PACRA Assigns Initial Entity Ratings to Azhar Corporation (Private) Limited

Lahore, June 22, 2018 (PPI-OT):The rating reflects ACPL’s association with an established brand name Gai Soap with the long history of operations. The Company is primarily engaged in manufacturing of Personal and Home care products. The Company head office and factory located in Faisalabad is operating at a capacity of 85%. The main portion of the Company’s sales consist of local sales, while some exports are made to Afghanistan. According to the recent market pressure especially on bar soaps, company is trying to maintain its market share by expanding geographically and introducing new products to the market.

The company’s financial risk remains low mainly reflected from moderately leveraged capital structure – consist of mainly short-term borrowing related to working capital. The company does not plan to raise any long term debt. The Company’s Oil/ Ghee business is in challenging phase, with the exit of big chain of super store. The management is striving to supplement its sales with alternative buyers. The ratings are dependent on the management’s ability to prudently manage its system share, while maintaining business margins. Pressure on business volume and margins owing to the market conditions may negatively impact the ratings.

For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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