Interloop, Turkish Partner Rella Gıda To Set Up $55M Dairy Plant In Faisalabad
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✧ GENERATE BRIEFING
Interloop Holdings (Pvt) Limited, the parent group of textile giant Interloop Limited (PSX: ILP), announced on Thursday, October 22, 2026, a $55 million (approx. Rs15 billion) investment to construct a state-of-the-art dairy-processing plant in Faisalabad, Punjab. Executed through its newly incorporated subsidiary, IL Foods Limited, in a joint venture with Turkish dairy company Rella Gıda, the project marks a significant step toward industrial diversification, import substitution, and value-added food exports.Key operational targets, product lines, and project timelines include:Product Slate & High-Value Protein Production: The Faisalabad processing hub will produce premium cheeses, butter, and Whey Protein Concentrate 80% (WPC80)—a high-protein ingredient widely utilized in commercial food processing, pharmaceutical applications, and sports nutrition.Capacity Expansion & Export Targets: The investment will expand Interloop’s aggregate milk-processing capacity to 180 million liters per year. A primary strategic objective is exporting processed dairy and WPC80 to regional markets, supplementing Pakistan's non-traditional export earnings.
Interloop Holdings plans to invest $55 million, equivalent to approximately Rs15 billion, in a new dairy-processing plant in Faisalabad, as the Pakistani business group expands its value-added dairy operations and targets export markets.
The investment will be made through IL Foods Limited, a newly incorporated company of Interloop, in partnership with Türkiye-based dairy company Rella Gıda, Interloop Holdings Chairman Musadaq Zulqarnain said on Thursday.
Advanced Product Line and High-Protein WPC80
The proposed facility will manufacture a range of cheese and butter products, along with whey protein concentrate containing 80% protein, commonly known as WPC80. The product is heavily imported across South Asia for use in specialized food manufacturing, nutritional formulations, and commercial bakery products.
According to Zulqarnain, the company intends to export a significant portion of the plant’s production, boosting Pakistan’s value-added export basket. The project reflects Interloop’s broader corporate strategy to diversify its revenue streams beyond traditional textiles and expand its footprint in high-margin food processing.
| Key Project Metric | Specification / Benchmark |
| Total Project Capital Expenditure | $55 Million (~Rs15 Billion) |
| Corporate Entity | IL Foods Limited (Interloop Group) |
| Joint Venture Partner | Rella Gıda (Türkiye) |
| Plant Location | Faisalabad, Punjab |
| Targeted Annual Processing Capacity | 180 Million Liters |
| Commercial Launch Timeline | 18 Months (Q1/Q2 2028) |
Operational Timeline and Import Substitution
Speaking to Business Recorder, Interloop Limited Chief Financial Officer Hamza Gillani said commercial production at the Faisalabad facility is expected to begin in approximately 18 months following site construction and equipment installation.
Once the new facility is fully operational, Interloop’s combined annual milk-processing capacity is projected to reach 180 million litres. The company has identified value addition, technological advancement, and domestic import substitution among the primary objectives of the capital commitment.
Sector Dynamics and Strategic Diversification
The partnership builds on Interloop’s established involvement in dairy processing through its commercial association with Rella Gıda. The group’s existing dairy arm supplies commercial B2B clients and retail channels across domestic and international markets.
The investment comes as Pakistan’s agricultural and livestock sectors work to expand processing infrastructure, transitioning from raw milk sales to high-value industrial dairy derivatives. Processing raw milk into aged cheeses, butter, and specialized whey proteins allows local producers to capture higher margins across global food supply chains.
The Faisalabad project marks a key milestone in Interloop’s long-term portfolio diversification, positioning dairy processing as a core pillar of group growth alongside its core textile manufacturing operations.
