MATCO Rice

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Matco Rice Processing (PVT) Ltd. is a private-family owned limited company engaged in rice processing and export business. The Company was founded in 1964 as a trading company and supplier of machinery to the Government of Pakistan (GoP). In 1990, GoP allowed the private sector to export rice, and Matco established Pakistan’s first fully automated, modern rice processing plant supplied by Satake Corporation of Japan to produce and export well cleaned, graded and textured “Basmati”’ and “IRRI” rice. Almost 95% of the company’s products are exported to over 40 countries. The Company has three rice processing plants, two in Karachi (Matco 1 & Matco 2) and one in Sadhoke. Rice is procured from Punjab and Sindh provinces and stored in warehouses in Karachi and Lahore. The production activity in Karachi comprises mainly of re-processing include polishing, length grading, color sorting, and packing lines of 5 and 25 tons per hour (tph) capacity respectively whereas Sadhoke has paddy drying, storage and milling processing line of 10 tph capacity. Matco is undertaking a US$17.8 million investment program to (i) construct a 45,000 metric tons (“MT”) per annum modern rice paddy drying, husking and parboiling plant at Sadhoke, Punjab; (ii) build up 12 silos with 30,000 MT storage capacity in Sadhoke; and (iii) fund additional working capital requirements. The Company has already commissioned a 22,500 MT capacity (of the 45,000 MT plant capacity) production line of the drying, husking and parboiling plant and has installed 3 (of 12) silos for paddy storage (Phase I) in the Sadhoke plant. The Project is expected to be financed by US$8.3 million of long term debt, US$4.7 million of cash generation and US$4.8 million of IFC equity which is required to finance the remaining silos construction and some of the permanent working capital requirements. For Further information about IFC financing of this project, please refer to the Summary of Proposed Investment (SPI) published on IFC website.