PACRA Maintains Entity Ratings of Meezan Plastic Industries (Pvt.) Limited.

Meezan Plastic Industries (Pvt.) Limited (hereinafter referred to as “the Company” or “MPI”) is a growing manufacturer and distributor of premium BOPP/OPP (Biaxially Oriented Polypropylene) packaging materials, serving both edible and non-edible product markets. The Company operates through strategically located sales outlets in Faisalabad and Lahore, ensuring seamless distribution and direct operational oversight for superior quality and service. The ratings takes comfort from its adequate presence within the packaging industry. Sponsors possess deep industry expertise, enabling informed decision-making and fostering sustainable business growth. The local packaging industry is fragmented and dominated by a large unorganized segment. The product demand is high due to the usage of BOPP/OPP films in food packaging, non-food packaging, and for industrial needs, also the major drivers for this market are growth in aliment packaging, increasing need for UV light barrier films along with the growing population, urbanization, consumer consciousness, and the e-Commerce revolution. The cost of the Company's key raw materials is closely linked to international oil prices. As a result, fluctuations in oil prices, exchange rate instability, cost-push inflation, and volatile policy rates pose substantial risks to the sector's growth and financial stability. Meezan Plastic Industries (Pvt.) Limited is a family-owned enterprise, driven by strong leadership and a collaborative approach. Its close-knit management structure fosters agile decision-making, operational efficiency, and a unified vision for sustainable growth, ensuring consistency in quality and innovation. However, there is room for improvement in formal succession planning to ensure long-term stability. The governance framework remains fragile due to the lack of a formal board structure, dedicated committees, and independent oversight. Additionally, the external auditors of the Company are neither QCR-rated nor on list of SBP panel, which highlights the need for refinement in financial transparency and regulatory compliance. During FY24, the Company’s revenue remained largely sustained, recording sales amounted to PKR 4.0bn, compared to PKR 4.1bn in FY23. Additionally, in FY24, the Company’s gross margin decreased from ~9.6% to~ 8.9%, while the net profit margin declined from ~3.7% to ~2.9%, largely due to the inclusion of taxation expense in FY24. The financial risk profile of the Company is considered adequate, with good coverages, cashflows, and adequate working capital cycle, though trade receivables days continue stretching over the years. The operations of the Company are managed through internally generated cash flows only and there is no plan to obtain short-term and long-term borrowing facilities in the future. The Company has obtained a non-funded facility from a financial institution to facilitate the import of essential raw materials.
The ratings are dependent on the Company’s ability to sustain its position amidst a changing business environment and management’s ability to run impeccably the operations of the Company. The imminent growth in the Company’s business & volumes; prudent financial discipline and implementation of a stringent control environment shall remain imperative.

About the Entity
Meezan Plastic Industries (Pvt.) Limited is a Private Limited Company incorporated in Pakistan in June 2018 under the Companies Ordinance 1984. It is family owned and operated business with shareholding divided among 2 members, Mr. Hafiz Muhammad Atif (~70%), and Mr. Yasir Amin (~30%). Mr. Hafiz Muhammad Atif is the founding member and CEO of the Company since its incorporation.