Matco Foods plans to form joint venture with Dutch company

The $1b worth investment is subject to approval of CCP and completion of required laws

KARACHI: Matco Foods, a 50-year old agribusiness which exports rice to over 150 countries, has announced plans to diversify its product range in collaboration with Dutch Barentz International.

The company has applied to the Competition Commission of Pakistan (CCP) for a joint venture in Pakistan with Barentz International, according to a notification submitted to the Pakistan Stock Exchange.

“The investment in the joint venture corporation is subject to approval of CCP and completion of requisite compliance requirements under applicable law,” stated the notification. Barentz International deals in raw material for pharmaceutical, personal and homecare, food and nutrition and animal nutrition industries.

Apart from this, Netherlands’ Barentz group operates in 60 countries of Europe and Asia. It generated a turnover of €1.1 billion in 2017 while catering to thousands of customers in the 60 countries with over thousands of employees. “Matco is moving towards new business with Barentz International, which possesses vast experience,” BMA Securities analyst Faizul Sultan told The Express Tribune. “We hope the Pakistani market will take full advantage of its experience.”



“The size of investment will be about Rs1 billion, we are forming joint venture under the title of Business Pakistan,” said Matco Foods Limited Chairman Jawed Ali Ghori while talking to The Express Tribune. “The company will be registered in Pakistan with 49% share of Matco.”

The joint venture will import raw material and sell in line with Matco Foods’ existing rice glucose and rice protein business, commented Matco Company Secretary Muhammad Latif Qureshi in the notification. Barents International will market Matco’s glucose, which it extracts from rice in Karachi and Matco will import the raw material and provide it to fast moving consuming goods (FMCGs) companies, like Nestle and Lotte Corporation.

Published in The Express Tribune, December 16^th, 2018.

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