Thal Limited to invest US$16M in grain storage and milling facility in Muzaffargarh, Punjab
Thal Ltd. said high-quality storage will be used for major grains such as wheat and corn.
PAKISTAN – Thal Limited, a leading Pakistani conglomerate, has announced plans to invest US$16 million in establishing a high-quality grain storage and milling facility in Muzaffargarh, Punjab, through a wholly-owned subsidiary.
The initiative, approved by the company’s Board of Directors on September 11, 2025, aims to bolster Pakistan’s food security by providing high-quality storage and processing solutions for major grains such as wheat and corn.
The announcement was made public through a notification to the Pakistan Stock Exchange (PSX) in compliance with Section 96 and 131 of the Securities Act, 2015, and Regulation 5.6.1(a) of the PSX regulations.
Incorporated on January 31, 1966, as a public company limited, Thal Limited has established itself as a diversified industrial player in Pakistan. The company is engaged in manufacturing jute goods, engineering goods, paper sacks, and laminate sheets.
The new subsidiary, to be incorporated in Karachi under the Companies Act, 2017, as a private company limited by shares, will oversee the development of the facility. The project features advanced storage infrastructure for grains and integrated milling solutions to enhance the quality and value of processed grains, rolled out in phases, with completion expected within 20 months.
According to Thal Limited’s notification, the facility is designed to address critical gaps in Pakistan’s agricultural infrastructure, particularly in grain storage and processing.
The investment comes after Thal Limited (recently authorized continued investment support for ThalNova Power Thar (Private) Limited (TN), reaffirming its commitment to the project.
The members passed a resolution authorizing the company to provide guarantees, either in the form of standby letters of credit or otherwise, as security to financiers for an investment of up to US$23.3 million, either as a subordinated loan or equity.
This support covers any funding shortfall or cost overrun before or after the Project Completion Date until the agreed release date under the Sponsor Support Agreement (SSA), the company’s filing on PSX revealed today.
The company may also modify or issue a new standby letter of credit under the terms required by financiers, which will remain valid for up to 10 years from the date of the resolution or until the Term Loan Discharge Date for TN, whichever is later.
Further, the company reaffirmed the validity of the resolutions passed during the 2018 EOGM, authorizing standby letters of credit of up to $12.4m each for Debt Service Support (DSRA LC) and Commercial Risk Guarantee obligations.
These will continue in force for up to ten years or until the Term Loan Discharge Date, unless released earlier per the SSA.
The Chief Executive Officer, Chief Financial Officer, and Company Secretary of Thal Limited have been authorized, jointly or severally, to manage, negotiate, amend, and execute all documents and agreements related to the issuance or renewal of the standby letters of credit.
They are also empowered to take all necessary actions to fulfill these obligations.
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