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PACRA Maintains Entity Ratings of Ghani Global Holdings Limited

Lahore, November 23, 2022 (PPI-OT):The ratings reflect Ghani Global Holding Limited’s (‘Ghani Global’ or ‘the Company’) emerging presence as a Holding Company for the Ghani Global Group (‘The Group’). The prominent investments in the Company’s portfolio include investments in the glass segment through Ghani Global Glass Limited (Ghani Global Glass) and in the chemicals and industrial gases segment through Ghani Chemical Industries Limited (Ghani Chemicals). The Company has also made an investment in the renewable energy segment through Kilowatt Labs Technologies Limited (Kilowatt Labs).

However, the business is in its initial stages. Moreover, the Company remains able to materialize the envisaged strategies. In Nov-22, Ghani Chemicals acquired listing status after merging with G3 Technologies, a company acquired in Aug-21 and formerly known as Service Fabrics Limited. Ghani Chemicals has capitalized on growth through capacity expansion and tapping into export avenues. Global Glass follows import substitution business model to cope with the enhanced pharma needs and supplies. The subsidiary has announced an expansion to enhance capacity and value addition to tap the increasing demand in the local market and for diversification as well as to tap into the export market.

These projects have stabilized, however, are yet to become dividend-yielding investments. Moreover, institutionalization of investment policies would be beneficial. The Company has a strong financial profile, represented by 100% equity base. The management intends to rely primarily on equity-based funding sources as against debts for expansionary measures. The Company has increased its equity base through a right issue.

The ratings are dependent on the management’s ability to execute its envisaged strategy of growth and expansion. Timely materialization of these initiatives into profitable ventures is critical to the ratings. Strong performance of subsidiaries, initiation of dividend flow, and effective management of financial profile and liquidity remains important.

For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com