ACT Polyols (Private) Limited (ACTP or ‘the Company’) was incorporated on May 8, 2017 as a private limited company under the Companies Ordinance 1984 (now the Companies Act, 2017). The Company’s registered and principal office is situated at Suite 1602, 16th Floor, Emerald Tower, 2 Talwar, Block 5, Clifton, Karachi, while its manufacturing plant is located at C-191, Street 11, S.I.T.E Area, Nooriabad, Jamshoro, Sindh.

ACTP is a joint venture of three prominent Pakistani business groups — the Akhtar Group of Companies, Ismail Industries Limited (Candyland), and Tapal Group, collectively referred to as the ACT Group or the Consortium. The Company commenced commercial operations on May 17, 2021, and operates as one of Pakistan’s domestic producers of rice-based glucose syrups and sorbitol — products that were historically wholly imported. The Company markets its products under a non-GMO, organic, and clean-label positioning, targeting domestic food processors as well as international buyers. Export revenues constituted approximately 57% of gross turnover in FY2025, with Barentz — a global specialty ingredients distributor — serving as ACTP’s strategic distribution partner in North America.

ACTP’s core operations are centred on the production of rice glucose syrup, sorbitol, maltodextrin, syrup solids, and rice protein at its Nooriabad plant. Domestically, ACTP’s products serve the confectionery, biscuit, beverage, and pharmaceutical sectors, with Ismail Industries / Candyland serving as a captive related-party offtaker for glucose syrup. On the export front, the Company is active in the United States, Europe (principally the Netherlands), and Afghanistan, and has actively participated in premium trade forums including Natural Products Expo West (USA). The Company holds ISO 14001:2015 Environmental Management System certification (QSCert, valid to August 2028), reinforcing its sustainability credentials with international buyers.

ACTP’s shareholding reflects a balanced ownership structure, with equity broadly distributed among the three founding groups through individual family representatives rather than a single corporate holding entity. The sponsors associated with the Akhtar Group, Tapal Group, and Ismail Industries / Candyland each maintain a significant economic interest in the Company. The Chief Executive Officer, Mr. Asad Muhammad Iqbal, holds a nominal 0.33% stake, while the remaining shares are held by other individual shareholders.

All three founding groups have maintained their respective shareholding stakes without change since incorporation, with no alteration to the ownership structure recorded during FY2025. The consortium model — underpinned by three of Pakistan’s most established industrial families — provides a stable and long-term oriented ownership base with aligned strategic interests. The shared ownership across multiple family members within each group mitigates single-person concentration risk and supports continuity.

The sponsoring groups collectively bring significant sectoral depth and complementary expertise. Ismail Industries is Pakistan’s largest confectionery and snack food manufacturer (brands: CandyLand, Bisconni, SnackCity), functioning simultaneously as an industry anchor and a captive domestic offtaker for ACTP’s glucose syrup output. The Akhtar Group brings over four decades of diversified industrial experience spanning textiles, dairy, and renewable energy. Tapal Group contributes expertise in industrial engineering, power generation (Tapal Energy — 126 MW; Foundation Wind II — 50 MW), and chemicals. The convergence of food manufacturing knowhow, industrial engineering depth, and financing capability forms a strong institutional backbone for ACTP.

The consortium’s sound  aggregated net worth of provides a significant financial backstop. Sponsor-level support has been evidenced through PKR 1,097 million in subordinated loans from directors and shareholders and PKR 545 million in advances against issuance of shares as at June 2025, both classified as quasi-equity under Technical Release 32 by ICAP. The Board’s consistent willingness to inject capital through subordinated debt and equity advances during periods of operational stress — including the sorbitol shutdown year — underlines the long-term commitment of the sponsoring groups to the entity.

The Board of Directors comprises three Executive Directors, all re-elected at the Annual General Meeting held on October 28, 2024. The directors represent the three founding groups: Mr. Khurshid Akhtar (Director, Akhtar Group), Mr. Mustafa Tapal (Director, Tapal Group), and Mr. Asad Muhammad Iqbal (Director and CEO). The Board has not constituted formal sub-committees — audit, HR, or risk — which, while broadly consistent with the governance structure of a closely held private entity, represents a gap relative to best practice for an entity of this credit profile. Key oversight responsibilities are currently exercised directly by the Board.

The Board brings complementary academic and professional backgrounds across finance, engineering, and commercial management. Mr. Khurshid Akhtar holds an MSc in Finance and Economics from the University of Bristol (UK) and brings deep industrial and financial insight through his directorships at Dairyland, Indigo Textile, and ACT Wind. Mr. Mustafa Tapal holds a BSBA from Bucknell University (USA) and contributes commercial and power sector expertise from his roles at Foundation Wind II, Tapal Energy, and AVS. Mr. Asad Muhammad Iqbal holds a BSc in Computer Science from Carnegie Mellon University (USA) and provides technology and operational leadership as CEO of both ACTP and Street Ware Systems.

The Board authorised the FY2025 financial statements for issue on November 3, 2025, approximately four months after the June 30, 2025 year-end, reflecting adequate governance timeliness. All three directors attended the single formal board meeting conducted during the year, confirming quorum compliance. Strategic decisions during the year — including the management of the sorbitol plant shutdown, pursuit of the Adamjee Insurance claim, and continued export market development — reflect alignment between the Board and executive management. The absence of independent directors indicates room for further strengthening of governance practices through enhanced external oversight and independent board representation as the Company continues to scale its operations.

ACTP’s financial statements for FY2025 were prepared in accordance with IFRS as adopted in Pakistan and the Companies Act, 2017, and were audited by BDO Ebrahim & Co. Chartered Accountants, a member of BDO International. The audit was signed on November 3, 2025, and resulted in an unqualified opinion. All material related party balances and transactions are disclosed in the financial statements consistent with statutory requirements.

ACTP operates a functionally organized structure under the Chief Executive Officer. Key functional heads cover Operations, Production, Finance, Supply Chain, Sales and Marketing, Quality Assurance, Human Resources, and Information Technology. The organizational design reflects a direct reporting model in which the CEO maintains close oversight of all major functions, consistent with the Company’s scale and its private limited status. Total headcount stood at 261 persons as at June 30, 2025, a 15% year-on-year increase (FY2024: 227), commensurate with operational growth.

The senior management team of thirteen professionals averages over eleven years of total experience. Mr. Ali Raza (GM Operations, BS Chemical Engineering + MBA, 15 years’ experience) leads plant operations. Mr. Syed Qamar Ali Shah (GM Production, MSc, 34 years’ experience) oversees manufacturing execution. Mr. Shahbaz Abdul Ghaffar (CFO, ICMA, 11 years’ experience) manages financial oversight and reporting. Supporting functional heads in Supply Chain (Saqib Ahmed, BE Mechanical Engineering + MBA SCM, 6 years), Quality Assurance (Shahid Abbas, MSc, 9 years), and Sales and Marketing (Zeeshan, MBA Marketing, 8 years) provide depth across the Company’s key operational domains.

Management effectiveness is reflected in the Company’s ability to sustain operational and financial stability despite temporary disruptions, including the three-month sorbitol plant shutdown during FY2025. The successful recovery of the related insurance claim highlights prudent risk management and effective coordination with stakeholders. Furthermore, continued growth in export revenues and the strengthening of international distribution relationships, including strategic partnerships in key overseas markets, demonstrate management’s ability to support business continuity, market expansion, and long-term commercial positioning.

The Company operates SAP-based ERP systems covering financial reporting, production management, and supply chain tracking, as evidenced by the dedicated SAP and IT Deputy Manager within its organizational structure. These systems support the timely generation of management accounts and operational performance metrics, enabling senior management to monitor the business on an ongoing basis. External audit by BDO International provides an independent check on internal processes and controls.

ACTP’s internal control environment is supported by structured approval hierarchies governing procurement, financial commitments, and related party transactions, which are executed on mutually agreed commercial terms. The Company has maintained full compliance with SECP filing requirements and has not faced any reported regulatory actions. However, the absence of a dedicated internal audit function represents a gap in the control framework

ACTP operates within the global food ingredients sector, producing rice-based glucose syrups and sorbitol — two product categories with broad industrial utility and steady structural growth characteristics. The global glucose syrup market was valued at USD 4.56 billion in 2024 and is projected to expand at a CAGR of 6.3% through 2030, driven by rising demand for processed foods, confectionery, pharmaceuticals, and baked goods, and a broader shift toward natural sweetener alternatives. The global sorbitol market, valued at approximately USD 1.83–2.77 billion in 2024, is forecast to grow at a CAGR of 5.5%–6.7% through 2030–2033, with Asia-Pacific accounting for over 42.7% of global revenue. Key demand drivers include rising incidence of diabetes fuelling sugar-free formulations, expanding pharmaceutical excipient requirements, and growth in oral care products. Pakistan-specific dynamics are highly favourable for ACTP. Prior to the Company’s establishment, Pakistan was wholly import-dependent for both rice glucose syrup and sorbitol. The domestic food manufacturing sector — confectionery, biscuits, and beverages in particular — represents a large and growing offtake base. The import substitution dynamic confers a structural cost advantage: rupee devaluation increases the effective landed cost of competing imports without a corresponding increase in ACTP’s locally-sourced rice feedstock costs, progressively improving the Company’s domestic competitive position.

ACTP occupies a strategically advantageous position as one of very few domestic producers of rice-based glucose syrup and sorbitol in Pakistan. Its non-GMO, organic-certified product positioning differentiates its output in premium export markets (US, EU) where clean-label certifications command meaningful price premiums over conventional alternatives. The Company’s ISO 14001:2015 Environmental Management System certification reinforces international buyer confidence, while its strategic partnership with Barentz — a global specialty ingredients distributor — provides institutional market access in North America that would be difficult for a similarly scaled competitor to replicate independently. Vertical integration from rice grain processing through to finished sorbitol provides cost efficiency relative to importers. Sponsor-backed captive demand from Ismail Industries / Candyland anchors the domestic revenue base, reducing offtake risk in the local market. Customer diversification across confectionery, biscuit, beverage, and pharmaceutical sectors, combined with geographic diversification across domestic and export channels, provides a degree of revenue resilience against single-market concentration. No single customer is understood to account for a dominant share of total revenues. In FY2025, the rice glucose syrup plant produced 12,191 metric tons against a licensed capacity of 15,510 TPA (nameplate: 28,000 TPA), representing utilisation of 78.6%. The sorbitol plant produced 7,662 metric tons against a licensed capacity of 14,520 TPA (52.8% utilisation), curtailed by a three-month machinery breakdown. Post-repair, the sorbitol plant has resumed normal operations. Rice protein is produced as a by-product with estimated annual output of approximately 2,400 metric tons against a nameplate capacity of 2,800 TPA.

ACTP reported net revenue of PKR 4,308 million in FY2025, compared to PKR 4,007 million in FY2024, representing growth of 7.5%. The revenue base reflects a broadly balanced split between local sales (approximately PKR 2,541 million) and exports (approximately PKR 2,456 million), with export revenues constituting approximately 57% of gross turnover. Revenue growth was driven by higher throughput volumes in rice glucose syrup (12,191 metric tons versus 11,390 metric tons) and improved price realisations, partially offset by the sorbitol plant shutdown which curtailed sorbitol volumes to 7,662 metric tons (FY2024: 9,154 metric tons). The export revenue growth trajectory — supported by the Barentz distribution partnership, active participation at Natural Products Expo West, and growing international brand recognition — is a positive credit indicator, evidencing quality acceptance in premium markets.

Gross profit declined 4.2% to PKR 767 million in FY2025 (FY2024: PKR 800 million) despite revenue growth, as cost of sales rose 10.4%. The primary margin pressures were a 44% surge in stock-in-trade inventories — comprising raw materials (PKR 1,385 million), work-in-progress (PKR 1,250 million), and finished goods (PKR 560 million) — reflecting strategic raw material stocking and the WIP buildup from the sorbitol shutdown, alongside elevated utilities costs (PKR 436 million versus PKR 298 million). Gross margin contracted from 20.0% to 17.8%, and EBITDA margin declined from 21.8% to 17.1% (PKR 737 million). Net profit after tax nevertheless improved to PKR 185 million (FY2024: PKR 139 million), supported by a PKR 154 million insurance claim (other income) from Adamjee Insurance and a 14.6% reduction in finance costs to PKR 335 million, reflecting declining benchmark rates (KIBOR easing from a peak of approximately 19.5% to a range of 10.3%–15.0% during FY2025). Net margin improved to 4.3% from 3.5% in FY2024.

ACTP’s revenue sustainability rests on three structural pillars. First, as a domestic producer of previously wholly imported products, the Company benefits from a permanent import substitution advantage that strengthens with each successive PKR depreciation. Second, captive demand from Ismail Industries / Candyland provides a reliable domestic anchor that is structurally linked to one of Pakistan’s largest food manufacturers. Third, export market diversification — spanning the US, Europe, and Afghanistan through the Barentz partnership — provides geographic and economic diversification against the domestic industrial cycle.

Working capital management represents a key credit consideration for ACTP given the inventory-intensive and export-oriented nature of its operations. Current assets grew to PKR 3,950 million in FY2025 (FY2024: PKR 2,991 million), driven almost entirely by a 44% increase in stock-in-trade to PKR 3,195 million, reflecting strategic raw material accumulation and WIP buildup from the sorbitol shutdown. Trade debtors declined modestly to PKR 473 million (FY2024: PKR 492 million), though 47% of outstanding receivables were past due beyond 15 days, consistent with the credit dynamics of the Company’s B2B food manufacturer and exporter customer base. Trade and other payables rose 38.4% to PKR 1,187 million (FY2024: PKR 858 million), with trade creditors alone at PKR 888 million including PKR 503 million payable to Garibsons (Private) Limited for raw material purchases. Short-term borrowings increased 27.6% to PKR 1,719 million as the Company expanded its working capital lines across six banking counterparties to fund elevated inventory requirements. The current ratio improved marginally to 1.19x (FY2024: 1.15x), reflecting adequate but tight short-term liquidity.

Finance costs declined 14.6% to PKR 335 million in FY2025 (FY2024: PKR 392 million), reflecting the easing benchmark rate environment. Interest coverage, measured as FCFO to finance cost, stood at 2.20x in FY2025, down from 2.56x in FY2024 and 2.34x in FY2023. The decline is attributable to lower free cashflow from operations (PKR 738 million versus PKR 1,005 million in FY2024), driven by elevated working capital outflows from inventory build rather than deterioration in underlying operating profitability.

ACTP’s capital structure reflects moderate leverage that has been progressively improving. Total equity stood at PKR 2,216 million as at June 30, 2025 (FY2024: PKR 1,852 million), strengthened by PKR 185 million in retained earnings and PKR 178 million in advances against equity issuance. Long-term borrowings declined 18.6% to PKR 1,563 million as regular quarterly installments were met; short-term borrowings increased to PKR 1,719 million to fund working capital requirements. Total borrowings were broadly stable at PKR 3,282 million (FY2024: PKR 3,266 million). Gearing (total borrowings as a proportion of total capital) improved to 59.7% from 63.8% in FY2024 and 66.0% in FY2023, reflecting a consistent deleveraging Strajectory. PKR 1,097 million in sponsor subordinated loans and PKR 545 million in advances against equity issuance, both quasi-equity in nature, provide an additional layer of structural support to the balance sheet.