantly engaged in the manufacturing of a range of printing inks, with production closely tied to the demand for food products and other consumer goods. Since CY24, Pakistan’s paper and packaging industry has faced margin pressures due to rising energy costs and higher imported raw material prices. Despite these challenges, demand for packaging from the FMCG and food sectors is expected to sustain moderate production growth, with the industry outlook remaining stable, supported by sustainability initiatives and recycling trends. DIC Pakistan Limited has taken proactive measures to navigate this environment, including rationalizing sales prices and diversifying its product portfolio. DIC expanded its offerings by introducing textile inks and wood coatings during CY25 to support topline growth and sales volumes to remain competitive in the industry. As per management, DIC Pakistan Limited commands an estimated 36% market share in the country’s printing ink industry and remains the major domestic manufacturer of printing inks in Pakistan. The remaining market is catered to by commercial importers along with captive manufacturers fulfilling their internal production requirements. DIC continues to derive a competitive advantage from its strong market reputation, diversified product portfolio, and well-established after-sales service network. During CY25, the Company reported an annualized production capacity of 17,798 tons (CY24: 17,095 tons), alongside a slight increase in actual production to 10,467 tons (CY24: 10,166 tons). Accordingly, the capacity utilization ratio remained stable at 59%, unchanged from the preceding year.
On the financial front, the Company recorded a minor increase of 6% in topline to PKR 12.4bln during CY25 (CY24: PKR 11.7bln). Rotogravure ink continues to be the leading revenue contributor, accounting for ~50%, followed by Flexographic Ink-Water based at ~12%. During CY25, the Company's profit after tax was recorded at PKR 776mln compared to PKR 972mln last year. The decline in bottom-line profitability was mainly due to operating costs. The strong group structure and associated synergies have helped the management in reaping the benefits of catering to higher demand with effective inventory management. During CY25, leverage of the Company increased to 70% (CY24: 67%), an increase was noticed due to an increase in long-term loan of PKR 1.1bln to support Kasur project. The Company has successfully relocated all of its production facility from Lahore to Kasur as part of its business expansion and operational optimization strategy. The inauguration ceremony of the Kasur plant was held on Oct 22, 2025. The total project cost has been entirely financed through debt. According to management, the relocation has been completed and full-scale production of all ink types at the Kasur facility has also started from December 2025. As of CY25, equity of the Company stood at PKR 2.5bln (CY24: PKR 2.4bln).
The Parent Company’s continued commitment to support the Company in times of financial need remains firm. Ratings depend on the management’s ability to enhance margins while maintaining market share, ensuring prudent working capital management, and sustaining adequate cash flows and coverages. Any notable decline in margins or coverages may exert pressure on the ratings.

About the Entity
DIC Pakistan Limited was incorporated as a public limited Company in July 1994 as a Joint Venture between DIC Asia Pacific Limited and Packages Limited by holding 45% and 55% shares respectively. Syeda Henna Babar Ali is the Chairperson of the Board and Mr. Ismail Hussain Naqvi is the CEO of the Company. Mr. Ismail joined DIC as COO in Jun'19 and took over as CEO from Jan'21. He has more than 27 years of diversified professional experience in various positions in different companies.