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Listed exporter Matco Foods Limited (PSX: MATCO), one of Pakistan’s leading processors and exporters of basmati rice and value-added food products, has officially transferred its spice and masala packaging operations to its wholly-owned subsidiary Falak Foods (Private) Limited.
The company disclosed in a stock-exchange notice dated November 17, 2025 that it executed a Business Transfer Agreement on that date under which the segment operating under the “Falak Foods” brand has been carved out and relocated to the subsidiary.
The move follows an earlier announcement made on May 9, 2025, when Matco revealed a broader corporate restructuring plan that included the creation of another subsidiary, Matco Corn Products (Private) Limited (MCPPL), to house its corn-starch business. At the same time, the company renamed its then-existing subsidiary Matco Marketing (Private) Ltd to Falak Foods (Private) Ltd as part of its re-alignment strategy.
Founded in 1964, Matco Foods has grown into Pakistan’s largest basmati rice exporter, with its flagship brand “Falak Rice” now available in over 65 countries worldwide. The company’s portfolio also includes rice protein, rice glucose, Himalayan pink salt, spices and dessert mixes.
By shifting its spice & masala packaging business into Falak Foods, Matco aims to sharpen its strategic focus: the parent company can prioritise its core commodity and branded rice processing and global exports, while Falak Foods becomes the dedicated consumer-food & value-added segment. Analysts suggest such carve-outs can improve operational clarity, unlock targeted investment, and simplify brand management.
For stakeholders, clearer lines between upstream processing and downstream branded products will provide enhanced agility for the consumer business to pursue growth or partnerships separately. And the potential for improved investor appeal through distinct entity identities. The move also aligns with global agribusiness trends where companies spin off value-added units to streamline their core export or commodity operations.
Nevertheless, the success of the initiative will depend on how well both entities execute their mandates. For Matco Foods, the challenge lies in maintaining export volume growth, margin expansion and brand strength in global markets. For Falak Foods, building the consumer-food business with the transferred product range, integrating operations, and managing brand coherence will be key. Investors will likely monitor metrics such as return on equity (ROE), segmental profitability, cost efficiencies and how the reallocation of assets affects the consolidated business.
