The Pakistan Credit Rating Agency (Pacra) has maintained both the long-term and the short-term ratings of Tri-Pack Films Limited (TPFL) at "A+" (single A plus) and "A1" (A one), respectively. These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.
TPFL's ratings reflect its market leadership position supported by its quality brand image and strategic relationships with prime clients. The company's margins remained under pressure, which resulted in lower profitability. However, with overall increasing volumes the company's cash flows continued to remain robust.
The ratings also recognise the substantial increase in its production and the well conceived export strategy, which has helped the company withstand the competitive pressures.
Established in 1993, the TPFL is engaged in manufacturing of Biaxially-Oriented Polypropylene (BOPP) film. It is a joint venture between the Packages Limited (PL) and the 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 tonnes per annum, which has increased to 26,800 tonnes per annum.
With around 74 percent market share of the BOPP film in the country, the TPFL is the largest producer in Pakistan. The constant and improving quality of TPFL's product has established it as a quality producer in the market.
In the medium-term, the company's management plans to further enhance its capacity, benefiting from growing local demand and opportunities available in the export market.
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