Press Release
VIS Updates the Outlook on Entity Ratings of Ghani Chemworld Limited
Karachi, November 13, 2026: VIS Credit Rating Company Limited (VIS) has revised the outlook on entity ratings of Ghani Chemworld Limited (‘GCWL’ or ‘the Company’) from ‘Stable’ to ‘Negative’, while maintaining the medium to long-term entity ratings 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. Previous rating action was announced on January 19, 2026.
Ghani Chemworld Limited, incorporated on July 31, 2024, operates as a public limited company listed on the Pakistan Stock Exchange. The entity functions as a subsidiary of Ghani Global Holdings Limited, which maintains a controlling equity stake of 55.95%. The company was established to manufacture, process, and trade industrial chemicals, focusing on domestic import substitution. Its operational foundation was formed through a court-sanctioned Demerger/Merger Scheme in February 2025, which transferred the Calcium Carbide Project, alongside all associated regulatory concessions and a 10-year tax holiday, from Ghani Chemical Industries Limited to the newly formed entity. The primary manufacturing facility is located on a 13.34-acre site within Zone-B of the Hattar Special Economic Zone. After concluding the initial project development and testing phases, the plant commenced commercial production of calcium carbide in March 2026. The facility operates with an annualized design capacity of 25,000 tons. To diversify its product base and optimize capacity utilization, the company is currently progressing with the installation of a Precipitated Calcium Carbonate (PCC) manufacturing plant. This secondary unit is designed with an initial production capacity of 100 tons per day and is scalable to 180 tons per day in response to future market demand dynamics.
The revision in outlook reflects the weakening of the Company’s business risk profile amid heightened geopolitical tensions arising from the US-Iran conflict, which have disrupted regional maritime routes and constrained access to the Middle Eastern markets, a key target market for its export-oriented operations. Consequently, the Company temporarily suspended manufacturing operations in October 2026 and shifted its focus towards liquidation of existing inventory in the domestic market. The operational disruption, coupled with the facility’s early-stage operating profile, has adversely affected capacity utilization, profitability, and internal cash generation, while liquidity indicators remain constrained. Furthermore, uncertainty surrounding the duration of regional hostilities and the timeline for resumption of export activity continues to weigh on near-term business prospects. The impact of these challenges is, however, partly mitigated by the established standing of the sponsor group and committed support for debt servicing.
For further information on this rating announcement, please contact at 021-35311861-64 or email at info@vis.com.pk
Applicable Rating Criteria:
Corporate Rating
https://docs.vis.com.pk/Methodologies-2026/Corporate-Rating-2026.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf