PACRA Maintains Entity Ratings of Olympia Chemicals Limited

Olympia Chemicals Limited (“the Company”) is primarily engaged in the manufacturing and marketing of alkaline chemicals, their by-products, and detergents. Its flagship products include Soda Ash (Dense Grade), Soda Ash (Light Grade), and Refined Sodium Bicarbonate, which are produced under stringent quality control standards to meet both domestic and international demand. The Company currently operates with a total production capacity of 1,000 tons per day (TPD), including 160 TPD dedicated to food-grade Sodium Bicarbonate. The assigned ratings take comfort from the Company’s consistent performance which is closely aligned with its well-devised and prudent business strategy. The Company’s management remains focused on product diversification and has successfully entered the production of detergents, a value-added soda ash derivative. This segment is gaining momentum and has delivered double-digit growth, reflecting its potential as a meaningful contributor to future revenues. The soda ash industry in Pakistan is characterized by a duopoly, with Lucky Core Industries holding about ~60% of the market and Olympia Chemicals Ltd. maintaining a strong position with ~30%. The remaining 10% of demand is met through imports, primarily from Turkey and Kenya. Recent anti-dumping duties have provided relief to domestic producers, contributing to margin stabilization and supporting the protection of local market share. Domestic demand for soda ash remains closely linked with key downstream sectors, particularly glass manufacturing, detergents, specialty chemicals, and water treatment, with the glass segment representing the largest share of consumption. Pakistan’s glass industry is currently experiencing subdued growth amid slower construction activity, though demand from beverage and pharmaceutical packaging continues to provide moderate support. The soda ash industry remains strategically important for industrial expansion, while recent anti-dumping measures on imported soda ash are expected to support domestic manufacturers by easing pricing pressure, improving capacity utilization, and stabilizing industry margins over the medium term. The Group has a well-established business legacy, with a diversified portfolio that includes poultry and processed chicken, animal feed, chemical manufacturing, edible oil extraction, agriculture, fruit orchards, carpet weaving, and textile production. The Company’s board primarily consists of close family members, indicating potential for strengthening governance practices. During 1HFY26, the Company’s topline recorded a marginal decline of ~2.2%, primarily due to constrained volumetric growth amid subdued demand conditions. Profitability margins also witnessed slight compression across all levels, reflecting continued pressure on operating dynamics and cost absorption. The Company’s financial risk profile is considered sound, supported by comfortable coverage indicators, healthy cash flow generation, and prudent working capital management. The capital structure remains low leveraged, with borrowings primarily comprising concessionary long-term financing obtained under the TERF.
The ratings remain contingent upon the Company’s ability to sustain revenue growth and profitability while preserving market share. Ensuring adequate cash flow generation and coverage is essential. However, adherence to maintaining its debt metrics at an adequate level is a prerequisite.

About the Entity
Olympia Chemicals Limited (the Company) was incorporated in Pakistan on January 01, 1995, as a public unlisted under the Companies Ordinance,1984 (now the Companies Act, 2017). The registered office of the Company is situated at 25-A Davis Road, Lahore, and manufacturing facilities are located at Unit (I) Warcha Tehsil Quaidabad, District Khushab Warcha and Unit (II) 45-KM Multan Road, Tehsil Pattoki, District Kasur. The Company is owned by the Monnoo family and its shareholding is divided among the family of Mr. Hamayun Monnoo (25%), Muhammad Shakil Monnoo and his family (36%) and Muhammad Khurshid Monnoo and his family (19.33%) and Muhammad Nasir Monnoo and his family (19.33%). Muhammad Shakil Monnoo is the CEO of the Company.