UNITY to invest further Rs1.9bn in Sunridge Foods

December 06, 2022 (MLN): The board of directors of Unity Foods on Monday approved a further equity investment of Rs1.9 billion in Sunridge Foods (Private) Limited by way of subscribing 44.44 million right shares at Rs45 per share, the company filing on PSX showed today. 

This investment is being funded through Unity Food's retained earnings, with a vision of long-term growth.

Meanwhile, it will also allow Sunridge Foods to complete the acquisition of assets of Uni-Food Industries Limited and a Rice and Flour Mill at Jaranwala Road, District Sheikhupura; thus, enhancing its production capacity, reducing distribution costs for sales in the Central and Northern parts of the country and also a step towards forward integration utilizing own produce.

This will also result in Sunridge entering into the "value-added" space, thus helping the company in increasing its product pallet as well as improving its profit margins going forward.

Sunridge Foods will be able to offer a comprehensive basket of staples to its customers with the addition of rice products. 

At present, UNITY owns 100% shares of Sunridge Foods Limited.

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