FAISALABAD, Pakistan — 25 October 2026: A proposed $55 million dairy-processing investment in Faisalabad is set to expand Pakistan’s capacity to manufacture higher-value dairy products, following plans announced by Interloop Holdings in partnership with Türkiye-based Rella Gida.
The project will be developed through IL Foods Limited, a newly established Interloop entity. The planned facility is expected to manufacture cheese, butter and whey protein concentrate, including the high-protein WPC80 ingredient used in specialised nutrition, food manufacturing and protein-based formulations.
According to the project announcement, the facility will bring the partners’ combined annual milk-processing capacity to approximately 180 million litres once operational. The commercial production was expected to begin in around 18 months. The project should therefore be understood as a planned investment, not an operational plant or completed production expansion.
Value Addition Beyond Liquid Milk
The investment highlights an important opportunity for Pakistan’s dairy industry: converting raw milk into products with a broader range of applications and potentially greater value per unit of milk processed.
Cheese and butter serve retail, food-service and industrial customers, while whey protein concentrate can support food and nutrition applications. Whey is generated during cheese production; its commercial value depends on effective collection, processing, product quality and access to customers.
The project’s stated export ambitions could create an additional outlet for Pakistani dairy products. However, actual export volumes will depend on commissioning, production economics, regulatory compliance in destination markets and the competitiveness of the finished products.
What the Investment Means for the Dairy Supply Chain
A modern processing facility can increase demand for consistent milk supplies and strengthen incentives for quality-based procurement. It may also create opportunities for cold-chain operators, dairy ingredient suppliers, packaging companies and food manufacturers.
For dairy processors, the economics will depend on milk procurement costs, plant utilisation, energy and refrigeration expenses, yields, product mix and market demand. Whey protein concentrate in particular requires appropriate processing capability and reliable quality controls.
The investment is also relevant to South Asian dairy markets, where growing demand for protein-rich foods and value-added dairy products is encouraging manufacturers to move beyond conventional liquid milk.
Outlook
The proposed Faisalabad facility represents a significant planned investment in Pakistan’s dairy value chain. Its long-term impact will depend on execution, commissioning timelines, the ability to secure adequate milk volumes and the partners’ success in developing domestic and export markets.
