Interloop to invest $55 million in Faisalabad dairy plant for cheese, butter and whey with Turkey's Rella
The new IL Foods plant will take the group's milk processing to 180 million litres a year, with production due in about 18 months.
Interloop Holdings, the Faisalabad group best known for making socks and denim for global brands, will invest $55 million (about Rs 15.2 billion at today's interbank rate of Rs 276.86) in a new dairy-processing plant in Faisalabad, with Turkish dairy company Rella Gıda as its partner. Business Recorder reported the plan on Thursday, 22 October 2026.
What the Faisalabad plant will make
The investment goes through IL Foods Limited, a company Interloop has newly incorporated for the dairy business. The plant will produce:
- a range of cheeses;
- butter;
- whey protein concentrate (WPC80), the high-protein powder used in sports nutrition and food manufacturing, which Pakistan now largely imports.
Part of the output is meant for export.
How big it is
Interloop chairman Musadaq Zulqarnain said that once the new facility is commissioned, the group's combined milk-processing capacity will reach 180 million litres a year. That is roughly 490,000 litres a day, the milk of tens of thousands of dairy animals, which matters in a district where most milk still comes from small farmers selling through middlemen.
Chief financial officer Hamza Gillani said commercial production should start in about a year and a half, which puts the opening around spring 2028.
"This investment reflects our continued commitment to value addition," Zulqarnain said, as reported by Business Recorder.
Why it matters for Pakistan
Pakistan is one of the world's largest milk producers by volume, yet it imports cheese, butter and whey because so little raw milk is processed. Only a small share of milk reaches formal plants; most is sold loose. A large processor buying in Faisalabad gives farmers in the surrounding districts (Jhang, Toba Tek Singh, Chiniot) another buyer that pays by quality, and turns milk into products that can be sold abroad for dollars.
For Interloop, it is a step away from textiles at a time when exporters face high energy costs and slower orders. The group has not said what share Rella Gıda will hold, or where in Faisalabad the plant will stand.
What to watch
- The site and the land deal, which Interloop has not yet disclosed.
- Any filing by Interloop Limited to the Pakistan Stock Exchange, if the listed company takes part.
- Milk procurement prices in Faisalabad once the plant starts buying.
Follow the rupee on our USD to PKR page, convert any dollar figure with the currency converter, and find dairy and food businesses in the city in our Faisalabad directory.
Frequently asked questions
- How much is Interloop investing in dairy?
- $55 million, about Rs 15.2 billion, in a dairy-processing plant in Faisalabad through IL Foods Limited, with Turkey's Rella Gida as partner.
- When will the Interloop dairy plant start production?
- Interloop's CFO said commercial production should begin in about 1.5 years from October 2026.
Sources
- Pakistan's Interloop to invest $55mn in dairy-processing plant: Business Recorder
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