Ghani Chemical Industries Maintains Strong Ratings Amid Strategic Expansion

Lahore: The Pakistan Credit Rating Agency Limited has maintained the ratings of Ghani Chemical Industries Limited, reflecting its robust business profile and strategic expansion efforts. The company holds a notable market share in the manufacturing and sale of medical and industrial gases and has recently undertaken a significant corporate restructuring to enhance its operational focus.

The company’s ratings remain stable, with a long-term rating of A and a short-term rating of A1. This stability is supported by its market leadership in the production of gases such as Oxygen, Nitrogen, and Argon. Ghani Chemical Industries has also ventured into the import and sale of Calcium Carbide, a move that accounts for 15% of its total revenue.

In a strategic move to streamline operations, the company has spun off its Calcium Carbide business into a separate entity, Ghani ChemWorld Limited, which is now listed on the Pakistan Stock Exchange. This new entity will operate a manufacturing facility with a production capacity of 75 tons per day, located in the Hattar Special Economic Zone.

Ghani Chemical Industries currently operates four production facilities in Lahore and Karachi, achieving a capacity utilization of approximately 67%. The company has also launched an industrial and medical gases plant in the Hattar Special Economic Zone, which is the largest of its kind in Pakistan, with a production capacity of 275 tons per day.

Additionally, Ghani Chemical Industries is in the process of relocating one of its Lahore-based plants to Oman to meet increasing demand in the medical sector. The industrial and medical gases sector is poised to benefit from favorable macroeconomic conditions, including a stabilized exchange rate and declining inflation.

For the nine months of the fiscal year 2025, Ghani Chemical Industries reported revenue of approximately PKR 5.3 billion, marking a 31% year-on-year growth. This growth was driven by an optimized pricing strategy that improved operational margins.

The company’s financial performance is supported by a strategic governing board and experienced management. While the company’s capital structure is leveraged, its financial risk profile remains strong with adequate coverages and cashflows. The ratings are contingent on the company’s ability to effectively utilize its enhanced capacities and manage its financial risks.