KARACHI: Barkat Frisian Agro Limited, a Pakistan-Dutch joint venture, is all set to list on Pakistan Stock Exchange (PSX) in February 2025 to raise funds for expanding its business.
The Initial Public Offering (IPO) is expected to fetch up to Rs 1.2 billion for the company which will use the funds for building a new state-of-the-art production plant at the M-3 Industrial City in Faisalabad and finance the Shariah-compliant working capital requirements for post expansion needs, he added.
The management is expecting that the IPO will be oversubscribed by stock investors given the Company’s attractive financial credentials and the ongoing rally at Pakistan’s equity market that was Asia’s best performer in 2024 with more than 80 percent gains.
Barkat Frisian Agro Limited is eyeing global pasteurized eggs market. Chief Executive Officer (CEO), Barkat Frisian Agro Limited Muhammad Adil Ali informed that Barkat Frisian Agro had started exporting its products in 2022 and saw its exports rising 153 percent last year (in FY24) and 385 percent in the year earlier.
The Company has established a strong geographic footprint across the Middle Eastern countries including Kuwait, Bahrain, UAE, KSA, Qatar, Oman and Egypt. The Company is expected to enter the Sri Lankan market in March 2025.
“We are developing a subsidiary in the United Arab Emirates to further boost our export potential in the international market”, he said.
Barkat Frisian has already attracted international clients like Mondelez, Sri Lankan Airlines and Kerry Group for the next fiscal year, he said. Since the poultry sector regulations in European countries are toughening, it would enable Pakistan’s only pasteurized eggs producer to target higher market share in the global markets, he added.
The Netherlands being their leader with 27.4 percent market share, Poland, United States, France and Germany are the biggest exporters of processed eggs and account for 56 percent of the world’s total processed egg exports.
“Urbanization and time constraints are pushing consumers world over towards convenience foods, enhancing the appeal of processed eggs,” he said.
Established in 2017, the company’s core business is to produce and sell pasteurized eggs, egg whites, egg yolks and customized egg-based products to food manufacturers that include high profile local clients like Unilever, English Biscuit Manufacturers and Ismail Industries Limited
The company, Ali said, was trying to diversify its product range to create additional revenue streams by introducing value-added products, targeting niche audiences and providing convenience-driven solutions.
It seeks to meet diverse consumer needs effectively like egg powder, eggshell membrane, and was planning to diversify its offerings with products like organic eggs, free-range eggs and pasteurized shell eggs.
“By expanding our product portfolio, we are well positioned to capture new market opportunities and enhance our competitive edge in the eggs industry,” he said.
He said the Company has approximately reached 90 percent capacity utilization at its egg pasteurization plant while the demand for pasteurized egg from its local and international customers was growing.
“Because of an inflated demand the company’s sales have grown remarkably in recent years.”
The company’s annual sales rose about 10 times in the past four years to 12,680 tons in the financial year 2023-24 as compared to 1,286 tons in FY20, said he.
The company has planned to build its new plant to increase its production. “This new plant we are building in Faisalabad will focus on meeting domestic demand that will allow our Karachi plant to concentrate on expanding international sales,” he said.
“The new plant will increase our production capacity by more than 70 percent to 29,000 tons per year,” he said explaining that Barkat Frisian Agro is already operating a factory in Karachi.
“This strategic expansion will not only enhance the company’s product offerings but also strengthen its position in the competitive landscape, allowing for increased flexibility and responsiveness to market demands, said the chief executive.”
Copyright Business Recorder, 2025
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