Press Release
VIS Reaffirms Entity Ratings of Power Chemical Industries Limited
Karachi, July 24, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed entity ratings of Power Chemical Industries Limited (‘PCIL’ or ‘the Company’) at 'A-/A2' (Single A minus/A Two). Medium to long term rating of 'A-' indicates good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy. Short-term rating of 'A2' indicates good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned ratings remains ‘Positive’. Previous Rating action was announced on June 24, 2025.
PCIL, a family-owned business; was incorporated in 2008 as a private limited company and was subsequently converted into an unlisted public limited company in 2015. The Company is principally engaged in the manufacturing and sale of a diverse range of chemical products. The head office is in Faisalabad, while its two manufacturing facilities are situated in Khurrianwala. The Company’s origins trace back to 1977, when late Mr. Muhammad Afzal established a small dry powdered glue manufacturing unit, which subsequently evolved into the present day organization.
VIS classifies Pakistan's chemical sector as medium to high risk, reflecting its cyclical nature and exposure to economic activity. The Company's diversified customer base provides demand stability, while its leadership position in the paint and coatings segment (estimated market share of ~57%) and second-largest position in plasticizers (estimated market share of ~20%) support its competitive profile. Although reliance on imported crude oil-based raw materials exposes operations to international price and exchange rate volatility, bulk procurement efficiencies, limited import competitiveness, and tariff protection on certain finished products provide partial mitigation.
The assigned ratings reflect the Company’s established footprint in the domestic chemical sector and its well-diversified product portfolio. Supporting this profile is adequate financial risk, characterized by moderate reliance on debt, and satisfactory liquidity position. The Company has demonstrated adequate capitalization and debt servicing capacity despite moderation in profitability indicators during the review period.
The sector profile remains constrained by exposure to international petrochemical price volatility as operations rely heavily on imported raw materials; fluctuating global commodity prices continue to pressure profitability. Additionally, the working capital intensive nature of business and sensitivity to broader macroeconomic cycles, specifically demand elasticity within key downstream end-users remain key rating considerations.
Going forward, the ratings will remain dependent on the Company’s ability to sustain operating performance, maintain profitability, optimize cash flow generation, preserve adequate liquidity, and debt coverage metrics.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Industrial Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://vis.com.pk/docs/VISRatingScales.pdf