One of the most iconic and recognisable companies in Pakistan, Packages Limited (PKGS), has incorporated a wholly owned foreign subsidiary in the United Arab Emirates (UAE). This is the first subsidiary of the company in the UAE and a continuation of its incorporation of subsidiaries outside of Pakistan. PKGS made the announcement to the Pakistan Stock Exchange (PSX) on Tuesday.
“We are pleased to inform you that the subsidiary has been incorporated under Dubai Integrated Economic Zones Authority Implementing Regulations, 2022 and registered with Dubai Integrated Economic Zones Authority under the name Packages Trading FZCO. The subsidiary will be primarily engaged in commercial trading with import, export, distribution and warehousing as its ancillary activities.”
Dubai Integrated Economic Zones was established in 2021 as a supporter and enabler of three leading free zones in Dubai, namely, Dubai Airport Free Zone, Dubai Silicon Oasis and Dubai Commercity. It aims to enhance Dubai’s leading position around the world, by providing a sophisticated and integrated multimedia system based on the highest standards, a wide global network, in addition to a comprehensive portfolio of innovative solutions that meet the aspirations of customers across various vital industries.
The approval for the incorporation of the UAE subsidiary was given in the board of directors (BOD) meeting of PKGS held on April 27, 2022, last year. Packages Trading FZCO is incorporated after completing all regulatory approvals.
Company profile
Packages Ltd underwent internal restructuring in 2020 and became a holding company. It transferred its manufacturing businesses including folding cartons, flexible packaging, consumer products, mechanical fabrication and roll covers along with all relevant assets and related liabilities to its wholly owned subsidiary (‘Packages Convertors Limited’). The purpose of this arrangement was to develop operating synergies across businesses, managing operations in a focused manner and streamlining the ownership structure.
This means that the performance of Packages Limited is dependent on the functioning of its subsidiaries, Packages Convertors, Bulleh Shah Packaging (Private) Limited, DIC Pakistan Limited, and Packages Real Estate (Private) Limited. Out of all the subsidiaries, Bulleh Shah Packaging has the highest net sales.
Packages has been at the forefront of innovation and leading business in the country ever since it started operation in 1956. Founded by Syed Babar Ali, one of the sons of legendary colonial era Lahori merchant Syed Maratib Ali, the multinational packaging company based in Lahore began as a joint venture between the Wazir Ali Group, and two Swedish companies named Akerlund and Rausing.
The group now owns a number of companies that include the Coca Cola Bottling plant in Lahore, Packages Mall, Milkpak, IGI General Insurance, Treet Corporation, Tullo Cooking Oil, amongst many more.
The principle activity of the company is to manage investments in its subsidiary companies, associated companies and joint ventures, engaged in various businesses including manufacturing of packaging materials, tissue, consumer products, industrial inks, paper, paperboard products and corrugated boxes, biaxially oriented polypropylene (‘BOPP’) and cast polypropylene (‘CPP’) films, ground calcium carbonate products, insurance, power generation and real estate.
In the last quarter ending September 2022, the company posted a profit after tax (PAT) of Rs 1,098 million against Rs 1,535 in the previous quarter. Earnings per Share (EPS) of the quarter were Rs 12.29 against Rs 17.17 in the previous quarter.
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