Nishat Packaging Ltd ("NPL" or the "Company") is a Public Limited Company incorporated under the repealed Companies Ordinance 1984 (now Companies Act 2017), on 23 July, 2004.

Nishat Packaging Limited was a joint venture project of Nishat with Shuaiba Paper Products Company Ltd. Kuwait (Shuaiba). The primary purpose of the project was to achieve vertical integration in the cement business by supplying paper sacks for cement packaging. D.G. Khan Cement Company Ltd. (DGKCC) and Shuaiba entered into an agreement on 12th June 2004 for setting up a paper sack plant in Pakistan, but later in June 2008, Nishat acquired the stake from Shuaiba Paper. Now, Nishat Packaging Limited is a backward integration of D.G. Khan Cement Company Ltd.

The Company operates in the conversion and production of paper and polypropylene (PP) packaging solutions, maintaining an aggregate annual production capacity of 250 million bags, including 160 million paper bags and 90 million PP bags. The Company’s paper manufacturing unit is located adjacent to the D.G. Khan Cement Kairpur facility in District Chakwal, offering operational efficiency through its close vicinity to prominent cement manufacturers. The PP manufacturing unit is established at the Quaid-e-Azam Business Park Industrial Estate, Sheikhupura, which supports streamlined industrial operations and supply chain accessibility.

The shareholding structure of NPL is predominantly held by corporate sponsors, with DG Khan Cement holding a majority stake of 55%, followed by Nishat Mills Limited with 25%. The remaining shareholding is distributed among individual investors, including members of the Mansha family. Within the family shareholding, Mrs. Naz Mansha holds a 6% stake, while Mr. Umer Mansha and Mr. Hassan Mansha each hold 4% shareholding in the Company. Nishat Mills Ltd has 31% of shareholding in DG Khan Cement. Thus ultimate shareholding remained with Nishat Group.

Founded by Mian Muhammad Mansha, Nishat Group ("Group") is recognized as one of the largest and most diversified industrial conglomerates in South Asia. The Group has established a reputable market standing, supported by a robust operational track record, diversified revenue streams, and strong financial backing. Whereas, D.G. Khan Cement Company Limited is among the leading players in Pakistan’s cement sector, supported by a sizeable operational footprint and strong sponsor backing.

The Nishat Group has a diversified presence across key sectors, including textiles, cement, power generation, financial services, and hospitality. Supported by strong industry experience and sound corporate governance, the sponsors have established a credible position in the packaging industry. Mr. Mian Mansha, the visionary behind the Nishat Group, has a long-standing track record of success, which serves as a strong foundation for Nishat Packaging Ltd. Nishat Group is regarded as being on par with multinational companies operating locally in terms of product quality, services, and management expertise. 

The financial strength of the sponsors is sufficient to support the Company in times of crisis. D.G. Khan Cement Company Limited holds entity ratings of AA-/A1+, while Nishat Mills Limited is rated AA/A1+ by PACRA. As of Sep'25, D.G. Khan Cement Company Limited reported total assets of PKR 152bln and an equity base of PKR 106bln. Meanwhile, Nishat Mills Limited reported total assets of PKR 272bln and an equity base of PKR 156bln during the same period.

The Board of Directors (BoD) comprises seven members, including female representation. It includes one executive directors and six non-executive directors, with no independent director currently on the Board. However, the Company operates as a subsidiary of a listed entity, the absence of independent representation is partially mitigated through oversight and governance at the parent company level.

The BoD, with the diversified background and expertise of its members, is a key source of oversight and guidance for the management. The Chairperson, Mr. Mian Raza Mansha, holds the position of CEO also. He is a seasoned industrialist with over 26 years of diversified business experience. He plays a pivotal role in providing strategic leadership and operational oversight across Group entities. Mr. Raza Mansha has been associated with the Board for ~19 years, contributing towards long-term strategic planning and strengthening the Company’s operational framework. Mr. Mian Hassan Mansha – Non Executive Director, is an industrialist with around 24 years of business experience. His exposure across various Nishat Group ventures provides valuable industry insight. He has been associated with the Board for nearly four years. Ms. Ammil Raza Mansha – Non Executive Director, is an experienced business professional and industrialist with 22 years of overall experience. Her presence also enhances diversity at the Board level. She has been associated with the Board for about six years. Mr. Mahmood Akhtar – Non Executive Director, is a seasoned professional with approximately 40 years of experience. Holding a Master’s degree, he brings extensive corporate and managerial expertise to the Board. His professional background supports effective oversight, operational guidance, and governance strengthening. He has been associated with the Board for approximately six years. Mr. Aftab Ahmed Khan - Executive Director, is a Chartered Accountant with over 53 years of professional experience. He possesses extensive expertise in finance, accounting, and corporate governance. His strong financial acumen supports the Board in strengthening financial discipline and risk oversight. He has been associated with the Board for nearly 19 years. Dr. Arif Bashir – Non Executive Director, holds a PhD and has ~42 years of professional experience. He brings strong academic, research, and corporate advisory expertise to the Board. His diversified knowledge contributes to strategic guidance and governance oversight. He has been associated with the Board for approximately 12 years. Mr. Farid Fazal – Non Executive Director, is an experienced professional with nearly 49 years of industry exposure. His extensive professional background provides valuable insights into corporate management and governance matters. He has remained associated with the Board for ~18 years, contributing to strategic continuity and oversight.

The Board demonstrates strong oversight and strategic guidance through the diverse experience and expertise of its members. The Board benefits from the long-standing tenure and industry knowledge of its members, ensuring continuity, informed decision-making, and effective governance.

M/s KPMG Taseer Hadi & Co. are the external auditors of the Company. They have expressed an unqualified opinion on the financial reports for FY25. The firm is QCR rated by ICAP and is in the A Category of SBP’s panel of auditors.

To perform well, NPL has structured and organized its organogram as per the operational needs. The Company operates through Procurement, Sales and Marketing, Finance and Accounting, production and Technical department and Administration Departments.

The Company has a set of experienced & professional management. The Company’s CEO, Mian Raza Mansha has more than 26 years diversified professional experience in various business sectors including banking, textile, power, cement, insurance, hotels, properties, natural gas, agriculture, dairy etc. He received his bachelor degree from the University of Pennsylvania, USA. Currently, he is on the Board of ten other companies. Mr. Inayat Ullah Niazi serves as the Chief Financial Officer of Nishat Packaging Limited. He is a finance professional with CA (Inter) qualification and possesses approximately 39 years of overall professional experience, including around 37 years of association with the Nishat Group. Mr. Niazi has been serving in his current role for about 19 years, reflecting strong continuity and institutional knowledge within the Company’s financial management framework.

Management’s effectiveness and efficiency can be ensured through the presence of management committees. At NPL, management committees are not in place. Thus, indicating a room for improvement.

NPL's manufacturing facilities in Chakwal and in Sheikhupura are connected with the Company’s Head Office in Lahore through an ERP(Oracle based customized system). To facilitate the management, various reports related to Finance, Sales, HR, Production and Import are generated on daily and monthly basis. Other customized reports can be generated on ad hoc basis. Frequecny of these reports may alter as per the managements requirement.

The Company has an internal audit function in place, with effective mechanism for identification, assessment and reporting of all types of risks arising out of the business operations. This function is necessary to provides support, guidance and monitoring of the internally placed SOPs along with conducting Gap Analysis for evaluating already placed policies and procedures.

Pakistan’s packaging industry consists of four major segments: paper, plastic, tinplate, and glass. Paper and plastic segments occupy the major share of total market. NPL operates under the paper and plastic (Polypropylene) segment of the Industry. The demand of NPL is directly correlated with cement production. The segment’s direct costs consist largely of imported raw materials. Therefore, volatility in exchange rates and international price trends has an impact on costs. Pakistan’s cement industry is showing clear signs of recovery after a prolonged slowdown, supported by stabilization under the IMF program. Cement industry demand has strengthened, with overall dispatches rising notably in the first quarter of FY26. Domestic sales increased by 17% due to revived private construction activity, improved project execution, and gradually returning consumer confidence. Exports grew by 21%, driven by stronger sea-based shipments and higher dispatches to Afghanistan, though border tensions pose a risk. Looking ahead, FY26 volumes are expected to reach 51–52 million tons, indicating steady progress toward recovery which will also improve the profitability of cement packaging companies.

Nishat Packaging Ltd is one of the main players in the industry. Large market players in the paper segment are Cherat Packing Ltd, Thal Ltd, and Ultra Pack (Pvt) Limited. Nishat Packaging Limited maintains strong business integration with DG Khan Cement Company Limited, to which it sold ~86.5% of its polypropylene (PP) bag production and ~63.63% of its paper bag production to DG Cement during FY25. During FY25, paper bag production was recorded at 42 million bags, translating into a capacity utilization of 26%, whereas PP bag production reached 50 million bags, reflecting a utilization level of 56%. Accordingly, the overall plant utilization remained at 37%. Moving forward, the Company aims to expand PP bag production optimize utilization, and stabilize profitability.

The Company generates revenue by selling bags to cement manufacturers. Some of its customers are D.G. Khan Cement, Lucky Cement Ltd. and Maple leaf Cement. The top 3 Customers generated more than 93% of the total revenue. During FY25, the revenue of the Company inclined by 32% YoY and stood at ~PKR 3.3bln (FY24: ~PKR 2.5bln). During FY25, the Company’s revenue mix remained predominantly driven by paper bag sales, which accounted for more than 70% of the total revenue, while the remaining contribution was generated from polypropylene (PP) bags.

The Company’s gross profit margin improved from approximately 10.2% in FY24 to 13.1% in FY25, primarily due to sales volumes of PP bags. Net Margin inclined to ~15.5% FY25 (FY24: -11.4%) as a result of a significant rise in revenue and gain on sale of one paper plant. The Company has posted a net profit of PKR 510mln during FY25 (FY24: PKR -285mln). 

The Company is a backward integration of D.G. Khan Cement. The main purpose of the Company is to supply packaging material to the related Company. Aligning with the industry's demand pattern and gradual shift towards Polypropylene bags from kraft paper bags, NPL has strategically installed its new PP line with a capacity slightly exceeding the needs of D.G. Khan Cement. Moving forward, the Company aims to expand PP bag production, optimize utilization, and stabilize profitability.

The Company’s working capital requirements are a function of its inventory, trade receivables, and trade payables which are financed through borrowings and FCFO. The inventory days of Nishat Packaging Limited stood at ~148 days during FY25 (FY24: ~170 days) and the receivable days decreased to ~84 days (FY24 ~107 days). Resultantly, the net working capital days decreased to ~226 days during FY25 (FY24: ~275 days).

During FY25, NPL’s FCFO’s stood at ~PKR 515mln increasing from ~PKR 216mln in FY24. The FCFO/Finance cost also showed a increase to ~1.3x of coverage during FY25 from ~ 0.4x during FY24 due to incline in FCFO. 

The Company has a leveraged capital structure. Long-term debt is related to expansion activities, whereas short-term debt has increased substantially pursuant to slow movement in receivables. However, the majority of receivables are from the related party which gives comfort to the credit risk. The Company’s gearing ratio increased to ~65.7% in FY25 from ~62.0% in FY24 due to a rise in borrowings from PKR 3.5bln to PKR 5.7bln. This was primarily driven by the installation of a new polypropylene plant, largely financed through debt with a minor equity contribution. The equity of the Company stood at PKR 2.9bln at the end of FY25 (FY24: PKR 2.2bln).