Poly Pack (Pvt.) Limited (or the "Company") was incorporated as a private limited Company in 1991.

The Company has begun its operations with the commercial production of polypropylene woven bags. The main sponsor family has utilized his skills and experience to turn Poly Pack (Pvt.) Limited to a competent contender in the PP woven bags.

Poly Pack (Pvt.) Limited provides different types of Poly Propylene Woven Bags, Polyethylene Plain Films, Polyethylene Shrink films, POF Shrink Films. In addition, the Company has established a dedicated flexible packaging line, enabling in-house printing and customized packaging solutions for large-scale corporate clients. The Company maintains a strong and diversified customer portfolio, serving reputable clients across multiple industries, including textile, sugar, fertilizer, chemicals, edible ghee/oil, beverages, and confectionery/FMCG sectors. The Company has expanded their capacity year by year, from ~34,600 MT/annum to ~60,000 MT/annum tons, with a utilized capacity of 53,147 MT/annum (89%) in FY25.

Majority stake of Poly Pack (Pvt.) Limited lies with Mr. Iftikhar Ahmed who owns ~43.6% of the total shares. Mr. Aamir, Mr. Bilal, and Mr. Abdullah hold respectively ~15.6% ownership of the Company. Mr. Aamir, Mr. Bilal, and Mr. Abdullah are all brothers, with Mr. Aamir being the eldest, followed by Mr. Bilal and Mr. Abdullah. Mrs. Nazia Iftikhar, wife of Mr. Iftikhar Ahmed, holds 9.42%  stake in Poly Pack (Pvt) Limited.

The ownership structure remains stable, supported by sponsors who possess extensive experience in the packaging industry and maintain a significant personal stake in the business. The equity injections of PKR 617 million in FY23 and PKR 228 million in FY24 reflect the sponsors’ strong commitment to the Company’s growth and long-term sustainability. Furthermore, their strategic intent to maintain a low-leverage capital structure helps contain financial risk and strengthens the Company’s overall financial stability.

The sponsors and directors of Poly Pack (Pvt.) Limited bring extensive experience and in-depth industry knowledge, supported by their longstanding family association with the packaging sector. The Company is collectively managed by three brothers under the strategic guidance of their father. Within the management structure, Mr. Bilal oversees finance, taxation, and related compliance matters, while Mr. Aamir and Mr. Abdullah are responsible for supervising and managing the Company’s operational functions.

The financial strength of the sponsors is sufficient to support the Company in the times of crises. The family has significant resources to finance the Company if the need arises.

The composition of the Company’s Board of Directors (BoD) is centered around members of the sponsoring family, reflecting a closely held governance structure.There are four directors on the Board, all of them are executive. The addition of independent director would be encouraged.

All the Board members are businessmen in the profession and have the relevant skills. Mr. Iftikhar Ahmed - Executive Director also serves as Chief executive Officer of the Company. brings over 47 years of extensive business experience. Under his leadership, the Company has established a stable operational foundation and sustained strategic direction. His long-standing industry exposure enables informed decision-making, corporate governance oversight, and business expansion initiatives. Mr. Aamir Iftikhar - Executive Director holds a Bachelor of Honours degree from the UK and has ~16 years of business experience. He contributes to strategic planning, operational management, and commercial development. His international academic background complements his practical exposure in business operations, enabling him to support growth initiatives and organizational strengthening. Mr. Bilal Iftikhar - Executive Director is an ACCA (UK) qualified professional with around 15 years of experience in business management. Since joining the Board in 2010, he has played a key role in financial oversight, governance compliance, and performance monitoring. Mr. Muhammad Abdullah holds a Bachelor of Honours degree from Canada and possesses approximately 10 years of business experience. He contributes to operational coordination and business development activities. His academic exposure combined with practical involvement strengthens the Company’s management perspective and supports implementation of strategic objectives.

The Board has the strength of all members belonging to the same family, increasing their cohesiveness. The Board met four times during FY25, with the majority attending to discuss matters.

M/s PKF F.R.A.N.T.S. 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 "B" Category of SBP’s panel of auditors.

Poly Pack (Pvt.) Limited has developed a defined organizational structure keeping in mind the Company’s operational needs. The Company operates through Procurement, Sales and Marketing, Finance and Accounting, production and Technical department and Administration Departments.

The Company’s management team comprises seasoned professionals with long-standing association and a deep-rooted understanding of the business. The Company’s General Manager (Production), Mr. Mushtaq Anjum Chaudhary has been associated with the Company since its inception. Mr. Mushtaq Anjum Chaudhary has over 48 years of relevant experience and also has special expertise in Polymer/Polyolefins. The Company’s Manager Finance, Mr. Aamir Manzoor, is a CA finalist and has over 30 years of relevant experience. He has been working with the Company for 24 years.

The experience of the sponsors along with a professional management team has helped the Company to streamline its operations. However, Management’s effectiveness and efficiency can be ensured through the presence of management committees. At Poly Pack (Pvt.) Limited, absence of management committees are indicating the room for improvement.

The SAP S/4HANA ERP system has been successfully implemented and is fully operational across the organization. It is being utilized to generate timely and accurate MIS and operational reports, enabling improved data visibility, streamlined processes, better decision-making, and enhanced overall operational efficiency. 

The Company has developed an effective mechanism for identification, assessment, and reporting of all types of risk arising out of the business operations because there is an internal audit department in place to ensure operational efficiency which operates under the direct supervision of directors.

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. Poly Pack (Pvt.) Limited operates under the plastic segment of the Industry. The demand of the plastic segment is directly correlated with cement, food & consumer products. The Company’s direct costs consist largely of imported raw materials. A major challenge faced by the sector is prices and availability of raw materials specifically polymers such as polypropylene & polyethene (PP) resin. Resin prices are largely a function of global crude oil prices, demand-supply dynamics, and exchange rate volatility. Any volatility in the oil prices and exchange rates is, therefore, a significant source of risk for this segment. However, Pakistan’s paper and packaging industry also faced margin pressures due to rising energy costs, which increased the cost of sales and impacted profit margins. 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. This has encouraged Companies to explore alternative energy solutions, including solar power, to mitigate the challenge and improve cost efficiency.

As represented by management, the Company has captured the major share of the PP Woven Bags market. Almost 60% of the Company's total sales are made in the Punjab region in FY25. Poly pack (Pvt.) Limited is also becoming a well-known name in the PP films.

Poly Pack (Pvt.) Limited achieved an increase in topline of 19% and stood at PKR 18,445mln in FY25 (FY24: PKR 15,504mln) driven primarily by higher sales volumes. It stood at PKR 8,473mln at the end of 6MFY26. PP woven bags continue to be the leading revenue contributor, accounting for ~50%. followed by PE Shrink films of 37%. The Company generates revenue from the sale of  poly propylene woven bags, poly ethylene films and flexible packaging in the local market.

Raw materials being used for manufacturing Poly Propylene Woven Bags and flexible packaging are imported. So, to maintain the margins, the Company passes on the cost to B2B consumers. In FY25, gross margin and operating profit margin both decreased as compared to FY23. The gross profit margin declined from 7.2% in FY24 to 5.1% in FY25, due to high cost of sales primarily driven by increased raw material consumption. In 6MFY26, it stood at 5%. Whereas, operating profit margin decreased from ~5.9% to ~3.9% whereas in 6MFY26, it stood at 3.7%. Consequently, the net profit margin also decreased from ~5.0% to ~3.2% during the same period whereas in 6MFY26, it stood at 1.8%. The bottom-line of the Company clocked in at ~PKR 585mln during FY25 (FY24: PKR 775mln) driven by a reduction in gross profit and other income. Whereas, at the end of 6MFY26, it amounted to PKR 151mln.

In recent years, the Company has undergone through significant expansion while further capital is injected for the planned expansion. The Company has installed a BOPP plant titled as "Poly Pack Film (Pvt.) Limited" in Sheikhupura which will improve the operational efficiency of the Company and also will help to maintain a better position in the market. The Poly Pack Film (Pvt.) Limited is operated as associated Company of Poly Pack (Pvt) Limited. The project achieved its commercial operations date (COD) in Jan'26, with the installed capacity of 50,000 metric tonnes annually with approx. cost of  USD 60mln. The Company also intends to establish a CPP plant within the premises of Poly Pack Films (Pvt.) Limited as part of its ongoing efforts to further diversify its product portfolio.

The Company’s working capital requirements are a function of its inventory, trade receivables, and trade payables which are financed through borrowings and FCFO. Poly Pack (Pvt.) Limited experienced a rise in inventory days, increasing from ~49 days at end of FY24 to ~54 days at end of FY25 wheres it stood at 66 days at the end of 6MFY26. Meanwhile, trade receivable days recoreded a minor dip of ~2 days and stood at 23 days during the same period (FY24: 25 days) wheres it stood at 27 days at the end of 6MFY26. But the trade payable days increased from ~90 days at end FY24 to ~94 days at end FY25 wheres it stood at 104 days at the end of 6MFY26. Consequently, the Company’s net working capital days remained contant at (16) days at the end of FY25 wheres it stood at (11) days at the end of 6MFY26.

During FY25, the Company’s FCFOs stood at ~PKR 355mln increasing from ~PKR 762mln in FY24 whereas it stood at PKR 108mln at the end of 6MFY26. During FY25, FCFO/Finance cost stood at ~ 14.0x increased from ~22.2x of coverage during FY24 due to a significant increase in FCFO. Whereas it stood at PKR 5.3x at the end of 6MFY26. The finance cost stood at ~PKR 40mln in FY25 decreased from ~PKR 44mln at the end of FY24 whereas it stood at PKR 27mln at the end of 6MFY26.

The Company has a low leveraged capital structure. Long-term debt is related to expansion activities, whereas short-term debt is related to working capital management. The Company maintained a low leverage profile which is recorded at 6.8% (FY24: 5.2%), reflecting less reliance on debt to support ongoing capacity expansions. However, by the end of 6MFY26, leverage increased to 16.3%, primarily attributable to a rise in short-term borrowings to manage working capital requirements and business expansion. At the end of FY25, the long-term borrowing has increased to ~PKR 400mln from ~PKR 235mln at the end of FY24 whereas it stood at PKR 1,073mln at the end of 6MFY26. Whereas, the equity of the Company stood at PKR 5,499mln as of 6MFY26 (FY25: PKR 5,495mln).