Pakistani chemical maker shifts focus to furniture manufacturing

Shaffi Chemical Industries Limited (SHCI) has decided to change its principal line of business from manufacturing chemicals to furniture manufacturing.

The listed company disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Friday.

“The Board of Directors has reviewed and approved a new future strategy, focusing on key growth initiatives. This includes reviving business operations by manufacturing furniture products within our factory premises,” read the notice.

SHCI shared that under the Companies Act, 2017, a company may engage in any lawful business or activity, provided that its principal line of business is stated in its Memorandum of Association (MoA) and is consistent with its name.

“In compliance with the Companies Act, 2017, we will adopt a new MoA, designating furniture manufacturing as our principal line of business,” it said.

Sharing decisions made during the BoD meeting, it said “We are shifting our primary focus to furniture manufacturing. Consequently, our principal line of business will be to carry on furniture-related activities”.

Moreover, the BoD also proposed changing the company’s name from “Shaffi Chemical Industries Limited” to “Shaffi Industrial Enterprises Limited,” which is subject to approval from the Securities and Exchange Commission of Pakistan (SECP).

The company has also decided to increase its authorized capital from Rs120 million to Rs400 million, which will allow the company to initiate a rights issue “for fundraising and equity expansion in the near future”.

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SHCI was incorporated under the Companies Ordinance, 1984 as a Public Limited Company on 27th September 1994.

The main activity of the company is to manufacture and process Di-OctyleOrtho Phathalates (DOP) Chemicals. Currently, the company is to produce Lith and Diltex binders.