Meko Fabrics (Pvt.) Limited (formerly Meko Textile Industries (Pvt.) Limited) was incorporated as a private limited Company on February 17, 2023, under the Companies Act, 2017.

The Company is a business venture of the Mekotex Group, which is wholly owned by the three sons of Mr. Abdul Majeed: Mr. Khalid Majeed, Mr. Shoaib Majeed, and Mr. Ashraf Majeed. Established in 1971, Mekotex (Pvt.) Limited began as a modest fabric trading operation and has since evolved into a prominent player in the textile sector. The Group’s sustained growth and diversification have been driven by the entrepreneurial leadership of the three brothers, with increasing involvement from the next generation. In FY24, the Group underwent a strategic restructuring as part of its broader business diversification strategy. As a key element of this initiative, the Group’s local business operations, previously managed by its flagship company, Mekotex (Pvt.) Limited were transferred to Meko Fabrics (Pvt.) Limited. This transition was aimed at streamlining operations and enhancing strategic focus across its business segments.

The Company is engaged in the processing, manufacturing, and trading of both finished textile products and raw materials. Its registered office is located at WH-25, Korangi Creek Industrial Park, Korangi, Karachi. Looking ahead, a significant chunk of the spinning and weaving operations currently owned by Mekotex (Pvt.) Limited will be gradually transferred to Meko Fabrics (Pvt.) Limited as part of the Group’s ongoing restructuring strategy. Management is actively working on a phased transition plan, with full implementation expected by the end of fiscal year 2026. This transfer is anticipated to have a significant operational and financial impact, aligning with the Group’s long-term strategic objectives.

The Company's entire shareholding rests with the sponsoring family through individuals. The Company’s major stake (75%) is vested equally with Mr. Khalid Majeed and his two spouses, Ms. Roshan Bano and Ms. Safoora Nazli. While the remaining (25%) stake of the Company is held by his brother, Mr. Shoaib Majeed.

The Company’s ownership structure is expected to remain stable in the foreseeable future, supported by a clearly defined family constitution and the strategic transfer of shareholding to the next generation following the passing of Mr. Ashraf Majeed. This transition is guided by the Group’s long-term vision for continuity and strong governance within the family enterprise.

With an operational legacy spanning over five decades since its inception in 1971, the sponsors have established a considerable presence in the textile industry. Over the years, the Group has demonstrated resilience and adaptability through various economic cycles and market fluctuations, consistently expanding and diversifying its business portfolio. Strategic investments and gradual penetration into high-potential segments, such as denim, home textiles, and value-added fabric processing have significantly enhanced the Group’s overall market positioning.

The financial strength of Meko Fabrics (Pvt.) Limited (MFPL) emerges from the Group’s notable presence across multiple segments of the textile value chain. Beyond MFPL, the Group actively operates within the local textile industry through two additional companies: Mekotex (Pvt.) Limited, specializing in fabric processing and home textile, and Meko Denim Mills (Pvt.) Limited, focusing on denim manufacturing.

Overall control of the Board is vested in two members of the sponsoring family, and the current structure lacks an independent oversight function. However, the inclusion of an independent director would strengthen the Company’s corporate governance framework.

Mr. Khalid Majeed started his business and industrial career after completing his Master’s in Business Administration from Clayton State University. During his studies, he was already involved with the family’s industrial ventures, gaining practical experience in reputable textile spinning and weaving units. He initially joined Arif Industries, where he continues to serve as a Partner. In 1991, he founded a textile spinning unit named Mekotex (Private) Limited and has since been serving as its Managing Director. In this role, he has overseen the company’s expansions and managed marketing, human resources, procurement, finance, and technical operations. Additionally, he supervises the development of quality standards to meet ISO 9002 certification requirements and is currently working towards ISO 14000 and SA 8000 certifications.   Mr. Shoaib Majeed graduated with a degree in Business Administration in 1994 and promptly joined the family business. His initial role involved managing and establishing the home textile division, Kam International, founded in the same year. Since 1995, he has also overseen procurement and finance operations at Arif Industries. He joined the Board of Directors of Mekotex in 2002, where he manages the purchasing department and oversees the Group’s finances. Beyond his corporate responsibilities, Mr. Shoaib is actively involved in various social and industry organizations. Notably, he served as Vice Chairman of All Pakistan Textile Processing Mills Association (APTMA), Zonal Chairman of the All Pakistan Bedware and Upholstery Manufacturers Association, and holds executive committee memberships in the Landhi Association of Trade and Industry, Karachi Chamber of Commerce, and S.I.T.E Association.

The Company lacks a formal Board structure and does not maintain official minutes of Board meetings. Key financial data and business decisions are presented to the Board through Excel-based reports. The Board meets quarterly to review the Company’s financial performance, assess operational efficiency, and monitor progress toward its targets.

To uphold high standards of transparency, Crowe Hussain Chaudhary & Co. Chartered Accountants have been appointed as the external auditors of the Company. They expressed an unqualified opinion on the financial statements of the Company for FY24 and 10MFY25. The firm is QCR-rated by the Institute of Chartered Accountants of Pakistan (ICAP) and is classified in Category 'A' by the State Bank of Pakistan (SBP) panel of auditors.

The Company’s organizational framework is divided into several departments to ensure a smooth flow of operations. Each department is headed by a strategic manager who reports directly to the Board of Directors. These departments cover both operational and support functions, enabling comprehensive oversight and coordination across the business. The primary operational departments include Marketing, Production, Processing, Spinning, and Accounts.

The Company's strategic managers, each with more than two decades of experience, contribute to the effective management of operations. The CEO, Mr. Khalid Majeed, an MBA graduate, has around 35 years of experience in the respective industry and serves as the Managing Director. He is responsible for driving key areas such as business expansion, marketing, human resources, and other critical operations. Mr. Ismail Qaiser, the Chief Financial Officer, is a qualified member of ICMA. He is well-versed in the textile sector and has been associated with the Company for around 22 years.

The Company currently does not have formal management committees in place. Management meetings are held on an ad-hoc basis, as and when required. The effectiveness of management could be improved through the establishment of formal committees with clearly defined roles and responsibilities.

The Company has implemented a customized, in-house version of Oracle 11g, which is fully operational and supports comprehensive financial reporting functions. The system facilitates the generation of Management Information System (MIS) reports on a monthly basis. These reports are reviewed by senior management to guide strategic planning and monitor overall performance.

The Company has maintained an adequate control environment, underpinned by a combination of an experienced marketing team, well-defined quality control procedures, and a comprehensive Health, Safety, and Environment (HSE) framework. This approach ensures operational consistency, adherence to regulatory standards, and the promotion of a safe and compliant workplace culture across all levels of the organization.

Textile exports of the country reached USD 16.7bln in 9MFY25, a slight increase from USD 16.5bln in the previous year, reflecting a growth of 0.93% YoY. The highest contribution came from the composite and garments segment at USD 9.1bln, followed by the weaving segment at USD 6.5bln and the spinning segment at USD 1.0bln. In FY25, the transition from the final tax regime to the normal tax regime is set to impact the profitability matrix of export-oriented units, with a 29% tax on profits and a super tax of up to 10%.

The Company, having recently begun operations, is currently operating with limited production capacity. As a result, it is categorized as a small-tier player in the respective universe.

The Company primarily generates its revenue through the sale of unstitched printed lawn dresses for women. The commercial production at MFPL commenced in January 2025, marking the beginning of its operational phase. During 10MFY25, the Company recorded revenue of PKR 503mln. Its customer base currently includes several established retail clients, including Weaves Pakistan (SMC-Private) Limited, Sapphire Retail Limited, Ideas (Pvt.) Limited, J., Eden Apparels (Pvt.) Limited, Rajby Industries, and Dabiha International Company. In addition to these existing partnerships, the Company is actively pursuing the onboarding of several prominent players. This strategic initiative has been designed to enhance the market presence and business volumes.

During 10MFY25, the Company secured a moderate gross profit margin of 10.0%, primarily due to higher processing and conversion costs. Administrative and general expenses amounted to PKR 3mln, resulting in an operating profit margin of 9.3%. Finance costs mainly comprised bank charges and commissions. Additionally, the Company booked a tax expense of PKR 14mln on the local sales. Consequently, the Company secured a net profitability of PKR 30mln, with the net profit margin of 5.9%.

Management plans to gradually enhance production capacity through backward integration initiatives by strategically transferring 64,000 spindles and 154 looms. This move aims to increase business volumes and strengthen the Company’s market presence over time.

The Company meets its working capital requirements primarily through internally generated cash flows and subordinated loan. As of end-Apr25, the net working capital cycle remained stretched at 132 days during the early phase of production. This was largely driven by an elongated receivables cycle attributed to the fact that the Company had only recently commenced its first production run. Furthermore, the Company’s short-term trade leverage ratio stood at 37.9%, indicating a sufficient borrowing capacity.

As of end-Apr25, the Company reported Free Cash Flows from Operations (FCFO) of PKR 37mln, supported by an EBITDA of PKR 44mln. These figures are expected to improve in the coming years once the operational efficiencies are realized and production volumes scale up. Given the absence of any outstanding debt, both the interest coverage ratio and core operating coverage remained nil. As the business grows, the future financing strategies may impact these metrics depending on the capital deployment needs.

The Company has a favourable capital structure with no external debt burden. As of end-Apr25, the Company’s equity base was enhanced to PKR 332mln compared to PKR 200mln in FY24. This incline was primarily driven by a loan of PKR 102mln from an associate, which has been treated as equity, along with the unappropriated profit of PKR 30mln.