M.Y. Bari Mills (Pvt.) Limited (Hereinafter referred to as 'Bari Mills` or 'the Company') was incorporated in 2012 as a Private Limited Company.

The Bari family has been associated with the textile industry for over six decades. Initially, the family was engaged in the trading of yarn. Over time, the sponsors expanded their business operations and diversified into the manufacturing segment through the establishment of towel production facilities. The gradual transition from trading to manufacturing reflects the evolution and expansion of the family's presence within the textile sector.

The primary business activity of the Company is the manufacturing and export of towels. The Company serves a diversified international customer base, including leading retailers as well as clients operating in the hospitality and healthcare sectors. Its products are exported to various international markets, with major export destinations comprising the United States and European countries, including Germany, Norway, and Sweden. Bari Mills operates an integrated manufacturing facility encompassing weaving, processing, and finishing operations under one roof. Over the years, the Company has expanded and modernized its production infrastructure through the installation of advanced machinery, including jacquard and air-jet looms, an upgraded processing range, and automated stitching facilities. This has enabled the Company to enhance operational efficiency, product quality, and manufacturing capabilities. The Company's installed production setup comprises ~190 looms, including around ~72 high-speed air-jet looms, ~70 semi-automatic looms, and ~48 jacquard and dobby looms. The diverse loom mix supports the production of a broad range of towel products catering to varying customer requirements across international markets. The Company has recently entered an expansion phase aimed at enhancing its production capabilities, particularly in the dyeing, weaving and washing segments. The expansion is expected to strengthen capacity, improve operational efficiencies, and support the Company's ability to cater to growing customer demand in its export markets.

Bari Mills is a family-owned enterprise controlled by the Bari family. The Company's ownership is concentrated among the founding family members, reflecting their active involvement in the business. Mr. Haroon Bari serves as the principal shareholder, holding ~20% of the Company's equity. In addition, each of his five sons holds an individual shareholding of ~16%, collectively accounting for around ~80% of the Company's share capital. The ownership structure indicates a closely held family business, with shareholding and control vested primarily within the Bari family. The sponsors remain actively involved in the strategic oversight and management of the Company, supporting continuity in decision-making and long-term business planning. The concentration of ownership within the family aligns the interests of the sponsors with the Company's operational and financial performance.

Bari Mills does not have a formally documented succession plan in place. However, ownership and management responsibilities are distributed among the five sons of Mr. Haroon Bari, all of whom are actively involved in the Company's affairs. The existing ownership structure provides a degree of continuity in leadership and oversight. Nevertheless, given the family-owned nature of the business, formalization of succession planning could further strengthen governance practices and support long-term business continuity. In this regard, the development of a comprehensive, documented succession framework may facilitate an orderly transition of leadership, enhance clarity in roles and responsibilities, and mitigate potential succession-related risks. Such measures would contribute positively to the sustainability and stability of the Company's operations over the long term.

The Bari family has maintained a longstanding presence in Pakistan's textile sector, with business experience spanning several decades. Over the years, Bari Mills has gradually expanded its operations from trading activities to the manufacturing and export of towels, reflecting the sponsors' ability to adapt to evolving market dynamics. The Company's growth trajectory has been supported by the sponsors' industry experience, operational knowledge, and continued involvement in the business, contributing to the development and expansion of its manufacturing capabilities.

As of May 2026, the Group reported consolidated revenues of PKR 14.92bn, reflecting the scale of its operations within Pakistan's towel manufacturing and export sector. The sponsors possess considerable business experience and financial resources, which have supported the Group's growth over time. Furthermore, the sponsors have demonstrated a willingness to extend financial and strategic support to the Company when required. This continued commitment provides comfort with respect to the Company's operational stability and growth initiatives.

The Board of Directors of Bari Mills comprises six members, all of whom are representatives of the Bari family. The Board is chaired by Mr. Haroon Bari, the principal sponsor, reflecting the family's active involvement in the strategic oversight and governance of the Company. The directors possess extensive industry knowledge and business experience, which supports decision-making and continuity in the Company's operations. Given the closely held ownership structure, board representation is currently concentrated within the sponsor family. While this facilitates alignment between ownership and management, the inclusion of independent and non-executive directors could further strengthen the governance framework by enhancing oversight, broadening the range of expertise available to the Board, and promoting greater objectivity in decision-making.

Mr. Haroon Bari serves as the Chairman of the Company and possesses over five decades of experience in the textile sector. His extensive industry knowledge and longstanding association with the business provide strategic guidance to the Board and contribute to the Company's overall direction and continuity. The remaining Board comprises Mr. Nabeel Bari, Mr. Adeel Bari, Mr. Osama Bari, Mr. Mustafa Bari, and Mr. Waqas Bari, all of whom serve as Directors. The directors have been associated with the Company for a considerable period and are actively involved in various aspects of its operations and management. Their continued involvement reflects leadership continuity and contributes to the preservation of institutional knowledge within the organization.

The Board of Directors of Bari Mills has established three committees, namely the 1) Audit Committee, 2) the Human Resources and Remuneration Committee, and 3) the Board Management Committee, to support the Board in the discharge of its oversight responsibilities. These committees provide a formal framework for reviewing key operational, financial, and governance matters. Board meetings are conducted on a periodic basis to review business performance, strategic initiatives, and other routine matters, while additional meetings are convened as and when required. The active involvement of the sponsor family facilitates timely decision-making and close oversight of the Company's affairs. Notwithstanding the existence of these committee structures, the effectiveness of the governance framework remains constrained by the Board's composition, which is entirely represented by members of the sponsoring family. The absence of independent or non-executive directors limits board diversity and reduces the degree of independent oversight. Furthermore, the Company currently lacks a formalized mechanism for maintaining comprehensive records of board deliberations and resolutions, which may affect the transparency and auditability of decision-making processes. Going forward, the inclusion of independent directors and the formalization of board documentation and record-keeping practices could further strengthen the Company's governance framework.

Parker Russell A.J.S. Chartered Accountants serves as the external auditor of the Company. The auditors have expressed an unqualified opinion on the financial statements for the year ended June 30, 2025. The audit firm is Quality Control Review (QCR) rated by the Institute of Chartered Accountants of Pakistan (ICAP) and is classified in Category ‘B’ on the panel of auditors maintained by the State Bank of Pakistan (SBP).

The Chairman, Mr. Haroon Bari, along with his five sons, remains actively involved in the day-to-day operations and strategic oversight of the Company. The strong involvement of the sponsor family in both governance and management functions supports continuity in decision-making and facilitates close monitoring of business operations. The Company operates through a functional organizational structure with clearly defined roles, responsibilities, and reporting lines across various departments. The management framework is designed to support operational efficiency and accountability, with individual business functions headed by designated personnel responsible for their respective areas.

Mr. Nabeel Haroon Bari serves as the Chief Executive Officer (CEO) of the Company. He holds a degree in Commerce from the United Kingdom and has been associated with the business for ~24 years. In his capacity as CEO, he is responsible for overseeing the Company's overall operations, strategic direction, and business development initiatives. His long-standing association with the organization provides continuity in leadership and supports the execution of the Company's strategic objectives. Mr. Osama Haroon Bari serves as Director Finance and is responsible for managing the Company's financial affairs, including financial planning, budgeting, treasury management, and oversight of financial reporting processes. He plays a key role in supporting the Company's financial management and resource allocation decisions. Mr. Mustafa Haroon Bari and Mr. Waqas Haroon Bari serve as Marketing Directors and are responsible for overseeing marketing and sales functions, customer relationship management, market development, and export business activities. Their responsibilities include identifying growth opportunities, maintaining relationships with existing customers, and expanding the Company's presence in international markets. Mr. Adeel Haroon Bari serves as Director Administration and Compliance. His responsibilities encompass administrative management, regulatory compliance, implementation of internal controls, and ensuring adherence to applicable legal and regulatory requirements. He also oversees the Company's administrative functions to support efficient business operations. The management team comprises experienced family members who have remained actively involved in the business over an extended period. Their collective industry experience and operational knowledge support the Company's day-to-day management and contribute to the continuity of its business operations.

The Company currently operates through an informal management committee framework, with meetings convened by senior management as and when required to facilitate coordination among various functional departments. These meetings are attended by the respective departmental heads and serve as a platform for discussing operational matters, business performance, and key organizational developments. The existing structure allows management to address operational issues in a timely manner and maintain oversight of day-to-day activities. However, the management framework remains largely informal, with no formally constituted management committees operating under documented mandates or predefined terms of reference. The establishment of a structured management committee framework, supported by clearly defined responsibilities, regular meeting schedules, and formal documentation of deliberations and decisions, could further strengthen the Company's institutionalization.

Bari Mills utilizes an Enterprise Resource Planning (ERP) system to support its operational and financial processes. The Company operates on a .NET-based ERP platform and implemented an ASP-based ERP system, which became operational on July 1, 2024. The implementation was undertaken to enhance process integration, strengthen system capabilities, and improve the overall efficiency of business operations. The Company's Management Information System (MIS) is structured around defined reporting frequencies and includes daily, weekly, and monthly reports covering key operational and financial metrics. These reports are regularly reviewed by senior management and provide timely information regarding production performance, sales, working capital management, liquidity position, and profitability indicators. The availability of periodic MIS reporting supports management's monitoring and decision-making processes by facilitating ongoing assessment of operational performance and financial position. The ERP system further supports information flow across functions and enables management to access relevant operational and financial data for effective oversight and strategic planning.

Bari Mills maintains various internationally recognized certifications relating to its products, manufacturing facilities, and operational practices. The Company is subject to periodic audits and assessments by accredited certification and compliance bodies to ensure adherence to applicable quality, sustainability, social responsibility, and supply chain security standards. The Company holds multiple certifications, including Oeko-Tex Standard 100 (Class I and Class II), BSCI, C-TPAT, Sedex, GOTS, and BRC. These certifications reflect the Company's commitment to maintaining compliance with internationally accepted standards and support its ability to meet the requirements of customers operating in global retail, hospitality, and healthcare markets. Furthermore, the periodic renewal and verification of these certifications contribute to strengthening the Company's credibility and acceptance within international export markets.

Pakistan’s towel industry remains a key component of the country’s value-added textile export sector and continues to demonstrate stable performance despite prevailing macroeconomic challenges, including elevated energy costs, inflationary pressures, and intense competition from regional exporters. The sector benefits from a well-established manufacturing base, strong export orientation, and longstanding relationships with international buyers. Pakistan maintains a prominent position in the global towel market and is among the leading towel-exporting countries worldwide. During FY25, Pakistan’s towel exports increased by 2.6% year-on-year to approximately US$1.08 billion, compared to US$1.06 billion in the preceding fiscal year, reflecting sustained demand from key export destinations, particularly the United States and European markets. Export volumes also recorded a marginal increase, indicating continued market penetration despite a challenging global economic environment. Looking ahead, the industry’s outlook remains cautiously optimistic, supported by ongoing investments in operational efficiency, product diversification, and sustainability initiatives. Furthermore, the government has reiterated its commitment to facilitating export growth and addressing sector-specific concerns through supportive policy measures. Nevertheless, the industry remains exposed to risks associated with energy tariffs, exchange rate volatility, global demand fluctuations, and competitive pressures from other textile-exporting countries.

Bari Mills is an established participant in Pakistan's towel export industry, accounting for approximately ~7% of the country's total towel exports. The Company has developed a notable presence in international markets through its focus on towel manufacturing and exports, supported by a diversified customer base across the retail, hospitality, and healthcare sectors. The domestic market remains relatively concentrated, with a number of large-scale exporters competing alongside medium-sized manufacturers. Within this landscape, Feroze 1888 is considered the industry leader, with an estimated market share of approximately 28% of Pakistan's towel exports. While operating at a comparatively smaller scale, Bari Mills has maintained a meaningful position in the sector and continues to support its market presence through ongoing capacity enhancements, product diversification, and expansion of its export footprint.

Bari Mills derives the majority of its revenue from the manufacturing and export of towels, which remains the Company's core business segment. The business model is predominantly export-oriented, with international sales contributing a significant proportion of total revenue. The United States and various European countries are collectively accounting for a substantial portion of its sales. The Company's established relationships with international retailers and institutional customers operating in the hospitality and healthcare sectors support its presence in these markets. During 9MFY26, Bari Mills reported revenue of PKR 9,818mln compared to PKR 11,627mln in FY25. The increase in revenue during the review period was primarily driven by higher export volumes, resulting from the addition of new clientele in the European market. The Company's ability to maintain growth in export sales underscores its established position within Pakistan's towel manufacturing and export sector. 

During 9MFY26, Bari Mills reported a gross profit margin of ~13%, compared to around ~11% in FY25, indicating relative stability in the Company's core operating performance. The gross margin remained supported by its export-oriented business model and ability to maintain pricing discipline amid evolving market conditions. The operating profit margin improved to ~7% during 9MFY26 from ~5% in FY25, reflecting enhanced operational performance and improved absorption of operating expenses. The improvement was primarily attributable to higher sales volumes and better operating leverage during the period. At the net profitability level, the Company reported a notable improvement, with net profit margin increasing to ~4.4% in 9MFY26 from ~0.7% in FY25. Overall, the Company's profitability indicators exhibited improvement during 9MFY26, particularly at the operating and net profit levels.

Bari Mills Limited is an export-oriented textile manufacturer with an established presence in key international markets, particularly the United States and Europe. The Company has developed long-term relationships with global customers through its focus on product quality, compliance with international standards, and timely fulfillment of customer requirements. Over the years, Bari Mills has maintained a diversified customer base and product portfolio, enabling it to serve the varying needs of international buyers across different market segments. The Company's revenue and sales performance continue to be influenced by economic conditions, consumer spending patterns, and demand trends in its principal export markets. During the review period, business volumes were supported by increased export shipments and the addition of new customers, particularly within the European region, contributing to a broader geographic footprint and customer mix. The Company remains focused on strengthening its presence in existing markets while pursuing opportunities to expand its reach in additional European countries and other potential export destinations. To support its long-term growth strategy, Bari Mills is undertaking a number of expansion and modernization initiatives across its operations. These include investments in weaving capacity to enhance production capabilities, upgrades to dyeing facilities aimed at improving efficiency and product quality, and the development of digital printing capabilities to meet changing fashion trends and customer preferences for value-added products. These projects are expected to increase operational flexibility, broaden the Company's product offerings, and improve its ability to serve a wider range of international customers. With its established export platform, ongoing capacity enhancement initiatives, and commitment to quality and customer service, Bari Mills is positioned to support future business growth and strengthen its competitiveness within the global textile and towel industry.

During 9MFY26, the Company's gross working capital cycle increased to ~74 days from around ~58 days in FY25. The increase was primarily attributable to higher inventory and receivable holding periods associated with the growth in business volumes. Nevertheless, the Company's net working capital cycle remains broadly aligned with industry norms for export-oriented textile manufacturers, where extended operating cycles are common due to inventory requirements and customer credit terms.

During 9MFY26, the Company's free cash flows improved significantly to PKR 978mln, compared to PKR 217mln in FY25. The increase in free cash flow generation was primarily attributable to improved operational performance and stronger cash earnings, providing greater financial flexibility to support working capital requirements, capital expenditures, and debt servicing obligations. The Company's finance cost declined to PKR 165mln during 9MFY26 from PKR 305mln in FY25, reflecting lower borrowing costs. The reduction in finance expenses contributed positively to the Company's overall profitability and cash flow profile. The interest coverage ratio improved to 9.7x in 9MFY26 from 7.2x in FY25, supported by lower finance costs and adequate operating cash flow generation. The improvement in coverage indicates the Company's continued ability to comfortably meet its financial obligations and provides support to its overall financial risk profile. Overall, the Company's cash flow generation and debt coverage indicators remained robust during the period, reflecting adequate liquidity and a strong capacity to service debt obligations from internal cash generation.

As of 9MFY26, Bari Mills maintained a leveraged capital structure, with a leverage ratio of  ~44%, compared to ~42% in FY25. The slight increase in leverage reflects the Company's ongoing funding requirements while remaining within a manageable range. Equity continues to provide a meaningful cushion against business and financial risks, supporting the overall stability of the capital structure. A notable strength of the Company's debt profile is that its entire borrowing portfolio is availed under concessionary financing schemes offered by the State Bank of Pakistan (SBP). Access to these low-cost funding facilities enables the Company to optimize its financing costs, support working capital and capital expenditure requirements, and maintain financial flexibility. Going forward, the Company has planned capacity expansion initiatives, particularly in the weaving and dyeing segments, which are likely to necessitate additional capital investment. As a result, the leverage profile may witness some changes over the medium term. The prudent execution of these expansion plans, supported by adequate internal cash generation and balanced financing arrangements, will remain important in maintaining a sound capital structure and preserving financial resilience as the scale of operations continues to grow.