PACRA Maintains Entity Ratings of Ghani Global Glass Limited

Ghani Global Glass Limited ("GGGL" or "the Company"), a subsidiary of Ghani Global Holding Limited (GGHL), is a leading manufacturer and distributor of glass tubes, ampoules, vials, and chemicals. As Pakistan’s first mass producer of pharmaceutical-neutral tubing glass, GGGL utilizes state-of-the-art European technology, including advanced furnaces and equipment, to deliver top-tier products and drive value through import substitution. According to the management of GGGL, the national demand for glass tubes stands at ~8,354 tons per annum. GGGL supplies about 62% of this demand, while the remaining 38% is met through imports primarily from China (29%) and Germany (9%). The Company is focused on increasing its market share in both Chinese and European glass tube segments. A significant milestone in GGGL’s expansion is the commissioning of a new furnace with three production lines, increasing the annual production capacity to approximately 18.5 tons per day (TPD). Additionally, the Company is undertaking a Balancing, Modernization, and Replacement (BMR) initiative on its older furnace to enhance the production of Neutral Borosilicate Glass Tube USP Type I, enabling greater export potential to markets in South Africa, Latin America, and Eastern Europe. During FY24, GGGL further expanded its operations by acquiring six European-made Modern Mechanique ampoule-forming machines, aligning with its strategic growth plan. The Company reported a revenue increase of 18% in FY24, with a topline of PKR 2,440mln, up from PKR 2,071mln in FY23. This growth was driven by higher volumes and increased selling prices. However, gross and operating margins were under pressure from cost-push inflation, and finance costs saw a notable rise. GGGL is also active in the value-added segment, converting glass tubes into ampoules and vials, with a current annual ampoule conversion capacity of approximately 55 million units per annum. This segment, however, faces competition from both organized and unorganized players in the market. GGGL's operational efficiency relies on strong internal controls. The Company has availed the Temporary Economic Refinance Facility (TERF) to support its capacity expansion initiatives. Looking forward, GGGL anticipates several growth drivers, including increasing local demand for glass tubes, enhanced regulatory duties on imports, export opportunities, and a balanced leverage strategy. The financial risk profile of the Company is considered adequate with comfortable coverages, cashflows, and working capital cycle. Capital structure is leveraged comprising a mix of short-term and long-term for capacity expansion projects.
The ratings are dependent on the sustainable growth in revenue, profits, and market share while retaining sufficient cash flows and coverages. However, adherence to maintaining its debt metrics at an adequate level is a prerequisite.

About the Entity
Ghani Global Glass Limited (GGGL) was established in 2007 and began commercial operations in 2016. The company is headquartered in Lahore, Pakistan, with a state-of-the-art manufacturing facility in Phool Nagar, Kasur. It specializes in the production of high-quality glass tubes, vials, ampoules, and various glassware products, primarily catering to the healthcare sector. The company's board consists of seven members, led by Mr. Hafiz Farooq as Chairman. Mr. Atique Ahmad serves as the CEO, bringing extensive industry experience to his leadership role.