Latest news with #Faisalabad-based
Business Recorder
7 days ago
- Business
- Business Recorder
BMR initiative to spur SPL business revival
KARACHI: Sitara Peroxide Limited (SPL), the Faisalabad-based chemical manufacturer, continues to battle financial headwinds, posting a net loss of Rs 76.37 million in the half year ended December 31, 2023. However, the company's management remains cautiously optimistic about its future, banking heavily on a comprehensive Balancing, Modernization, and Replacement (BMR) initiative aimed at transforming the struggling enterprise into a viable and efficient operation. As per the company's correspondence to Pakistan Stock Exchange in its Half Yearly Report of 2023, SPL's financials reveal a sharp decline in net sales, plummeting to just Rs 14.9 million during the half-year, compared to Rs 385.7 million in the same period a year earlier. The drastic fall is primarily attributed to the plant's shutdown, which has remained non-operational since June 12, 2023. Despite this, the company managed to narrow its losses from Rs 220 million last year to Rs 76.37 million, aided by reduced depreciation and a one-time gain of Rs 84.8 million from the sale of non-current assets. The gross loss stood at Rs 77.5 million, slightly improved from Rs 112.8 million a year ago. The loss per share also shrank from Rs 3.99 to Rs 1.39. However, liquidity pressures persist—current liabilities exceed current assets by an staggering Rs 834 million, and the firm remains unable to meet debt obligations on time. In a bid to reverse the fortunes, SPL has pinned its revival strategy on a multi-pronged BMR (balancing, modernization and replacement) initiative, which includes a transition to modern slurry bed catalyst technology from the outdated fixed bed system. This upgrade is projected to enhance annual production capacity from 30,000 to 40,000 tons, improve yield efficiency, and significantly reduce costs. The company has already entered negotiations with international technology and equipment suppliers and made initial advance payments to that effect. SPL CEO Imran Ghafoor stated that the management aims to 'make the company debt-free and competitive in the long run,' while acknowledging the current economic uncertainties. He also disclosed a rescheduling of a Rs 167 million Sukuk facility, with Rs 296.7 million in accrued markup potentially being waived—conditional upon timely payments under new terms. To finance the BMR, the sponsors plan to inject Rs 355 million by selling assets from an associated company, in addition to seeking fresh bank loans. The management emphasizes that resuming operations under the current obsolete setup, combined with high RLNG and power tariffs would lead to 'unsustainable operational losses.' Therefore, the transition through BMR is being pursued not only as a revival strategy but as an existential necessity. Despite its current struggles, the board has reaffirmed its commitment to long-term sustainability, thanking stakeholders for their continued patience. Copyright Business Recorder, 2025
Business Recorder
20-05-2025
- Business
- Business Recorder
Pakistani brands at Dubai Baby Expo set sight on expansion
DUBAI: Pakistani baby products manufacturers hoped they could wiggle their way into the hearts of mums and babies at the Baby Expo in Dubai. 'We are here to see consumer reaction to our products, some of which are sustainable textiles and reusable products,' Muhammad Safeer, director, Rehbar Majeed Textiles (Pvt.) Ltd told Business Recorder. 'We want to see whether we have a market over here.' The Faisalabad-based company was debuting its sustainable, organic products - sleep suits, swaddles, towel, bathrobes - at the second edition of the expo, which is the Middle East's largest maternity, baby, and toddler event, and was held on May 16 and 17. 'Natural fit': Pakistan's fashion industry makes presence felt in Dubai According to the Economic Survey of Pakistan 2023–24, manufacturing activity recovered somewhat in 2024, but the textile sector recorded negative growth by 8.3 per cent. The report says that rising input costs, a struggling textile sector, lower government spending, high inflation, and elevated policy rates compounded the issue. Presence at events such as the Baby Expo could be key to unlocking expansion. Safeer said the event gave Rehbar insight into customers' preferences. 'Reusable products currently in the market here are not very suitable,' he said, adding that reusable products such as diapers and wipes, are more popular in larger markets, such as the US and Europe. He also learnt the importance of display at such big events. 'I have learned about the display because they have better experience for the Gulf market. I see that there are differences in the display. This market requires a more appealing display with vinyls and stickers, etc.' Another Faisalabad based company that was at the show was Jaguar Middle - East FZC. It was represented by Dubai-based Pakistani business owner, Muhammad Usama Asim. 'It was important for Jaguar to come here to evolve in the new industry that is up and coming ? e-commerce and online ? and to get in touch with new target customers,' he said. The business, which has a manufacturing facility in Faisalabad, has pivoted to work efficiently with smaller clients who require 50 or 100 pieces, said Asim. The business currently has clients in the US and UK and is open to working with new e-commerce clients, not only as a producer but also as industry mentors. 'Everyone wants to launch their own brands and we're here to guide them and to let them know how it's done,' said Asim. Jaguar, which is affiliated with National Hosiery, a well-known brand in Pakistan, makes clothes from sustainable organic cottons, organic blends and bamboo blends for kids born prematurely to those 48 months and older. The brand, said Asim, has evolved as the parents' needs have changed over time. The Baby Expo featured over 250 global brands from the maternity, baby and toddler space and introduced the NextGen: Industry Leaders Summit in which professionals provided insights into emerging trends, market shifts, competitive strategies, and future opportunities in the baby and parenting industry. According to an event press release, the baby market is set to reach $217 billion by 2030, with Dubai's retail sector already having grown by 2.9 per cent to AED 83.12 billion in 2024, creating major opportunities for brands to lead through product innovation and digital advancements. Expo visitors learned about new sustainable product lines, baby accessories, toys, clothes, and cooking tips for nutritious and healthy meals. Panel talks featured industry leaders who shared new research in child development and tips on maternal care and parenting practices. The event was not just about selling products. It also highlighted issues around mental health. Maitha Al Mazroei co-found the Emirati baby clothing brand Sashi, which, similar to Jaguar, uses premium bamboo material. As a mother herself, she wanted to use the brand to spread the message about a new mother's mental health. 'A lot of women, especially new mothers, experience postpartum depression and they don't realize its effects,' said Al Mazroei. 'It's important to differentiate postpartum depression from baby blues,' said Rama Kanj, educational psychologist at The Valens Clinic, who also had a presence at the expo. 'Baby blues is when a mum is feeling low mood, some tiredness, and some low motivation the first few days after giving birth. 'However, postpartum depression generally lasts longer,' she added. 'Its impact is larger on the mother's mental health.' The main concern, said Kanj, is that the mother may not feel a connection with the newborn, the lack of which could hinder the early days or weeks of the development of an emotional bond between the child and the mother. 'Postpartum depression, unfortunately, is still not talked about because birth is supposed to be a happy time,' she said. 'And we don't really understand fully why a mother who just gave birth may be choosing to isolate herself, feel withdrawn, and not want to participate in the celebrations or the visits that people are doing.' In her efforts to raise awareness around the issue, Kanj wants mental health frontliners, such as gynaecologists, to identify symptoms and signs of postpartum depression so that they can make appropriate referrals. But part of the responsibility also falls on those around the mother, she added. 'We know that being well-surrounded socially helps a lot in boosting the mood, helping the mum know that she's not alone, letting her have a safe space to share her feelings and thoughts so that she feels heard.' She said it also helps if the responsibilities of the new mum are shared by others around her. As Kanj works with new parents, she focuses on empowering their parenting journey. Her advice to new parents: 'Don't strive for perfection, [parenting] is a work in progress. Listen to your child. Children communicate through various ways, not only through words but through behaviours as well. And trust your instincts.' Copyright Business Recorder, 2025
