PACRA Maintains the entity Ratings of Salman Paper Products (Pvt.) Limited

The rating of Salman Paper Products (Pvt.) Limited (“SPPL” or the “Company”) reflects the Company’s established standing in the import and distribution of paper and paperboard products in Pakistan. The business operates on a high-volume, efficient trading model, enabling the Company to maintain a notable position among key importers, particularly in the southern region of the country. The Company is led by its sponsor and Chief Executive Officer, Mr. Aslam Jilani, who possesses more than three decades of experience in the paper industry and remains closely involved in the strategic and operational management of the business. SPPL primarily focuses on the import and supply of paper and board products to a wide network of customers operating in the packaging and paper-converting segments. Demand for these products is largely linked to downstream industrial consumption, which provides the Company with a relatively stable customer base. Through established procurement channels and an efficient distribution framework, the Company is able to manage its trading operations effectively while maintaining a steady presence in the market.
The Board primarily comprises family members and lacks a formalized board structure. Aslam Gilani provides strategic direction to the business and oversees its effective management. The management team possesses significant industry knowledge and operational capability; there remains scope to further strengthen the governance framework through the introduction of additional oversight mechanisms and formalized internal control processes. Financially, the Company demonstrated sound performance during FY25, supported by stable trading volumes and effective cost management. SPPL continues to operate with a moderately leveraged capital structure, primarily utilizing short-term borrowings to finance its working capital requirements, which is consistent with the nature of its trading activities.
The ratings are dependent upon the management’s ability to improve margins while sustaining its market share. Prudent management of the working capital and maintaining sufficient cash flows and coverages are essential for the ratings. Any significant change in margins and coverages will impact the ratings.

About the Entity
The Company was established in 2005 as Jilani Enterprises. In 2012, Jilani Enterprises was renamed to Salman Paper Products Private Limited and got registered with SECP in 2019 with a share capital of PKR 20mln. The Company is owned by the CEO/owner, Mr. Muhammad Aslam Jilani, having 99% shareholding. Although Salman Paper Products deals in four main products, it has wide spread customer and supplier base. The Company imports finished goods as raw material and sells to customers after cutting and printing, selling to the northern, central, and southern regions of Pakistan. Four products, namely: Art card, Packaging board, Stickers, and Printer paper, are sold to customers, divided into direct sales and dealerships, who resell to other customers. A significant portion of Salman Paper Products’ customers are located in the southern region.