KARACHI: The Fauji Fertiliser Bin Qasim Limited (FFBL) disclosed its diversification plans on Monday as it seeks to enter meat and dairy business besides expanding its footprint in power generation.
The company would try to achieve its goals by incorporating three wholly-owned subsidiaries: Fauji Meat Limited (to establish an abattoir for ‘halal’ slaughtering of animals and for sale of meat products in domestic and foreign markets); Fauji Foods Limited (to venture into the dairy foods and allied products business); and FFBL Power Company Limited (to establish a 118MW coal-fired generation plant located at Port Qasim, Karachi, near the existing fertiliser plant), Company Secretary retired Brig Muhammad Azam said.
The FFBL made this announcement in compliance with ‘disclose of material information’ clause of the Karachi Stock Exchange (KSE) regulations and Securities and Exchange Commission of Pakistan (SECP) Ordinance.
“All three (subsidiaries) would be public unlisted companies with current issued and paid-up capital at Rs1 million each,” it said.
The Fauji Meat Limited, whose project cost is estimated at Rs6.4 billion, would secure the necessary financing in the first half of next year, subject to operations to be started in October-December quarter of 2015, the FFBL said in a filing with the stock exchanges.
As for Fauji Foods Limited, the company said it was conducting market research and feasibility studies.
The FFBL Power Company Limited, whose project cost is estimated at $265m (around Rs27bn), has applied to Nepra for the power generation licence. Award of contracts for equipment supply, construction and related arrangements was under way.
