Matco Foods transfers spice packaging segment to subsidiary Falak Foods as part of restructuring

KARACHI: Matco Foods Limited, one of Pakistan’s leading rice exporters, has officially transferred its spice and masala packaging segment to its wholly owned subsidiary, Falak Foods (Private) Limited. The company disclosed the development to the Pakistan Stock Exchange (PSX) on Monday.

The transfer follows the execution of a Business Transfer Agreement (BTA) between Matco Foods and Falak Foods, formalising the carve-out of the spice packaging segment under the brand “Falak Foods.” This move is in line with Matco’s ongoing corporate restructuring efforts, which aim to streamline operations and focus on core business areas.

Falak Foods, a subsidiary of Matco Foods, primarily handles the processing and packaging of a wide range of spices and condiments. With this transfer, Falak Foods will take full control of the spice and masala packaging operations, enhancing its ability to scale and optimize its processes.

Matco Foods also shared a separate notice on Monday regarding its strategic expansion plans. The company announced that the Faisalabad Industrial Estate Development & Management Company (FIEDMC) has allotted Matco Foods a 13.21-acre plot in the Special Economic Zone, Allama Iqbal Industrial City. This plot is located next to the existing site where Matco’s corn starch division operates. The new plot will support Matco’s future expansion initiatives, aligning with the company’s broader growth strategy.

Earlier in May 2025, Matco Foods approved a restructuring plan for its corn starch business. As part of this initiative, the corn starch operations will be transferred to another subsidiary, Matco Corn Products (Private) Limited (MCPPL), which will issue shares to Matco Foods in return.

Founded in 1964 as Matco Rice Processing Private Limited, Matco Foods is one of the largest rice exporters in Pakistan. The company processes and exports rice, rice protein, rice glucose, pink salt, condiments, spices, dessert mixes, and more. Its flagship brand, ‘Falak,’ is sold in over 65 countries globally.