Security Papers Limited (SEPL) is in the business of manufacturing of Banknote Paper and other security papers such as Prize Bonds, Defence Savings Certificate, Non-Judicial Stamp paper, Child Registration Certificate, certificate paper for educational boards and degree paper for universities. SEPL was established in 1965 as a private company. In 1967 it was converted into a public limited and was listed on Karachi Stock Exchange now known as Pakistan Stock Exchange.
The company started its production in 1969 as a joint venture company of Iran, Turkey and Pakistan, under Regional Cooperation for Development (RCD) now known as Economic Cooperation Organisation (ECO). The commercial production of the old paper machine PM-1 was started in 1969.
The production process of the company involves the input of locally produce cotton comber, textile waste and water as raw material. The Pakistan Security Printing Corporation (Pvt) Limited (PSPC) is the primary customer of SEPL.
SEPL's production facilities now consist of new state of the art paper machine PM-2 of German origin, which started commercial production in 2003. The machine is producing high quality specialised paper of international standard for a variety of security documents with custom made security features. Over the years SEPL has gradually enhanced the paper production capacity which has increased from 2,000 tons to 2,500 tons extended up to a maximum of 3,000 tons per annum. Security Papers have many achievements under its belt including Corporate Excellence Award 2009, ISO certifications 2009, Best Corporate Report Award 2008. Pakistan Security Printing Corporation (Pvt) Limited (PSPC) is also the associated company of SEPL. In 2016, the company has also started to print passport paper.
Historical performance
During the period from FY11-15, SEPL has witnessed an average annual growth rate of 13.22 percent. The company achieved decent profit margins and returns on equity and assets in the past several years. Gross profit margin stood at 26 percent in FY11. However, its highest point was in FY12 when it touched 33 percent. Gross margin declined slightly in FY13 and FY14, but jumped back to 32 percent in FY15.