The Board of Directors of Matco Foods Limited has approved the business plan of corn-starch business in Allama Iqbal Industrial Estate Special Economic Zone (SEZ), Faisalabad.
According to the notification submitted to the stock exchange (PSX) by the company, the board took this decision in the board meeting held on Thursday, December 24, 2020. The meeting also decided on financing the new business through a mix of debt and equity.
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The estimated cost of the plant and machinery, with a capacity of 200 tons per day of corn grinding, including equipment, will cost Rs. 1 billion. The land required and procured for the business will be 20 acres, incurring a cost of Rs. 190 million. The civil works will cost Rs. 195 million.
The board has also approved and authorized the Chief Executive and Executive Directors to secure and negotiate the purchase of the plant site in Faisalabad and to apply for and obtain all requisite approvals and NOCs in this regard.
They have also been authorized to initiate the process to avail the Temporary Economic Refinance Facility (TERF) and Long-Term Finance Facility (LTFF), as introduced by the State Bank of Pakistan (SBP), to finance the above business plan. Additionally, the company will also sell 10 acres of land situated at Port Qasim, Karachi, and utilize the funds for the business plan.
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Matco Foods is an agri-business in South Asia, with over 50 years of experience in the rice industry and a global portfolio of more than 150 corporate customers. It is the only agro-processing company in Pakistan in which the International Finance Corporation (IFC) (World Bank Group) has invested equity.
