Research Analyst
June 30 - July 06, 2008

Rafhan Maize Products Co. Ltd. is engaged in the manufacturing and selling of food ingredients and industrial products. It offers a range of starches, liquid glucose, dextrose, dextrin, and gluten meal products. The company's products include corn, maize, modified, oxidized, cationic, specialty starches, corn flour, powder glues, dextrin's, powder/liquid adhesives, dextrose monohydrate, liquid glucose, maltose syrup, liquid caramel color, hydrol, maize gluten, corn germ meals, maize bran, maize oil cake, and maize steeping liquor. Rafhan maize products co. sells its products to textile, paper, corrugation, chemicals, non-food, pharmaceutical, confectionery, adhesives, foundry, food energy drinks, baking, tobacco, sweet-meats, brewing, poultry/cattle/fish feeds, and antibiotics industries. The company is headquartered in Faisalabad. Rafhan Maize Products Co., Ltd. is a subsidiary of Corn Products International, Inc.




JAN-MAR FY08 RS. (000)

Net Sale


Cost of Sale


Gross Profit


Rafhan Maize Products Co., Ltd during the last one year increased its net sales by 38% because of high demand in related products. The cost of sales also increased by 48% during 1QFY08 because due to increased inflation in Pakistan. The gross profit was slightly increased by 16.6% in Jan-March 2008, due to high competition in the market.



Jan-March FY08 Rs. (000)

Profit before tax


Profit after tax


The company's Profit before tax increased by 21% during one year because the Profit margin on sales 14%. The Profitability shows the good performance of the company. The Rafhan Company earned profit 20.5% during one year which shows the good performance of the company. The company's return on assets was recorded 8.5% during Jan-March FY08.


The year 2007 can be termed as an eventful year. The first half of the year witnessed growth and better performance on the back of robust growth in agriculture, manufacturing and services sectors.

However, in the second half of 2007, economy faced many stresses which had their own fall out on the performance of different segments including Rafhan.

A number of developments at global and domestic level had their natural impact the overall economic situation of the country.

The unprecedented rise in oil prices in the international market, high inflation impacting the cost of doing business, widening of current account and trade deficits and severe energy crisis were the major challenges. The political unrest in the last quarter of 2007 further threatened the economic pace. The agriculture growth also decelerated due to low production of cotton and rice crops and heavy imports of wheat and edible oil. The infrastructure constraints and high cost of doing business adversely influenced the industrial growth, competitiveness and profitability. Based on this economic scenario. All these situations had a negative impact on Rafhan Maize Company.


Rafhan Co. plays an important role in the cultivation of maize in Pakistan. It has a team of agricultural experts in Maize Production Department for the implementation of its "Grow More Maize Program" and provides free of cost advisory and allied services to the farmers for improving maize production, yield and quality. This program of its unique nature has contributed significantly towards growth of agro-based economy in the country.


Food business continued to deliver growth driven by higher volume sale of liquid glucose, dextrose and food grade starches. The business has positioned itself as the most reliable supply source. Strong food product line includes GLOBE and SNOWFLAKE starches, RAFHAN liquid glucose, CERELOSE Dextrose Monohydrate, RAFHAN Liquid Caramel and Golden Syrup.


Rafhan has made extra efforts to increase export volumes by enhancing its presence in the global markets to earn valuable foreign exchange. Major contribution in exports came from starch business. The Middle Eastern countries are the biggest importers of Rafhan products. There is a big potential and growing demand in these markets particularly in food business. Rafhan Maize has also explored new opportunities in other countries and in different regions which resulted in significant increase in export business of the Company in the year 2007 as compared to last year. Thus, Rafhan Maize is well positioned to take advantage of its experience, knowledge and innovative product line to further expand export business in the region.


The Economic environment of the country is challenging. The continuous rise in food inflation is affecting purchasing power of common man. The shortfall in energy, high prices of petroleum products, widening of trade and current account deficits are the major issues being faced in maintaining economic growth on targets. The economic and business stability of our country will depend upon economic and business policies of the Government. It is encouraging to note that the new Government has started taking initiatives to improve financial discipline and overall business environment. However, the Company foresees strong pressure on selling prices of finished products and operating margins as the price of maize, which is the single basic material, is projected to remain high because of strong demand for feed, food and industrial processors following the rising trend in prices of other grains. However, looking ahead the future of the Company is well poised to meet anticipated challenges and will continue to deliver improved performance through operational excellence and customer focus market strategies.