PACRA maintains Entity Ratings of Multi-Resin Industries

Multi Resin Industries (“the Firm”) is a Karachi-based partnership concern established in 1997, engaged in the manufacturing and sale of water-based chemical emulsions under the brand name Multiteck. The product portfolio includes adhesive emulsions, homo-polymers, co-polymers, cross-linking agents, and acrylate-based dispersions, catering primarily to the textile, paints & coatings, paper & packaging, construction, leather, and wood-based industries. Over time, the Firm has expanded its operational footprint beyond its initial setup in Hyderabad to major commercial centers, including Karachi, Lahore, Faisalabad, Rawalpindi, Islamabad, and Peshawar, supported by warehousing facilities. The resins segment serves as a key input for several downstream industries and remains sensitive to overall industrial activity and construction demand. The industry remains highly competitive and fragmented, reflecting low entry barriers that continue to attract new players. This structure limits pricing power and results in sustained price-based competition across most product segments. In addition, the industry’s heavy reliance on imported raw materials exposes participants to foreign exchange volatility, global price fluctuations, and potential supply chain disruptions. Consequently, cost pressures can emerge abruptly, challenging margin stability, particularly for players with limited scale or weak pass-through ability. Within this operating environment, Multi Resin Industries maintains a meaningful presence in the water-based emulsions segment, supported by its established customer relationships, diversified product range, and operational focus. The ownership structure of the Firm is represented by the sponsoring family, which maintains close oversight of business operations. Management control remains concentrated, enabling effective monitoring of operational and strategic matters. The leadership team possesses a sound understanding of the chemical industry, supported by extensive sector experience, which guides the Firm’s business decisions. The sponsors’ financial profile is considered adequate. Operationally, the Firm functions through clearly defined departments covering sales & marketing, procurement, operations, quality control, information technology, and finance. During FY25, the Firm reported revenue of ~PKR 1,826mln, reflecting year-on-year growth of around ~6.8%, driven by improved volumes and relatively stable demand from key customer segments. While margins remained under pressure due to higher operating and marketing expenses, the Company’s financial risk profile remains adequate, supported by internal cash generation, short-term borrowings, a manageable working capital cycle, and conservative capitalization, providing flexibility to navigate operational and market challenges.
The ratings are dependent on the Firm’s ability to sustain its position amidst a dynamic business environment, achieve positive topline growth, and successfully execute strategies for corporatization. Achieving consistent growth, improving margins, and delivering on prudent financial management, as outlined in Firm's projections, will remain critical. Enhancing the governance framework for better oversight of strategic affairs is also essential.

About the Entity
Multi Resin Industries is a family-owned partnership firm. The ownership is held by the sponsoring family, with Mr. Farooq Ahmed (Chairman) owning 14.50%, and his brothers, Mr. Anees, Mr. Masood, Mr. Khalid, Mr. Asif, and Mr. Arif, along with his wife, Ms. Naila Zareen, each holding 14.25%. Mr. Muhammad Anees (CEO), with over 20 years of industrial experience, leads the firm, supported by a skilled management team.