Tariq Glass Industries Ltd (PSX: TGL) is a Lahore based glass manufacturing company, and it is engaged in manufacture and sale of glass containers, tableware and float glass. It works under multiple brands names that include Toyo Nasic, Omroc and Nova. TGL has become an outstanding player of glass manufacturing industry of Pakistan over the last two decades.
A sole manufacturer of glass tableware products in Pakistan's Lahore base plant has two dedicated tableware glass furnace with a cumulative production capacity of 250 MTPD. The plant has a combination of single and double gob press machines as well as H-28 press and blow and stretch machines for a selection of products including tumblers, mugs, jugs, ashtrays, plates, bowls, ice cream cups, fruit sets, goblets, etc. During FY15, the company undertook a capacity expansion and scheduled maintenance program on one of its tableware furnace, enhancing its production capacity from 110 MTPD to 140 MTPD. Additionally, Tariq Glass Industries Ltd has the facility of fully automated, state-of-the-art printing machines, with the capability of printing six colours simultaneously, including quality gold and silver banding.
TGL not only fulfils domestic demand but also exports its products to various countries across Europe, Middle East, Africa, Asia and the Far East. It also has the technical collaboration with Toyo Glass of Japan.
Tariq Glass Industries Limited vs. Ghani Glass Limited
Before TGL penetrated into float glass market in FY13 with a single furnace based 550 MTPD float glass production line. Ghani Glass Limited, which was the only manufacturer of float glass in Pakistan at that time. Ghani fought with TGL penetration by cutting down its prices significantly to stop TGL penetration. However, now because of different market segments and strategy along with a reduction in production capacity of Ghani float glass, TGL float has been able to raise its market share significantly from 11 percent during FY13 to 44 percent during FY15.
Financial performance
The top line performance of Tariq Glass Industries Limited has stayed quite phenomenal over the years. During the period from FY10 to FY14, Tariq's top line has expanded at a compound annual growth rate of 30 percent. In FY11 the company was able to register the highest ever gross sales of Rs 2.6 billion representing 26 percent top line year-on-year growth over last year. This performance was a remarkable achievement despite the devastating floods and the worsening gas non-availability scenario prevailing throughout the year. However, the gross margins