Thal setting up Rs1.7b polypropylene bag plant

Investment expected to contribute to national exchequer, job creation

KARACHI:

In line with increased demand, Thal Limited - a subsidiary of the House of Habib - is setting up a manufacturing plant for polypropylene woven bags in Hub with an investment of Rs1.7 billion.

“Polypropylene bags are used for multiple purposes ranging from the packaging of fertiliser and sugar to finished agricultural products,” said Topline Securities Deputy Research Head Shankar Talreja.

Speaking to The Express Tribune, he highlighted that fertiliser products alone generated a primary demand for 170-180 million bags of polypropylene.

The cement industry also used these bags along with paper sack, Talreja pointed out. “Similarly, sugar production in Pakistan generates demand for 100-120 million bags annually.”

The total packaging requirement of domestic industries was close to one billion bags annually, the analyst estimated.

Looking at the increasing demand, the company has invested in the plant.

Polypropylene was a “Class 5” recyclable material according to the resin identification codes (RIC), said another market expert.

The use of polypropylene ensures total recycling at the end of a product’s life, avoiding dispersion in the environment. This makes polypropylene bags an environment-friendly alternative to the polythene bags.

House of Habib Vice Chairman Salman Burney recently performed the groundbreaking of the plant at Thal Limited factory in Hub, and it will be commercially operational by the end of February next year. The plant, which can produce 90 million bags annually, has been procured from Windmoller and Holscher, Germany.

“This new investment will further increase contribution to the national exchequer and employment generation,” said Burney.

Expressing his views on the new investment, Thal Pakistan Papersack Division CEO Syed Umair Ahmed stated that Thal Limited would use its expertise and extensive experience to facilitate the growing demand for polypropylene bags for safe storage and supply of major grains and commodities in Pakistan.

“The company also has a production capacity of 250 million paper bags per annum and with production capacity of 90 million woven polypropylene bags per annum, we will be able to cater to not only the local market, but will also grow our export business,” he added.

In addition to supplying the fast growing Pakistan market, Thal Limited also exports bags and sacks to several areas including the Middle East, Europe, Africa and Australia.

Published in The Express Tribune, April 27^th, 2021.

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