PACRA assigns Initial Entity Rating's to Popular Aseptic Packaging Private Limited - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- November 23, 2022 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)


Popular Aseptic Packaging Private Limited ("the Company") ratings reflect the strong sponsor's profile, growing market position, and adequate financial profile of the Company. The sponsor's family has vast experience in packaging and engaged in this business since 2012. The Company is predominately manufacturing seven-layer aseptic packaging for the Popular Food and Juice. The demand for the product is derived mainly from the food industry. The raw material of the finished product is ~100% imported hence, exposed to exchange rate risk. As per management representation, the Company approximately holds 12% market share.

The production utilization of the Company is directly linked with foods and consumer products. During FY22, the utilization level remained on the higher side at ~60% (FY21: ~52%). In order to cater the growing demand and capture market share, the Company has performed BMR on its seven-layer aseptic packaging plant to enhance the capacity utilization by approximately three times in FY22.

The internal audit department is operating under the direct supervision of directors. On the financial profile side, during FY22 ~98% top line of the Company is generated from the sales to its associated companies which shows the high captive buying and low level of credit risk. The Company has generated a top line of ~ PKR 3,402mln in FY22 as compared to ~PKR 3,001mln in FY21. In FY22, Popular Aseptic Packaging Private Limited generated a humble bottom line of ~PKR 23mln (FY21: ~PKR -52mln). The main reason for the...

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