The processed food sector in Pakistan is experiencing robust demand, leading to increased investments in food processing and packaging industries.
National Foods has invested Rs7 billion to establish its largest production plant in Faisalabad, while International Packaging Films, a subsidiary of International Packaging Films Ltd (IPAK), has expanded its flexible packaging film production capacity in Lahore, with total investments across three facilities amounting to Rs13.5 billion. Both companies are eyeing export opportunities for their products.
IPAK CEO Naveed Godil aims to export $15-20 million worth of flexible packaging films this year, constituting around 20% of their total production capacity. Flexible film packaging holds a substantial 38% market share in Pakistan.
The local demand for flexible packaging films is around 200,000 tonnes, with a production capacity of 300,000 tonnes, leaving a surplus of 100,000 tonnes available for export.
IPAK’s revenues have grown at a compound annual rate of 41% in the last three years, prompting the company to conduct an Initial Public Offering (IPO) to raise funds for expansion and debt repayment.
The total local market size for flexible packaging films is estimated between Rs80-100 billion, with an expected annual growth rate of 7-8% driven by food companies in the country.
National Foods’ new manufacturing facility, part of its ‘Seed to Table’ initiative, aims to reduce dependence on imported raw materials by bolstering domestic production, particularly in ingredients like tomatoes and red chilies.
Global CEO Abrar Hasan highlights challenges in increasing processed food exports, citing restrictions on corporate investments abroad due to the dollar shortage. He emphasizes the need for easier access to foreign exchange to enable companies to expand their presence in international markets and meet global demand effectively.
