Pakistan Aluminium Beverage Cans given initial entry ratings by PACRA
The Pakistan Credit Rating Agency Limited [PACRA] has given Pakistan Aluminium Beverage Cans Limited [PABC] initial entry ratings.
On November 25, the company’s PSX filing displayed two primary entry ratings: “A+” for the long term and “Al” for the short term with a steady exposure.
The demand of aluminium cans is directly linked with consumption of beverage drinks which is always in increasing trend. The business model of PABC is that of B2B and directly supplies aluminium cans to beverage producers.
High entry barrier and time for installation of production plant has provided strength to the company to establish its brand name and capture entire market share of Pakistan along with major share of clients in Afghanistan and other countries.
The CEO, Azam Sakrani, has an extensive knowledge of the industry with overall 30 years of experience and the chairman, Simon Michael Gwyn Jennings, has an overall 40 years of experience in global packaging industry.
The governance structure is considered strong being fully compliant according to CCG guidelines, having sufficient number of board meetings and detailed minutes of meetings.
Furthermore, external auditors are category-A with satisfactory QCR rating. The Company has recently increased its rated production capacity from 700million cans to 950million cans p.a. PABC has financed and installed on-grid solar system as well fulfilling major energy needs of the company.
Going forward, the Company is planning to enhance its rated capacity to 1,200mln cans p.a. by Jul’23 and improve market share for aluminium beverage cans in Pakistan and abroad by adding leading brands to its clientele.