Jump to content

Packages Limited

From Wikipedia, the free encyclopedia

Packages Limited
Company typePublic
PSX: PKGS
KSE 100 component
IndustryPackaging
Founded1956; 68 years ago (1956)
FounderSyed Babar Ali
HeadquartersLahore-54760, Pakistan
Key people
Syed Hyder Ali (CEO)[1]
ProductsTissue paper, flexible packaging, folding cartons, paper & board and corrugated packaging
RevenueIncrease Rs. 156.972 billion (US$540 million) (2023)
Increase Rs. 28.930 billion (US$100 million) (2023)
Increase Rs. 9.277 billion (US$32 million) (2023)
Total assetsIncrease Rs. 234.820 billion (US$810 million) (2023)
Total equityIncrease Rs. 96.387 billion (US$330 million) (2023)
OwnerIGI Investments (29.90%)
Babar Ali Foundation (11.1%)
Syed Hyder Ali (5.45%)
Number of employees
4,051 (2023)
ParentIGI Group
SubsidiariesBulleh Shah Packaging (100%)
Packages Convertors Limited (100%)
StarchPack Limited (100%)
Packages Lanka (79.07%)
Packages Mall (75.16%)
Tri-Pack Films Limited (69.26%)
OmyaPack Limited (50%)
Hoechst Pakistan (41.07%)
IGI Holdings (10.54%)
Nestle Pakistan (8.05%)
Websitepackages.com.pk
Footnotes / references
Financials as of 31 December 2023 [2]

Packages Limited, also known as Packages Group, is a Pakistani multinational packaging company based in Lahore.[3][4]

Packages was founded in 1956.[5] It is listed on the Pakistan Stock Exchange.

History

[edit]

Packages Limited's history goes back to 1954, when during a visit to Sweden, Syed Babar Ali proposed a partnership with Akerlund & Rausing, a leading Swedish packaging firm, to establish a manufacturing facility in Pakistan for paper, cardboard, cellophane, and plastic film packaging.[6] The initiative was aimed to reduce the family group's dependence on imported packaging materials, especially for their razor blade operations of Treet Corporation.[6] The partnership was recommended by the Pakistan Tobacco Company (PTC), which vouched for the Swedish firm's reliability and interest in international expansion.[6] The approval for the joint venture from the Government of Pakistan was granted after nearly two years, with construction beginning in late 1956.[6] Packages Limited was incorporated in 1956.[5]

The ownership structure initially allocated 77.31 percent of the equity to the Ali family, with the remaining 22.69 percent going to the Swedish firm in exchange for technical expertise, managerial assistance, and the supply of European machinery necessary for starting operations.[6] Additionally, the contract included a clause for ongoing technical assistance, providing the Swedish partners with an annual payment of $35,000 through 1976.[6] During the first three years, 22 Swedish experts were involved in the project.[6] By 1974, Akerlund & Rausing's equity had been diluted to 14 percent, following the issuance of new shares to raise capital starting in 1965.[6]

By 1960, Packages Limited had expanded its workforce to accommodate an additional shift, resulting in a doubling of its output by 1964 compared to 1957.[6] Initially, the Pakistan Tobacco Company (PTC) constituted about 80 percent of Packages' business in its inaugural year; this figure had decreased to 12 percent by 1974.[6] Over this period, the company's annual sales growth averaged 15 percent since 1968, reaching PKR 150 million by 1974.[6] The workforce transitioned entirely to local Pakistani employees as the initial group of 22 Swedish expats had been replaced through local training programs.[6]

In 1965, Packages Limited became a publicly traded company and raised PKR 16 million from the general public.[6] Additionally, the International Finance Corporation (IFC) acquired a 13 percent equity stake by investing PKR 4 million.[6] The ownership held by the Ali family decreased from approximately 47 percent of the common stock in 1965 to just under 30 percent by 1974.[6]

By 1974, Packages was managing its own paper mill.[6] Its Packaging Division was involved in the production of various types of packaging materials, including offset and flexo printed cartons, wrappers, labels, transport containers, and corrugated boxes, using materials such as cardboard, paper, cellophane, and plastic film.[6] The company also started producing Tetrapak containers, designed specifically for the dairy and beverage industries.[6]

Packages had also expanded into manufacturing standard office supplies such as notebooks, file covers, duplicating paper, and stationery.[6] However, these items had not developed into major sources of revenue and were generally considered a minor aspect of the company's operations.[6]

In 1981, Packages expanded its operations at its Lahore plant.[7] The paperboard production capacity increased from 16,500 to 22,500 metric tons per annum.[7] Additionally, the conversion capacity for Tetra paper was doubled to 2,900 tons annually, and the production of tissue paper was set to reach 350 tons per year.[7] The expansion involved a total investment of $9.8 million, funded by several financial entities.[7] The International Finance Corporation (IFC), contributed $2.1 million in loan, the Pakistan Industrial Credit and Investment Corporation (PICIC) provided $0.88 million, while the American Express Banking Corporation allocated $0.727 million towards the project.[7]

Subsidiaries

[edit]

The group owns the following companies:[8]

  • Packages Convertors Limited
  • Bulleh Shah Packaging Pvt. Ltd
  • Tri-Pack Films Limited
  • DIC Pakistan Limited
  • OmyaPack
  • StarchPack
  • Packages Lanka Pvt. Ltd. (Sri Lanka)
  • Flexible Packages Convertors (South Africa)[9]
  • Chantler Packages (Canada)
  • Packages Power
  • Packages Mall
  • IGl Holdings Limited
  • IGI General Insurance Limited
  • IGI Investments Pvt Limited
  • IGl Life Insurance Limited
  • IGI Securities
  • IGI FSI

References

[edit]
  1. ^ "Syed Hyder Ali, Igi Holdings LTD: Profile and Biography". Bloomberg News.
  2. ^ "Packages Limited Annual Report 2023" (PDF). Retrieved 20 May 2024.
  3. ^ Malik, M. Abdur Rahman; Rana, Arif I.; Bashir, M. Farhan (2014). "Packages LTD. Capacity Addition in Carton Line: Riviera vs. Austin". Asian Journal of Management Cases. 11: 23–36. doi:10.1177/0972820113520208.
  4. ^ "Big changes at Packages". Profit by Pakistan Today. 28 March 2021.
  5. ^ a b "Packages sells Tetra Pak shares for $115m". Dawn. 14 March 2009. Retrieved 17 December 2018.
  6. ^ a b c d e f g h i j k l m n o p q r s t Austin, James E. (2008). Strategic Management In Developing Countries. Simon and Schuster. pp. 270–272. ISBN 978-1-4391-1983-9.
  7. ^ a b c d e "Packages expansion project".
  8. ^ "Our Group - Packages Limited". packages.com.pk website. Retrieved 17 December 2018.
  9. ^ Naeem, Zain (21 October 2024). "How Packages' ill-fated South African adventure led to billions in losses". Profit by Pakistan Today.
[edit]
Retrieved from "https://en.wikipedia.org/w/index.php?title=Packages_Limited&oldid=1265015004"