KAM International was founded as a sole proprietorship on August 7, 1996.

It is a strategic venture of the sponsor of Mekotex Group, established on January 21, 2021, marking a significant milestone with the launch of its home textile business. This expansion underscores the Group's dedication to broadening its influence and fostering growth within the local textile industry. Founded in 1979 by the late Mr. Abdul Majid Qasim, the Mekotex Group has built a renowned legacy of excellence in the textile sector. Throughout its evolution, the Group has flourished under the visionary leadership of Mr. Abdul Majid and his sons—Mr. Khalid Majeed, Mr. Shoaib Majeed, and the late Mr. Ashraf Majeed—whose combined efforts have been instrumental in guiding the Group toward continued success and sustainable growth.

Its operational infrastructure includes weaving, printing, and stitching with 268 air-jet looms and 400 stitching machines. The stitching unit has an annual production capacity of approximately 13 million garments. The registered office of Kam International is located at Hub River Road, Sindh Industrial Trading Estate, Karachi, serving as a central hub for its operations. Specializing in the manufacturing and export of high-quality home textile articles, it offers an extensive range of products, including bed sheets, pillow covers, and complete bedding sets, catering to both retailers and end consumers. To ensure seamless and efficient production, the Mekotex Group operates with an 8-megawatt power generation boiler, which caters to the energy needs of KAM International and maintains uninterrupted operations.

KAM International is a sole proprietorship owned exclusively by Mr. Shoaib Majeed, who is responsible for managing its operations and guiding its strategic direction.

As a sole proprietorship, KAM International lacks a shareholding agreement or a formal succession plan which poses potential challenges to its long-term stability, however, the sponsor's extensive track record of over two decades instills confidence, providing a foundation for continued success and growth.

The sponsoring family has a longstanding presence in Pakistan through Mekotex Group, with a proven track record of growth and resilience in the local industry, demonstrated by its transition from a single Company, Mekotex (Pvt). Limited to an established group. Throughout various macroeconomic cycles, the sponsors have navigated volatility while maintaining steady growth. Over the years, the Group has built significant expertise in the textile and garment sector, fostering enduring relationships with numerous international customers which is expected to drive the Group’s success and expansion.

KAM International derives its financial strength from the sponsor's presence across all segments of the textile value chain. In addition to KAM International, the sponsors operate with three other companies in the respective industry: Mekotex (Private) Limited, Meko Denim Mills (Private) Limited, and Meko Textile (Private) Limited.

KAM International currently has no formal board due to its legal structure. However, establishing a formal board would enhance the governance framework, promoting stronger oversight and strategic decision-making.

Mr. Shoaib Majeed, the owner of KAM International, holds a degree in Business Administration and plays a key role in managing various aspects of the family business. His hands-on leadership approach has been instrumental in driving the notable growth. With extensive expertise in the textile industry, he holds a directorship position at the flagship Company of the Mekotex Group.

Due to the absence of a formal board, the CEO exercises centralized control over all operational decisions, directly overseeing and managing activities.

To align with the standards of transparency, M. Saleem Associates Chartered Accountants have been appointed as the external auditors. They expressed an unqualified opinion on the financial statements of KAM International for the year ended June 30th, 2023. The audit for the fiscal year 2024 is underway and it is expected to culminate by the end of February 2025.

KAM International has established a lean organizational structure to ensure efficient execution of operations. The overall functions are divided into several key departments, including: (i) Finance & Commercial (F&C), (ii) Marketing, (iii) Technical, (iv) Production, (v) Information Technology, and (vi) HR, Administration, and Procurement. All departments report directly to the CEO.

Mr. Rayyan Ahmed Ashraf, the Chief Executive Officer, brings with him seven years of professional experience in the textile industry. He holds a Bachelor of Arts (Honors) degree, which has provided him with a strong academic foundation and valuable skills that have contributed to his success in the leadership role.

Management meetings are held regularly to review progress, address operational challenges, and proactively resolve any issues that may arise. These meetings serve as a platform for discussing key departmental concerns and ensuring a smooth flow of operations across functions.

For comprehensive business reporting, management has implemented an Oracle-based ERP system. This fully integrated IT system connects all major departments, from production to dispatch, enabling efficient management of financials, supply chain, and manufacturing processes.

KAM International utilizes management systems as their mechanism for ensuring control. There is clear evidence that these systems are being audited and certified externally. Examples include ISO 14001:2004 Environmental Management System, STeP-OEKO TEX, GOTS – Global Organic Textile Standards, Made in Green – OEKO TEX & Better Cotton Index certifications. KAM International has no formal in-house internal audit department. 

The country's textile exports reached USD 16.7bln in FY24, a slight increase from USD 16.5bln in the previous year, reflecting a growth of 0.93% YoY. The highest contribution came from the composite and garments segment at USD 9.1bln, followed by the weaving segment at USD 6.5bln and the spinning segment at USD 1.0bln. During 5MFY25, the textile exports stood at USD 7.6bln. In FY25, the transition from the final tax regime to the normal tax regime is set to impact the profitability matrix of export-oriented units, with a 29% tax on profits and a super tax of up to 10%. The consistent decline in policy rates over the last two quarters, along with the anticipation of further reductions, is expected to provide a cushion in the financial metrics of the industry.

KAM International has an adequate positioning on a standalone basis and is considered a middle-tier player in the respective industry.

The revenue base is predominantly vested in the sale of home textile articles. During FY24, the top line experienced an upswing, reaching PKR 12.2bln (FY23: PKR 8.7bln), primarily due to a sizeable increase in export sales driven by a healthy increase in the sales volumes, which account for approximately 95.5% of the revenue, whereas local sales make up around 4.5%. KAM International enjoys a stable customer base in the international market accompanied by direct and indirect exports. The client concentration risk is considered moderate attributed to the long-term association of the stable entities with the sponsoring group.

During FY24, the gross profit margin declined to 16.1% (FY23: 26.8%) attributed to the expensive procurement of fabric. The raw material-to-sales ratio increased to 55.5% (FY23: 49.1%), while its energy cost-to-sales ratio remained notably lower than industry peers, thereby supporting a more efficient and balanced performance in its core operations. PBIT exhibited a dilution at PKR 1.1bln (FY23: PKR 2.0bln) driven by a sizeable increase in operating expenses at PKR 820mln (FY23: PKR 287mln), concomitant with the inflationary trends. The extensive working capital requirements magnified the borrowing cost at PKR 445mln (FY23: PKR 302mln). Consequently, the bottom line witnesses a dip clocking at PKR 580mln (FY23: PKR 1.6bln), with a net profit margin of 4.7% (FY23: 18.9%).

Management intends to enhance its international presence by leveraging parental strength and onboarding new customers. However, the impact and trend of withdrawals from KAM International's retained earnings on its equity levels need to be observed in the upcoming quarters. Management plans to utilize these funds to support and establish other group business ventures.

The working capital cycle of KAM International is a function of inventory days and trade receivables days for which it relies on internally generated cash flows and short-term borrowings. During FY24, the cash conversion cycle reflected an improvement at 88 days (FY23: 164 days) attributed to an optimization of the inventory cycle (FY24: 84 days; FY23: 153 days) and the trade receivables cycle (FY24: 45 days; FY23: 73 days), demonstrating the earlier recovery of payments from the customers. KAM International has no room to borrow as the short-term trade leverage was recorded negatively at 23.0% (FY23: 43.5%).

The dilution in PBT ultimately impacted the Free Cash Flows from Operations (FCFO) reported at PKR 622mln (FY23: PKR 1.7bln) reflecting moderate internal cash flows. The expensive borrowings coupled with a dip in FCFO led to a sharp decrease in the interest coverage (FY24: 1.4x, FY23: 7.5x). Looking ahead, the improvement in the coverages remains essential.

The debt profile of KAM International comprises short-term borrowings (STBs), which include an Export Refinance Scheme (ERF) provided by the State Bank of Pakistan (SBP) as well as conventional debt. It has maintained a leveraged capital structure mainly dominated by the STBs to meet the extensive working capital requirements. During FY24, the total leveraging rose slightly to 48.3%, compared to 35.3% as of FY23. However, the total equity exhibited a dip at PKR 2.1bln, as the sponsors withdrew PKR 2.0bln to finance the expansion project in the group Company.