Nishat group to enter consumer goods market

The firm will start milk production this year.

LAHORE:
Nishat Group plans to enter consumer goods business by starting milk production this year, Chief Financial Officer Inayatullah Niazi said.

“We have bought land outside Lahore and after beginning milk production, we will add other products to the line,” Niazi told Bloomberg news service on Wednesday. He didn’t provide more details on the planned products.

The government plans to spend Rs3.5 billion to improve the dairy industry, including expanding infrastructure in the fiscal year ending June 30, 2012, to help boost economic growth in the period to its target of 4.2% from the growth of 2.4% in the previous year.


Niazi further said the group, which owns MCB Bank Ltd and MCB and Nishat Mills Ltd, sees growth potential in Pakistan for consumer goods, particularly food products.

“Dairy is one of the fastest growing businesses in Pakistan,” said Abdul Aziz Anis, who oversees $35 million in assets including shares of MCB and Nishat Mills, as chief executive officer of Karachi-based Alfalah GHP Investment Management Ltd. “There is huge growth potential in the consumer business, but the only question is on the buying power of the population with the still-high inflation.”

Nishat Group joins Nestle SA and Engro in expanding in dairy in Pakistan. The Vevey, Switzerland-based company said in August that it plans to double dairy output in Pakistan by spending 300 million Swiss francs ($334 million) in the next three to four years.

Published in The Express Tribune, October 20th, 2011.
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