Karachi: In a significant expansion strategy, UDL International Limited (UDLI) is branching into the skincare and fast-food industries, according to its latest annual report. The decision comes as part of a broader restructuring following the merger with First UDL Modaraba, marking a pivot towards consumer goods and services.

The company concluded the merger on April 23, 2024, positioning itself in a financially stable phase amidst Pakistan's improving economic landscape, featuring a stable rupee and single-digit inflation rates. According to information available from the Pakistan Stock Exchange (PSX), UDLI's strategic shift aims to capitalize on market opportunities by diversifying its product offerings beyond its traditional Islamic financial services, which will continue under its wholly-owned subsidiary, UDL Financial Services Limited.

Despite a financial setback post-merger, where UDLI reported a net loss of Rs. 8.64 million for the year ending June 30, 2024, due to merger-related expenses and listing fees, the company is optimistic about its future. The net loss was slightly cushioned by the subsidiary's lending business contributing Rs. 12.21 million in total income.

The newly launched ventures into skincare and fast food are expected to begin operations by the third or fourth quarter of the financial year 2024-25. While the skincare venture is in advanced stages of planning, aiming to develop a unique brand identity, the fast-food business is still in its conceptual phase.

Moreover, UDLI's board has actively pursued compliance with corporate governance standards, emphasizing ethical business practices and strategic decision-making to ensure robust management and operational efficiency.

This pivot to consumer-oriented businesses is seen as a strategic move to mitigate the inherent risks in financial services and to leverage on Pakistan’s growing FMCG sector. UDLI aims to establish a strong foothold in these new sectors, reflecting its commitment to innovation and quality, which are expected to drive future revenue growth and shareholder value.