Ghani Chemical Industries Limited was originally incorporated as a Private Limited Company on November 23, 2015, under the now-repealed Companies Ordinance, 1984 (currently replaced by the Companies Act, 2017). It transitioned to a Public Limited Company on April 20, 2017, and was officially listed on the Pakistan Stock Exchange (PSX) on November 14, 2022. The Company’s Registered Office is located at 10-N Model Town Extension, Lahore, with production facilities operating in Phool Nagar, District Kasur, and the Industrial Zone at Port Qasim, Karachi.

In July 2019, under the Scheme of Compromises, Arrangements, and Reconstruction initiated by the Ghani Global Group, the manufacturing operations of Ghani Gases Limited, including all associated assets and liabilities, were transferred to Ghani Chemical Industries Limited. The Company now operates as a subsidiary of Ghani Global Holdings Limited (formerly known as Ghani Gases Limited).

Ghani Chemical Industries Limited specializes in the manufacturing, sale, and trading of medical and industrial gases and chemicals, including Liquid Nitrogen, Liquid Oxygen and Argon. The Company’s total production capacity now stands at approximately ~435 tons per day (TPD). However, once Hattar plant is operational, capacity would increase to ~710TPD.

The majority stake in Ghani Chemical Industries Limited is currently held by its parent Company_Ghani Global Holdings Limited, which is primarily owned by the Ghani Family, holding approximately ~49.07% of the shares. The remaining shareholding lies in Ghani ChemWorld Ltd. ~12.27%, directors of the Company and the general public.

The restructuring undertaken by the Ghani Group in January 2020 marked a significant shift in the Company's strategic direction. Through this initiative, Ghani Gases Limited transitioned from being a manufacturing-focused entity to becoming the holding Company of the Group, now operating under the name Ghani Global Holdings Limited. This transformation likely reflects the Group's ambition to expand its reach and diversify its portfolio by focusing on managing investments and overseeing its subsidiaries. By consolidating operations and adopting the role of a holding Company, Ghani Global Holdings Limited is better positioned to explore new opportunities for growth and innovation across various industries.

The sponsors possess an impressive legacy of entrepreneurial expertise, having accumulated over five decades of experience across a wide spectrum of industries. Their diverse business portfolio encompasses key sectors such as industrial gases, engineering, mining, glass manufacturing, real estate, automobiles, and food, reflecting their ability to navigate and excel in multiple domains. Through this extensive exposure, they have developed a robust foundation in strategic expansion, innovation, and market leadership. Their ability to identify emerging opportunities, adapt to industry trends, and foster sustainable growth has solidified their position as influential figures in the business world. This breadth of experience not only underscores their leadership capabilities but also highlights their deep understanding of economic dynamics, ensuring a lasting impact across various industries.

As of May 31, 2025, the Ghani Group—which comprises Ghani Global Holdings Limited, Ghani Global Glass Limited, Ghani Chemical Industries Limited and newly established Ghani ChemWorld Ltd—reported total equity of PKR ~18.6bn. The Group has demonstrated strong financial capability and a consistent willingness to support the Company.

Ghani Chemical Industries Limited is governed by a seven-member Board of Directors, chaired by Mr. Masroor Ahmad Khan. The Board comprises six members from the sponsoring family, including the Chief Executive Officer (CEO), and one representative from the Group’s employees, fostering internal alignment and continuity in leadership.To further enhance governance and ensure objective oversight, the Board also includes two independent directors, Mr. Mahmood Ahmad and Mr. Hafiz Imran Latif. Their presence brings valuable external perspectives, reinforcing strategic decision-making and fostering a balanced, transparent approach to corporate leadership. This governance structure enables the Company to maintain stability while driving innovation and sustainable growth.

Mr. Masroor Ahmad Khan, the Chairman, has played a pivotal role in the family business since 1985, demonstrating exceptional leadership and industry expertise over the decades. His deep involvement has contributed significantly to the Company’s steady growth and strategic direction. Most of the Company's directors have been serving since the Board’s inception, bringing diverse experience from multiple industries. Their long-standing tenure fosters stability, informed decision-making, and a keen understanding of the Company’s operations. This continuity ensures that Ghani Chemical Industries Limited remains resilient, adaptive, and well-positioned for sustained success in an evolving business landscape.

Ghani Chemical Industries Limited holds its board meetings on a quarterly basis, strictly following corporate governance principles applicable to publicly listed Companies. These meetings play a vital role in maintaining effective oversight, facilitating strategic decision-making, and ensuring the Company’s long-term sustainability in a dynamic business environment. To uphold transparency and regulatory compliance, the minutes of each meeting are meticulously documented and preserved. This diligent record-keeping not only strengthens corporate accountability but also fosters trust among stakeholders, ensuring that key decisions align with the Company’s vision and industry best practices.

M/s ShineWing Hameed Chaudhri & Co. Chartered Accountants serves as the external auditor for Ghani Chemical Industries Limited. The firm is QCR-listed and is also on the State Bank of Pakistan’s panel of approved auditors. They conducted a special audit of the Company in February 2025, to smooth the demerger process by ensuring compliance with regulatory standards and providing independent assurance on the Company's financial practices. Auditors have expressed the unqualified report on financial statements of the Company as on FY24.

Ghani Chemical Industries Limited operates through a well-structured framework comprising six key functional divisions, each led by a dedicated divisional head who reports directly to the Chief Executive Officer. This strategic organizational model fosters operational efficiency, enhances communication, and ensures cohesive alignment with the Company’s broader vision and objectives. By overseeing their respective domains, the divisional heads play a vital role in driving performance optimization, implementing innovative initiatives, and steering their departments toward sustainable growth. Their leadership contributes to a dynamic, well-coordinated operational environment, enabling the Company to navigate industry challenges while maintaining a competitive edge. This structured approach not only streamlines management but also reinforces accountability, collaboration, and strategic execution across all levels of the organization.

Mr. Hafiz Farooq Ahmad serves as the Chief Executive Officer of Ghani Chemical Industries Limited, steering the Company with visionary leadership and a commitment to excellence. Under his guidance, the management team consists of highly skilled and experienced professionals, each bringing deep expertise not only in the industrial gases sector but also across various other industries. This dynamic and diverse leadership team plays a crucial role in shaping the Company's strategic direction, optimizing operational efficiency, and driving sustainable growth. Their collective knowledge and strategic insights enable Ghani Chemical Industries Limited to navigate industry challenges effectively, seize emerging opportunities, and maintain its competitive edge in an evolving market landscape. Through innovation, collaboration, and a results-driven approach, the leadership continues to strengthen the Company’s foundation for long-term success.

Ghani Chemical Industries Limited upholds a strong and secure IT infrastructure, equipped with comprehensive controls to ensure seamless system operations and data security. The Company prioritizes technological integrity, implementing advanced measures to safeguard critical information and optimize efficiency across its digital platforms. To maintain informed leadership and promote strategic decision-making, regular reports are presented to senior management, providing insights that drive data-driven business strategies. Additionally, specialized management committees are established to oversee key operational challenges, ensuring that relevant issues are addressed proactively. The meticulous documentation of meeting minutes reinforces transparency, accountability, and regulatory compliance, strengthening the organization's governance framework. This structured approach enables the Company to remain agile, resilient, and well-positioned for future advancements in the digital landscape.

The Company has implemented an advanced Oracle ERP solution, significantly enhancing the quality and efficiency of its reporting system. This integration has streamlined operations, improved data accuracy, and provided management with real-time insights for better decision-making and strategic planning. Additionally, the ERP system supports seamless communication and collaboration across various departments, contributing to the overall effectiveness of the Company's business processes.

Management Information System (MIS) reports play a vital role in Ghani Chemical Industries Limited's operational oversight, covering critical areas such as inventory management, finance, production, sales, and overall business operations. These reports are regularly presented to senior management, ensuring data-driven decision-making that enhances efficiency and strategic direction. To further strengthen its technological capabilities, the Company has integrated Oracle technology into its database system. This integration ensures the timely availability and accessibility of essential business information, facilitating seamless workflows and informed leadership decisions. By leveraging advanced data management tools, Ghani Chemical Industries Limited optimizes operational effectiveness, improves financial planning, and enhances long-term business sustainability. This robust digital infrastructure reinforces the Company's commitment to innovation, efficiency, and strategic excellence.

The industrial gases sector in Pakistan is experiencing steady growth, driven by increasing demand across healthcare, manufacturing, and metallurgy. The country relies heavily on oxygen, nitrogen, and carbon dioxide for applications in steel production, food processing, and medical treatments. Sustainability is becoming a key focus, with Companies investing in efficient gas production technologies to reduce environmental impact. The healthcare industry, particularly hospitals and pharmaceutical firms, continues to be a major consumer of medical gases like oxygen and nitrogen. Pakistan’s industrial expansion, including infrastructure projects and energy developments, is fueling demand for specialized gases. Additionally, advancements in gas separation and distribution are improving efficiency, ensuring a stable supply chain for various industries. The prices of industrial gases are primarily influenced by market dynamics, including energy costs, fluctuations in oil and natural gas prices, the quality of specialty gases, and the customization of products. The overall production capacity for industrial gases currently stands at approximately 1,300 tons per day (TPD), with significant contributions from Ghani Chemical Industries and Pakistan Oxygen (formerly Linde Pakistan). Pakistan Oxygen's total production capacity is 533 TPD, of which 430 TPD is currently operational. In comparison, Ghani Chemical Industries has a total production capacity of around 435 TPD. However, once Hattar plant of Ghani Chemical's is operational, capacity would increase to ~710TPD.

The industrial gases sector in Pakistan is highly competitive, with Pakistan Oxygen currently leading the market with an estimated ~40% share. Ghani Chemical Industries follows closely, holding approximately ~34% of the market and poised for significant growth. With the upcoming launch of its new production facility, Ghani Chemicals is set to strengthen its market position, potentially reshaping the industry’s competitive dynamics. Other players in the sector have comparatively limited production capacities, leading to a smaller overall presence. Ghani Chemical Industries is spearheading transformative projects, including the establishment of Pakistan's largest Air Separation Unit (ASU) in the Hattar Special Economic Zone, Khyber Pakhtunkhwa. Scheduled to become operational by end of May 2025, this cutting-edge facility will produce 275 tons of medical and industrial gases daily, addressing rising demand. Additionally, Ghani Chemical is developing a calcium carbide manufacturing project in the same economic zone, which aims to reduce dependency on imports and contribute to foreign exchange earnings. These initiatives highlight the sector's pivotal role in supporting industries like healthcare, manufacturing, and energy, while also driving economic efficiency and creating employment opportunities.

The Company's revenue growth is predominantly fueled by its industrial gases segment, with Liquid Oxygen and Liquid Nitrogen being the key contributors. During 9MFY25, the Company recorded net sales of PKR 5,334mln, demonstrating a substantial year-over-year (YoY) growth of ~31% compared to the PKR 5,437mln achieved in FY24. This positive trajectory underscores strong market demand, particularly within sectors such as healthcare, manufacturing, and energy, which have seen an uptick in industrial gas consumption. Additionally, the growth signals improved operational efficiency, likely supported by capacity expansion and optimized production processes, enabling the Company to enhance supply chain performance and meet rising customer needs. These factors collectively contribute to the Company’s financial strength and competitive positioning, reinforcing its ability to capitalize on industry trends and sustain long-term profitability.

The Company demonstrated a substantial improvement in its profitability metrics, with gross margins increasing to ~47% in 9MFY25, up from ~29.7% in FY24. This remarkable growth highlights the success of optimized pricing strategies, which allowed for better cost recovery and revenue enhancement. Additionally, net margins saw a significant uplift, reaching ~23% in 9MFY25 compared to ~14.5% in FY24. This improvement was primarily driven by effective cost management initiatives and the implementation of operational efficiencies that streamlined processes and reduced overhead costs. The combined effect of these strategic measures underscores the Company’s commitment to financial optimization, ensuring higher profitability while maintaining a competitive edge in the market.

GCIL has recently carved out its Calcium Carbide business into a newly established entity, Ghani Chemworld Limited (GCL), which is now listed on the Pakistan Stock Exchange (PSX). As part of this corporate restructuring, all assets and liabilities associated with the Calcium Carbide segment have been transferred from GCIL to GCL. The demerger process, including all regulatory and legal formalities, has been completed. The newly formed GCL will operate a dedicated local manufacturing facility with a planned production capacity of 75 tons per day (TPD), located in the Hattar Special Economic Zone.The financial benefits anticipated from the new plant’s operations, including increased revenue and improved gross margins, have yet to materialize. Company is also proactively pursuing several new contracts, which are currently in the negotiation and development stages. These agreements are expected to play a crucial role in strengthening financial stability by ensuring steady revenue streams and enhanced profitability. Additionally, securing long-term partnerships will help mitigate risks associated with fluctuating demand and provide a solid foundation for sustained growth. While short-term financial gains may take time, these strategic efforts demonstrate a forward-looking approach, ensuring the Company is well-positioned for future expansion and operational efficiency.

In 9MFY25, the Company's inventory days reached to ~9days (FY24: ~8 days), reflecting a well-managed working cycle to meet upcoming demand efficiently. However, trade receivable days increased to around ~114 days (FY24: ~106 days), primarily due to extended credit terms and delayed payments from key clients. Gross working capital days also increased to  ~123 days (FY24: ~114 days). Trade payable days declined to ~6 days in 9MFY25 (FY24: ~10 days), as the Company likely settled supplier payments faster to maintain favorable vendor relationships.  As a result, net working capital days also increased to ~118 days (FY24: ~104 days), indicating a longer cash conversion cycle. While this trend underscores the Company's ability to support growth through extended receivables and optimized payables, it also highlights the need for robust financial controls to ensure sustainability in cash flow management.

In 9MFY25, Ghani Chemical Industries Limited experienced a decline in free cash flows (FCFO), falling to negative PKR -219mln, compared to PKR 1,573mln in FY24. This drop was primarily due to demerger adjustments_ Ghani Chemworld Ltd., which impacted liquidity, alongside a higher finance cost, reflecting increased borrowing expenses. The interest coverage ratio also declined, reaching negative -0.7x in 9MFY25, a significant decrease from ~4.2x in FY24. This shift suggests that the Company faced challenges in covering its interest obligations, likely due to rising financing costs and increased leverage. Similarly, the debt coverage ratio deteriorated to negative -2.6x in 9MFY25, down from ~2.4x in FY24, highlighting increased debt pressure on cash flow availability. These financial indicators underscore the impact of strategic restructuring and higher borrowing costs on the Company’s liquidity position. While expansion efforts and capital restructuring can drive future growth, effective financial management will be crucial in restoring cash flow stability and improving debt servicing capacity.

In 9MFY25, Ghani Chemicals experienced an increase in leverage, rising to ~35%, compared to ~31% in FY24. This uptick was primarily driven by higher borrowings, which were necessary to finance the Company’s expansion initiatives and meet its working capital requirements. A notable shift was observed in the composition of borrowings, with short-term financing accounting for ~58% of total borrowings in 9MFY25, a significant rise from ~35% in FY24. This strategic move toward short-term debt was likely intended to enhance financial agility, allowing the Company to respond more efficiently to operational needs and market fluctuations. While short-term financing offers flexibility, it can also lead to higher refinancing risks and interest costs, necessitating careful management to maintain liquidity and long-term financial stability.