Imperial Limited’s Hydroponics Project set for harvest in 4 months

January 13, 2025 (MLN): Imperial Limited (PSX: IML) is progressing with its Hydroponics Project, with seeding operations scheduled to begin in February and the first harvest of iceberg lettuce, capsicum, and tomatoes expected within four months.

These strides were discussed during the company’s Analyst Briefing today, where the management highlighted the progress of the project, situated on an 8-acre hydroponics greenhouse.

Four acres of the greenhouse are still under construction, with 90% of the work nearing completion.

To secure a foothold in the market, IML has initiated a trial partnership with McDonald’s for the supply of iceberg lettuce.

Currently, McDonald's relies on imports due to the scarcity of locally produced lettuce in Pakistan.

However, delays in project completion have occurred, partly due to challenges in ensuring the security of Chinese experts, as directed by the government of Pakistan.

The company’s commitment to infrastructure development is evident in its construction of a housing colony for staff at the greenhouse site.

However, plans for further expansion have faced hurdles. The sale of land valued at Rs11-12 billion remains stalled, and the construction of housing units has been delayed due to a lack of buyers in the current market.

During the Annual General Meeting (AGM) on October 28, 2023, shareholders approved the disposal of IML’s remaining composite sugar manufacturing facility in Phalia.

“However, the sugar unit, which has been up for sale for an extended period, has not yet attracted any buyers”, the management said.

These delays have affected the company’s ability to streamline its operations and reallocate resources more efficiently.

“Due to the delays in the project completion, the financial position remains unchanged from the previous year”, the management stated.

Despite these obstacles, IML operates with zero liabilities and a robust equity base of Rs10.10bn.

Efforts to address the challenges in the hydroponics initiative, asset disposals, and market expansion are ongoing, with board meetings scheduled next week to address pending first-quarter results.

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