Press Release
VIS Maintains Entity Ratings of Utopia Industries (Private) Limited
Karachi, January 02, 2026: VIS Credit Rating Company Limited (VIS) maintains entity ratings of Utopia Industries (Private) Limited (‘UIPL’ or ‘the Company’) at A-/A2’ (‘Single A Minus /A Two’). The medium to long-term rating of ‘A-’ signifies good credit quality and adequate protection factors; 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 changed to ‘Positive’ from ‘Stable’. Previous rating action was announced on September 10, 2024.
Utopia Industries (Private) Limited is a division of Utopia Group, owned and managed by two brothers. The company manufactures and exports a broad range of products, including terry towels, pillows, comforters, mattress toppers, mattress encasements and protectors, bed sheets, cookware, plastic goods, and personal care items. It is also expanding its portfolio into plastic and kitchenware products. The registered office and all production facilities are located on the Super Highway in Karachi.
The assigned ratings reflect Utopia Industries (Private) Limited’s (‘UIPL’ or ‘Utopia’ or ‘the Company’) established position in the export-oriented home textile segment, supported by its strong relationship with its key customer and group company, Utopia Towels Inc., USA (‘UTI’). The Company was established to serve as backward integration or production arm for UTI which primarily distributes the products through Amazon to customers across the United States, the United Kingdom, and Canada. Based on UTI’s marketing strength, Utopia has emerged as one of the top 20 exporters in Pakistan over the past 3 years.
The ratings also reflect UIPL’s conservative financial risk profile and sponsor support. The capital structure is supported by strong profitability, retained funds and frequent capital injections by the sponsors to incur capital expenditure to expand operations. Future ratings will remain sensitive to the Company’s ability to sustain profitability margins and maintain a low risk profile through an appropriate mix of debt and equity to support planned expansions aligned with UTI’s marketing strategy. The revision to a ‘Positive’ Outlook is contingent on demonstrable improvement in profitability, supported by satisfactory financial performance going forward.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Corporates:
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf