Nishat Mills To Divest 49.1% Stake In Nishat Sutas Dairy To Turkish Partner.
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✧ GENERATE BRIEFING
Nishat Mills Limited (NML) announced plans to divest its entire 49.1% equity stake in Nishat Sutas Dairy Limited (NSDL) to its joint venture partner, Sütaş Süt Ürünleri A.Ş., for PKR 5 per share. The transaction was approved by NML’s Board of Directors and disclosed to the Pakistan Stock Exchange (PSX) on Wednesday, August 19, 2026. Board leadership cited adverse market dynamics, regulatory hurdles, and sustained operational pressures within Pakistan’s formal dairy sector as primary drivers behind the exit. The divestment reverses NML’s previous expansion strategy, which included an authorized PKR 5 billion investment pipeline with PKR 3.9 billion deployed through June 2025. Sütaş, a major Turkish dairy manufacturer, will acquire full operational ownership, maintaining its foreign direct investment presence in Pakistan's dairy farming and processing market subject to final shareholder, corporate, and regulatory approvals.
Nishat Mills Limited (NML) has decided to divest its entire 49.1% stake in Nishat Sutas Dairy Limited (NSDL) to its Turkish joint venture partner, Sütaş Süt Ürünleri A.Ş., citing challenging market and regulatory conditions in Pakistan’s dairy sector.
The decision was approved by NML’s Board of Directors and disclosed in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.
Under the proposed transaction, Nishat Mills will sell its entire shareholding in NSDL to Sütaş at a proposed price of Rs5 per share. The transaction remains subject to shareholder approval, completion of definitive agreements and other required legal and regulatory formalities.
Nishat Mills said the decision was taken after considering prevailing market and regulatory conditions affecting the dairy industry, which have placed financial pressure on the venture.
Sütaş, a leading Turkish dairy company and Nishat Mills’ joint venture partner, has expressed its willingness to acquire the stake and continue operating Nishat Sutas Dairy.
The proposed divestment marks a strategic shift for Nishat Mills, which had previously planned to expand its investment in the dairy business. In November 2025, the company had approved investment of up to Rs5 billion in Nishat Sutas Dairy, with Rs3.9 billion already invested as of June 2025.
The company said the transaction is expected to encourage the continued participation of foreign investors in Pakistan’s economy, while allowing Sütaş to continue its involvement in the Pakistani dairy sector.
Nishat Sutas Dairy was established as a joint venture between Nishat Agriculture Farming and Sütaş to develop dairy farming and related milk and dairy-product operations in Pakistan.
The completion of the proposed sale will depend on the fulfilment of the applicable corporate, legal and regulatory requirements.
