Packages Limited ('Packages' or 'the Company') was established in 1957 as a Joint Venture between the Ali Group of Pakistan and Akerlund & Rausing of Sweden, to convert paper and paperboard into packaging for the consumer industry. Over the years, Packages has continued to enhance its facilities to meet the growing demand for packaging & allied products. It used to be classified as an operational holding company. However, during 2020, the Company transferred the manufacturing business into a 100% owned subsidiary; Packages Convertors Limited, as a result of internal restructuring.

Packages is the flagship investment holding company of Ali Group. The Group owns IGI Holdings Ltd., Babar Ali Foundation, Gurmani Foundation and Mohsin Trust. Its investment book comprises of entities engaged in manufacturing of packaging materials, tissue, consumer products, industrial inks, paper, paperboard products and corrugated boxes, biaxially oriented polypropylene (‘BOPP’) and cast polypropylene (‘CPP’) films, biopharmaceutical products, ground calcium carbonate products, corn-based starch products, insurance, power generation and real estate.

Ali Group holds ~ 68.7% stake in Packages through Directors and individuals of the sponsoring family (~ 18.07%) and various associated entities (~ 50.64%), with IGI Holdings and investemnts owning the prime share of (~ 35.9%). Financial institutions and Modarabas own  (~7.5%) stake. While (~ 20.5%) of shares of the Company are held by the general public.

Ownership of the Company draws stability from a major stake being held by Ali family.

Ali Group is ranked amongst the leading industrial groups of the country with interests in paper and paperboard, packaging, financial institutions, education, and real estate sectors. Strong affiliation with international JVs is suitable for the Company’s holding structure.

The Sponsors of Packages Limited possess strong financial standing, with a long-standing track record of successful business operations and strong financial management. They have demonstrated consistent support to the Company through strategic investments and effective governance. Their diversified business interests and sound reputation in the corporate sector further strengthen the Company’s credit profile.

The Board of Directors (BoD) consists of 10 members, including three Independent Directors, five Non-Executive Directors, and two Executive Directors. This balanced composition ensures a diverse mix of perspectives and reinforces the Company’s commitment to robust corporate governance. The significant presence of independent oversight enhances transparency and strategic decision-making. Additionally, the Board benefits from the advisory input of a key individual instrumental in the development of the Ali Group, further strengthening its strategic direction.

The BoD, with a well-diversified background and relative expertise of its members, is a key source of oversight and guidance for the management. Mr.Towfiq Habib Chinoy, Chairman of the Board, holds directorships of various entities. He has served as the Company’s Board of Director’s Chairman since 2008. He served as Managing Director of International Industries Limited (IIL) for 37 years, he is now the Chairman of Yaqin Steels Limited and is on the Mohatta Palace Gallery Trust Board of Trustees. Syed Shahid Ali presently serves as a Non Executive Director of the Company. He is the Chairman of Treet Corporation Limited and Gulab Devi Chest Hospital. Mr. Hasan Askari is an Independent Director on the Board of Packages Limited. He has extensive experience in investment banking, mostly in advisory roles, as well as debt capital markets. Mr. Atif Bajwa is the CEO and Director of Bank Alfalah Limited. He has an extensive career spanning over 40 years, both locally and internationaly including senior leadership responsibilities in banking, as well as several boards and public interest positions. Ms. Saba Kamal has over three decades of experience in the area of Information Technology, with 20 years in senior leadership positions with IBM in Pakistan and internationally. She is a member of the IBA Board of Governors. Mr. Tariq Iqbal Khan serves as a non executive director of the Company. He is a Fellow member of the Institute of Chartered Accountants of Pakistan and has over 45 years of diverse and varied experience. Syed Aslam Mehdi, Executive Director and Group Head External Affairs, holds a Masters’ degree in Business Administration from the Institute of Business Administration in Karachi and has previously worked for Packages Group in numerous roles. Mr. Josef Meinrad Mueller serves as the Company’s Non-Executive Director. He was born in Switzerland and received his education, including an MBA, at IMD (previously IMEDE) in Lausanne, where he also worked as an Executive-in-Residence. He has more than 40 years of top worldwide management experience with the Nestle Group in both established and emerging regions. Mr. Osman Khalid Waheed is the CEO and Director of Ferozsons Laboratories Limited, which he joined in 1993 after receiving his undergraduate degree from Harvard University in the United States. Prior to becoming CEO in 1999, he worked in logistics, sales, and marketing at Ferozesons. Syed Hyder Ali joined Packages Limited in July 1987 and is currently the Managing Director and CEO of Packages Limited and IGI Holdings Limited. He holds a Masters in Sciences from the Institute of Paper Chemistry.

The Board ensures effective governance through four committees, namely Audit Committee, Human Resource & Remuneration Committee, IT & Digitalization Committee and Sustainability Committee. Audit committee comprises 6 members, HR Committee comprises 7 members, IT & Technology comprises 4 members and Sustainability Committee comprises 3 members. The meetings were well attended with discussions focusing on the Company performance and strategic direction.

Packages Limited maintains a robust internal control and risk management framework designed to support operational efficiency, regulatory compliance, and effective governance. The Company has established an independent internal audit function that provides assurance on the adequacy and effectiveness of internal controls, risk management processes, and governance practices across the Group. Its organizational structure incorporates clearly defined reporting lines, delegation of authority, and accountability mechanisms, enabling efficient execution of strategic and operational responsibilities. Furthermore, the Company has implemented a comprehensive enterprise-wide risk management framework that facilitates the identification, assessment, monitoring, and reporting of risks arising from its diversified business operations and investment portfolio. The Board Audit Committee (BAC) plays a critical oversight role by reviewing the effectiveness of internal controls, financial reporting processes, compliance mechanisms, and audit findings. This governance structure enhances transparency, strengthens accountability, and helps safeguard the interests of shareholders while supporting the Company's long-term sustainability objectives.

Packages functions as an investment holding company. It has instituted a simple organizational structure that is divided across basic functional divisions. The subsidiaries' structure has been given independent operational roles.

The senior management team of Packages Limited comprises seasoned professionals with extensive industry experience and long-standing association with the Company, supporting effective execution of strategic and operational objectives. The Company’s Chief Executive Officer and Managing Director, Syed Hyder Ali, oversees the Group’s operations and serves on the boards of several affiliated companies, reflecting his broad industry expertise and leadership role within the Group. The Chief Financial Officer, Khurram Raza Bakhtayari, is a Fellow Chartered Accountant with over 28 years of professional experience, including approximately two decades with the Company. Jawad Gillani heads the Group’s human resource function and brings a strong background in organizational development, having been associated with the Company for the past ten years. The Group Internal Audit function is led by Soban Waqar, a Fellow Chartered Accountant with ten years of experience within the organization, while Waqas Munir serves as the Group Chief Investment Officer and is a Fellow Chartered Accountant with over twelve years of service at the Company. Collectively, the management team combines strong professional credentials, deep institutional knowledge, and significant tenure, which contribute to operational stability, sound governance practices, and strategic continuity across the Group.

Packages Limited demonstrates strong management effectiveness, supported by an experienced leadership team with substantial industry expertise and long-standing association with the Company. The continuity of senior management reflects organizational stability, facilitates effective execution of strategic initiatives, and contributes to the preservation of institutional knowledge. Management has consistently aligned operational and investment decisions with the Company’s long-term value creation objectives, while maintaining prudent financial discipline and a robust control environment. The successful management of a diversified portfolio of manufacturing, packaging, real estate, and strategic investments further underscores the leadership team's ability to navigate evolving business dynamics and deliver sustainable performance. The Company’s management framework is further strengthened by a well-established Management Information System (MIS) supported through the implementation of SAP ERP. The integrated ERP platform enables real-time monitoring of operational and financial performance across the Group, facilitates timely and accurate reporting, and supports data-driven decision-making at both management and Board levels. The system enhances operational efficiency, improves transparency, and reinforces internal controls through centralized information management. The use of a sophisticated technology infrastructure, coupled with regular performance monitoring and governance oversight, reflects the Company’s commitment to maintaining high standards of operational effectiveness and corporate governance.

The Company maintains a robust internal control framework through its Internal Audit Department, led by the Head of Internal Audit (HOIA), who reports directly to the Chairman of the Board Audit Committee (BAC). The HOIA meets the regulatory qualification requirements and is supported by an in-house audit team. The internal control system is considered sound and is regularly assessed for effectiveness. The BAC oversees operational, financial reporting, and compliance controls, ensuring effective risk management and safeguarding of Company assets and shareholder value. A risk-based internal audit approach is implemented, with periodic updates to risk assessments to reflect evolving business risks.

Packages is an investment vehicle of Ali Group. For investment decisions, the Company has a dedicated investment team placed at the Group level and is headed by Mr. Waqas Munir as the Group's Chief Investment Officer. He is associated with the Group since 2014 and his team comprises of Chartered Accountants and a CFA charter holder.

Packages follows a prudent and disciplined investment strategy, focusing on establishing long-term partnerships with well-established businesses operating in packaging and related sectors through both local and international investments. The portfolio reflects a balanced approach to capital allocation, combining mature dividend-generating investments with growth-oriented ventures, while maintaining alignment with the Group’s long-term strategic objectives.

The Group’s investment management function maintains regular engagement with portfolio companies and subsidiaries, enabling continuous monitoring of operational, financial, and strategic developments across the investment portfolio. Performance updates, key business developments, capital allocation requirements, and emerging risks are reviewed periodically by the investment team and subsequently presented to the Board of Directors on a quarterly basis.

Packages Limited’s group comprises entities operating across packaging manufacturing, tissue products, BOPP/CPP films, corn starch, industrial inks, insurance, real estate, and power generation, resulting in a well-diversified business profile. The Group benefits from multiple revenue streams generated through its manufacturing operations and real estate ventures, which enhance earnings stability, mitigate the impact of sector-specific market fluctuations, and strengthen the overall financial resilience of the Company.

The Company’s investment portfolio is broadly categorized into three segments: core, strategic, and non-strategic investments. Core investments comprise key subsidiaries and associated entities that form the foundation of the Group’s operations, including IGI Holdings Limited, Bulleh Shah Packaging (Private) Limited, Packages Real Estate (Private) Limited, DIC Pakistan Limited, Packages Convertors Limited, and Packages Investments Limited. Strategic investments consist of entities that support the Group’s long-term growth and diversification objectives, including Packages Lanka (Private) Limited, Packages Power (Private) Limited, OmyaPack (Private) Limited, StarchPack (Private) Limited, Packages Trading FZCO, Hoechst Pakistan Limited, and Anemone Holdings Limited. Meanwhile, the non-strategic investment portfolio primarily comprises listed equity investments and other financial holdings, including Nestlé Pakistan Limited, Tri-Pack Films Limited, Systems Limited, and Coca-Cola Beverages Pakistan Limited. These investments provide diversification benefits and contribute to the Company’s earnings through dividends, capital appreciation, and strategic synergies.

Dividend income increased by 26% to PKR 5,098mln in CY25 from PKR 4,060mln in CY24, supported by higher contributions from key investee companies, particularly Hoechst Pakistan Limited, PREPL, and Nestlé Pakistan Limited. Packages Convertors Limited remained the largest contributor, providing PKR 1,900mln, while Tri-Pack Films Limited did not declare a dividend for the second consecutive year due to ongoing capital expenditure requirements. Additionally, rental income grew by 16% to PKR 774mln, driven by the improved performance of PREPL, further strengthening the Company's income diversification profile.

The Company’s profitability strengthened considerably during CY25, supported by higher income generation across all revenue streams. Operating profit increased by 32% to PKR 5,066mln from PKR 3,838mln in CY24, while profit after tax rose by 60% to PKR 3,054mln, marking the highest earnings level since CY22. Reflecting the improved financial performance, the Board recommended a cash dividend of Rs. 16 per share (160%), up from Rs. 15 per share (150%) in CY24. Return on equity strengthened to 5.41% from 3.46%, while the dividend cover ratio improved to 2.14x, the highest level recorded in the last six years, highlighting the Company’s enhanced earnings capacity and the sustainability of its dividend distributions.

The Company’s leverage profile experienced a notable shift during CY25, primarily driven by strategic investment activity. Long-term borrowings increased significantly by 132% to PKR 16.1bln from PKR 6.9bln in CY24, mainly due to the acquisition of a new PKR 10.9bln financing facility utilized for equity injections into BSPL and StarchPack. Conversely, short-term borrowings declined substantially to PKR 395mln from PKR 1.0bln in the previous year, resulting in an improved debt maturity profile. Consequently, the debt-to-equity ratio increased to 24:76 from 14:86. Although this reflects a higher leverage level relative to the Company’s historical position, the additional debt has been deployed toward strategic investments aimed at enhancing long-term value creation. The investments in BSPL and StarchPack are expected to strengthen future earnings generation as their respective growth and turnaround initiatives progress. Furthermore, the financing is supported by a pledge over the Company’s shareholding in Nestlé Pakistan Limited, which had a market value of approximately PKR 23.5bln at year-end, providing strong asset coverage and mitigating refinancing risk.

During CY25, the Group’s consolidated asset base expanded significantly to exceed PKR 267bln, compared to PKR 248.6bln in CY24, primarily driven by ongoing capital expenditures and investment activities across various business segments.