MATCO FOODS LIMITED

About the Company Matco Foods Limited ("Matco" or the "Company") is primarily engaged in processing and export of rice and rice derived products. Matco is the largest exporter of Basmati rice from Pakistan. It processes and exports both conventional and organic rice as white, brown, steam and parboil. Matco also manufactures rice flour, rice syrup and rice protein.
Matco, founded in 1964 by Syed Sarfaraz Ali Ghori, was incorporated in 1990 as a private limited company. In the early days, the Company supplied rice processing plants and machinery to Government of Pakistan and later, in 1967, it set up its first rice processing plant. In 1990, the Company set up Pakistan's first fully automated, modern rice processing plant supplied by Satake Corporation of Japan.
Today, the Company is a leading agribusiness in South Asia, with over 50 years of experience in the rice industry and a global portfolio of more than 150 customers. Matco is the only agro processing company in Pakistan in which International Finance Corporation ("IFC") has invested equity. In 2012, IFC invested PKR 458 million in the Company for a stake of 20%.
Matco Foods is Pakistan's leading exporter of basmati rice reaching over 60 countries around the world. The Company's flagship brand "Falak Basmati Rice" is prominent in more than 40 countries, through an extensive network of distributors internationally. Matco Foods is also the sole distributor of Signature Snacks for Pakistan. Signature Snacks is a leading manufacturer based in Dubai, which produced quality biscuits, wafer, crackers, and baked chips.
In October 2013, Matco also set up JKT General Trading (FZE), in Sharjah Airport International Free Zone authority in the emirate of Sharjah, UAE. Matco Has invested US$ 225,000 in JKT. The principal activities of the Company are commercial-general trading, export and import. This has allowed Matco Foods to expand its boundaries and increase its presence in important GCC markets like UAE, Oman and Kingdom of Saudi Arabia.
Rice Processing Facilities The Company has an annual rice processing capacity of 134,700 Metric Tons. Matco's rice processing facilities are spread over 1,000,000 sq. feet with 5 rice processing and million plants, including vertically integrated paddy drying, storage, husking, processing and packaging facilities in Sadhoke, Punjab and Karachi, Sindh. The Company's investment in plant and equipment exceeds US$ 30 million.Rice Glucose Syrup / Rice Protein Plant
Matco has recently diversified its operation within domain specialized products i.e. Rice Glucose and Rice Protein Phase I with plant capacity of 10,000 MT per annum of rice glucose and 1,000 MT of Rice Protein per annum. Phase I of the Project has been successfully completed and commercial production of Rice Glucose and Rice Protein has started on October 02, 2017.
Rice Glucose is used in the pharmaceutical, confectionary and baby food industry while Rice Protein is used in dietary supplement, nutrition and animal feed industry. More value-added products such as high maltose glucose and dry glucose maltodextrin (2,000 MT per annum) can also be made with spray drying plant.
Principal Purpose of IPO and Utilization of Proceeds Matco plans to further expand Rice Glucose / Syrup and Rice Protein production capacity by installing an additional unit of capacity 20,000 MT, which will take the total production capacity to 30,000 MT per annum post completion. The Company will utilize the IPO proceeds for expansion of its production facilities. The production process of rice glucose is vertically integrated to Matco's existing business operations and uses broken rice which is by-product in rice production. Therefore, the broken rice requirement would be met internally.