The Pakistan Credit Rating Agency (Pacra) has maintained both long-term and short-term ratings of Tripack Films Limited (TPFL) at 'A+' (Single A Plus) and 'A 1' (A One), respectively. These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.
TPFL ratings reflect its dominant market position supported by its quality brand image and the continuing strategic relationship with customers.
The company's margins, having been under pressure in recent years, are likely to improve on account of stable raw material prices.
The ratings also recognise the substantial capacity enhancement and the well-conceived export strategy which together will help the company to withstand the emerging competitive pressures.
Established in 1993, TPFL is engaged in manufacturing of Biaxially Oriented Polypropylene (BOPP) film. It is a joint venture between Packages Limited (PL) and Mitsubishi Corporation of Japan. Having started commercial production in 1995 the company is listed on all bourses in Pakistan. The company started its operations with a rated capacity of 5,400 tons per annum, which subsequently doubled with the commencement of second production line in 2001.
Owing to the commencement of third production line, the rated capacity of the company increased to 26,800 tons per annum in 2004.
With around 64 percent market share of the BOPP film in the country, TPFL is the largest producer in Pakistan with state-of-the-art technology of the third production line that has enabled the company to increase its penetration in the high value-added end of the market.
In order to optimise the capacity utilisation, the company has chalked out strategy to export BOPP film to Saarc countries, Africa and the Middle East.
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