Lahore: Bilal Fibres Limited has announced the approval of a comprehensive business plan for its newly proposed IT Division, which aims to rejuvenate its operations with a focus on software development and digital services. This significant move was disclosed in compliance with Section 96 of the Securities Act, 2015, and Clause 5.6.1.(a) of the Pakistan Stock Exchange Regulation. The information was shared with the TRE Certificate Holders, emphasizing the strategic shift toward a lucrative IT venture.
The business plan, approved by the Board of Directors, outlines an ambitious approach to establish Bilal Fibres Limited as a formidable player in the IT sector. The division will concentrate on web and mobile software solutions, outsourced IT support services, and digital services like web design and e-commerce platforms. The company aims to leverage a PKR 10 million investment to form a skilled team, with a target to achieve breakeven within 12 to 18 months and profitability within 24 months.
According to information available from the Pakistan Stock Exchange (PSX), Bilal Fibres Limited targets small and medium enterprises (SMEs) in Pakistan and the Middle East initially, with an eye on global expansion. The revenue model is based on fixed-price projects and recurring retainers, which are expected to provide sustained cash flow. The company plans to capitalize on Pakistan's skilled workforce and strategic partnerships within the industry to offer cost-effective, high-quality IT solutions.
The investment allocation includes PKR 5 million for office setup, PKR 500,000 for registrations and licenses, and PKR 4.5 million for working capital, which will cover salaries, rent, utilities, internet, and contingencies. The team for the first 6 to 12 months will consist of a Director of IT Operations, two software engineers, a marketing/sales specialist, and an admin/accounts assistant. Scalability is a key focus, with plans to onboard additional hires as revenue increases.
Service offerings are divided into short-term projects, such as website and e-commerce platform development, mobile app development, and IT support services, and mid to long-term services, including SaaS and subscription-based platforms, custom enterprise software, and maintenance services. The revenue model projects potential annual revenues of PKR 12 million to PKR 70 million, with a breakeven target driven by short-term projects and retainers.
The go-to-market strategy emphasizes building a professional digital presence and engaging with industry networks for initial visibility. The company plans to use targeted advertising campaigns and partnerships to penetrate the market further. Regional expansion efforts include participation in trade shows like GITEX and LEAP to gain international exposure.
Financial forecasts for the IT Division outline a progressive increase in revenue and profitability over the next five years, with a significant move anticipated in the second year as the division transitions to profitability. The plan includes measures for risk mitigation, such as adopting a hybrid work model and maintaining a contingency fund for payment delays.
Bilal Fibres Limited's strategy highlights a commitment to innovation and market diversification, with plans to expand into North America and Europe, develop industry-specific SaaS solutions, and explore strategic acquisitions. This strategic pivot aligns with the company's vision to establish a robust presence in the global IT market.