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MIRA INFORM REPORT
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Report No. : |
502702 |
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Report Date : |
16.04.2018 |
IDENTIFICATION DETAILS
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Name : |
TRI-PACK FILMS LIMITED |
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Registered Office : |
4th Floor, The Forum, Suite No. 416-422, G-20, Block No. 9,
Clifton, Khayaban-e-Jami, Karachi |
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Country : |
Pakistan |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
29.04.1993 |
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Com. Reg. No.: |
0030231
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Legal Form : |
Public Limited Company |
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Line of Business : |
Subject is principally engaged in the manufacture and sale of
Biaxially Oriented Polypropylene (BOPP) Film and Cast Polypropylene (CPP)
Film |
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No. of Employees : |
340 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Maximum Credit Limit : |
5,128,124.02 USD |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow & Delayed |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
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Country Name |
Previous
Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Pakistan |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
PAKISTAN - ECONOMIC OVERVIEW
Decades of internal political disputes and low levels of foreign
investment have led to underdevelopment in Pakistan. Pakistan has a large
English-speaking population. A challenging security environment, electricity
shortages, and a burdensome investment climate have deterred investors.
Agriculture accounts for one-fifth of output and two-fifths of employment.
Textiles and apparel account for more than half of Pakistan's export earnings;
Pakistan's failure to diversify its exports has left the country vulnerable to
shifts in world demand. Pakistan’s GDP growth has gradually increased since
2012. Official unemployment was 6% in 2017, but this fails to capture the true
picture, because much of the economy is informal and underemployment remains
high. Human development continues to lag behind most of the region.
In 2013, Pakistan embarked on a $6.3 billion IMF Extended Fund Facility,
which focused on reducing energy shortages, stabilizing public finances,
increasing revenue collection, and improving its balance of payments position.
The program concluded in September 2016. Although Pakistan missed several
structural reform criteria, it restored macroeconomic stability, improved its
credit rating, and boosted growth. The Pakistani rupee, after heavy depreciation
in 2013, remained relatively stable against the US dollar in 2015-17. Balance
of payments concerns have reemerged, however, as a result of increased imports
and declining remittances.
Pakistan must continue to address several longstanding issues, including
expanding investment in education and healthcare, adapting to the effects of
climate change and natural disasters, improving the country’s business
environment, reducing dependence on foreign donors, and widening the country’s
tax base. Given demographic challenges, Pakistan’s leadership will be pressed
to implement economic reforms, promote further development of the energy
sector, and attract foreign investment to support sufficient economic growth
necessary to employ its growing and rapidly urbanizing population, much of
which is under the age of 25.
In an effort to boost development, Pakistan and China are implementing
the “China-Pakistan Economic Corridor,” with $60 billion in investments
targeted towards energy and other infrastructure projects. Pakistan believes
CPEC investments will enable growth rates of over 6% of GDP by laying the
groundwork for increased exports. CPEC-related obligations, however, have
raised IMF concern that capital outflows that will begin to increase in 2020.
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Source
: CIA |
Business
Name
TRI-PACK FILMS LIMITED
Full
Address
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Registered Address |
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4th Floor, The Forum, Suite No. 416-422, G-20, Block No. 9,
Clifton, Khayaban-e-Jami, Karachi, Pakistan |
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Tel No. |
92 (21) 35874047 - 49 (3 Lines) |
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Fax No. |
92 (21) 35860251, 35831618 |
Short
Description Of Business
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a. |
Nature of Business |
Principally engaged in the manufacture and sale of Biaxially Oriented
Polypropylene (BOPP) film and Cast Polypropylene (CPP) film |
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b. |
Year Established |
April 29, 1993 |
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c. |
Registration No. |
0030231
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Works
Location
Plot No. G-1 - G-4, North
Western Industrial Zone,
Port Qasim, Karachi,
Pakistan
Works
& Regional Sales Offices
Plot No. 78/1, Phase IV, Hattar Industrial
Estate, Hattar, Khyber Pakhtoonkwa,
Pakistan
House No. 18, Sir Abdullah Haroon
Road, Near Marriott Hotel, Karachi,
Pakistan
Auditors
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A. F. Ferguson & Co. (Chartered Accountants) |
Legal
Status
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Public Limited Company (Listed at stock exchange of Pakistan) |
Details
of Chairman/Directors
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Names |
Designation |
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Mr. Syed Babar Ali Mr. Syed Hyder Ali Mr. Kimihide Ando Mr. Khurram Raza Bakhtayari Mr. Yukio Hayasawa Mr. Syed Aslam Mehdi Mr. Asif Qadir |
Chairman Chief Executive Director Director Director Director Director |
Share
Holders
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Categories |
Percentage (%) |
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Directors, CEO and their spouses & minor children Associated Companies, Undertakings & Related Parties Bank, Development Finance Institutions, Non-Banking Finance
Institutions, Insurance Companies, Modaraba and Mutual Funds Insurance Companies Modarabas and Mutual Funds General Public Others |
1.90 63.30 0.00 2.56 2.28 21.98 7.98 |
Associates
A. Subsidiary
None
B. Associated Companies
Packages Limited,
Pakistan.
Mitsubishi
Corporation, Japan.
IGI Insurance
Limited, Pakistan.
Babar Ali Foundation,
Pakistan.
Products
Biaxially
Oriented Polypropylene (BOPP) Film
Tri-Pack’s BOPP films are the products of state of the art technology.
This packaging film is available in four different grades i.e. Plain,
Composite, Pearlized and Metalized, and its thickness ranges between 12 to 50
microns. The principal properties of their products are:
Good
barrier to moisture.
Excellent
transparent gloss.
Good
printability.
Good
sealability.
Grades of BOPP Film
Plain
Film
Excellent clarity, high tensile strength, good
dimensional stability and flatness, low electrostatic charge, corona treatment on
one or both sides and waterproof. The Plain film is used for laminating
cardboard, general packaging, wrap for fresh flowers and adhesive tape.
Composite
This grade has the property of heat sealability on both sides, dimensional
stability and flatness, designed for high-speed workability, low-friction, high
stiffness, elegant appearance, heat resistant and heat shrinking capabilities.
The Composite film is used in packing of confectionery/biscuits, soap and
processed food items.
Cigarette
Grade
Cigarette grade both sides heat-sealable BOPP film is manufactured
specially to suit high-speed cigarette wrapping machines having excellent
antistatic and slip with high seal strength, clarity and moisture barrier
properties. Tri-Pack has attained the competency to manufacture the said grade
and currently it is being supplied to the tobacco industry if the country.
Pearlized
Pearlized BOPP film is a both sides heatsealable one side corona treated
film having uniform thickness, low transparency for minimum see through with
good seal strength. It is suitable for high quality printing, over wrapping and
flow pack machines for packaging. The pearlized film is used as a packaging
material for processed food, icebars, candies, gift wrappers and tea.
Metalized
This film is used as an alternate to al-foil in packaging requirements.
Its offers excellent oxygen and moisture barriers and can be printed, laminated
or used as a single film to provide barrier in the food products.
Number
of Employees
340
Plant
Capacity and Production
2017 2016
(Metric Tonnes)
Operational capacity at year end 83,800 83,800
Production 51,371 50,181
Production of films during the year is based on market demand.
Bankers
name
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(1) Askari Bank Limited, Pakistan. (2) Bank Alfalah Limited, Pakistan. (3) Bank Al-Habib Limited, Pakistan. (4) Barclays Bank (5) Deutsche Bank A.G., Pakistan. (6) Faysal Bank Limited, Pakistan. (7) HSBC Bank Middle East Limited, Pakistan. (8) (9) Meezan Bank Limited, Pakistan. (10) NIB Bank Limited, Pakistan. (11) Standard Chartered Bank, Pakistan. (12) The Bank of Khyber, Pakistan. (13) The Bank of Tokyo-Mitsubishi UFJ, Ltd. (14) Dubai Islamic Bank, Pakistan. (15) Habib Metropolitan Bank Limited, Pakistan. |
Credit
Rating
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The Pakistan Credit Rating Agency (Pvt) Ltd. (PACRA), an affiliate of |
Contribution
to National Exchequer
Tri-Pack’s contribution to the national exchequer in the form of sales
tax, custom duties and income taxes etc is approximately Rs 2,881 million in
2017.
Future
Outlook
Tri-Pack Films Limited has a history of consistent expansion growth. We
have expanded from 10,800 tons of BOPP to 66,800 tons and 8,000 tons of CPP to
17,000 tons. The Company has planned investments amounting to Rs. 2.2 billion
to acquire state-of-the-art machinery for the production of specialized films
i.e. transparent and high strength metallized films for the first time in
Pakistan to cater the export and local markets. Internationally, the industry
is moving towards the specialized films which are not yet introduced in
Pakistan. These films will enable the Company to enter into the specialized
films market which will enable the end consumer to have a utmost quality
product. Further, these investments are also aimed to improve efficiencies in
the existing operations.
Company
Profile
Tri-Pack Films Limited (Tri-Pack) – a joint venture between Mitsubishi
Corporation of Japan and Packages Limited of Pakistan was incorporated as a
Public Limited Company on April 29, 1993 to produce Biaxially Orientated
Polypropylene (BOPP) Films in Pakistan. Its head office is based in Karachi and
regional offices are located in Karachi, Lahore and Hattar where focus is to
provide customers with dependable, economical and quality films backed by
strong customer services. Tri-Pack is indeed proud of making distinctive contributions
to the packaging industry in Pakistan. The Company is continuously growing
since inception with an installed production capacity of more than 80,000 tons
per annum. With four manufacturing lines in Karachi and Hattar capable of
manufacturing over 65,000 tons per annum of BOPP Films and two lines in Karachi
with an annual capacity of over 15,000 tons of producing CPP Films touch the
lives of millions of people every day. In view of current disturbed economic and political situation, we would
advise to deal with all the business in Pakistan with some caution.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.22 |
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1 |
INR 92.77 |
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Euro |
1 |
INR 80.34 |
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PKR |
1 |
INR 0.57 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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NIS |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
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Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.