Nishat Mills to set up company in UK

KARACHI: Nishat Mills Limited (NML), the flagship entity of the Nishat Group, has received approval from its Board of Directors to set up a private limited company in the United Kingdom (UK).

The company announced this development in a notice to the Pakistan Stock Exchange (PSX) on Monday. According to the notice, the new company will be established through Nishat International FZE, a wholly owned subsidiary based in the United Arab Emirates (UAE). The incorporation is contingent upon obtaining all necessary regulatory approvals and adhering to applicable laws.

In its latest financial update, NML reported a 51.98 per cent decline in profit after tax, which fell to Rs5.35 billion for the nine months ending in FY24. This decrease was attributed to a substantial rise in finance costs and the introduction of a higher super tax rate, compared to the same period in the previous fiscal year.

The company noted that the global economic slowdown had dampened international demand for textile products. Factors like high domestic energy costs, expensive financing, and increased government taxation have also escalated operational costs, impacting both current performance and future prospects of the textile sector.

Founded in 1951, Nishat Mills Limited is one of Pakistan’s largest vertically integrated textile companies. Its operations span spinning, weaving, printing, dyeing, bleaching, and apparel manufacturing, with products including yarn, linen, and fabrics made from both raw cotton and synthetic fibre. The company also generates and supplies electricity.