KARACHI: National Foods, a Pakistani food company, has constructed its first overseas manufacturing plant in Sharjah, United Arab Emirates (UAE), in order to expand its worldwide presence and increase edible goods exports, Arab News said on Wednesday.
According to The News, the company is primarily engaged in manufacturing and selling a wide range of food goods, including pickles, ketchup, and sweets.
The UAE remains the principal international market for the company’s products.
“As part of the strategy on international business, the company’s wholly-owned subsidiary ie, National Foods DMCC based in Dubai, has established a further subsidiary namely National Foods (FZE), in Sharjah, UAE,” according to a filing with the Securities and Exchange Commission (SEC).
National Foods DMCC, the Dubai-based subsidiary, was established in 2012 for the Middle Eastern market and has contributed to the company’s global expansion, according to Abrar Hasan, CEO of National Foods.
The company filed for a production license in the UAE, which was granted, he said.
“We will now begin manufacturing with the goal of improving our market access, notably in the Middle Eastern countries. “This will be the first overseas manufacturing facility,” Hasan told Arab News, adding that the facility would also aid with product localization.
He stated that the company intended to expand outside the Gulf countries and had already established a foothold in Canada, the United Kingdom, and the United States.
The company’s export sales increased from Rs2.2 billion to over Rs2.4 billion, primarily to the UAE, during the previous fiscal year, while exports increased by Rs638 million in the first three months of the current fiscal year, according to a financial statement posted on the Pakistan Stock Exchange (PSX).
According to Hasan, exports account for around 20% of National Food’s overall turnover. Local sales remained around Rs40 billion in fiscal year 2023, compared to Rs36.6 billion the previous year, according to the financial report.
According to Pakistani analysts in the UAE, demand for Pakistani items is increasing, thanks to the country’s growing expatriate population.
According to Danish Kazi, a financial and political expert based in the UAE, the Pakistani diaspora is growing rapidly in Gulf countries, while demand for Pakistani products is also increasing.
