October 28, 2020 (MLN): The Organic Meat Company (TOMC), on Wednesday has updated Exchange regarding the progress of its ongoing projects.
The Company informed that following the installation of an additional chilling capacity of 30MT per day at the GADAP factory during the quarter which became operational subsequent to quarter end, it has now a total installed chilling capacity of 90 MT per day.
The Company also completed acquisition of another 4 acres of land adjacent to the GADAP factory for the purpose of animal fattening to secure its supply chain, stabilize raw material and hopefully increase margins. Basic land raising works have begun and the next steps will be construction which includes a boundary wall, feed storage area, labor residing areas, septic tank, erection and installation of feed mills etc., and it is planned that a total of 5 x 2 animal holding sheds will be erected to hold 3,000 cattle for fattening purposes – a one of its kind set up in Pakistan.
Target completion date for the project is within 4Q FY21. It was envisioned that the cost of the project would be approximately Rs 350M and thus far the company is well within the estimates.
With regards to setting up a factory to process red and white offals, the Company informed that it had communicated a plan to acquire a 1,000 sq. yards land in Korangi Industrial Area and build a unit of 10,000 sq. feet, with a completion and operational start up time of 18 months.
The Company was presented with an opportunity to acquire a reasonably purposeful built-up factory on 1,057 sq. yards with 18,000 sq. feet of construction having the required industrial gas and electricity connection, and during the quarter we proceeded to make a down payment to acquire it pending a clean title.
The Company further reported that it has just been given indication that the transaction will head towards completion in November 2020. Acquisition and transfer of a purposeful factory with higher square footage will result in slightly higher costs, however it may yield considerable savings in time for operations commence.
The next step is to install the required cold chain management equipment for processing of offals and making the factory operational, revealed company’s notice to Exchange.
As per the notification, Company did venture in online qurbani through its Meat Master brand and will likely to do so in future as well, the possibility of entering the local retail market is still under discussion at the Board and will require proper feasibilities before proceeding.
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