Shan Foods plans up to $20m investment

September 24, 2024 (MLN): Shan Foods plans to invest up to $20 million in Pakistan's culinary and savory foods sector in partnership with German chemical company Symrise AG, Bloomberg quoted company's Co-Chairperson Sammer Sultan as saying.

The company has already spent about $2m in building a manufacturing plant in Karachi with Symrise. Sultan said that more investment will follow as two partners scale business in next one to three years.

Last week, the company inaugurated a state-of-the-art international standard production facility for its strategic partnership with Symrise, the Leading Global Taste, Nutrition & Health player, to shape the future of food innovation for consumers in Pakistan.

According to a press release, Shan Foods entered into an exclusive strategic partnership with Symrise in April 2023 to deliver savoury products for leading local and global food brands.

Designed with the purpose to develop, launch and commercialize transformational food products to cater to Pakistan’s food industry which feeds ~250 million consumers and supports a dynamic young consumer base which is rapidly urbanizing, changing key consumer behavioral trends. Convenience& authentic taste form key consumer needs.

As convenience products evolve, so too does the demand for better-for-you products, ingredients with functional benefits and provenance claims, where local sourcing takes precedence.

"The powder blending manufacturing facility at Shan Foods Headquarters underscores the partnership’s commitment to promoting locally made food solutions, reducing dependence on imported raw materials, while providing high-quality products tailored to local and global markets," the company said.

The facility is now operational and the project’s capacity will be scaled to meet the needs of the local market and export markets in the coming years.

The setup will also create sustainable employment opportunities, it added.

The establishment of the production facility is expected to cater to the multimillion-dollar savories market in Pakistan, which is seeing double digit growth.

Commenting on the inauguration of the new unit, Sultan said, “The opening of this facility represents a significant step forward in our mission to enhance local production, leverage food science technology, and support Pakistan’s economy.

"By increasing our manufacturing capabilities, we are not only reducing reliance on imports but also creating new jobs. This facility is a testament to our commitment to sustainable growth and our belief in the potential of Pakistan’s vibrant food industry.”

For the second phase of the partnership, Shan Foods and Symrise are aligned on tapping into the international markets, with a particular focus to cater to the UAE and KSA markets.

Imran Sherani, Advisor Strategy, Growth & Investment of Shan Foods, said, “Shan has invested in a research, development and application laboratory and a manufacturing facility with quality management systems in Pakistan.

"The partnership with Symrise reinforces its position as a brand that continuously explores new ideas, drives food innovation and taste development in Pakistan.”

Symrise has successfully positioned itself as the leading contributor to the evolution of the Food and Beverage industry in the Middle East & Pakistan having not only a long-standing presence in Pakistan but commitment to exploring food nutrition and health technology that supports innovative tastes, sustainable production, and local sourcing.

Commenting on the partnership, Lilian Regnier, President Food & Beverage Europe, Africa & Middle East at Symrise, said: “In the context of ensuring speed to market and proximity to our customers, Symrise has committed itself to strategic partnerships.

"Building on the strength of Symrise & Shan Foods will benefit our customers in timely and cost-efficiently delivering their winning brands to consumers. We feel very excited and proud to embark on the next phase of our business growth with Shan Foods in Pakistan.

"Our collaboration will help us further consolidate our strong foothold across Middle East & Africa. We recognize Shan Foods as a thought partner & leader in Pakistan Food Industry and look forward to a bright future together”.

As both companies work towards a common goal of transforming the food industry, they are set to become market leaders in the segment in the coming years, driving positive change and setting new standards in the industry.

Raheel Qadri, Country Head – Pakistan at Symrise, said, “The inauguration of this facility represents a new chapter in our partnership with Shan Foods and our dedication to Pakistan's food industry. This advanced facility will help us quickly bring high-quality, locally produced products to market, meeting the demand for innovation and authenticity, setting new industry standards together.”

About Shan Foods:

Shan Foods has a global presence in more than 75 countries over 5 continents, offering a wide range of products including Recipe Mixes, Plain Spices, Frozen Meals, Instant Noodles, Cooking Sauces & Pastes, Pickles, Chutneys, etc., a strong manufacturing footprint across the globe and is the market leader in Pakistan and UAE for recipe mixes.

Shan prides itself in continuously evolving and innovating as per the needs of its consumers while keeping the same authentic taste and aroma. Their state-of-the-art creation, application, sensory & manufacturing facilities deliver the taste of Pakistan across the world.

About Symrise:

Symrise is a global supplier of flavorings, fragrances, cosmetic active ingredients and raw materials, as well as functional ingredients. Its clients include manufacturers of perfumes, cosmetics, food and beverages, the pharmaceutical industry and producers of nutritional supplements and pet food.

Its sales of approximately €4.7 billion in the 2023 fiscal year make Symrise a leading global provider. Headquartered in Holzminden, Germany, the Group is represented in more than 100 locations in Europe, Africa, the Middle East, Asia, the United States and Latin America.

Symrise works with its clients to develop new ideas and market-ready concepts for products that form an indispensable part of everyday life. Economic success and corporate responsibility are inextricably linked as part of this process.

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