Interloop Announces Rs15 Billion Dairy Plant with Turkish Partner

FAISALABAD: Interloop Holdings plans to invest $55 million, equivalent to about Rs15 billion, in a new Interloop dairy plant in Pakistan through its subsidiary IL Foods Limited, in partnership with Türkiye’s Rella Gida, according to ProPakistani.

Interloop chief executive Musadaq Zulqarnain announced the investment, saying the facility will produce cheese, butter and high-value whey protein concentrate. The state-of-the-art plant will manufacture Whey Protein Concentrate 80 (WPC80), a high-value protein ingredient, alongside a range of dairy products.

Interloop dairy plant: exports and import substitution

The company also plans to export part of its production, aiming to contribute to Pakistan’s value-added exports. Once the facility is commissioned, Interloop’s combined annual milk processing capacity will reach 180 million litres, according to Zulqarnain.

The investment reflects the company’s focus on value addition, technology, import substitution and developing Pakistan’s dairy industry, he added.

The announcement fits a wider pattern of Pakistani firms looking beyond traditional exports. Feature Pakistan has reported on the country’s struggling export shipments and the push for major export growth, while investment momentum has been building through events such as the Sindh investment conference in Shanghai and the UK’s proposed long-term investment partnership.

Interloop’s dairy venture already running

The new plant builds on a dairy business Interloop already operates. Its dairy arm, IRC Dairy Products Ltd, a joint venture with Türkiye’s Rella Gida and local partner Crystal established in 2019, runs a Faisalabad facility that processes around 120,000 litres of milk daily into mozzarella cheese, butter and whey powder, according to reporting by WE News English citing Arab News.

The venture is aimed at the Gulf market, where GCC countries imported cheese and butter worth $2.3 billion in 2024, with Saudi Arabia alone accounting for $980 million. Current annual production stands at roughly 6,000 tonnes of cheese and 1,000 tonnes of butter, with plans to expand to 21,000 tonnes of cheese and 3,500 tonnes of butter by 2028.

Company disclosures cited in the same reporting project annual sales rising from nearly Rs10 billion this fiscal year to Rs40 billion after the expansion is complete.

The dairy push comes as Pakistan’s dairy sector draws policy attention. An 18 per cent GST was earlier applied to dairy products, a reminder of how tax policy shapes the industry’s economics.

From hosiery giant to food producer

Founded in Faisalabad in 1992, Interloop Limited has grown into one of Pakistan’s leading exporters and one of the world’s largest hosiery manufacturers. The company produces socks, tights, denim, knitted apparel, seamless activewear and yarn for leading international brands and retailers.

The dairy investment marks one of the company’s biggest moves outside textiles, signalling confidence that Pakistan’s milk supply chain can support world-class food processing for both domestic shelves and export markets.

Frequently asked questions

What is the Interloop dairy plant investment?

Interloop Holdings will invest $55 million (about Rs15 billion) in a new dairy processing plant through its subsidiary IL Foods Limited, in partnership with Türkiye’s Rella Gida.

What will the plant produce?

The facility will produce cheese, butter and high-value Whey Protein Concentrate 80 (WPC80), alongside a range of other dairy products, with part of the output earmarked for export.

What is Interloop’s existing dairy business?

Its dairy arm IRC Dairy Products Ltd, a joint venture with Rella Gida set up in 2019, already processes around 120,000 litres of milk daily in Faisalabad into mozzarella cheese, butter and whey powder.