Karachi October 2 2022: Unity Foods Limited (UNITY) is in the process of carrying out due diligence of site identified for establishment of Oil Terminal, according to the information provided by the company.
The company is trying to remain within laid down expansion plan budget, despite significant price hike in cost of land and construction.
“Setting up of oil Terminal project is expected to take further time of almost one year.” says company Chairman Sulaiman Sadruddin Mehdi.
This expansion will fit well with the future strategy of the company and will allow it to be a cost efficient national edible oil and staple food processor.
The company completed Port Qasim Refinery Acquisition in 2019. The work on the stipulated projects remained slow due to the impact of last wave of COVID-19 which has slowed down construction/manufacturing activities. However, the additions to refinery are almost complete.
Unity has so far utilized PKR 2,752 million from proceeds of PKR 3,750 million raised through right issuance for establishment of edible oil refinery at Port Qasim and edible oil terminal.
Company has spent an amount of PKR 2,752 million on establishment of Refinery out of total allocation of PKR 2,850 million from right issuance.
However, funds of PKR 900 million allocated for establishment of oil terminal still remained unutilized.
Unity Foods Limited announced its Right Issue @221.83% on February 19, 2019. The issue comprised 375 million shares at face value of PKR 10 each amounting to PKR 3,750,000,000.
The Right Issue was successfully closed as per approved schedule of Pakistan Stock Exchange Limited.
About the Company
Unity Foods Limited was incorporated in Pakistan in 1991 as a Private Limited Company under the Companies Ordinance, 1984 (now Companies Act, 2017) and subsequently converted into a Public Limited Company on June 16, 1991. The principal business activity of the Company has been changed from yarn manufacturing to edible oil extraction, refining and related businesses.
