Pakistani conglomerate Interloop Holdings, a major supplier of textile products to global brands, is expanding into the dairy sector with plans to export premium mozzarella cheese to Gulf countries through a joint venture (JV) in Turkiye, the group’s chairman said, according to a report by Arab News.
Interloop, known for producing socks and leggings for brands including Nike, Adidas, Puma, Target, H&M, Marks & Spencer, and Zara, operates textile and apparel units across Pakistan, China, Sri Lanka, and Bangladesh.
Its dairy arm, IRC Dairy Products Ltd, along with Turkish partner Rella Gida, processes 120,000 liters of milk daily to produce mozzarella cheese and butter for clients in Pakistan, Eurasia, and the Far East.
Chairman Musadaq Zulqarnain told Arab News that he will travel to Turkiye this month to discuss exporting to the Gulf Cooperation Council (GCC), a market spending more than $2 billion annually on cheese and butter.
In 2024, GCC countries imported $2.3 billion in these products, with Saudi Arabia alone accounting for $980 million. Zulqarnain said IRC Dairy aims to produce 7–8% of the cheese imported by GCC countries.
IRC Dairy currently generates nearly 10% of its revenue from exports, with projected sales of Rs10 billion ($36 million) this fiscal year, expected to rise to Rs40 billion ($142 million) after expansion. Annual production of cheese, butter, and whey powder is set to increase from 6,000, 1,000, and 2,400 tons to 21,000, 3,500, and 8,400 tons by 2028.
Zulqarnain also highlighted potential plans to establish a dairy plant in Saudi Arabia through a joint venture with local investors, citing growing demand. IRC Dairy CEO Matloob Hussain noted Pakistan’s geographical proximity to the Gulf provides a logistical advantage, reducing shipping lead times compared to Western competitors.
Interloop is diversifying further into logistics and IT services, with a sister company active in the UAE and exploring partnerships in Saudi Arabia to provide AI, cloud services, and software solutions. The group also intends to raise funds through the Pakistan stock exchange to finance expansion of its dairy business.
The announcement comes amid challenges for Pakistan’s economy, including a widening trade deficit. Recent data shows exports fell 12% year-on-year to $2.5 billion, while imports rose 14%, widening the trade gap by 46% to $3.3 billion in the July–September quarter. Food exports, accounting for 23% of total exports, dropped 3% to $7.1 billion last year.
Zulqarnain cited structural issues, high energy and labor costs, global trade uncertainty, and a 40% taxation rate as key hurdles for business, but remained confident that with the right Gulf partners and strengthened defense and economic cooperation with Saudi Arabia, IRC Dairy could expand successfully in the region.
