Transmission of Annual Report for the Year Ended June 30, 2025

Annual Report2025

Annual Report 2025

OUR STORY

CandyLand is where it all started in 1988 with our first factory bringing to life the largest confectionery company of Pakistan. Our strong fundamentals of honesty, dedication and relentless hard work has seen us become a name of quality and consumer trust for over three decades. CandyLand is an incredible and inspiring story of determination which has made it the market leader in the confectionery business.

In 2002, the Bisconni division was introduced, which soon became one of the fastest-growing biscuit Industries in the country. In 2006, the SnackCity division was set in motion to explore the chips and peanuts category. Our business further strengthened when, in the same year, Astro Films was launched as a specialized division that manufactures packaging and plastic films.

At Ismail Industries Limited (IIL), we take pride in being ISO 22000 certified and meeting the global quality standards specified by the International Organization for Standardization dealing with food safety. We are also certified by SANHA (South African National Halaal Authority) which is a leading authority in the certification of Halaal products around the world.

For over two decades, IIL has been exporting its products to more than 40 countries in North America, Europe, Australia, Africa, the Far East, and the Middle East. Our long-standing customer relationships are a testament to our commitment to manufacturing the highest quality products and ensuring the satisfaction of our customers all around the world.

Our employees operate in an environment where they are empowered to think and act in the highest interest of our key stakeholders. It is the same culture of innovation that has resulted in many home-grown ideas resulting in some of the most innovative products brought to Pakistan's confectionery, biscuit, and snacks market along with various achievements internally on driving efficiency and operational excellence.

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WELCOME

Our vision is to grow the business, while decoupling our environmental footprint from the growth and increasing our positive social impact.

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Ismail Industries Limited is one of the largest business entities of Pakistan.The company has a diverse portfolio ranging from food products (confectioneries, biscuits, snacks, nutrition and flour) to high-quality packaging films.

Our mission is to capitalize on our core values and maximize our customers' satisfaction through continuous efforts of delivering consistent quality of products. We aim to constantly empower and enable our people to deliver value for our consumers. Our target is to extensively cater to the home markets and to strengthen our roots in international ones. The overarching mission of Ismail Industries Limited is to become a socially responsible organization that contributes towards the betterment, growth and development of Pakistan.

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Ismail Industries' vision is to continue its growth trajectory in the coming years and to become the largest manufacturing company in Pakistan. It aims to serve its customers with delightful treats and products with the promise of taste and bringing smiles. The company plans to become the best snacking company in the country through its strategy focused on quality products, leveraging people's capabilities, employing technology for efficiency, bold innovation, and continuous process improvements.

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Table of Contents

Organizational Overview

and External Environment

01

Risks and Opportunities

03

Governance

05

Business Model

07

Future Outlook

09

Striving for Excellence in

Corporate Reporting

11

Shareholders information

13

02

Strategy and Resource Allocation

04

Sustainability Disclosures and Corporate

Social Responsibility (CSR)

06

Analysis of the Financial Information

08

Disclosures on IT Governance

and Cybersecurity

10

Stakeholders Relationship and Engagement

12

Financial Information

9

Organizational 01

Overview and External

Environment

• Company Profile 11

• Code of Conduct, Ethical, Principal & Core Values 12

• Geographical Presence 15

• Organization Chart 16

• Group Structure & Ownership Structure 17

• Legitimate needs, Interest of Key Stakeholders 19

• Competitive landscape and Market Positioning 19

• Principal Business Activities and Launches 20

• Swot & Pestel Analysis 68

• Calendar of Events & History of Major Events 70

• Position in Value Chain & Factors Affecting External Environment 72

  
  
  

• Legislative & Regulatory Environment 73

Company Profile

BOARD OF DIRECTORS

Mr. Muhammad M. Ismail Mr. Munsarim Saifullah Mr. Ahmed Muhammad

Mr. Hamid Maqsood Ismail Mr. Maqsood Ismail

Mr. M. Zubair Motiwala Ms. Tasneem Yusuf

AUDIT COMMITTEE MEMBERS

Ms. Tasneem Yusuf

Mr. Muhammad M. Ismail Mr. Maqsood Ismail

HUMAN RESOURCE & REMUNERATION COMMITTEE

Mr. M. Zubair Motiwala Mr. Maqsood Ismail

Mr. Hamid Maqsood Ismail

HEAD OFFICE

17, Bangalore Town,

Main Shahrah-e-Faisal, Karachi, Pakistan

COMPANY SECRETARY

Mr. Abdul Basit

LEGAL ADVISOR

Mohsin Tayebaly & Co.

SHARE REGISTRAR

THK Associates (Pvt.) Limited

CHIEF FINANCIAL OFFICER

Mr. Ahmed Raza Parekh

AUDITOR

Grant Thornton Anjum Rahman Chartered Accountants

Chairman

Chief Executive Officer Executive Director

Non-Executive Director Non-Executive Director Independent Director Independent Director

Chairperson Member Member

Chairman Member Member

BANKERS / INSTITUTIONS

Meezan Bank Limited Habib Bank Limited Askari Bank Limited National Bank of Pakistan MCB Bank Limited

Allied Bank Limited Bank Al Falah Limited JS Bank Limited

The Bank of Punjab Faysal Bank Limited

FACTORIES

Unit-1: C-230, H.I.T.E., Hub,

Balochistan, Pakistan.

Unit-2: B-140, H.I.T.E., Hub,

Balochistan, Pakistan.

Unit-3: G-1, H.I.T.E., Hub,

Balochistan, Pakistan.

Unit-4: G-22, H.I.T.E., Hub,

Balochistan, Pakistan.

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Unit-5: 38-C, Sundar Industrial Estate, Raiwind Road, Lahore, Pakistan.

Unit-6: D-91, D-92 & D-94, North Western Industrial Zone, Port Qasim, Karachi, Sindh, Pakistan.

Unit-7: E164-168, North Western Zone, Port Qasim, Karachi, Sindh, Pakistan.

Unit-8: E154-157, North Western Zone, Port Qasim, Karachi, Sindh, Pakistan.

Unit-9: G-1A, H.I.T.E., Hub,

Balochistan, Pakistan.

Unit-10: E164-168, North Western Zone, Port Qasim, Karachi, Sindh, Pakistan.

Code of Conduct

IIL aims at maintaining the Organizational Culture that Promotes Transparency and Accountability through honesty, integrity and diligence in dealing with employees, customers, financial market, government, regulatory authorities and other stakeholders.

Gender Equality

Compliance to Law / Policies

Exercise of Authority

Gender equality must be strictly upheld and

promoted by the company without regard to race, religion, ancestry, family status, age, disability, or any other factor. Equal opportunities to employees in professional growth

will be afforded to all irrespective of any gender or racial/religious biases.

We shall not make, recommend, or cause any action, contract, agreement, expenditure, and investment or an activity that is known

or believed to be in contravention of any regulation or law or corporate/Company policy.

We won't make use of our respective positions and authority to compel, persuade, harass, coerce, or intimidate any manner influence any person,

including subordinates, in order to supply any favour, gift or benefit, whether financial or otherwise, to ourselves.

Protection of Property

Reporting of Illegal / Unethical Conduct

Reputation

We will not disclose or use the Company's trade secret, proprietary or confidential information gained in

the fulfillment of company obligations as a means of making private profit,

gain or profit.

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We will safeguard the company's assets, plant assets, materials of every kind, production equipment and products.

We'll follow a strict policy. for protection and "whistleblowing" against retaliation.

Employees must be supported. to report any unethical behaviour, violation of laws, rules, regulations, Procedures and policies of the company or a Code of Conduct for the particular committee.

We shall maintain reputation of the Company as a valuable asset and

we are aware of our reputation will rule through our words and deeds.

Ethical Principal

It is the policy of IIL to follow the highest business ethics and standards of conduct.

It is the obligation of every one of us to behave in a responsible manner; that is, to be truthful, dependable, conscientious, and dedicated to upholding the highest standards of ethical business practices.

• Directors' and employees' actions have a direct impact on the company's reputation and legal standing. Each one of us must endeavour to act according to the highest ethical standards and to be aware of and abide by applicable laws.

• We all must ensure that our personal conduct is above reproach and complies with the highest standards of conduct and business ethics, and have the obligation to ensure that the conduct of those who work around us complies with these requirements. The Code of Business Conduct and Code of Ethics of the Company will be fairly and without prejudice.

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• This code to which the Company is committed in maintaining the highest standards of conduct and ethical behaviour is a moral as well as a legal requirement that applies equally to all employees and directors of the Each member of the company has received a personal copy.

Core Values

BELIEF

Our objective is to keep dreams alive. We have faith in the notion that belief in oneself and the overall purpose is the first step to achieve something. We strongly believe in our products, our processes, our partners, and above all - we believe in each other.

LEADERSHIP

We believe that business performance is driven by effective leaders who can truly inspire people to unleash their individual and collective potential. We focus on providing a leadership that provides a vision, inculcates aspirations, promotes communication, and displays passion.

EXCELLENCE

Our corporate purpose is to manifest excellence in our performance attitude. We view it as a continuous process that enables us to excel in everything we do.

FAIRNESS

Fairness is a professional behavior that establishes reliability and credibility. We keep fairness paramount -we do what we say.

TEAMWORK

We focus on leveraging collective efforts and nurturing a culture of appreciation. Our aim is to empower our people to make collective decisions with utmost integrity and responsibility.

Geographical Presence

Peshawar Warehouse, HBK Complex, 7Km Main, Grand Trunk Road, Nasirpur, Peshawar.

Faisalabad Warehouse, 7 Chak, Nalka Kohala, Sargodha Jhung Bypass, Near Motorway Bridge Service Road, Faisalabad

Islamabad Warehouse, Pebbles Building, Faisal Town, Gate # 01, Fateh Jhung Road, Tarnol, Islamabad

Multan Warehouse, Bahawalpur Road, Near Adda Laar, Gopalpur, Multan

Lahore

Warehouse, 38-C, 39, 39-A, 42-C, Sunder

Industrial Estate, Raiwand Road, Sunder, Lahore

Lahore

Warehouse, Site Office: Plot # 558 A, B & C,

Sundar Industrial Estate, Raiwind Road Lahore

Balochistan

Sukkur Warehouse, Sukkur, Main National Highway, Babarloi, Khairpur.

Karachi Head office

17, Bangalore Town, Main

Shahrah-e-Faisal, Karachi, Pakistan

Karachi Factories

Hyderabad

Warehouse, Plot # 495/174, Cattle Colony, Opposite New Sabzi Mandi, Old Fateh Modess (Garment Factory), Hyderabad

Unit-1: C-230, H.I.T.E., Hub,

Balochistan, Pakistan.

Unit-2: B-140, H.I.T.E., Hub,

Balochistan, Pakistan.

Unit-3: G-1, H.I.T.E., Hub,

Balochistan, Pakistan.

Unit-4: G-22, H.I.T.E., Hub,

Balochistan, Pakistan

Unit-6: D-91, D-92 & D-94, North

Western Industrial Zone, Port Qasim, Karachi, Sindh, Pakistan.

Unit-7: E164-168, North Western Zone, Port Qasim, Karachi, Sindh, Pakistan.

Unit-8: E154-157, North Western Zone, Port Qasim, Karachi, Sindh, Pakistan.

Unit-9: G-1A, H.I.T.E., Hub,

Balochistan, Pakistan.

Unit-10: E164-168, North Western Zone, Port Qasim, Karachi, Sindh, Pakistan.

Europe

Middle East

USA

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Organization Chart

Board of Director

L

Chief Executive Officer (CEO)

Fa

G M

Chief Information Officer

Chief Financial Officer

ctory eneral anager

Chief of Sales & Marketing

Chief of Human Resources

Head of egal & Admin

Group Structure

Candyland

Bisconni

Astro Films

Snackcity

Ghiza

Bisconni LLC

Ismail Resin

Hudson Pharma

Ismail Nutrition

Cereal

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Ownership Structure

Ismail Resin

75%

PlastiFlex Films

Common Directorship

Hudson Pharma

78.53%

Bank of Khyber

24.43%

Bisconni Middle East Manufacturing LLC Foreign Subsidiary

100%

Innovita Labs

Common Directorship

Innovita Nutrition Common Directorship

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Legitimate needs, Interest of Key Stakeholders, Industry trends

In its strategic planning and operational execution, encompassing new policies, procedures, expansions, and significant corporate events, the company meticulously considers the legitimate needs and interests of all key stakeholders. This approach is informed by a careful analysis of prevailing trends within the industry and the practices of competitors. Furthermore, all decisions and actions are conducted in strict adherence to the applicable rules and regulations of relevant regulatory authorities.

Impact of Seasons on Business

The company's production and sales of all products demonstrate a consistent performance throughout the year. While minor fluctuations may occur in certain business segments, however, there is no evidence of a major disruptive seasonal effect on overall business of the Company. The diversified product portfolio and strategic management effectively mitigates significant seasonal impacts, thereby ensuring a relatively stable performance across the fiscal year.

Competitive Landscape and Market Positioning

Ismail Industries Limited operates within a highly competitive Fast-Moving Consumer Goods (FMCG) sector in Pakistan. The competitive landscape is defined by the presence of both large multinational corporations and local players, all vying for market share. The company's strategy focuses on diversification, brand strength, and a wide distribution network to maintain its market position.

Ismail Industries has strategically positioned itself as a diversified and dominant player to mitigate the risks associated with a single product category and to capture a wider consumer base.

Brand Equity and Loyalty: The company has invested in building strong brand equity, which has resulted in a loyal customer base. This brand loyalty acts as a significant barrier to entry for new competitors.

Robust Distribution Network: In the FMCG sector, a wide and efficient distribution network is a critical competitive advantage. Ismail Industries has a strong network that ensures its products are readily available in both

urban and rural markets, allowing it to compete effectively with larger players.

Price and Quality: The company positions its products on a balance of quality and competitive pricing, making them accessible to a broad demographic while maintaining profitability.

COMPETITIVE

RIVALRY

FORCES MODEL

THREAT OF

SUBSTITUTES

In conclusion, Ismail Industries Limited has successfully navigated a complex competitive landscape by leveraging a diversified portfolio, building strong brand loyalty, and maintaining a

BARGAINING POWER OF SUPPLIERS

THREAT OF NEW ENTRANTS

robust distribution network. Its strategy of being a multi-segment player allows it to compete effectively

against both large multinational corporations and specialized local competitors.

BARGAINING POWER OF BUYERS

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