Welcon Chemicals (Pvt) Ltd ('Welcon' or 'the Company') is a private limited Company incorporated in 1994 under the Companies Act,2017.

Allahdin Group of Companies (“the Group”) is recognized as a prominent player in Pakistan’s pesticide sector. The sponsoring family was initially engaged in the construction business during the 1980s. Leveraging the industry knowledge and experience of one of the four brothers, who was closely associated with the agriculture sector, the family diversified into agrochemicals. This led to the establishment of the Company, marking the Group’s entry into Pakistan’s agriculture industry.

The Company is engaged in the import, formulation, manufacturing, and marketing of a wide range of agricultural inputs, including pesticides (insecticides, herbicides, fungicides, and insect growth regulators), fertilizers and micronutrients (both liquid and granular), plant growth regulators, and seeds for various field crops and vegetables. The Company’s head office is located in Lahore, while its formulation facility is situated at the Industrial Estate, Multan, equipped with Chinese machinery and technology. The Company distributes its products through an extensive nationwide network of over 1,000 dealers across Pakistan.

The Company's ownership transitioned to the new generation. Mr. Zain Iftikhar Ch. possesses a majority shareholding of ~68%, followed by Ch. Zia ur Rehman with 15%, Ch. Iftikhar Nazir with 13%, Mr. Masood ur Rehman with 2%, and Ms. Ghazala Ghazni with a 2% stake.

The Company’s ownership remains concentrated within the sponsoring family, which provides continuity and stability in strategic direction and long-term decision-making. Such ownership structures are typical for established private sector groups of similar scale in Pakistan and often enable aligned interests and efficient decision-making. As one of the oldest and pioneering groups in the industry, the Company has established a strong presence in the agricultural inputs sector, supporting a wide variety of crops across Pakistan.

The Company has a strong track record in the agriculture sector, having established a nationwide presence through the adoption of modern technologies and the provision of specialized services. The Group is supported by a team of experienced professionals possessing vision, expertise, and diverse skill sets. Additionally, the team strong industry knowledge, further strengthening the Company’s strategic direction and operational capabilities.

The Group’s history dates back to the 1990s, with diversified business interests spanning the agriculture, bottling, and pharmaceutical sectors. Given its established presence and financial strength across multiple industries, the Group is expected to extend support to the Company if the need arises.

The control of the Company is vested with a two-member Board comprising the CEO (Zain Iftikhar Chaudhry) and a Director. Both members are actively involved in day-to-day operations, with final decision-making authority resting with Ch. Iftikhar Nazir, the Group's Chairman.

All key members have been associated with the organization for a considerable period, reflecting continuity in leadership and operational stability. Mr. Zain Iftikhar Chaudhry, the Chairman and Chief Executive Officer (CEO) of the Company, possesses significant industry knowledge, a strong skillset, and over a decade of experience in the pesticide sector. He is a graduate of York University and currently serves as the Vice President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI).

The Board meets regularly to deliberate on key strategic and operational matters. While formal Board-level committees have not yet been fully constituted, their establishment was approved at the most recent Board meeting and implementation is currently underway. In practice, governance oversight is exercised through structured monthly meetings of key stakeholders, increasing to bi-monthly during peak periods, ensuring that all material matters are substantively reviewed. The Group is further supported by experienced industry professionals, with over 35 years of sector experience and long-standing association with the AllahDin Group, contributing to informed decision-making and operational continuity.

The External Auditors of the Company, M/S. HLB Ijaz Tabussum & Co., Chartered Accountants, a "B" category QCR rated firm, expressed an unqualified opinion on financial statements for the period ended FY25.

Business operations are organized into four key functional areas: (i) Sales & Marketing, (ii) Finance, (iii) HR & IT, and (iv) Taxation & Accounts. All functional heads report directly to the Chief Executive Officer (CEO), who serves as the ultimate decision-maker and oversees the Company’s overall strategic and operational direction.

Mr. Zain Iftikhar Ch. is the key shareholder and CEO of the Company and possesses the required knowledge, expertise, and skillset. He has been with the business for a long time and is assisted by a team of professionals.

Management meetings are held on an as-needed basis, with senior management actively contributing their insights to the decision-making process. Ch. Iftikhar Nazir serves as the ultimate authority for key strategic and operational decisions. The Company currently does not have formally established management committees.

The Company has developed an in-house ERP system incorporating key modules such as inventory, sales & marketing, finance, procurement, and HR, enabling effective operational monitoring and the generation of periodic management reports (daily, weekly, and monthly) to support informed decision-making. Building on this existing framework, the Group has recently entered into a formal agreement with Telenor for the full-scale implementation of the Odoo ERP platform across its operations. As an internationally recognized, enterprise-grade system, Odoo’s deployment, supported by Telenor, reflects a transition towards more robust, institutionalized management information systems, enhancing data integration, reporting capabilities, and overall operational visibility.

The Company’s internal control environment is supported by its ERP-based processes, which facilitate monitoring across key functional areas including finance, procurement, inventory, and sales. The ongoing implementation of the Odoo ERP system, under a formal arrangement with Telenor, represents a significant step towards strengthening internal controls through improved system standardization, process automation, and enhanced audit trails. This initiative reflects a structured investment in operational infrastructure and is expected to further reinforce governance, transparency, and control effectiveness across the organization.

Pakistan’s agriculture sector contributes roughly 23–25% to national GDP and remains a key driver of economic activity, with strong reliance on agrochemicals to protect crops and improve yields. The agrochemicals market in Pakistan was valued at about USD 3.40 billion in 2025 and is projected to reach around USD 3.59 billion in 2026, reflecting steady expansion driven by rising crop protection needs and adoption of improved farming practices.Demand for pesticides, herbicides, and fertilizers continues to grow due to frequent pest outbreaks, increasing food demand, and efforts to enhance agricultural productivity.The crop protection chemicals segment alone is estimated at USD 251 million in 2025 and is expected to reach about USD 289 million by 2030, indicating gradual market expansion. Despite the positive demand outlook, the sector remains highly import dependent, with a significant portion of active ingredients and raw materials sourced from international markets. This exposes local manufacturers to exchange-rate volatility and supply-chain disruptions. Going forward, industry growth is expected to be supported by increasing adoption of modern agricultural technologies, improved irrigation systems, and digital farming practices, which are gradually transforming Pakistan’s agricultural landscape.

The Group maintains a strong market position and well-established brand presence within the industry. The Company has an installed production capacity of 12,000 metric tons, with production levels reflecting stable operational utilization of the available capacity.

Welcon maintains a diversified product portfolio, with approximately 68% of revenue generated from pesticides, 17% from seeds, and 15% from fertilizers. The Company has also expanded into locally produced biofertilizers, offering a relatively cost-efficient alternative to conventional urea- and DAP-based fertilizers. For FY25 (audited, Jun-25), revenue stood at PKR 2,372 million, broadly in line with PKR 2,347 million in FY24 (1.0% YoY growth), following a period of consistent 7–8% annual expansion. The relative slowdown in growth during the year reflects a strategic, management-led rationalization of the bulk sales channel aimed at streamlining operations, rather than any material weakening in underlying demand fundamentals. During 6M Dec-25, the Company recorded revenue of PKR 1,100 million. With the bulk sales channel reactivated, growth momentum is expected to recover, supported by normalization in volumes alongside ongoing price adjustments across product categories; however, the pace of recovery remains contingent on effective execution and broader market conditions.

Gross profit margin improved to 22.6% in 1HFY26 (Dec-25) from 18.1% in FY24, reflecting more favourable pricing discipline. The operating profit margin (OPM) rose to 8.2% in 6M Dec-25 from 6.1% (Jun-25) and 6.9% (Jun-24). Net profit for FY25 stood at PKR 46 million, improving from PKR 29 million in FY24, with net margin recovering to 1.9% (FY24: 1.2%) and further to 3.5% in 1HFY26.

Management aims to sustain cost leadership while reinforcing market discipline through a combination of channel diversification and institutional engagement. Core initiatives include farmer registration programmes, whereby pesticides are provided against crop buyback arrangements (currently in cotton and wheat), alongside expansion into the wholesale market to support volume-driven growth. In parallel, the Group has entered into a supply agreement with ATF (Pvt.) Limited, the agricultural subsidiary of JDW Group, for the provision of agrochemical inputs to its sugarcane operations, with orders already contributing to current revenues. This arrangement introduces an institutional counterparty with relatively stronger credit quality, enhancing the overall receivables profile. The Group is also launching a structured farmer input programme in collaboration with the National Rural Support Programme (NRSP) for the Rice Season 2026 cycle, incorporating a crop buyback mechanism that is expected to improve payment visibility and working capital dynamics, with potential for national scale-up. Furthermore, the bulk sales channel has been reinstated following a deliberate pause to streamline internal systems and governance processes, and is expected to support recovery in topline growth towards historical levels, subject to effective execution and market conditions.

The Company’s working capital requirements remain elevated, primarily driven by the seasonal nature of the business and extended credit terms offered to its dealer network. Inventory days increased to 141 days in FY25 from 126 days in FY24, reflecting relatively slower turnover; however, a modest improvement to 125 days was observed in Dec-25. Trade receivable days remained elevated at 74 days in FY25, compared to 65 days in FY24, indicating continued pressure on collections, largely attributable to the dealer-credit model. Notably, the receivables profile is expected to gradually strengthen with the inclusion of institutional counterparties, following the commencement of supply arrangements with ATF (Pvt.) Limited (JDW Group), which introduces relatively higher-quality receivables compared to the traditional channel. Trade payable days declined to 6 days in FY25 from 15 days in FY24, suggesting faster supplier payments and a reduced payable cushion. Consequently, net working capital days stood at 209 days in FY25 and improved slightly to 199 days in 6MFY26, albeit remaining elevated relative to historical levels (155 days in FY23). Looking ahead, the initiation of a structured farmer input programme in collaboration with the National Rural Support Programme (NRSP), incorporating crop buyback arrangements, is expected to improve payment visibility and support working capital management over time.

FCFO improved strongly to PKR 199 million (Jun-25) from PKR 182 million (Jun-24) and PKR 152 million (Jun-23), reflecting steady growth in core operating cash generation. Finance costs increased to PKR 88 million (Jun-25) from PKR 82 million (Jun-24). Interest coverage (FCFO / Finance Cost) improved to 3.5x (Dec-25 annualised) from 2.3x (Jun-25), while EBITDA coverage rose to 3.8x from 2.6x in FY25. Core operating coverage (FCFO / Finance Cost + CMLTB + Excess STB) improved to 2.0x (Dec-25) from 1.6x (Jun-25). These improvements were witnessed from the incrase in FCFO.

The Company maintains a moderately leveraged capital structure with a ratio of ~30.9% as of FY25 (FY24: ~32.2%), the leverage further improved to 26.2% in 1HFY26. Whereas the equity grows and stands at PKR~1,590mln as of 1HFY26 (FY25: PKR 1,551mln) due to profit accumulation. As of 6MFY25, the total borrowings were standing at ~PKR 564mln reducing from ~PKR 694mln in FY25.