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Polypropylene Products Limited was a
pioneering
investment made in 1973 which introduced, for the first time in Pakistan, woven
polypropylene
bags for industrial packaging.
The plant was commissioned in 1975. The new product came to carve it place in the market
usage
and started rapidly widening its scope of applications. The investment was rewarding for its
shareholders. It earned Gold Mercury Award for its performance.
Due to success of product competing investments followed soon. Over the years time a large
number of small, cottage industry level, manufactures also came into the field of woven
polypropylene bags manufacturing. Although of low quality and very inefficient, these
flooded
the market with low priced product by using illegal means of energy theft and evasion of
taxes.
This situation created serious difficulty for large organized companies, leading first to
erosion of profitability and then to even creating losses in business. Despite prolonged
struggle hope of level playing field in competition was not fulfilled.
In 2003 the company was voluntarily delisted from stock exchanges in Pakistan and the
sponsors /
majority shareholders undertook a share buyback from general public. As a result of the
buyback
approximately 98 % of the shares are held by the majority shareholders / friends / family
and
approximately 2 % shares are held by outside shareholders. To conserve its financial
resources
the company closed down its production and in 2006 disposed off its plant and factory
assets.
Company is financially very strong. It is exploring new opportunities of fruitful
investment.
