Multi Resin Industries (hereinafter referred to as “the Firm”) is a Partnership Firm established in 1997 and registered under the Partnership Act of 1932. The Firm’s registered office is located at Islamic Arcade, C-3, University Road, next to the Samama Shopping Mall in Karachi.

The business was originally founded by the sons of the late Mr. Muhammad Sharif in Hyderabad, Sindh, with an initial production capacity of 30 tons per month. Over the years, the Firm expanded its operations to major cities across Pakistan, including Karachi, Lahore, Faisalabad, Rawalpindi, Islamabad, and Peshawar. In 2004, the Firm established an office and warehousing facility in Lahore, followed by another in Faisalabad in 2013.

The Firm specializes in the production and sale of chemical emulsions, including adhesive emulsions, homo polymers, co-polymers, cross-linking agents, acrylates-based dispersions, pure acrylates emulsions, and styrene-modified acrylates emulsions. These products, marketed under the brand name Multiteck, are extensively utilized across a variety of industries such as textiles, paints, paper and packaging, construction, leather, and wood sectors.

Multi Resin Industries is registered as a Partnership Firm, with ownership divided among seven partners. Mr. Farooq Ahmed holds a 14.5% stake, while the remaining six partners each own a 14.25% share.

Multi Resin Industries is currently owned almost equally by its seven partners, showcasing a well-balanced ownership structure. To ensure long-term stability and sustainability, it is crucial to implement a formal succession planning process. This will safeguard the Firm’s future prospects and provide a clear roadmap for leadership transitions. By proactively preparing for unforeseen circumstances, the Firm can maintain its operational integrity and secure its position in the market for years to come.

The key partner, Mr. Farooq Ahmed, alongside partners Mr. Muhammad Anees and Mr. Muhammad Asif, collectively bring over 23 years of extensive experience in the chemical industry. Their combined expertise and profound understanding of market dynamics have been pivotal in steering the Firm towards sustainable growth.

The financial strength of the sponsors is deemed adequate, as they have consistently demonstrated the capability to directly finance the business through substantial capital injections. The sponsors’ commitment to injecting capital underscores their dedication to the Firm’s financial resilience.

The overall control of the Firm rests with seven partners. Besides the Chairman, two partners hold executive roles within the Firm. While the current governance structure provides a degree of oversight and management, there is ample room for improvement. As Multi Resin Industries operates as a partnership, enhancing the governance framework could foster more robust decision-making processes, risk management, and strategic planning.

The business is led by three highly experienced individuals with over twenty-three years of experience in the chemical industry. Mr. Farooq Ahmed, the Chairman, is a chemical engineer with more than two decades of expertise in the field. His visionary leadership has been the cornerstone of the Firm’s success. Alongside him, the other two partners also bring a wealth of knowledge and experience, significantly contributing to the Firm’s operations and strategic direction. Their collective expertise ensures that the Firm remains at the forefront of the industry, continually driving innovation and excellence.

The Firm currently lacks a formal board committee, which can hinder effective governance. Additionally, three partners hold management positions within the Firm, which restricts the scope for impartial oversight and strong governance practices. To enhance board effectiveness, it is crucial to establish a dedicated board committee and separate management roles from governance functions. Implementing these changes will allow for more balanced decision-making, increased transparency, and better accountability, ultimately driving the Firm towards sustained growth and success.

M/S Clarkson Hyde Saud Ansari - Chartered Accountants, a QCR rated firm, is the external auditor of the Firm. The auditors have expressed an unqualified audit opinion on the financial statements of Multi Resin Industries for the year ended June 30, 2025. This unqualified opinion signifies that the financial statements present a true and fair view of the Firm’s financial position, in accordance with applicable accounting standards. To further enhance transparency, it is recommended to engage external auditors from the SBP panel.

Multi Resin Industries operates with a streamlined organizational structure, segregating its operations into six key departments: (i) Sales & Marketing, (ii) Information Technology, (iii) Procurement, (iv) Operations Management, (v) Quality Control, and (vi) Finance. Each department has clearly defined lines of responsibility, ensuring that tasks and roles are effectively managed and executed.

The management team of Multi Resin Industries comprises experienced and skilled individuals who play pivotal roles in the firm's success. Mr. Farooq Ahmed, the Chairman, and Mr. Muhammad Anees, the CEO, are deeply involved in key decision-making processes. Mr. Muhammad Asif, a textile engineer, heads the Sales & Marketing department, bringing specialized expertise to this crucial area. Mr. Rehan Usmani, the CFO, is a chartered accountant with extensive experience, ensuring the firm's financial health and strategic planning. Additionally, Mr. Ubaid Farooq, the son of Chairman Mr. Farooq Ahmed, is actively involved in the business and currently oversees overall operations. His involvement ensures continuity and brings fresh perspectives to the firm. Together, this dynamic management team drives the strategic vision, operational excellence, and sustained growth of Multi Resin Industries.

Multi Resin Industries, supported by a qualified and experienced team of professionals, is steadily enhancing its business strengths and expanding its footprint across various cities in Pakistan. The management team’s roles and responsibilities are clearly defined and well-structured, allowing for efficient and effective achievement of the Firm’s strategic goals and objectives. This clarity in function and purpose enables the Firm to focus on key growth areas, optimize operational processes, and swiftly adapt to market changes.

Multi Resin Industries utilizes Oracle software, specifically version 9i, provided by Afroz, to manage its Management Information System (MIS). This robust software solution effectively tracks various financial and operational aspects of the business, including receivables, payables, general ledger entries, and overall accounts management. The use of Oracle 9i enhances the firm's ability to maintain accurate and up-to-date financial records, streamline accounting processes, and ensure compliance with relevant financial regulations.

Multi Resin Industries follows a balanced and environmentally friendly growth strategy in all its operations. The Firm has adopted sustainable growth principles that emphasize reducing environmental harm. This commitment to sustainability is reflected in its initiatives to minimize waste, conserve resources, and adopt eco-friendly practices across all aspects of its business. In recognition of its efforts, the Firm was awarded the ISO 9001-2008 certification by TUV Austria Hellas (formerly Moody Intertek) in 2009. This certification underscores the Firm’s dedication to maintaining high standards of quality management and environmental responsibility. By integrating these principles into its operational framework, Multi Resin Industries not only enhances its environmental performance but also strengthens its reputation as a responsible and forward-thinking organization.
Business Risk

The resins segment operates as an integral component of Pakistan’s chemicals sector and serves as a key input for downstream industries such as paints and coatings, construction materials, textiles, paper and pulp, furniture, and packaging. Consequently, the performance of the segment remains closely linked to overall industrial activity and construction demand, which stayed subdued during FY24 and 9MFY25 amid macroeconomic pressures, elevated inflation, high interest rates, and weak consumer sentiment. These conditions constrained demand growth and limited volume expansion across the sector. The industry is characterized by a highly competitive and fragmented structure, marked by the presence of several organized manufacturers alongside a large number of unorganized and small-scale producers. Low entry barriers, owing to the relatively simple production processes, intensify competition and exert persistent pricing pressure. As a result, manufacturers generally operate with limited pricing power, keeping margins under stress and making scale, operational efficiency, and customer retention critical determinants of sustainability within the segment. During FY24, local production of resins declined by approximately 5.3% year-on-year to around 35,597 metric tons, reflecting weak demand conditions, particularly from the paints and construction sectors. Despite a marginal increase in installed capacity to nearly 61,560 metric tons, capacity utilization improved to about 62%, indicating selective recovery driven by organized players striving to maintain market presence and optimize plant efficiency. However, demand softness persisted into 9MFY25, limiting any meaningful volume-led recovery across the industry. The cost structure of resin manufacturing remains heavily skewed toward raw materials, which accounted for over 90% of total production costs in FY24. Key inputs, including polyols, solvents, catalysts, acids, and epoxy compounds, are predominantly oil-based and largely imported, exposing manufacturers to volatility in international crude oil prices and exchange rate fluctuations. While energy and labor costs constitute a relatively smaller share of total costs, rising finance costs during periods of tight monetary policy have exerted additional pressure on profitability. Profitability across the segment remained constrained despite a marginal improvement in gross margins to around 13.4% in FY24, primarily due to lower cost of goods sold. However, net margins declined to approximately 3.1% owing to higher finance costs and competitive pricing dynamics. The pressure on margins intensified during 9MFY25 as weak demand from key consuming industries, elevated baseline costs, and ongoing competitive intensity led to further compression in gross, operating, and net margins, underscoring the importance of prudent cost management and working capital discipline.

The demand for the Firm’s products relies on the economic activities, growth of the prime market, and related sectors. The Firm operates in a highly competitive environment, predominantly covered by MNCs & large-scale local producers. Hence, the management is continually taking necessary actions to mitigate the opposing effect of the threats through efficient utility systems, enhanced focus on R&D, product diversification, and adaptation of new technology. The Firm holds ~10% market share and is tempering its position to grow & sustain as one of the major players for the supply of water-based emulsions in the textile and paints & coating sectors.

During FY25, the topline of the Firm improved to approximately ~PKR 1,826mln, registering a YoY growth of ~6.8% compared to FY24 (~PKR 1,709mln). The recovery in revenues reflects improved volumetric performance amid relatively stable demand from key customer segments, following a challenging prior year marked by demand compression. The sales mix remained heavily skewed toward local sales, which constituted nearly ~100% of total revenues, highlighting continued reliance on the domestic market. Segment-wise, the Textile segment continued to dominate the revenue base, followed by contributions from the Paint segment, while the Leather and Construction segments accounted for the remaining portion. Overall, the improvement in revenues indicates partial normalization of demand conditions, though concentration risk across customer segments persists.

In FY25, the Firm reported a notable improvement in gross profitability, with the gross margin increasing to ~14.4% (FY24: ~12.4%), primarily driven by better cost absorption and relatively stable raw material prices. However, the operating margin slightly moderated to ~9.5% compared to ~9.7% in FY24, reflecting higher selling and marketing expenses. At the bottom line, the net profit margin declined to ~2.2% (FY24: ~3.2%), primarily due to a higher effective tax rate and increased finance costs. Despite pressure at the net level, overall margin performance remained adequate and underscores the Firm’s ability to maintain operating profitability in a competitive and cost-sensitive environment.

Multi Resin’s management envisage sustainable footing in the market by planning to move to a private limited company structure instead of partnership in near future and will continue to work for a sustainable future with more efficient and successful projects with high user demand, technical competency, creativity and corporate responsibility. New projects in pipeline stand to lift the topline as the Firm’s eyes geographical diversity in its business stream.

The Firm continued to rely predominantly on equity-based funding, with working capital requirements largely met through internal cash flows and short-term borrowings. In FY25, the gross working capital cycle marginally increased to ~195 days (FY24: ~190 days), driven primarily by a rise in average inventory days to ~141 days (FY24: ~135 days). Trade receivable days remained stable at around ~55 days, while trade payable days declined to ~22 days, limiting supplier financing support. Consequently, the net working capital cycle expanded to ~173 days in FY25 (FY24: ~159 days), indicating continued pressure on liquidity and higher reliance on short-term funding to support operations.

The Firm’s coverage profile moderated during FY25, with FCFO-to-finance cost declining to ~1.3x from ~1.6x in FY24, mainly due to lower operating cash flows amid working capital absorption. However, EBITDA coverage of finance cost improved to ~3.0x (FY24: ~2.9x), reflecting improved operating earnings. The Firm continues to maintain a conservative financial risk profile, with no reliance on material long-term debt, preserving flexibility to absorb volatility and support future funding requirements if needed.

During FY25, Multi Resin Industries reported a slight increase in leverage, with the total borrowing-to-capital ratio rising to ~23.3% (FY24: ~22.8%). Total borrowings stood at approximately PKR 358mln, primarily comprising short-term borrowings, which accounted for over 90% of the debt profile. The Firm continues to operate without meaningful long-term borrowings, reflecting a conservative capitalization structure. This provides adequate headroom to raise long-term financing in the future, if required, to support expansion or manage working capital volatility.