FrieslandCampina has acquired 51 % of Engro Foods Limited, the second largest dairy producer in Pakistan. It enables the company to take a major leap forward in Central Asia.
Shift to packaged dairy
Pakistan is the third largest milk-manufacturing country in the world, with 38 billion liters on an annual basis. FrieslandCampina wants to take advantage of the shift to packaged dairy products in Pakistan: not even 10 % of milk consumption comes from processed and packaged milk in Pakistan, but FrieslandCampina expects that to change in the near future.
“Thanks to this well-organized and very successful company, we have obtained a strong position in the Pakistani dairy market. A growing middle class is switching to processed and packaged milk in Pakistan and Engro Foods provides a platform to build on. This acquisition will contribute to the value proposition we want to give our member dairy manufacturers. We will also help develop the agricultural industry in Pakistan with our extensive knowledge on the dairy manufacturing process and thanks to our Dairy Development Programme", CEO Roelof Joosten said.
“This is a very important event for us. Engro Foods has been very successful ever since its launch in 2006 and has since become one of the most respected companies in Pakistan. Our FrieslandCampina collaboration will definitely have a huge impact on the dairy value chain in Pakistan and will also enable Engro Foods to present the consumer with additional value thanks to an improved product range, while it will also help improve our innovation levels", Engro CEO Babur Sultan added.