Meezan Plastic Industries Private Ltd (hereinafter referred to as "MPI" or "the Company") was established as a Private Limited Company in June 2018.

Meezan Plastic Industries (Pvt.) Limited was incorporated in Azad Kashmir under the Companies Ordinance 1984 as (Private) Limited Company in June 2018. The registered office of the Company is situated at Small Industrial Estate, Bhimber, Azad Kashmir.

Meezan Plastic Industries (Pvt.) Limited caters to the unsegmented packaging market, the principal activity of the Company is to manufacture BOPP / OPP plastic bags used in the cloth and jewellery market. MPI introduced BOPP / OPP bags in the cloth market. The sale point of Meezan Plastic is in Lahore and Faisalabad. The Company has two manufacturing units, one is a manufacturing unit, whose Annual Production capacity is 14.4mln KG bags and the other one is a printing unit (Flexo machine), having an annual production capacity of 35 tons.

Meezan Plastic Industries is a family-owned business, with majority ownership held by Mr. Hafiz Muhammad Atif, who owns ~70% of the Company, while his brother, Mr. Yasir Amin, holds the remaining ~30%. Their shared leadership ensures direct oversight and strategic direction for the business.

Currently, the Company has no formal succession plan in place for the future transfer of shares. This absence of a defined strategy may pose challenges in ensuring smooth ownership transition and long-term business stability. Establishing a succession framework could enhance continuity and safeguard the Company's financial and operational interests.

The family-owned business is managed by two seasoned professionals with extensive expertise in the packaging sector. Their industry experience enables effective decision-making, operational efficiency, and strategic growth, ensuring the Company's continued success.

The sponsoring family holds diverse investments in real estate and other similar allied businesses, which serve as potential financial support for the Company. In case of any liquidity challenges or operational needs, these investments provide a financial cushion, ensuring the Company's ability to continue operating efficiently and sustain business stability.

The Company’s overall control rests with its two-member Board of Directors (BoD), both of whom hold executive roles.

The CEO, Mr. Hafiz Muhammad Atif, oversees the overall management of the business while ensuring strategic direction and operational efficiency. In addition to his leadership role, he has cultivated strong business relationships with buyers and suppliers, contributing to the Company's growth and market presence. Meanwhile, Mr. Yasir Amin, serving as a director, plays a crucial role in managing all Company affairs, ensuring smooth operations and strategic execution. His involvement in key decision-making processes further strengthens the Company’s ability to navigate industry challenges and sustain long-term success.

The Company's Board consists of only two members, making its governance model weaker compared to established corporates. Additionally, there are no formal board committees in place, limiting oversight and strategic decision-making. To strengthen governance, the Company could expand its board and introduce key committees such as Audit, Risk Management, and Strategy, enhancing accountability and long-term sustainability.

The absence of an internal audit function further creates room for improvement in the corporate governance framework. M/S Zafar & Co. Chartered Accountants are the external auditor of the Company. The auditors have expressed an unqualified audit opinion on the financial statements of Meezan Plastic Industries Pvt. Limited for the year ended June 30, 2024. The firm is not on SBP's panel of auditors and is Non-QCR rated, therefore there is room for improvement in the corporate governance framework.

Meezan Plastic Industries Pvt. Limited has a lean organizational structure divided into various functional departments. Currently, the organizational structure is divided into five main functions namely; 1) Sales & Marketing 2) Production 3) Purchase 4) Accounts & Finance, and 5) Collection & Recovery.

Meezan Plastic Industries Pvt. Limited has an organizational structure with an experienced management team and a balanced mix of professionals. Mr. Hafiz Muhammad Hamid, General Manager, holds a Ph.D. degree and has been associated with the Company for the past 5 years. Mr. Sheikh Muhammad Bilal, Production, Planning & Control Manager, has been associated with the Company for the past 5 years. Mr. Muhammad Nasir, Marketing Manager has been associated with the Company for the past 5 years. Mr. Muhammad Azam Chief Accountant holds a degree in MBA Finance and has been associated with the Company for the past 5 years.

The Company's management team comprises experienced professionals with extensive expertise in the plastic industry. Their collective knowledge and industry background enable effective decision-making and operational management. Although there is no formal management committee, the Board of Directors is actively engaged in the Company's day-to-day operations, ensuring strategic oversight and direct involvement in key business activities. Instead of a designated committee, departmental heads conduct meetings to address operational matters, with the frequency of these meetings varying based on the evolving business needs and industry dynamics. This flexible management structure allows for efficient communication, rapid decision-making, and adaptability to market conditions, ensuring that operational challenges are promptly addressed while maintaining alignment with the Company’s strategic objectives.

The Company's Management Information System (MIS) plays a crucial role in financial oversight and strategic decision-making. It generates key financial statements—including the Balance Sheet, Profit and Loss Statement, and Cash Flow Statement—on a weekly basis for review by the Board. These reports provide a comprehensive snapshot of the Company’s financial health, enabling informed decision-making at the highest level. Additionally, the MIS generates detailed sales reports, which are reviewed by top management daily. This frequent analysis ensures close monitoring of sales performance, market trends, and revenue fluctuations, allowing the leadership to respond proactively to changing business conditions.

The Company utilizes licensed Microsoft Office applications, including Excel, Word, and Outlook, to support its daily operations and ensure efficient workflow management. These tools play a critical role in data processing, documentation, and communication across various departments. For internal Management Information System (MIS) reporting, the Company maintains a structured reporting framework, generating reports on a weekly, monthly, quarterly, and annual basis. These reports provide senior management with valuable insights into key operational and financial metrics, aiding in strategic decision-making and performance evaluation. Additionally, the systematic approach to reporting allows the Company to track business trends, identify areas for improvement, and ensure compliance with corporate objectives. By leveraging Microsoft Office tools for MIS reporting, the Company enhances data accuracy, streamlines analysis, and facilitates informed leadership oversight.

The future of the global BOPP film market looks promising with opportunities in food packaging, non-food packaging, and industrial applications. The global BOPP film market is forecast to reach $40.5bn by 2030 with a CAGR of ~5.1% from 2024 to 2030. 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 the growing population, urbanization, consumer consciousness, and the e-Commerce revolution. In Pakistan, a major challenge faced by the sector is the prices and availability of raw materials specifically polymers such as polypropylene, & polyethylene. The packaging industry uses variants of Polymer Resin to manufacture BOPP and CPP films. Polymers’ prices are largely a function of global crude oil prices, demand-supply dynamics and exchange rate volatility.

The packaging industry is highly fragmented, with a significant portion comprising unorganized sectors. The remaining market share is controlled by key industry players, including Cherat Packaging Limited, Pakistan Synthetics Limited, and Nishat Paper Products Company Limited, which have established themselves as dominant forces in the sector. Within this competitive landscape, Meezan Plastic Industries Pvt. Ltd. is positioning itself as an emerging player in the fragmented packaging sector. By leveraging its expertise in manufacturing high-quality BOPP/OPP bags and focusing on operational efficiency, MPI aims to carve out a strong presence and expand its market share. The Company’s growth strategy may include enhancing production capabilities, fostering strategic partnerships, and adapting to evolving industry trends to remain competitive.

MPI generates its income primarily from the sale of BOPP/OPP (Biaxially Oriented Polypropylene) bags, which are widely used in packaging due to their durability and flexibility. During FY24, the Company’s revenue remained largely sustained, recording sales amounted to PKR 4.0bn, compared to PKR 4.1bn in FY23. The slight change of ~0.3% in revenue is due to regulatory and policy changes in FY24.

MPI experienced a decline in profitability during FY24, primarily due to lower revenues and rising operating costs. As a result, the gross profit margin decreased to ~8.9%, compared to ~9.6% in FY23. Similarly, the Company’s net profit margin dropped from ~3.7% in FY23 to ~2.9% in FY24, largely due to the impact of taxation expense recorded during the review period. In response to these financial pressures, the Company remains focused on implementing cost-control measures, particularly in administrative expenses. By optimizing its operational efficiency and maintaining strict expenditure discipline, MPI aims to preserve its bottom-line margins despite challenges in revenue growth and increasing costs. Additionally, the management is expected to explore strategic initiatives such as improving supply chain efficiency, renegotiating supplier contracts, and identifying cost-saving opportunities within production and logistics. These efforts will help the Company navigate financial volatility while safeguarding profitability.

MPI has developed reliable forecasts that align with its strategic vision, ensuring the viability of its planned growth trajectory. According to MPI’s management, the demand for plastic bags used in packaging materials—particularly for items such as shirts, cloth, and bedsheets—is expected to follow an upward trend. This anticipated increase is driven by several market factors, including the expanding retail sector, the growing need for protective packaging, and consumer preferences for convenient and durable storage solutions. Additionally, the evolving dynamics of e-commerce and the textile industry contribute to this rising demand, as businesses seek efficient packaging options that enhance product presentation while ensuring safe transportation. Given these trends, MPI aims to leverage its expertise to cater to this growing market, reinforcing its role the packaging industry.

Company relies on internal cash flows to meet its working capital needs, which are primarily driven by inventory and receivables. By the end of FY24, gross working capital days increased to ~60 days, compared to ~56 days in FY23. Similarly, net working capital days reached to ~52 days in FY24, showing a slight increase from ~51 days recorded in FY23. The extended working capital days indicate a shift in the company's cash conversion cycle and overall approach to liquidity management.

During the period under review, Meezan Plastic Industries Pvt. Ltd. experienced a decline in its operating cash flows (FCFO), which decreased from PKR 151mln in FY23 to PKR 119mln in FY24. This reduction was primarily driven by lower revenues and profits reported during FY24, reflecting the financial challenges faced by the Company.

The Company's equity base has experienced significant growth, increasing from  PKR 402mln in FY23 to around PKR 521mln in FY24. This improvement is primarily attributed to profit retention, which has strengthened the Company's financial position. Furthermore, the Company does not maintain any long-term or short-term funded facilities. However, it does have access to a non-funded facility amounting to PKR 500mln, which provides additional financial flexibility.