Karachi: Gul Ahmed Textile Mills Limited announced on March 14, 2025, the approval by its Board of Directors for the formation of four wholly-owned subsidiaries aimed at advancing its operations in sustainable textile practices. The decision, made via board circulation on March 13, 2025, aligns with the company's strategic initiative to transition towards renewable energy sources while meeting export market demands for sustainability.
The newly formed subsidiaries will be registered as private limited companies under the Companies Act 2017. Gul Ahmed Textile Mills Limited will maintain full ownership, holding 100% of the shares. The move is part of the company's broader agenda to expand and improve its business operations in response to evolving industry demands. Each subsidiary will adhere strictly to the regulations set forth by the Securities and Exchange Commission of Pakistan (SECP) and will undertake necessary filings in accordance with the Companies Act 2017.
According to information available from the Pakistan Stock Exchange (PSX), the subsidiaries will focus on conducting textile and garment operations, incorporating sustainable practices designed to reduce dependency on fossil fuels. The company intends to complete all formalities required for the establishment of these subsidiaries, ensuring compliance with Section 96 of the Securities Act 2015 and the PSX Rule Book.
The Board resolution authorizes designated representatives, including the chief financial officer and company secretary, to execute all necessary steps for the incorporation of the subsidiaries. This includes reserving company names, preparing necessary documentation, and securing requisite approvals from regulatory bodies. The process also involves post-incorporation actions such as appointing auditors and opening bank accounts to facilitate the operational readiness of these new entities.
The strategic move by Gul Ahmed Textile Mills Limited underscores its commitment to sustainability and adaptation to the evolving textile market landscape. This initiative positions the company to leverage renewable energy and sustainable practices to enhance its market competitiveness and fulfill international market requirements.