Karachi: The Board of Directors of Chashma Sugar Mills Limited (CHAS), one of Pakistan’s largest sugar mills, has approved the amalgamation of the company with its wholly-owned subsidiary, Ultimate Whole Foods (Private) Limited. The decision, disclosed in a notice to the Pakistan Stock Exchange (PSX) on Thursday, marks a significant step in the company’s strategic restructuring.
“We are pleased to inform that the Board of Directors has approved the ‘scheme’ of amalgamation with the company’s wholly-owned subsidiary, Ultimate Whole Foods (Private) Limited,” said the notice. The company has already submitted the amalgamation application to the Securities and Exchange Commission of Pakistan (SECP) for approval, with the process officially underway. The proposed effective date for the amalgamation is June 10, 2025.
This strategic move is expected to streamline operations, improve administrative efficiency, and enhance the long-term financial and operational position of the company. At the time of filing, Chashma Sugar’s share price stood at Rs74, up by Rs4 or 5.71%, contrary to the market trend.
Chashma Sugar Mills is primarily engaged in the production, processing, and sale of sugar and related products. It also produces allied compounds and intermediates. The company operates as a subsidiary of The Premier Sugar Mills and Distillery Company Limited.
Being a significant player in Pakistan’s sugar industry for decades. Located in the fertile region of Punjab, the mill has benefited from the vast agricultural base for sugarcane production in the area. Over the years, it has expanded its operations, diversifying into related products such as ethanol.
In recent developments, Chashma Sugar announced plans to set up an ethanol manufacturing facility, further diversifying its product portfolio and tapping into the growing demand for renewable energy sources. This shift also reflects broader industry trends toward sustainability and value-added product offerings, aligning with the government’s push for renewable fuel alternatives. The merger with Ultimate Whole Foods, which focuses on food products, would open up new avenues for diversification within the company, boosting both its operational capabilities and market presence.
