Packages 2008

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Packages Limited (“Packages” or the “Company”) is Pakistan’s premier pulp and paper packaging company that has been an IFC client since 1964. It is listed on all the three stock exchanges of Pakistan. The company’s product range includes: paper and paper board (brown and white); writing and printing paper; tissue and sanitary products; and, flexible packaging products. It principally uses wheat straw, recycled and waste paper to produce paper and paper products. Packages is the market leader in sophisticated and high quality packaging products and the only company that provides complete packaging solutions under one roof in the country. Packages has strong business relationships with major multinationals operating in Pakistan such as Unilever, Nestle, P&G, Colgate and Tetrapak. Packages is about to complete its expansion program, started in 2005, to increase capacity to 300,000 tons per annum (“tpa”) from 100,000 tpa. To achieve financial stability and secure long term viability, the company proposes to retire some $70 million of debt raised for the expansion and invest some $30.0 million to implement an environmental upgrade program and de-bottlenecking of its plant to enhance operational efficiencies (the “Project”) and capacity enhancements in its Packaging division. The total Project cost of some $100 million is proposed to be financed with a combination of equity/quasi equity and internally generated cash from operations during 2009-10 of the company.