Interloop Announces Rs. 15 Billion Dairy Processing Plant in Pakistan
Interloop is planning a major expansion into Pakistan’s dairy processing industry with a proposed investment of US$55 million, equivalent to approximately Rs. 15 billion, in a new manufacturing facility for dairy products and high-value protein ingredients.
The project will be developed through IL Foods Limited, a subsidiary of Interloop, in partnership with Türkiye-based Rella Gida. According to the announcement reported by ProPakistani on October 22, 2026, the facility will produce cheese, butter and whey protein concentrate for domestic and potentially international markets.
Once commissioned, the new plant is expected to raise Interloop’s combined annual milk-processing capacity to 180 million litres, strengthening the company’s position in Pakistan’s value-added dairy sector.
What Will the New Dairy Plant Produce?
The planned facility will manufacture several dairy products, including specialised ingredients used in food processing and nutrition products.
Its expected product range includes:
- Cheese: Processed dairy products for domestic consumption and potential export markets.
- Butter: A dairy product used by households, restaurants and food manufacturers.
- Whey Protein Concentrate 80 (WPC80): A concentrated protein ingredient used in nutrition products and various food applications.
WPC80 is particularly significant because it is a higher-value ingredient compared with conventional raw milk. It can be used in protein-rich food formulations, sports nutrition products and other specialised food applications.
Producing such ingredients locally could help Pakistan develop more advanced dairy-processing capabilities instead of relying entirely on imported specialised products.
Rs. 15 Billion Investment at a Glance
| Project detail | Information |
|---|---|
| Announced investment | US$55 million |
| Approximate rupee value | Rs. 15 billion |
| Company developing the project | IL Foods Limited |
| Parent group | Interloop |
| Turkish partner | Rella Gida |
| Planned products | Cheese, butter and WPC80 |
| Expected combined annual milk-processing capacity | 180 million litres after commissioning |
| Export strategy | Part of the production is intended for export |
The investment amount is the announced project value. It should not be interpreted as money already spent or as confirmation that the plant has begun commercial production.
How the Plant Could Strengthen Pakistan’s Dairy Industry
Pakistan has a substantial livestock and dairy sector, but converting raw milk into specialised, higher-value products remains an important opportunity for industrial development.
Investment in modern processing facilities can help companies move beyond the sale of basic dairy products into categories with more specialised manufacturing requirements.
The Interloop project could support this transition in several ways.
Greater value addition
Cheese, butter and concentrated protein ingredients can serve different customer segments and provide manufacturers with opportunities to diversify their product portfolios.
Whey protein concentrate is particularly relevant because it has applications in specialised food manufacturing and nutrition products. Developing domestic production capabilities could create opportunities for local processors to participate in these higher-value markets.
Potential reduction in import dependence
If locally manufactured products can meet domestic quality and pricing requirements, they could replace some imported dairy ingredients.
The extent of any import substitution will depend on the plant’s final product mix, production costs, quality standards and the ability of local manufacturers to compete with imported alternatives.
Export opportunities
Interloop plans to export part of the facility’s production. Value-added dairy products could therefore become another avenue for Pakistan to expand its manufactured food exports.
However, export performance will depend on factors such as international demand, product certification, food safety standards, logistics and the company’s ability to establish customers in overseas markets.
Why the Partnership With Rella Gida Matters
The project brings together Interloop’s Pakistani business operations and Türkiye-based Rella Gida, a company associated with dairy processing.
Such partnerships can provide a route for businesses to combine investment, manufacturing capabilities and market experience. The exact allocation of responsibilities between the two partners, however, has not been fully detailed in the announcement.
The project’s ultimate performance will depend on its design, implementation, operating efficiency and ability to sell its products profitably.
Interloop’s Expansion Beyond Textiles
Interloop Limited, founded in Faisalabad in 1992, is widely known for its textile and apparel manufacturing operations. Its products include socks, tights, denim, knitted apparel, seamless activewear and yarn supplied to international brands and retailers.
The group’s dairy-related activities represent a diversification into another manufacturing sector.
Interloop Dairies says its existing corporate dairy operation covers 160 acres, houses more than 10,000 head of livestock and has annual raw-milk production capacity of 50 million litres.
The proposed processing investment would expand the group’s downstream capabilities. Raw-milk production and milk-processing capacity are different measures, so the existing farm’s annual output should not be directly compared with the projected 180 million litres of combined processing capacity as if both represented the same activity.
What the Investment Could Mean for Pakistan
The planned plant represents a potential addition to Pakistan’s food-processing infrastructure and could create opportunities across dairy manufacturing and related supply chains.
Its broader economic contribution will depend on the extent to which the project generates local value addition, replaces imported ingredients, develops export sales and creates employment.
The announcement does not yet establish the plant’s construction timeline, exact location, expected employment figures or projected annual revenue. These details would be needed to assess the project’s full economic impact.
What Happens Next?
The next important milestones will be the development and commissioning of the facility, confirmation of its operating schedule and the start of commercial production.
The company’s ability to reach its targeted combined processing capacity of 180 million litres annually will also be an important indicator of the project’s progress.
For Pakistan’s dairy industry, the investment highlights the potential to move further into specialised processing and value-added food products. Whether that potential translates into stronger exports and reduced import dependence will become clearer once the plant begins operating.
Editorial note: The investment amount and production plans are based on the company announcement as reported by ProPakistani on October 22, 2026. The 180-million-litre figure refers to projected combined annual milk-processing capacity after commissioning, not confirmed current production.