Azhar Corporation (Pvt.) Limited, a private limited Company, was established in 1979.

Azhar Corporation Pvt. Limited commenced its operations with the production of laundry soap under its flagship brand, “Gai Soap.” In 1999, the Company diversified its product portfolio by launching a beauty soap, “Hoor Beauty Soap.” Demonstrating its commitment to vertical integration, the Company established a vegetable ghee and cooking oil refining unit in January 2014. Further expanding its offerings, Azhar Corporation introduced two new products, “Gai Extra Neat” and “Gai Powerwash,” in the market during 2018.

Azhar Corporation Pvt. Limited operates two distinct business segments: the Soap & Detergent Segment and the Vegetable Ghee & Cooking Oil Segment. The Soap & Detergent Segment encompasses laundry soap, toilet soap, washing powder, and detergents, with a production capacity of 126,000 MT. The Vegetable Ghee & Cooking Oil Segment focuses on the production of ghee and cooking oil, with a capacity of 45,000 MT. The Company sources raw materials such as tallow, palm acid oil, RBD palm oil, RBD palm stearin, RBD palm olein, and Zeolite A4 through imports to support its manufacturing processes. Azhar Corporation’s manufacturing facilities and head office is located in Faisalabad, Pakistan. The organization employs a total workforce of approximately 550 employees, comprising 225-250 permanent staff, with the remainder engaged on a contractual basis.

Company’s ownership resides equally with the sponsoring families of Mr. Azhar Iqbal and Mr. Hassan Munawwar (50% each). Mr. Hassan Munawwar, CEO of the Company holds 43.23%, while his wife Ms. Saba Hassan (6.77%). Mr. Azhar holds 28.34% stake, while his wife Ms. Samina Kausar and daughters hold 8.12% and 13.54% respectively.

The Company is wholly owned by the sponsoring family, fostering a unique and advantageous environment. This ownership structure cultivates a strong alignment of interests, where the family's shared values directly influence the Company's strategic direction. The family's deep commitment to the Company's long-term success ensures a consistent focus on sustainable growth and profitability. Moreover, the emphasis on preserving the Company's legacy across generations encourages a long-term perspective and a commitment to building a sustainable and enduring enterprise.

The sponsoring family’s five decades of dedication have established a profound foundation of industry knowledge and expertise. Mr. Azhar Iqbal who is a seasoned professional with decades of experience in the soap and detergent industry. As a key member of the sponsoring family, he has played a pivotal role in shaping the strategic direction of the Company. His deep understanding of manufacturing processes, market dynamics, and consumer behavior has been instrumental in driving innovation and maintaining the Company’s competitive edge.

Azhar Corporation is built on a strong foundation of stability and financial soundness. The sponsoring family’s substantial financial resources provide the Company with robust support, ensuring sustained growth and resilience amid market fluctuations. Both Mr. Azhar Iqbal and Mr. Hassan Munawwar play a vital role in providing financial support to the Company whenever required, reinforcing its ability to navigate challenges effectively.

Azhar Corporation is built on a strong foundation of stability and financial soundness. The sponsoring family’s substantial financial resources provide the Company with robust support, ensuring sustained growth and resilience amid market fluctuations. Both Mr. Azhar Iqbal and Mr. Hassan Munawwar play a vital role in providing financial support to the Company whenever required, reinforcing its ability to navigate challenges effectively.

Azhar Corporation’s Board comprises four members, all belonging to the sponsoring family and serving as executive directors. The Board is led by Hassan Munawwar, the Chief Executive, with 20 years of experience and a graduation degree. Azhar Iqbal, a Director, possesses 46 years of experience and is also a graduate. The other two members, Ms. Khadija Azhar (M.Phil.) and Ms. Zainab Azhar (BBA), each have 4 years of professional experience. All directors actively participate in every board meeting.

Board meetings are meticulously documented in formal minutes, capturing comprehensive details of discussions and resolutions. Following each meeting, all resolutions are formally signed by all directors. The absence of sub-committees limits the Board's ability to focus on critical areas, potentially hindering effective oversight. Establishing such committees would enhance decision-making, improve governance, and strengthen the Company’s long-term performance.

The Company's external auditors, Parker Russell-A.J.S. Chartered Accountants, have expressed an unqualified opinion on the financial statements of FY25. The firm has been QCR rated by ICAP and is in the 'B' category of SBP's auditor’s panel

Azhar Corporation operates with a dynamic organizational structure, comprised of six key functional departments: Production, Marketing & Sales, Human Resources & Administration, Accounts, Finance, and Procurement. Each department is effectively managed and overseen by its respective head. These departmental heads are responsible for providing regular reports, encompassing all pertinent information, to both the Chief Executive Officer and the Director, facilitating effective communication and informed decision-making across the organization.

Azhar Corporation's leadership team comprises experienced professionals who contribute diverse expertise to the organization's success. Mr. Azhar Iqbal, Co-founder, Director, and Operational Head, brings an impressive 46 years of industry experience to Azhar Corporation Pvt. Limited. His extensive knowledge of manufacturing processes, market dynamics, and operational management has been instrumental in shaping the Company’s success. As a visionary leader, Mr. Azhar Iqbal has consistently driven innovation, streamlined operations, and introduced strategies that foster sustainable growth within the organization. His ability to adapt to changing market conditions and lead with foresight has helped position the Company for long-term success. Mr. Azhar’s unwavering commitment to excellence and his hands-on approach to leadership continue to inspire the team and ensure the continued success and legacy of the Company. Mr. Hassan Munawwar, the Chief Executive Officer of Azhar Corporation Pvt. Limited, brings over 20 years of dedicated leadership and service to the organization. Throughout his tenure, Mr. Hassan Munawwar has played a pivotal role in shaping the Company’s strategic direction and overseeing its operations. His strong leadership and strategic vision have been crucial in driving the Company’s growth, expanding its product offerings, and enhancing its market presence. Mr. Hassan Munawwar’s commitment to excellence and sustainable success has established him as a key figure in the Company, ensuring continued progress and achievement in an ever-evolving industry. The financial health of the Company is diligently overseen by Mr. Nouman Pervaiz, a qualified Chartered Accountant, who serves as the Manager of Accounts & Finance. With his expertise in financial management, Mr. Nouman is responsible for monitoring the Company’s financial performance, ensuring compliance with accounting standards, and providing strategic financial insights to support informed decision-making. His role is critical in maintaining financial transparency, accuracy, and the overall fiscal integrity of the Company.

Given the current scale and operational complexity of the Company, the absence of formal management committees may present a limitation in terms of effective decision-making and operational efficiency. The establishment of specialized committees, such as an Executive Committee or Operational Review Committee, could enhance strategic planning, facilitate timely decision-making, and improve overall operational effectiveness.

Each business unit consistently generates detailed reports to ensure effective monitoring and decision-making. These include Borrowings Details, providing insights into the unit’s financial liabilities, and Cash Flow Reports, which are reviewed daily by the CEO to maintain oversight of the Company’s liquidity and financial stability. Additionally, Management Information System (MIS) reports are prepared by each business unit for their respective departmental heads, offering comprehensive data on operational and financial performance. These reports serve as a critical resource for senior management, enabling them to make informed, data-driven decisions that align with the Company’s strategic objectives. The Company has developed a proprietary in-house ERP system to streamline business reporting and enhance decision-making processes. Each business unit consistently generates detailed reports to ensure effective monitoring and decision-making. These include Borrowings Details, providing insights into the unit’s financial liabilities, and Cash Flow Reports, which are reviewed daily by the CEO to maintain oversight of the Company’s liquidity and financial stability. Additionally, Management Information System (MIS) reports are prepared by each business unit for their respective departmental heads, offering comprehensive data on operational and financial performance. These reports serve as a critical resource for senior management, enabling them to make informed, data-driven decisions that align with the Company’s strategic objectives.

Azhar Corporation operates a dedicated internal audit function under the leadership of Hammad Zia. This function conducts regular reviews to evaluate and strengthen the Company’s operational controls, with findings and recommendations reported directly to the CEO. However, the current composition of the Audit Committee lacks independent representation, which may limit its effectiveness in providing objective oversight and recommendations.

The dynamics of Pakistan's edible oil industry are profoundly shaped by its high reliance on imported raw materials and finished products. The sector recorded a significant 10.7% YoY decline in revenue (in PKR terms) in FY24, which was primarily a reflection of average cooking oil prices falling by 10.4% YoY to PKR 533/kg. Despite the domestic edible oil production volume increasing by ~18.0% YoY in FY24, largely fueled by a ~76.9% YoY increase in cottonseed output, the industry remains plagued by acute margin pressures. Raw material costs constitute an exceptionally high 96.6% of production costs, causing average net margins to dip to a thin 1.5% in FY24, leaving many refiners struggling with profitability and working capital constraints. Critically, the market is overwhelmingly import-dependent, with approximately 74.9% of total consumption met through imports in FY24. Of the total 3.117 million tonnes of edible oil imports during the year, palm oil alone comprised 2.997 million tonnes, accounting for 92.1% of all imported edible oils. In contrast, local production covered only ~25.1% of the total demand, which stood at 4.164 million tonnes.

Azhar Corporation (Pvt.) Limited holds a significant market share in the laundry soap segment, driven by the success of its flagship brand, "Gai Soap." Additionally, the Company has diversified its operations by initiating the production of vegetable ghee and edible oil.

The Company demonstrated strong sales growth in FY25, with total revenue reaching to PKR 7,496 million (FY24: PKR 7,388 million), driven by solid performances across its two divisions. The Company generates its revenue form two business segments that are soap and detergent segment and vegetable ghee and cooking oil segment. The Soap and Detergent Division remained the primary contributor, accounting for 78% of total sales with revenue rising to PKR 5,822 million. Within this segment, Laundry Soap contributed 58% of total sales, followed by Washing Powder at 30%, Toilet Soap at 8%, and Detergents and Liquids at 4%. The soap segment recorded consistency on year on year basis, reflecting its strong market performance and sustained demand for the Company’s flagship products. The Vegetable Ghee and Cooking Oil Division exhibited a notable performance and recorded revenue of PKR 1,673 million in FY25, up from PKR 1,636 million in FY24. The division maintained its strategic relevance by contributing 22% to the Company’s overall sales mix—underscoring its continued role as a key revenue pillar. Within the segment, Vegetable Ghee accounted for 16% of total sales, while Vegetable Oil contributed 9%, indicating sustained consumer demand and the division’s entrenched market position. The overall sales performance highlights the Company’s strong market presence, effective strategies, and diversification potential, although optimizing underperforming product lines like toilet soap and detergents/liquids could further enhance growth.

The Company’s margins remained broadly stable during FY25. The gross profit margin stood at 11.5% (FY24: 12.4%), reflecting sustained operational efficiency, while the operating profit margin remained in line at 6.5% (FY24: 7.1%). Conversely, the net profit margin improved to 1.3% (FY24: 0.8%), attributable to a increase in overall profitability. The finance cost-to-sales ratio improved to 4.0% (FY24: 5.3%) due to lower finance costs of PKR 303 million (FY24: PKR 398 million), supported by the State Bank of Pakistan’s reduction in the policy rate. Return metrics reflected similar improvement, with return on assets rising to 1.3% (FY24: 0.8%) owing to stable asset levels, while return on equity increased to 2.7% (FY24: 1.5%), supported by enhanced earnings generation.

The company's flagship brand, "Gai Soap," continues to secure a strong and sustained market position, underpinned by its significant brand equity. Furthermore, the company's strategic expansion into detergents and beauty soaps has enhanced its product portfolio, adding substantial value to its market presence.

The Company’s working capital cycle weakened in FY25, with gross working capital days rising to 244 (FY24: 230) and net working capital days to 197 (FY24: 191). The deterioration was driven by looser payables discipline, as payable days increased to 47 (FY24: 39), and by slower inventory turnover, with inventory days extending to 213 (FY24: 186). The current ratio remained strong at 3.7x, though slightly lower than 4.3x last year. Despite robust liquidity, the higher proportion of current assets locked in inventory limits immediate financial flexibility. Strengthening working capital management—particularly inventory and payables—will be essential to support cash flow and maintain credit strength.

The Company sustained stable coverage metrics during FY25, supported by a reduction in finance costs. The debt service coverage ratio improved to 1.9x (FY24: 1.6x), reflecting enhanced capacity to meet debt obligations. Free cash flows from operations declined moderately to PKR 569 million (FY24: PKR 622 million), primarily due to variations in working capital requirements. The total coverage ratio remained firm at 1.8x (FY24: 1.6x), underpinned by lower finance costs, which declined to PKR 303 million (FY24: PKR 398 million). The debt payback ratio held steady at 0.2x, indicating consistent debt-servicing capability. Liquidity exhibited marginal improvement, with the liquidity ratio rising to 4.8x (FY24: 3.6x), underscoring the Company’s strengthened short-term financial position and adequate capacity to meet near-term obligations.

The Company maintained a conservative capital structure during FY25, with a low leverage ratio of approximately 34%, driven primarily by higher equity levels and limited reliance on debt financing. Short-term borrowings constituted around 97% of total debt, amounting to PKR 1,953 million in FY25 (FY24: PKR 2,016 million), reflecting the Company’s continued focus on utilizing short-term funding to support working capital and operational liquidity needs. Improved financial discipline was also evident through a reduction in interest or markup payable days to approximately 62 days (FY24: ~80 days), indicating enhanced efficiency in managing financial obligations and a strengthened commitment to timely debt servicing