Azhar Corporation (Pvt.) Limited, a private limited Company, was established in 1979.

Azhar Corporation Pvt. Limited commenced its operations with the production of laundry soap under its flagship brand, “Gai Soap.” In 1999, the Company diversified its product portfolio by launching a beauty soap, “Hoor Beauty Soap.” Demonstrating its commitment to vertical integration, the Company established a vegetable ghee and cooking oil refining unit in January 2014. Further expanding its offerings, Azhar Corporation introduced two new products, “Gai Extra Neat” and “Gai Powerwash,” in the market during 2018.

Azhar Corporation Pvt. Limited operates two distinct business segments: the Soap & Detergent Segment and the Vegetable Ghee & Cooking Oil Segment. The Soap & Detergent Segment encompasses laundry soap, toilet soap, washing powder, and detergents, with a production capacity of 126,000 MT. The Vegetable Ghee & Cooking Oil Segment focuses on the production of ghee and cooking oil, with a capacity of 45,000 MT. The Company sources raw materials such as tallow, palm acid oil, RBD palm oil, RBD palm stearin, RBD palm olein, and Zeolite A4 through imports to support its manufacturing processes. Azhar Corporation’s manufacturing facilities and head office is located in Faisalabad, Pakistan. The organization employs a total workforce of approximately 550 employees, comprising 225-250 permanent staff, with the remainder engaged on a contractual basis.

Company’s ownership resides equally with the sponsoring families of Mr. Azhar Iqbal and Mr. Hassan Munawwar (50% each). Mr. Hassan Munawwar, CEO of the Company holds 43.23%, while his wife Ms. Saba Hassan (6.77%). Mr. Azhar holds 28.3% stake, while his wife Ms. Samina Kausar and daughters hold 8.1% and 13.54% respectively.

The Company is wholly owned by the sponsoring family, fostering a unique and advantageous environment. This ownership structure cultivates a strong alignment of interests, where the family's shared values directly influence the Company's strategic direction. The family's deep commitment to the Company's long-term success ensures a consistent focus on sustainable growth and profitability. Moreover, the emphasis on preserving the Company's legacy across generations encourages a long-term perspective and a commitment to building a sustainable and enduring enterprise.

The sponsoring family’s five decades of dedication have established a profound foundation of industry knowledge and expertise. Mr. Azhar Iqbal who is a seasoned professional with decades of experience in the soap and detergent industry. As a key member of the sponsoring family, he has played a pivotal role in shaping the strategic direction of the Company. His deep understanding of manufacturing processes, market dynamics, and consumer behavior has been instrumental in driving innovation and maintaining the Company’s competitive edge.

Azhar Corporation is built on a strong foundation of stability and financial soundness. The sponsoring family’s substantial financial resources provide the Company with robust support, ensuring sustained growth and resilience amid market fluctuations. Both Mr. Azhar Iqbal and Mr. Hassan Munawwar play a vital role in providing financial support to the Company whenever required, reinforcing its ability to navigate challenges effectively.

Azhar Corporation has four-member Board. All members are from sponsoring family and are executive directors.

The Board consists of four executive directors. Mr. Azhar Iqbal, Co-founder, Director, and Operational Head, boasts an impressive 31 years of industry experience. His deep expertise in manufacturing, market dynamics, and operational management has played a pivotal role in the Company’s achievements. As a visionary leader, he has been at the forefront of driving innovation, optimizing operations, and fostering sustainable growth within the organization. Mr. Azhar's unwavering dedication to excellence continues to inspire the team and uphold the Company’s legacy. Mr. Hassan Munawwar, the Chief Executive Officer of Azhar Corporation Pvt. Limited, brings over 20 years of dedicated leadership and service to the organization. His strategic vision and commitment have been instrumental in driving the Company’s growth and success. Ms. Khadija Azhar, holding an M.Phil degree, contributes four years of professional experience, bringing academic insight and innovative perspectives to the Company. Ms. Zainab Azhar, with a BBA degree and four years of relevant experience, brings valuable skills in business administration and strategic planning, further strengthening the organization’s capabilities.

Board meetings are meticulously documented in formal minutes, capturing comprehensive details of discussions and resolutions. Following each meeting, all resolutions are formally signed by all directors. The absence of sub-committees limits the Board's ability to focus on critical areas, potentially hindering effective oversight. Establishing such committees would enhance decision-making, improve governance, and strengthen the Company’s long-term performance.

The Company's external auditors, Parker Russell-A.J.S. Chartered Accountants, have expressed an unqualified opinion on the financial statements of FY24. The firm has been QCR rated by ICAP and is in the 'B' category of SBP's auditor’s panel

Azhar Corporation operates with a dynamic organizational structure, comprised of six key functional departments: Production, Marketing & Sales, Human Resources & Administration, Accounts, Finance, and Procurement. Each department is effectively managed and overseen by its respective head. These departmental heads are responsible for providing regular reports, encompassing all pertinent information, to both the Chief Executive Officer and the Director, facilitating effective communication and informed decision-making across the organization.

Azhar Corporation's leadership team comprises experienced professionals who contribute diverse expertise to the organization's success. Mr. Azhar Iqbal, Co-founder, Director, and Operational Head, brings an impressive 31 years of industry experience to Azhar Corporation Pvt. Limited. His extensive knowledge of manufacturing processes, market dynamics, and operational management has been instrumental in shaping the Company’s success. As a visionary leader, Mr. Azhar Iqbal has consistently driven innovation, streamlined operations, and introduced strategies that foster sustainable growth within the organization. His ability to adapt to changing market conditions and lead with foresight has helped position the Company for long-term success. Mr. Azhar’s unwavering commitment to excellence and his hands-on approach to leadership continue to inspire the team and ensure the continued success and legacy of the Company. Mr. Hassan Munawwar, the Chief Executive Officer of Azhar Corporation Pvt. Limited, brings over 20 years of dedicated leadership and service to the organization. Throughout his tenure, Mr. Hassan Munawwar has played a pivotal role in shaping the Company’s strategic direction and overseeing its operations. His strong leadership and strategic vision have been crucial in driving the Company’s growth, expanding its product offerings, and enhancing its market presence. Mr. Hassan Munawwar’s commitment to excellence and sustainable success has established him as a key figure in the Company, ensuring continued progress and achievement in an ever-evolving industry. The financial health of the Company is diligently overseen by Mr. Nouman Pervaiz, a qualified Chartered Accountant, who serves as the Manager of Accounts & Finance. With his expertise in financial management, Mr. Nouman is responsible for monitoring the Company’s financial performance, ensuring compliance with accounting standards, and providing strategic financial insights to support informed decision-making. His role is critical in maintaining financial transparency, accuracy, and the overall fiscal integrity of the Company.

Given the current scale and operational complexity of the Company, the absence of formal management committees may present a limitation in terms of effective decision-making and operational efficiency. The establishment of specialized committees, such as an Executive Committee or Operational Review Committee, could enhance strategic planning, facilitate timely decision-making, and improve overall operational effectiveness.

Each business unit consistently generates detailed reports to ensure effective monitoring and decision-making. These include Borrowings Details, providing insights into the unit’s financial liabilities, and Cash Flow Reports, which are reviewed daily by the CEO to maintain oversight of the Company’s liquidity and financial stability. Additionally, Management Information System (MIS) reports are prepared by each business unit for their respective departmental heads, offering comprehensive data on operational and financial performance. These reports serve as a critical resource for senior management, enabling them to make informed, data-driven decisions that align with the Company’s strategic objectives. The Company has developed a proprietary in-house ERP system to streamline business reporting and enhance decision-making processes. Each business unit consistently generates detailed reports to ensure effective monitoring and decision-making. These include Borrowings Details, providing insights into the unit’s financial liabilities, and Cash Flow Reports, which are reviewed daily by the CEO to maintain oversight of the Company’s liquidity and financial stability. Additionally, Management Information System (MIS) reports are prepared by each business unit for their respective departmental heads, offering comprehensive data on operational and financial performance. These reports serve as a critical resource for senior management, enabling them to make informed, data-driven decisions that align with the Company’s strategic objectives.

Azhar Corporation operates a dedicated internal audit function under the leadership of Hammad Zia. This function conducts regular reviews to evaluate and strengthen the Company’s operational controls, with findings and recommendations reported directly to the CEO. However, the current composition of the Audit Committee lacks independent representation, which may limit its effectiveness in providing objective oversight and recommendations.

In soap industry of Pakistan, there are approximately 600 units, approximately 115 units in organized sector, and 450 factories in the un-organized sector making soap & there are employing 400,000 workers in Soap Industry. The Total production of Soap is estimated to be 650,000 Metric Ton per year and Detergent production is approximately 220,000 Metric Ton. A break up of production of Laundry Soap is 400,000 MT and Toilet Soaps Production is 180,000 Metric Ton. On the other hand there is a big quantity of imported Toilet Soap / Liquid Soap used in Pakistan.

Azhar Corporation (Pvt.) Limited holds a significant market share in the laundry soap segment, driven by the success of its flagship brand, "Gai Soap." Additionally, the Company has diversified its operations by initiating the production of vegetable ghee and edible oil.

The Company demonstrated strong sales growth in FY24, with total revenue increasing by 13% to PKR 7.4 billion (FY23: PKR 6.5 billion), driven by solid performances across its two divisions. The Company generates its revenue form two business segments that are soap and detergent segment and vegetable ghee and cooking oil segment. The Soap and Detergent Division remained the primary contributor, accounting for 78% of total sales (FY23: 77%) with revenue rising to PKR 6 billion (FY23: PKR 5 billion). Within this segment, Laundry Soap contributed 52% of total sales, followed by Washing Powder at 18%, Toilet Soap at 5%, and Detergents and Liquids at 2%. The soap segment recorded a year-on-year growth of 13%, reflecting its strong market performance and sustained demand for the Company’s flagship products. The Vegetable Ghee and Cooking Oil Division demonstrated an impressive growth of 11% in FY24, with its revenue doubling to PKR 2 billion compared to PKR 1 billion in FY23. This division accounted for 22% of the Company’s total sales. Within this segment, Vegetable Ghee contributed 13% to overall sales, while Vegetable Oil accounted for 9%, reflecting its growing importance in the Company’s revenue mix. The overall sales performance highlights the Company’s strong market presence, effective strategies, and diversification potential, although optimizing underperforming product lines like toilet soap and detergents/liquids could further enhance growth.

The Company’s margins remained largely stable during FY24. The gross profit margin stood at 12.4% (FY23: 12.5%), while the operating profit margin followed a similar trend, settling at 7.1% (FY23: 7.5%). However, the net profit margin declined to 0.8% (FY23: 1.2%) due to a decrease in net profitability. The finance cost-to-sales ratio showed a slight improvement, reducing to 5.3% (FY23: 5.6%), despite an increase in finance costs, which rose to PKR 398 million (FY23: PKR 368 million). Return on assets remained relatively stable at 0.8% (FY23: 1.0%), supported by consistency in total assets. Correspondingly, the return on equity declined to 1.5% (FY23: 2.0%). On a positive note, the asset turnover ratio improved to 99% (FY23: 88%), reflecting the Company’s enhanced efficiency in generating revenue from its asset base, driven by increased sales.

The company's flagship brand, "Gai Soap," continues to secure a strong and sustained market position, underpinned by its significant brand equity. Furthermore, the company's strategic expansion into detergents and beauty soaps has enhanced its product portfolio, adding substantial value to its market presence.

The Company demonstrated an improvement in its working capital cycle during FY24, as evidenced by a reduction in both gross working capital to 230 days (FY23: 247 days) and net working capital to 191 days (FY23: 204 days). This improvement was driven primarily by better management of payable days, which decreased to 39 days (FY23: 43 days), reflecting effective supplier payment strategies. Despite the overall improvement in the working capital cycle, the Company's inventory days deteriorated to 186 days in FY24 (FY23: 170 days), indicating slower inventory turnover. This suggests potential challenges in demand forecasting, production planning, or market conditions that led to a buildup of inventory. The extended inventory holding period increases carrying costs and ties up additional working capital, which may offset gains achieved in payables management. The Company’s current ratio improved slightly to 4.3x in FY24 (FY23: 4.2x), reinforcing its strong short-term liquidity position. This indicates that the Company has ample current assets relative to its current liabilities, providing a significant buffer to meet near-term obligations. However, the high current ratio, coupled with the increase in inventory days, suggests that a considerable portion of the Company's liquidity may be tied up in less liquid assets, such as inventory, rather than readily available cash or receivables.

Despite higher finance costs, the Company maintained stable coverage levels during FY24, with a debt service coverage ratio of 1.6x, unchanged from FY23. This stability was driven by a notable increase in free cash flows from operations (FCFO), which rose to PKR 622 million in FY24 from PKR 587 million in FY23. The total coverage ratio, however, saw a minor decline to 1.5x in FY24 (FY23: 1.6x), attributed to an increase in the current maturity of long-term debt, which grew to PKR 13 million in FY24 compared to PKR 10 million in FY23. The debt payback ratio remained consistent at 0.3x, reflecting sustained repayment capacity. Furthermore, the Company’s liquidity showed marginal improvement, with the liquidity ratio increasing to 3.6x in FY24 from 3.5x in FY23, indicating better short-term financial health.

The Company maintained a low leverage ratio of approximately 35% during FY24 (FY23: 34%), primarily driven by an increase in equity, reflecting a prudent financial structure with limited dependence on debt. Short-term borrowings accounted for 97% of the Company’s total debt, at PKR 2.0 billion in FY24, a slight increase from PKR 1.9 billion in FY23. The reliance on short-term financing underscores the Company's focus on meeting working capital requirements or managing operational liquidity. Furthermore, the Company demonstrated improved financial discipline, as evidenced by a reduction in interest or markup payable days to ~81 days in FY24, compared to ~94 days in FY23. This improvement highlights enhanced efficiency in managing financial obligations.