Key points
- Interloop diversifies exports with dairy joint venture alongside Turkey’s Rella Gida
- Company targets growing Gulf cheese and butter demand led by Saudi Arabia
- IRC Dairy plant in Faisalabad processing 120,000 litres of milk daily
ISLAMABAD: Pakistan’s Interloop Holdings, one of the country’s largest industrial conglomerates, is expanding beyond textiles into the fast-growing Gulf dairy market through a joint venture with Turkish dairy producer Rella Gida.
The venture, operated under IRC Dairy Products Ltd., aims to capture a share of the $2.3 billion cheese and butter import market across the Gulf Cooperation Council (GCC), with Saudi Arabia as its first export destination.
IRC Dairy Products Limited, a joint venture between Interloop Holdings, Turkey’s Rella Gida, and local partner Crystal, was established in 2019 to produce an export-quality mozzarella cheese, butter, and whey powder.
Musharaf Hussain, the company chairman told Arab News this week that the partnership combines Pakistan’s raw milk resources with Turkish dairy technology to produce export-grade mozzarella and butter, products in high demand across Gulf markets.
“We see the GCC’s dairy import potential as a natural opportunity for Pakistan’s agribusiness sector,” Hussain told Arab News, noting that the company expects to scale output steadily over the next three years as export channels open.
According to company disclosures, IRC Dairy, a Faisalabad-based facility, processes around 120,000 litres of milk daily, producing mozzarella cheese, butter, and whey powder for both domestic use and export.
Figures cited by TechJuice Pakistan indicate current annual production of roughly 6,000 tonnes of cheese and 1,000 tonnes of butter, with plans to expand capacity to 21,000 tonnes of cheese and 3,500 tonnes of butter by 2028. The company projects annual sales to increase from nearly Rs 10 billion (US$36 million) this fiscal year to Rs 40 billion (US$142 million) in the post-expansion.
Interloop’s management has also indicated plans to establish a production base in Saudi Arabia, through a prospective joint venture with local investors, to reduce transportation time and costs while meeting Gulf demand for fresh dairy imports.
The GCC region heavily relies on imported dairy products due to a limited domestic milk supply. Market data, cited by Arab News, show regional imports of cheese and butter in excess $2.3 billion annually, with Saudi Arabia accounting for nearly half of the total demand.
Regional momentum in dairy exports
Interloop’s foray into the Gulf’s dairy supply chain mirrors a broader trend of export diversification among Pakistani companies. Officials at the Ministry of Commerce, quoted in Profit (Pakistan Today) earlier this year, said Islamabad has encouraged Turkish and European investment in value-added dairy and food processing, aiming to move beyond the country’s traditional reliance on textile exports.
Other firms are already operating in or exploring similar markets. FrieslandCampina Engro Pakistan Limited (FCEPL) — the local arm of the Dutch dairy cooperative FrieslandCampina — has developed export partnerships across the Middle East to distribute milk-based products under its Olper’s brand. Meanwhile, Haleeb Foods and Millac Foods have pursued technical collaborations with international cheese producers to expand capacity and explore niche export opportunities.
Turkish dairy exporters such as Pınar, Sütaş, and Torku also maintain strong distribution networks across the Gulf, offering labneh, mozzarella, and other value-added dairy products. Interloop’s Turkish partner, Rella Gida, is part of this ecosystem and has a long-standing experience in supplying Gulf retailers and food-service chains.
Challenges and outlook
Analysts say that the partnership gives Interloop a strategic entry point into regional value chains, though several barriers remain. These include certification requirements, cold-chain logistics, and competition from established multinational suppliers such as Lactalis, Arla, and Fonterra, which dominate the GCC’s premium dairy segment.
Interloop’s chairman said the company expects to overcome such challenges through technical support from Rella Gida and possible equity participation from Saudi investors to build a regional base. “We are committed to developing an integrated dairy export platform that connects Pakistan’s farm potential with Gulf demand,” Hussain told Arab News.
Founded in 1992, Interloop is best known as one of the world’s largest hosiery manufacturers, producing for brands including Nike, Adidas, and Zara. The group has diversified in recent years into renewable energy, logistics, and dairy, positioning itself as one of Pakistan’s most vertically integrated exporters.
