Matco Foods Restructures Corn Starch Business to Enhance Growth Potential
In a decisive step towards corporate transformation, Matco Foods Limited, one of Pakistan’s top rice exporters, has approved a strategic restructuring initiative centered around its corn starch business.
The move involves a demerger of the corn starch division and its subsequent merger into Matco Corn Products (Private) Limited (MCPPL) — a wholly owned subsidiary of Matco Foods. The development was formally announced in a notice submitted to the Pakistan Stock Exchange (PSX) on May 23, 2025.
This decision aligns with previous announcements made on November 25, 2024, February 28, 2025, and May 9, 2025, in which Matco Foods outlined its strategic vision to spin off the corn starch unit. The company also revealed its intent to explore fundraising avenues to support growth in this specialized segment.
According to the notice, the Board of Directors approved the reorganization via circular resolution, authorizing the transfer of selected assets, liabilities, and operations from the parent company to MCPPL. This transition ensures that MCPPL continues as a wholly owned subsidiary by issuing new shares back to Matco Foods in exchange for the business transfer.
The implementation of the scheme is contingent upon regulatory approvals, shareholder and creditor consent, and the final sanction from the High Court of Sindh. Any amendments deemed necessary during the process will be incorporated accordingly.
A Legacy of Growth and Diversification
Founded in 1964 as Matco Rice Processing Private Limited, Matco Foods has grown into a diversified food processing company. Today, it deals in a wide range of products including rice, rice protein, rice glucose, pink salt, condiments, dessert mixes, and spices.
Its flagship brand, Falak, has made a global mark with exports to over 65 countries, reinforcing Matco’s position as one of Pakistan’s largest rice exporters.
The restructuring underscores Matco’s commitment to operational efficiency and unlocking value in specialized business segments such as corn starch — a key ingredient across food and industrial applications.