VMS Trading Company ("VMS" or "the Company") was founded in 2010 as a sole proprietorship.

In the 1970s, Mr. Kundan Mal, father of Mr. Kheem Chand, embarked on his entrepreneurial journey by establishing a rice mill. However, the mill was later nationalized during Bhutto's administration. Today, Mr. Kheem Chand proudly continues his father's legacy, leading VMS Trading Company. The name "VMS" is a heartfelt tribute to his three sons—Vanoth, Mahish, and Sahil—using the initials of their names to symbolize their importance in the family and the business

VMS primarily focuses on the processing and trading of rice. The company operates a state-of-the-art processing facility with two units located in Port Qasim, each having a processing capacity of 20 metric tons per hour. This corresponds to an annual capacity of 172,800 metric tons per unit, resulting in a combined total capacity of 345,600 metric tons. As of FY25, the company achieved a utilization level of 224,080 metric tons (63%).

VMS Trading Company is solely owned by Mr. Kheem Chand, showcasing his vision and entrepreneurial spirit. Under his leadership, the company has grown from a modest beginning to become a significant player in the rice processing and trading sector. His dedication to quality, innovation, and customer satisfaction has helped establish VMS as a trusted name in both local and international markets. Mr. Kheem Chand's hands-on approach ensures that the company's operations reflect the values of integrity and excellence that have been the foundation of VMS since its inception.

The ownership structure of VMS Trading Company remains stable, with no significant changes anticipated in the near future. While a formal succession plan has not yet been established, the second generation is progressively being integrated into the family business. This gradual involvement ensures a seamless transition of knowledge and leadership, securing the long-term sustainability and growth of the company.

The owner of VMS Trading Company brings extensive experience and deep insights into the rice sector, largely attributable to a rich family heritage in the industry. This legacy provides a profound understanding of the market's intricacies and dynamics, allowing for informed decision-making and strategic leadership. This depth of knowledge not only enhances the company's competitive edge but also positions it for continued growth and success in the highly specialized rice industry.

The sponsors possess substantial net worth, ensuring they have the financial capacity to support the business during challenging times. This financial resilience provides a critical safety net, allowing the company to navigate periods of uncertainty while maintaining stability and operational continuity.

As a sole proprietorship, the business lacks a formal governance framework typically found in larger corporate structures. Instead, the oversight function, which would conventionally be handled by a board of directors, is effectively managed by the sponsors themselves. Each sponsor takes direct responsibility for overseeing their respective departments, ensuring that operational standards are met, decisions are streamlined, and the company's strategic goals are consistently pursued. This hands-on approach allows for agile decision-making while ensuring each area of the business receives dedicated attention.

Mr. Kheem Chand leads the business with over two decades of extensive industry experience. His deep expertise and strategic leadership have been instrumental in driving the company's growth and establishing it as a trusted name in the rice sector.

At present, the company operates without a formal board structure or any established committees. This absence of formal governance bodies reflects the company's streamlined decision-making approach, characteristic of its sole proprietorship model.

Sarwars Co. Chartered Accountants have recently been appointed as the company's external auditors. The firm holds a Quality Control Review (QCR) rating, though it is not listed on the State Bank of Pakistan's panel of auditors. For the fiscal year ending June 2025, the auditors provided an unqualified opinion on the company's financial statements, indicating their confidence in the accuracy and reliability of the financial reporting.

VMS Trading Company maintains a lean organizational structure, effectively divided into key functional departments to optimize efficiency. Currently, the company is organized into five main functions: 1) Export Sales, 2) Commercial Management, 3) Production, 4) Finance, and 5) Administration. This streamlined structure enables focused expertise in each area, fostering operational efficiency and ensuring that all critical aspects of the business are well-managed.

Mr. Kheem Chand, serving as both the CEO and Chairman of the Board, brings over 23 years of industry experience to VMS Trading Company. Prior to formally establishing VMS, he was deeply involved in the family’s rice processing and trading business, gaining valuable insights and expertise. His extensive background in the rice sector has played a pivotal role in shaping VMS into a respected and thriving entity within the industry.

Considering the size and scope of the company's operations, the management structure shows room for improvement in terms of effectiveness, largely due to the absence of formal management committees. This lack of structured governance limits the potential for streamlined oversight and strategic alignment. Currently, management convenes on an as-needed basis to ensure operational efficiency, with senior management holding the primary control over day-to-day activities. Establishing formal committees could enhance decision-making processes, provide greater clarity of roles, and ultimately contribute to more effective overall governance.

The company has implemented ERP software to manage various aspects of its operations, including safety management, financial management, and inventory control. This integrated system not only enhances operational efficiency but also ensures consistency across processes. Additionally, the ERP enables the generation of standardized reports tailored to specific requirements, providing valuable insights and supporting informed decision-making throughout the organization.

The company has established an internal audit function to ensure the effective implementation of policies and procedures. Additionally, an internal Management Information System (MIS) is in place to facilitate reporting to senior management. Reports are generated on a weekly, monthly, quarterly, and annual basis, providing comprehensive oversight and enabling informed decision-making based on timely and accurate data as required by management.

Pakistan remains among the world's top 10 rice-producing countries. In FY26, the area under rice cultivation remained broadly stable at ~3.5 million hectares, while production was largely unchanged at around 9.4 million metric tons (FY25: ~9.5 million metric tons). Despite stable production levels, the sector encountered significant challenges on the export front. During 9MFY26, rice export volumes declined to approximately 3.24 million metric tons, representing a year-on-year contraction of nearly 25% compared to FY25 exports of around 5.80 million metric tons. Basmati rice exports totaled approximately 558 thousand metric tons, reflecting a decline of about 6% YoY from roughly 797 thousand metric tons in FY25. Pakistan's export portfolio remains heavily concentrated in coarse/non-basmati rice, which accounts for approximately 86% of total export volumes, increasing the sector's vulnerability to fluctuations in international prices. Competitive pressures intensified following India's re-entry into global rice markets after the removal of export restrictions, particularly affecting the non-basmati segment where Pakistan faces direct competition.

Since its establishment, VMS Trading Company has prioritized rice exports, with a substantial share of its revenue generated from African markets, where non-Basmati rice (IRRI 6) is in high demand. The company is resolutely committed to enhancing its global presence by expanding its footprint in international markets and cultivating long-term partnerships with clients worldwide. This strategic emphasis on exports not only positions VMS as a leading supplier of quality rice but also enables the company to capitalize on the growing global demand for premium rice varieties.

During FY25, the Company recorded revenue of ~PKR 13,118mln, comprising ~PKR 10,517mln from export sales and ~PKR 2,601mln from local sales. This reflects a YoY growth of ~40.5% (FY24: ~PKR 9,339mln; FY23: ~PKR 6,137mln). Export contribution remained dominant at ~80% in FY25 (FY24: ~74%; FY23: ~80%).

The Company’s margins witnessed a downward trajectory, with gross margins declining to ~11.3% in FY25 (FY24: ~13.1%; FY23: ~15.3%), reflecting continued pressure at the gross profitability level. Similarly, operating margins compressed to ~8.6% in FY25 (FY24: ~11.3%; FY23: ~13.5%), indicating reduced operating efficiency compared to prior years. Despite margin erosion, the Company’s bottom line improved to PKR 662mln in FY25 (FY24: PKR 502mln), supported by absolute growth in earnings; however, net margins contracted to ~5.0% (FY24: ~5.4%; FY23: ~7.7%), highlighting sustained pressure on overall profitability.

VMS Trading Company’s management is focused on establishing a sustainable presence in international markets by investing in advanced technology and machinery to enhance the value of the rice supply chain. This forwardthinking approach is expected to drive increased efficiency and product quality. As a result, the company anticipates continued growth in both demand and sales, positioning itself for long-term success in the global market

Inventory days improved to ~57 days in FY25 (FY24: ~78 days; FY23: ~107 days). Trade receivable days declined to ~26 days (FY24: ~43 days; FY23: ~76 days). Gross working capital cycle was recorded at ~83 days (FY24: ~121 days; FY23: ~183 days). Trade payable days stood at ~3 days (FY24: ~2 days; FY23: ~1 day), bringing net working capital days to ~80 days (FY24: ~119 days; FY23: ~182 days).

The Company’s FCFO stood at ~PKR 955mln in FY25 (FY24: ~PKR 957mln; FY23: ~PKR 812mln), remaining largely stable on a YoY basis after a strong improvement in FY24. FCFO/Finance Cost improved significantly to 3.6x in FY25 (FY24: 2.3x; FY23: 2.6x), reflecting a strengthened debt servicing capacity and improved ability of operating cash flows to comfortably cover finance charges.

The Company’s leverage stood at ~35.2% in FY25 (FY24: ~32.2%; FY23: ~51.0%), reflecting a moderate increase on a YoY basis. The increase in leverage was primarily driven by higher reliance on short-term borrowings, which continue to comprise the Company’s entire debt profile and are utilized exclusively to finance working capital requirements. Equity increased marginally to PKR 2,298mln in FY25 (FY24: PKR 2,265mln), indicating a relatively stable capital base despite the uptick in short-term debt utilization.