KARACHI: National Foods Ltd is setting up its fifth plant in the M4 Industrial City of Faisalabad, said a company official on Tuesday.

Briefing a group of journalists at the Port Qasim factory of the manufacturer of convenience-based food products, the official said the 30-acre Faisalabad plant will be the company’s biggest production facility upon its completion by the end of 2022.

Currently, the company operates three plants in Karachi’s Port Qasim, SITE and Nooriabad industrial estates and one plant in Gujranwala. He didn’t share the size of the investment.

The company posted an unconsolidated profit of Rs725 million for January-March, up 39.3 per cent from a year ago. Its quarterly sales grew 23.4pc to Rs8.4 billion.

Even though the company is one of the major Pakistani exporters of recipe mixes, a sharp devaluation of the local currency against the dollar in recent quarters has left a negative impact on the earnings growth, the official said.

As much as 80 per cent of raw materials used in the company’s 110 products — such as recipe mixes, pickles and spices — are imported. “There’re no imports of ingredients from India as of now,” he said, adding that an improvement in trade relations with the neighbouring country will lead to a reduced cost of production.

Exports contributed 6.6pc to the company’s gross sales in the first nine months of 2021-22. Exports represent the sales made to NF DMCC Dubai, which is a wholly owned subsidiary that National Foods set up in 2012 to boost overseas business.

As for spices, the official said the share of packaged products within the Pakistani market is less than 10pc. “Yet our products [from all segments] reach 32m households every year,” he said.

He said the company fared well through Covid-19, thanks to its large footprint in the convenience-based food segment. With the total market value of almost Rs34bn, National Foods ranks sixth among 24 food and personal care firms listed on the Pakistan Stock Exchange. Its share price closed at Rs144.83 on Tuesday, up 0.42pc from a day ago.

Published in Dawn, June 22nd, 2022

Opinion

Editorial

Wise counsel
Updated 04 Jul, 2022

Wise counsel

Fuelling the fires of communalism for petty political gains is dangerous and can have a long-lasting impact on India’s stability.
Hazardous waste
04 Jul, 2022

Hazardous waste

GIVEN we have not yet developed streamlined systems for managing locally produced hazardous waste, we are inviting...
Mob ‘justice’
04 Jul, 2022

Mob ‘justice’

OVER the past few days, a string of deadly incidents has been reported from Karachi in which enraged mobs have...
Skyrocketing prices
Updated 03 Jul, 2022

Skyrocketing prices

Some sellers are seeking to take advantage of the prevailing disorder by creating artificial shortages or jacking up prices.
Flooding alert
03 Jul, 2022

Flooding alert

THE Gilgit-Baltistan government has issued an alert about the possible flooding of areas along river banks and...
Assaulting journalists
03 Jul, 2022

Assaulting journalists

ANOTHER day, another citizen roughed up for speaking his mind. The assault on veteran journalist Ayaz Amir by...